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"Voltas Limited Conference Call October 27, 2010

MODERATORS: MR. SHREEGOPAL JAJU MR. M. M MIYAJIWALA MR. UTSAV SHAH MR. B. N GARUDACHAR

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Voltas Limited October 27, 2010

Moderator:

Ladies and gentlemen, good day and welcome to the Voltas 2Q FY 11 Results Conference Call, hosted by B&K 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 at the end of todays presentation. If you should need assistance during the conference, please signal an operator by pressing * and 0 on your touchtone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Shreegopal Jaju. Thank you and over to you Sir.

Shreegopal Jaju:

Good Afternoon everybody. I would like to welcome Mr. Miyajiwala, Mr. Garudachar, and Mr. Utsav for 2Q FY 11 post result conference call. I would to request Mr. Miyajiwala to give a brief overview on the results followed by Q&A. Over to you Sir.

B. N Garudachar:

Good afternoon. This is Garudachar from Voltas. Let me first welcome you to the Voltas conference call to discuss the second quarter results of this year. We have with us as Jaju rightly said Executive Vice President Finance, Mr. Miyajiwala, Mr. Utsav Shah CFO, Central SMC and service. Now let me start the discussion rolling by requesting Utsav Shah to give you a brief analysis of the results.

Utsav Shah:

We present the results for the quarter ended 30th September, 2010.

Turnover of the Company for the quarter was marginally lower at Rs. 1064 crores against Rs. 1089 crores in the same quarter last year. However, on a half-yearly basis, the turnover stands at Rs. 2467 crores against Rs. 2314 crores last year, an increase of 7%. Margins are at 10% and amount to Rs. 118 crores against the previous years Rs. 133 crores. Profit after tax (after minority interest) for the quarter stands at Rs. 92 crores, against Rs. 90 crores earned last year. For the half year, PAT is Rs. 186 crores against Rs. 169 crores in the previous year. During the quarter, the Company earned Rs. 18 crores in Exceptional Income relating to disposal of part of the surplus property. As explained below, the profits for Segment A Electro-Mechanical Projects and Services were much lower at Rs. 58 crores compared to Rs. 90 crores in the same quarter last year. This reduction in profitability is due to the factors described below, some of these being of a non-operational/non-recurring nature. These are further explained under 'segment results': Exchange loss during the quarter of Rs. 9 crores (total for the Company around Rs. 13 crores) Formation-related costs for new Joint Venture Companies Rs. 4 crores Fall in profitability of the international subsidiaries and joint ventures Rs. 4 crores Adjustment relating to prior periods in the profits of one of the subsidiaries arising out of complete review and detailed audit over Rs. 10 crores Slow movement of jobs in Domestic Projects business, and change in internal policy for compulsory provision against receivables of over 2 years, resulting in lower profits compared to the same period last year by Rs. 5 crores. Performance of Segment B and C have improved significantly. Some highlights for the quarter are as under: Net Turnover and Other Income of the Company for the quarter is Rs. 1065 crores or US$ 240 million @ Rs. 44.40 (the rate was Rs. 46.65 = US$1 per end of June 2010) Operating Profit of Rs. 118 crores, or US$ 27 million Net Worth is at Rs. 1270 crores, or US$ 286 million Market Cap of Rs. 6826 crores, or US$ 1.5 billion. Some highlights for the half year are as under: Turnover and Other Income of the Company for the half year is Rs. 2473 crores or US$ 557 million @ Rs. 44.40 = US$ 1 Operating Profit of Rs. 255 crores, or US$ 57 million

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Voltas Limited October 27, 2010

Consolidated results include Voltas stand-alone results and the results of the following Subsidiaries and Joint Ventures: Subsidiaries: Segment A Weathermaker Ltd. a company manufacturing ducts and allied products, based in Jebel Ali Free Trade Zone, Dubai, Isle of Man, UAE. (100%) Rohini Industrial Electricals Ltd. an electrical contracting company based in Mumbai, India (83.67%) Saudi Ensas Company for Engineering Services WLL an MEP contracting company based in Jeddah, Saudi Arabia (100%) Segment C Universal Comfort Products Ltd. a company manufacturing unitary air-conditioners, both window and split units, with manufacturing facility based in Pant Nagar, India (100%) Others Simto Investment Company an investment company based in India (95.57%) Unallocated VIL Overseas Enterprises B. V. an Investment arm of the Company based in Netherlands (100%) Voice Antilles N. V. an Investment arm of the Company based in Antilles, Netherlands, which is under closure (100%)

Joint Ventures Segment A Universal Voltas LLC a MEP contracting company based in Abu Dhabi, UAE (49%) Universal Weathermaker Factory LLC a Duct manufacturing company based in Abu Dhabi, UAE (49%) Naba Diganta Water Management Ltd., - a company in water supply business based in Kolkata, India (26%) Others Lalbuksh Voltas Engineering Services & Trading LLC a contracting company based in Muscat, Oman (49%)

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Voltas Limited October 27, 2010

A summary of the Consolidated and Stand-alone Results is as under:

H ig h lig h ts o f V o lta s C o n s o lid a ted re s u lts

fo r q u a rte r a n d h a lf ye a r e n de d o n 3 0 th S e p te m be r, 2 0 1 0

Q u a rte r PY CY
Inc r e a s e in TO EBIT DA M a r gin Inc r e a s e in P r ofit be fo r e Ex c e ptiona l Ite m s Inc r e a s e in P BT Inc r e a s e in P AT Inc r e a s e in P r ofit a fte r M in or ity In te r e s t a n d S h a r e o f P r ofit of As s oc ia te Ta x a tio n a s p e r c e nta g e o f P BT P o s itive EV A EP S (Re .) EP S be for e Ex c e ptiona l ite m s ne t of ta x (Re .) -2 % 1 2 .3 % -1 2 % 2% -2 % 2% 33% 17% 2 .7 9 2 .4 3 24% 0 .0 7 11% 1 3 .1 % 52% 47% 50% 48% 31% 24% 2 .7 3 2 .7 3 39% 0 .1 0

C u m u la tiv e PY CY
7% 1 1 .8 % 3% 8% 7% 10% 32% 17% 5 .6 1 5 .2 7 27% 0 .0 7 14% 1 1 .8 % 29% 17% 18% 17% 32% 24% 5 .1 2 5 .0 6 36% 0 .1 0

Re tur n on Ne t W or th (w /o Ex c e p tion a l Ite m s ) De bt / Equity r a tio

H ighligh ts of V olta s S tand alone re sults

fo r q u a rte r an d ha lf ye ar en de d o n 3 0 th S ep tem be r, 201 0

Qu a rte r CY PY
Inc re a s e in TO EBITDA M a rgin Inc re a s e in P rofit be fore Ex c e ptiona l Ite m s Inc re a s e in P BT Inc re a s e in P AT Ta x a tion a s pe rc e nta ge of P BT P os itive EV A EP S (Re .) EP S be fore Ex c e ptiona l ite m s ne t of ta x (Re .) Turnove r pe r Rupe e of Em ploye e Cos t (Rs .) - Dom e s tic - Inte rna tiona l Re turn on Ne t W orth (w /o Ex c e ptiona l Ite m s ) De bt / Equity ra tio 1 7 /5 /28% 0 .0 5 1 5 /5 /37% 0 .0 7 8% 1 2 .8 % 5% 20% 21% 32% 19% 2 .9 6 2 .5 9 7% 1 2 .8 % 35% 31% 30% 33% 24% 2 .4 3 2 .4 4

C u m u la tiv e CY PY
14% 1 1 .7 % 10% 17% 18% 32% 19% 5 .5 2 5 .1 6 11% 1 1 .5 % 19% 6% 5% 33% 24% 4 .6 6 4 .6 1

1 9 /5 /29% 0 .0 5

1 6 /5 /35% 0 .0 7

EBITDA margins for the quarter at 12.3% are better compared to the previous year, with better margins in Engineering and Unitary Cooling Product businesses. Electro-Mechanical business, the core business of the Company, comprises 66% of the total turnover. About 53% of turnover of this segment has come from International Operations.

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Voltas Limited October 27, 2010

PBT before exceptional items has de-grown by 12% and PAT (after minority interest) has grown by 2% over the same period last year. EPS (not annualized) stands at Rs. 2.79 compared to Rs. 2.73 on face value of Re. 1 per share. Consolidated Debt:Equity ratio stands at 0.07:1. The borrowings stand at Rs. 88 crores, relating to working capital. The Company has current investments (made out of surpluses) of Rs. 96 crores as on 30th September, 2010. Cash balances stand at Rs. 550 crores. While the international business has generated healthy cash flow, in the domestic market there has been pressure on cash flows due to high inventories in Unitary Cooling Products business. Return on Capital employed (annualized) stands at 40.4%. The Company has generated positive EVA of 17% over the WACC. Other Operating Income has gone down from Rs. 6 crores to Rs. 2 crores primarily due to absence of exchange gain. Non-Operating Other Income has gone up from Rs. 16 crores to Rs. 19 crores due to higher income from Investments, Cash discounts from vendors and rental income. Taxation as a percentage of PBT stands at about 33%. Turnover per Rupee of employee cost in the domestic market is slightly higher at Rs. 17 against Rs. 15 in the same quarter last year and, in the international market, stands at Rs. 5 against Rs. 5 due to slower pace of execution of some of the projects. Exceptional Items for the quarter relating to profit from sale of property is Rs. 18

C o n s o l i d a te d S e g m e n t R e v e n u e a n d R e s u l ts
F o r th e q u a rte r e n d e d 30 th S e p te m b e r, 201 0
Segment Revenue % of Total Quarter ended 30-Sep-2010 Results % of Total % of Results to Revenue 8.2% 20.9% 12.5% 21.7% 10.7% Cap. Empl. ROIC (Annuali sed) Revenue % of Total Quarter ended 30-Sep-2009 Results % of Total % of Cap. Results Empl. to Revenue 11.7% 18.3% 9.5% 13.8% 12.0% ROIC (Annuali sed)
R s . In L a k h s

a) Segment - A Growth over PY b) Segment - B Growth over PY c) Segment - C Growth over PY d) Others Growth over PY TOTAL : Growth over PY

70,655 -8.1% 12,668 8.3% 22,813 18.1% 258 -74.9% 106,394 -2.4%

66.4% 11.9% 21.4% 0.2% 100.0%

5,797 51.1% -35.4% 2,642 23.3% 23.3% 2,857 25.2% 55.3% 56 0.5% -60.6% 11,352 100.0% -13.4%

24,442 94.9% 598.9% 9,802 107.8% -22.1% 25,100 45.5% 143.9% 726 30.9% -1.9% 60,070 75.6% 121.5%

76,922 70.6% 8,977 68.5% 21.8% 52.8% 11,695 10.7% 2,143 16.4% -27.7% -9.2% 19,316 17.7% 1,840 14.0% 24.3% 297.4% 1,027 142 0.9% 1.1% -63.4% -54.0% 108,960 100.0% 13,102 100.0% 11.6% 45.5%

3,497 1026.8% 5.8% 12,589 68.1% 12.2% 10,292 71.5% -62.0% 740 76.8% -58.5% 27,118 193.3% -37.5%

S e g m e n tw i s e l i s t o f c o m p a n i e s
S e gm e nt - A N ab a D ig anta W ater M a nag em en t Ltd. R oh in i Indu s trial E lec tric a ls L td . S au di E n s as C o m pan y fo r E n ginee ring S e rvic es W LL U nive rs al V olta s LLC U nive rs al W e ath erm ak e r F a c tory L LC W e atherm ak er L td . S e gm e nt - B Terro t G m bH

N ote :

Tu rn ov e r o f U P B G fo r p re v iou s ye a r is re g ro up ed .
O th e rs A u to A irc on (India) Ltd. La lbuk s h V oltas E ng inee ring S e rvic es & Trad in g LLC M etrovol F ZE

S e gm e nt - C U nivers a l C o m fo rt P ro duc ts L td.

S im to In ves tm e nt C o m pan y Ltd. U n a llo c a b le V IL O vers ea s E nterpris es B .V . V o ic e A ntilles N . V .

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Voltas Limited October 27, 2010

C o n s o l i d a te d S e g m e n t R e v e n u e a n d R e s u l ts
F o r th e h a lf y e a r e n d e d 30th S e p te m b e r, 201 0
Segment Half year ended 30th September 2010 Revenue % of Total Results % of Total
Rs. In Lakhs

Half year ended 30th September 2009 % of Results % of Total Results to Revenue 15,092 61.1% 10.3% 52.1% 3,724 15.1% 16.1% -17.2% 5,613 22.7% 9.5% 34.2% 287 1.2% 12.5% -38.9% 24,716 100.0% 10.7% 29.6% Cap. Empl. ROIC
(Annualis ed)

a) Segment - A Growth over PY b) Segment - B Growth over PY c) Segment - C Growth over PY d) Others Growth over PY TOTAL : Growth over PY

139,912 -4.8% 24,702 7.0% 81,489 37.8% 634 -72.4% 246,737 6.6%

56.7% 11,654 10.0% 33.0% 0.3% 100.0%

-22.8% 5,400 45.0% 8,328 48.4% 66 -77.0% 25,448 3.0%

% of Cap. ROIC Revenue % of Results Empl. (Annuali Total to sed) Revenue 45.8% 8.3% 24,442 95.4% 146,933 63.5% 31.7% 598.9% 21.2% 21.9% 9,802 110.2% 23,089 10.0% -22.5% -22.1% 32.7% 10.2% 25,100 66.4% 59,154 25.6% 6.3% 143.9% 0.3% 10.4% 726 2,298 1.0% -54.4% -1.9% 100.0% 10.3% 60,070 84.7% 231,474 100.0% 14.5% 121.5%

3,497 5.8% 12,589 12.2% 10,292 -62.0% 740 -58.5% 27,118 -37.5%

863.1% 59.2% 109.1%

133.0% 182.3%

S e g m e n tw i s e l i s t o f c o m p a n i e s
Se gm e nt - A N a b a D ig a n t a W a t e r M a n a g e m e n t L t d . R o h in i In d u s t ria l E le c t ric a ls L td . S a u d i E n s a s C o m p a n y fo r E n g in e e rin g S e rvic e s W LL U n ive rs a l V o lta s L L C U n ive rs a l W e a th e rm a k e r F a c t o ry L L C W e a t h e rm a k e r L td . S e gm e nt - B Te rro t G m b H

Note :

Turnover of UPBG for previous year is regrouped.

O th e r s A u to A irc o n (In d ia ) L t d . L a lb u k s h V o lt a s E n g in e e rin g S e rvic e s & Tra d in g L L C M e t ro vo l F ZE

S e gm e nt - C U n ive rs a l C o m fo rt P ro d u c ts L td .

S im t o In ve s tm e n t C o m p a n y L t d . U n a ll o c a b l e V IL O ve rs e a s E n t e rp ris e s B . V . V o ic e A n t ille s N . V .

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ANALYSIS OF SEGMENT REVENUE AND RESULTS AND OUTLOOK:

SEGMENT A - ELECTRO-MECHANICAL PROJECTS & SERVICES

Contribution of Segment A, i.e., Electro-Mechanical Projects and Services: Turnover of the segment stands at Rs. 707 crores (PY Rs. 769 crores) which is 66% of the total turnover and the results are Rs. 58 crores (PY Rs. 90 crores) which is 51% of the total and reflects negative deviation of 35%. The fall in profits is primarily in the Domestic business due to the following factors: During the quarter a review of operations in respect of one of the subsidiary companies was undertaken which resulted in a swing in profits of about Rs. 19 crores. A major part of this was a one=time adjustment which is unlikely to recur in the future. Loss in respect of translation of foreign currency balances of Rs. 9 crores arising from significant appreciation in the Indian Rupee against US$ towards the last few days of September. Against this, in the first quarter there was a gain of Rs. 6 crores. In the same period last year, there was a gain of Rs. 2 crores. Due to competitive pressures, the JVs and Subsidiaries in the Middle East, which deal in small projects/operations and maintenance activities, had substantial reduction in their profitability. The impact of this was about Rs. 4 crores on profits for the quarter. In the domestic market, due to commodity prices and slower execution of certain jobs, including those relating to airports, there has been a reduction in profits by Rs. 6 crores. The operating management believes that by the end of the year, they will be able to show a reasonable overall growth, and this quarters shortfall should get more than made up for. o Quarterly turnover consists of Rs. 332 crores (PY Rs. 281 crores) in the domestic market and Rs. 378 crores (Rs. 490 crores) in the international market. Turnover in the international market was affected by the continuing delays in large projects execution due to various factors. It is expected that in the second half of the year, this will pick up. The Company successfully completed Air-conditioning and MEP related jobs for 9 out of 15 major stadiums for the Commonwealth Games during the quarter. During the quarter, order booking in Domestic business has been much better than the previous year. The bookings would have been even better but for delays in finalization in some large jobs. Cost management in

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Voltas Limited October 27, 2010

the business has also been much better with cost increases being much lower than anticipated. Receivables have moved down in terms of number of days and cash flow has been reasonable. Order book for the Electro-Mechanical segment stands at Rs. 4975 per end September 2010 against Rs. 4573 crores at the same time last year. This takes into account the reduction arising from appreciation of the Indian Rupee towards end of September 2010, and does not reckon for another reasonably- sized order received in the International market immediately after close of the quarter. Orders received during the quarter include three hospital orders in the domestic market. Visibility for new orders continues to be positive. The Domestic order book is at Rs. 1545 crores, and the International order book is at Rs. 3430 crores. Capital engagement has increased in International business due to delays in certification and payments of some of the projects. However, it is hoped that this will get reversed in the coming quarters as the final certification and measurements get completed. However, the risks remain due to slow progress of certification.

SEGMENT B - ENGINEERING PRODUCTS & SERVICES

Revenue and results of Segment B, i.e., Engineering Products and Services, have started moving up quarter by quarter. Turnover of the segment has moved up by 8% at Rs. 127 crores (PY Rs. 117 crores). Profits have improved at a faster pace of 23% at Rs. 26 crores (PY Rs. 21 crores). Working Capital has also improved significantly. In terms of turnover and profitability, all the three businesses, i.e., Textile Machinery Division, Mining & Construction Equipment Business and Materials Handling Business have contributed well. However, the most significant improvement has been in the Textile Machinery Division. Commission revenues during the quarter stand at almost 30% of the revenue of the segment. o In Textile Machinery Division both new order inflow for the principals and execution have moved well during the review period. However, suspension of TSF and high cotton prices raise concerns. Similarly, unabated FII inflows and resultant appreciation of INR also raises concerns related to the profits of exporters. In view of some of these negative factors, the operating management is cautiously optimistic. In Mining & Construction Business, fresh order booking has been quite good. During the quarter, the Company started Long-term Maintenance Contract in Mozambique for a foreign customer of our principals. Considering that there are many Indian companies also operating in this region, prospects for business in this region seem quite encouraging. On the other hand, issues related to iron ore mining continue. and these could temper future growth. New business booking in Material Handling has been encouraging. The Company sold about 35% more equipment during the quarter compared to the same period last year. Working capital in the business has been well managed and cash flows are almost 100% higher than the same period last year. Due to the fluctuating IIP numbers, particularly in the capital goods sector, low credit off-take and increase in interest rates, the operating management is cautiously optimistic about the prospects.

Segment C - Unitary Cooling Products for Comfort and Commercial

Turnover of Segment C i.e Unitary Cooling Products for Comfort and Commercial use has grown from Rs. 193 crores to Rs. 228 crores, an increase of 18%. Corresponding to this, the profits have grown from Rs. 18 crores to Rs. 28 crores, an increase of 55%. The EBIT margin is after accounting for exchanges losses amounting to Rs. 4 crores. Volume growth in air conditioners is in excess of 35% in the domestic market. Capital engagement in the business is significantly higher due to finished goods inventories. However, these will be largely used up in the 3rd and 4th quarters. On the other hand, receivables have been managed very well and stand at just 26 days. Manufacturing volumes and profitability has also grown in line with the overall business growth. The business has grown its distribution channel by over 300 additional outlets. Competition in this business is increasing and some domestic companies are likely to make a foray into the air-conditioners business. This may lead to some pressures, but the operating management is confident of meeting this challenge. The operating management is quite optimistic about the future growth in the business volumes and profitability going forward.

OVERALL
In summary, the growth prospects seem reasonably positive. Expectations are for the second half to be better than the first half. The overall domestic economic scenario looks mixed. The available statistics indicate that while capital expenditure in the Hotels and Restaurants sector showed a growth of 6% in the previous year, there was a de-growth of 2% in the first quarter of the current year. Similarly, Commercial Complexes-related Capex de-grew by 11% against a growth of 5%, and Industrial software parks de-grew by 90% against positive growth of 11% last year. Scenario seems to have somewhat improved in the second quarter but the picture is still mixed with lower credit growth. IIP numbers in August relating to the capital goods sector showed a negative growth, and many of the early announcements indicate significant de-growth in the

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quarterly results of infra-related industries. All indications are positive for the medium to long-term perspective, and the management is very positive on a three to five year horizon. The Middle East-based Joint Ventures and Subsidiary Companies are facing some headwinds due to the competitive market scenario which has affected their performance during the current quarter. The situation may marginally improve during the following quarters.

M. M Miyajiwala:

Thank you. Mr. Shah. I would like to add that we have received several queries from analysts, etc., and I have some sense of the trend of questions concerns and queries and therefore I would briefly like to make some clarifications before we go forward which hopefully will also eliminate some the questions. In segment A in the second quarter of last year there was a gain of Rs. 3 Crores on account of exchange and claim received on account of C3C projects in Singapore of Rs.7 Crores. The subsidiary report in the analysis had shown a profit of 4.5 Crores and therefore this all adds to about 14.5 Crores. This was 14.5 Crores of positive in the second quarter in segment A. In this year we have an exchange loss of 9 Crores. The subsidiary report too has a loss of 15 Crores and this adds up to 24 Crores. If you then take the 14.5 positive of last year and 24.5 negative of this year it adds to about 38.5 Crores of swing from last year to this year and most of this seems to be one time kind of nature. Adjusting for these factors last years profit would be Rs.75 Crores on a turnover of Rs.769 Crores and current years turnover would be 707 Crores and profit 81 Crores. Margin percentages on this basis also look very comparable and positive. The reduction in turnover compare to last years is primarily in international market and can be attributed to slow progress of two projects in Qatar about which we had discussed earlier in the concall at the end of last year as well as in the first quarter. The management expects that these two projects would be ramped up in the second half of the current year. As per the particular subsidiarys adjustment let me explain the adjustment in detail. In project business as per the Accounting Standard 7 we are mandated to account for project cost and profitability on partial completion basis. This requires at the time of finalizing the results for all jobs in progress likely instead for the project is worked out by the project mangers on the basis of the current cost incurred and likely further cost to e incurred for completing the project. These are then compared with the expected revenues and the profit margin is determined. This profit margin as you can see is an estimate thereafter the entire profit margin is applied on the actual cost incurred to account for the overall revenues in the accounts. In the subsidiary concern a review of the assumptions based on which the margins were reflected was undertaken and it was fair that the assumptions were very optimistic and they required to be moderated. The impact of this exercise was fully accounted in this quarter and resulted in a loss in the subsidiary of 15 Crores approximately against profit of Rs. 4.5 Crores accounted in the same quarter last year. I would like to mention that we expect that the subsidiary will accrue profits in the remaining part of the year. Order book of segment A spends at 4975 Crores against 5002 Crores at the end of previous quarter that is the first quarter of the current year is on June 30, 2010. A breakup of order book is approximately Rs. 1500 Crores in the domestic market and about 3500 Crores in the international market. The international order book is valued based on the current prevailing exchange rate. Due to the exchange rate difference between the first quarter and second quarter end there is a negative impact of about 150 Crores. With the rupee vis--vis dollar hedge remain at the same level the 4975 Crores should have been something like 5125 Crores. Considering the turnover of the segment for the second quarter is Rs. 712 Crores approximately, fresh order intake is Rs. 850 Crores in the quarter. We may add that there is another interesting large order received after September 30, which will get reflected in to order book position for December 31, 2010. In Segment C margins for the segment depend upon mix of the product that is split vis--vis windows unit air conditioners vis--vis commercial refrigeration products. As such the margins from quarter-to-quarter and from to year-to-year they have not be strictly comparable and therefore one should not the extrapolate margins of one quarter to the entire year. Coming to capital employment in Segment A capital employed has gone up in some select jobs due to slow progress on certification of project billing and of variations being rather slow. In

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recent times we have seen some improvements but it likely to take some time before the situation reverse back to normal. In the case of Segment C there was substantial increase in volume of sales at the beginning of this financial year that is in April and May, which was over 100% against same period last year. Based on some moderation of that inventory was planned for the lien season though the quantitative growth in the lien season has continued to be over 30% compared to same period last year it is still slower as compared to what we saw in the initial months for the current year. Hence there has been some mismatch of inventories and we have excess inventories, which will be liquidated before end of this current year. On new territories the work is still in progress and the commercial legislation, etc., is being worked out; typically in the Middle Eastern countries this is long drawn affair and we are working on it very aggressively we anticipated that some positive developments will be visible towards end of this year in terms of order booking taking place in these territories. I think that is what I wanted to clarify and now we would request for any question if there are. Moderator: Thank you very much sir. Ladies and gentlemen we will now begin the question and answer session. The first question is from the line of Mr. Mayur Patel from Spark Capital. Please go ahead. Thank you so for taking my question. A couple of things you have already clarified. I just wanted to check can you share with us the size of the two projects in Qatar, which is getting delayed? Original project size is 1500 Crores but these are partially executed so for the remaining proportion is approximately 65% to 75% of that value. In terms of the margin, like you told in UCP business we cannot extrapolate quarterly margins, this 12.5% margin it looks excellent given the kind of high commodity prices and not benign scenarios for the margin perspective can you just touch upon the factors, which drove this margin expansion? I think I have explained in detail that in this is a combination of the kind of products that we deal in, also the combination of both our manufactured products and therefore the margins will keep varying. So if in this particular quarter we have sold more or manufactured the value addition comes in and therefore the margins look higher but I would like to highlight that on six months basis the margins are at about 10.15%. And Sir, going forward what we can expect as a sustainable margin in this business? We are precluded from making any forward-looking statements by the group policy but I would say that our efforts will be to maintain the kind of margins that we have achieved in the half-year. Same is the case with the engineering business we expect to maintain 22% kind of margins in this business? As we have explained from time-to-time the margins in the second segment depends largely on how much is the volume of commission business. So if the commission business remains high between 25% and 30%, as we have seen in the first two quarters then yes, we should hope to continue the same margins. Sir last question, what are the CapEx expected in FY'11 and FY'12? Both we will try to do it if we have CapEx other than the normal CapEx, which is 40 to 60 Crores we would like to generate the internal resources to meet those. So that would not put pressure on either debt equity or any other thing of that kind. Last one Sir, can you touch upon or give us some idea on the order books, which was awarded after September?

Mayur Patel:

M. M Miyajiwala:

Mayur Patel:

M. M Miyajiwala:

Mayur Patel: M. M Miyajiwala:

Mayur Patel:

M. M Miyajiwala:

Mayur Patel: M. M Miyajiwala:

Mayur Patel:

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M. M Miyajiwala: Surprised to say that it was reasonably good size order. It is an effective order and we will leave it at that. We will discuss more when we talk about it in the third quarter results. Fine thanks a lot for taking my question. Thank you. The next question is from line of Sachin Trivedi from UTI Mutual Fund. Please go ahead. Hello, thanks for taking my question just one or two questions. First is as you have explained that Segment A the profitability is almost around Rs. 81 Crores? Yes, subjective those adjustments. Subject to those adjustments, which means that the margins are substantially better. Just wanted to understand are these margins sustainable going forward? We would say that the margins in this business vary from quarter-to-quarter in fact we have always maintained that in Segment A, which is project business one should not look at any single quarter in isolation, but it should be looked at as the part of the whole year and generally the comparisons would be very valid for year-on-year turnover profits and percentage margins. Our general effort is that operating margins should range between 9% and 10% and hopefully we will be able to manage that. 9% to 10% for the Segment? Segment A. The thinking which I had was that as we go forward that is next two quarters we will be executing more of the projects, which we have probably won during the time when it was more competitive and they will be in the newer phase. So will it mean that these going forward? Let me explain that the markets are, as we have mentioned earlier in our conference calls the markets are extremely competitive so it is not possible to get good margins from the costumers directly. There are certain players who are desperate to get orders and they can dip margins also significantly. Our philosophy and strategy is that we go for high value but more difficult kind of projects but even then the margins will not high but the competition level gets reduced to some extent. So all the future improvement in margins or good margins will come from our internal processes, our internal cost control and negotiations power with our suppliers and we are depending on those factors. So if we are able to succeed in our effort then yes, we will have 10% or higher margins but if we are not able to succeed then margins can be lower. Sir is it fair to assume that for this business if things go well as us, we should be able to do 9% to 10% EBIT margins. Our effort is for 9% to 10% margin. As I mentioned it depends on a lot of factors. Thanks a lot Sir. Thank you very much. Thank you. The next is from the line of Munjal Shah from ICICI Prudential AMC. Please go ahead. Good afternoon Sir. I had a couple of questions, one is with regards to staff cost it has come down YOY and QOQ any particular reason for that? In our case the staff cost gets heavily impacted by the number of employees that we have on various projects site. So for an example, Formula One project has been completed. There has

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been demobilization of people from that particular project site. Also in the first quarter we had if you are comparing with the first quarter wherein the first quarter we also had certain settlement our MVA retired and we had mentioned this that we have to make a special provision for his retiree benefits, etc., So these are the kinds of factors which impact the staff cost overall. We very closely monitor the staff cost, we have also given you the data on the turnover achieved for rupee of employee cost or rather rupee of employee cost incurred and we have given you the parameters orders in ratio of the turnover both in international market and domestic market vis-vis the rupees of employee cost. Munjal Shah: And Sir, secondly basically can you just go through this one-off again you mentioned this 19 Crores one-off on review of audit? Yes. So this is basically? Is not one-off adjustment. The result of this particular subsidiary is a loss of 15 Crores in this quarter against which there was 4.5 Crores of profit same quarter last year, so that means the deviation from last year to this year is 19.5 Crores. But this 15 Crores loss is what, so in Q1 we had booked higher profits, is it true? Not Q1 it is a period of time so as I said there are lot of estimates involved so you have to estimate the cost to completion you have to estimate the revenues to completion. Okay, this would be in case of one of the subsidiaries? That is right. And this the domestic subsidiary? That is right. Okay, this is 19 Crores, 9 Crores is forex to translation loss? Vis--vis which last year there was a gain on exchange of 3 Crores in this quarter. And this 4 Crores, which is what some subsidiary set of expenses? No, 4 Crores we talked about was the foreign subsidiary in joint ventures the profit have come down because for the competition. So that is something, which is operational. Which is operational. And so you specifically mentioned that H2 will be better than H1? Yes, because there would not be this kind of adjustment of 19.5 Crores as I mentioned earlier. Hopefully the rupee will remain stable during the remaining part of the year so we would not have any exchange losses coming up. And this would be based on adjusted net profits that you are mentioning and we should adjust 19 Crores and 10 Crores also? When I say that the second half is going to better I am taking about the declared results for the first half vis--vis that. Declared is 92 Crores profit or 75 Crores of profit?

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M. M Miyajiwala: I am saying that the 116 Crores of profit that we have shown in the EBIT the segment result of first segment for the half year vis--vis that we hope that the second half will be better. In the first segment? First segment. First segment you mean second half would be better than? And the factors we have mentioned as far as the second segment is concerned we have quite in detailed described both of the worrying signs but subject to those things not affecting we hope to maintain the pace of growth. Munjal Shah: Okay, and sir secondly you also mentioned there is some inventory in the third division that is unitary cooling? B. N Garudachar: We had similar situations two years back also, so I think that keeps recurring sometimes the markets have been very volatile, volatile in the sense that last year because of the rain, there was a sudden huge drop in the market and then we were left holding inventories. Then there was a sudden jump in demand, so in the months of February, March, April and May we have had 100% growth over the previous year. Then we were left short of inventories. So because of this sharp movements in demand from time-to-time there were mismatches in inventory do takes place, but as we had mentioned in our analysis we hope that before end of this year all of this will be eliminated. Sir, I had just one question on this is basically this new ad that we have taken that you buy a new AC and get one AC free or something? That we are not aware. That is the credit card so it does not mean that for every AC. Not for every AC, it is a scratch card, but that is to control the inventory part or it is a normal part of the festival season? I think it is a normal part of the festival. We keep coming up with various things from time-totime like I think once upon a time we had given some gold coins, once we give some cameras, so it is a part of those kind of things which happen from time-to-time. Sir, one thing is in the textile segment, Mr. Shah mentioned 30% of revenues, so would it be fair that it is 75 Crores? Shah mentioned that the commission related and we always spoke about second segment how much is the turnover, which has material-cost content and how much is commission, which does not have material-cost content. So he said that later part, the second part of commission is about 25% to 30%. Second segment of that 30% is textile revenues? Of the second segment approximately 30% is commission revenue. That is why if you see the profits had jumped at a much faster pace than the turnover increase. Sir, lastly on this land base, again 18 Crores of extraordinary income actually this is your sold land? Not land, some apartments.

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Munjal Shah: Moderator: Some apartments. Okay. Thank you very much Sir. Thank you. The next question is from the line of Ritesh Cheda from Emkay Global. Please go ahead. Hello Mr. Miyajiwala, Mr. Garudachar and Mr. Shah. One question, just a reconciliation; page 1 you have these exceptional about five items as you mentioned and you have mentioned about 19 Crores other figure on account of the subsidiary swing, which is mentioned on page #6. Do both of them reconcile against each other or they are additional? They are the same figures, the only difference is that Mr. Shah talked about 19.5 Crores swing. The first page talks about the loss in that quarter, during that quarter. I hope you are seeing on the first page is over 10 Crores of adjustment arrived from prior period. This is the pass of 19 Crores swing that we are talking about. Instead of 10 we could have said 15 also. If I have to reconcile that 10 is say 10+9 of the last year that also the swing is 19 that is how it is? This year this is over 10 Crores. So actually the figure is 15 Crores plus 4 Crores of last year, so it is 19 Crores. And then you have these other three items of exchange loss of 4 Crores. Now what is this related to this 15 Crores number for this year? If you could just explain? I described you very much in detail as to it was a subsidiary Company, in which there is project accounting, project accounting depends on partial completion method. In partial completion method you take certain estimates for future cost and revenue to come and these are primarily estimates, so they need to be refined. We believe that some of these were very optimistic and therefore we refine them in consultation with our technical teams and audit department and therefore we have taken a one-time hit in the subsidiary. So 15 Crores is a kind of a provision on account of overestimation of profits in the past year, which has been adjusted this year? Yes. Thats right. Second question on the order inflow side, if you could tell us the order inflow for domestic and international separately? Unfortunately, we do not have those numbers, apart from the details, which are already given, I do not have those details right now, but Mr. Garudachar can provide it separately. And on the domestic side, how much of the incremental inquiry in the system is coming in AVP format in this industry or if you could just give us a flavour for that? That is a combination of next fiscal HVAC, etc., together would approximately be 35%. And if I had to look at this figure two years or three years back what would be in the system for say every Rs.100 orders? In fact it is zero. So 30% of the total order inflow today the system is in the format of MEP? That is right. Many thanks to you and all the best to you.

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M. M Miyajiwala: Moderator: Thank you, so much. Thank you. The next question is from the line of Ashvin Sara from Keynote Capital. Please go ahead. Hello. Good afternoon, Sir. Ashvin from Keynote. Sir, could you tell me the EBIT mix for FY11 and the next two quarters? I mean quarter-on-quarter the change has been more from the unitary cooling? I am not very clear about the question. Do you want to EBIT figures for first two quarters? Sir, I want the EBIT mix. For the last two quarters the EBIT mix is electromechanical has gone down from 61% to 43%, and whereas for the UCP product element 23% to 33%. In terms of overall relationships? Overall the EBIT mix, the contribution to the total EBIT. Yes, as far as EBIT i.e. segment results are concerned 51% in this quarter comes from segment A, 23% comes from segment B, and 25% comes from segment C. So going forward for the next two quarters it is going to be We do not unfortunately give guidance for forward-looking statements; it is difficult for me to give you that. Thanks a lot. Thank you. The next question is from the line of Naynesh Rajajni from Tata Mutual Fund. Please go ahead. Thank you very much, Sir. I have a couple of questions. First one these apartments that you have sold, what are the rental incomes that you got from these properties or these apartments that you have sold? If you can share light on that sir? Zero. Zero at this point in time. My second question is basically be for order inflow as far as your segment 1 is concerned the EMP division, can you throw some light as far as the gulf region how has been the order traction as you mentioned the competitive scenario has increased a lot in that region, so what are the margins at this point of time currently that all the people are bidding at, how lower are they compared to what it was a couple of years ago, Sir? You know it is very difficult to make statements of this kind, but because depending on the situation of a particular competitor he may even bid at zero percent margins, or he may even take a loss if his cost is getting covered and he is desperate to meet the fixed cost. As I have explained it in the past that we have a certain criteria and our criteria generally speaking are that cash comes first, and then comes profit and then turnover. So if we feel that we are not getting adequate margin and when I talk about adequate margin, at the tendering stage it ranges between 5%-7%. At tendering stage if you try to get higher margin than that you will not get business. If you get business at 5% to 7% margin and then you try to augment it by the various things that I mentioned earlier, the efficiency of procurement, efficiency of managing your labor of course is the subcontract, your own establishment cost, etc., so whatever margins higher than 5% to 7% that we get are because of all these factors. Sir, in terms of the order inflow from the Middle East and that region, how good has it been or how is that you anticipate?

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M. M Miyajiwala: If you compare with the same period last year in the first two quarters we had zero intakes so against that the order intake has been very good and we believe that the pipeline is also strong. So what are the orders that you have bid at in terms of what is the pipeline that you have bid at and one that you can probably fructify over the next quarters? This question has been asked to me again and again in every concall but I have mentioned that if you look at the volume of orders that we bid for the tenders that we submit can be running at a 1000 of Crores, but that does not give you any indication of what we are likely to get. That depends on our focus, our relationship with the main contractors with the consultants, or our own view of a particular project, how good the customer is, etc., and based on that we target certain jobs and move on those jobs although we may have bid for other jobs as well. So looking at those we believe that there are some interesting jobs for which we have already submitted tenders, we are in good competitive position at the moment and therefore we should have good inflow coming in the next two quarters, but at this point of time it would be very difficult for me to say exactly what volume or what value. What I am just trying to ask is what would make the subsequent quarters you do anticipate the order book to grow significantly and that growth would probably be reflected in the revenue growth for the first division in FY12 is what I have seen? I think if todays order book grows by 25% at the end of the year, I think, it will be significant. So there is only one indication, 30% also can be significant, 35% can also be significant. But do you anticipate to be at 25% growth in the order inflow this year itself? Yes. Any other questions? Nothing at all at this point in time. Thanks a lot. Thank you. The next question is from the line of Kirti Dalvi from Enam Securities. Please go ahead. Good evening Sir. Few questions Sir. This exchange loss of 13 Crores, is it a part of other operating income or other expenditure. It is not 13 Crores. It is 10 Crores in the quarter against which last year there was a profit of 3 Crores so a swing of 13 Crores and this exchange loss comes in two ways one is direct exchange loss that we have booked, second is conversion and we are talking about primarily main loss coming from conversion. Conversion is when we arrive at the cost of material since by taking opening stock and closing stock. The closing stock as on June 30 would have been valued at an exchange rate as on that day. Now, the rupee appreciates so exchange rate comes down and because of that when you take the closing stock, it is valued at a lower rupee value as compared to the opening stock. So that is one way the exchange loss comes. The second way it comes is that we have certain receivables, so certain profits accrued on projects based on partial completion method and those get revalued at a current exchange rate. So that is how the exchange loss is written. So partly it will be in a sales as well as partly in some stock adjustments or raw materials am I right? That is right. You have mentioned the there is some slower execution in our domestic jobs as well. Is it possible to give some quantum on that? We have a very large number of jobs and few of them, we have mentioned it earlier there are about 1000 jobs under execution at any point of time in India, but there are certain larger size jobs, some of them have moved slowly. I do not have the numbers exactly and their names.

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Kirti Dalvi: There has been a reduction in profits in our domestic business because of this probably to the tune of 6 Crores. Was there any kind of provision we made in our current financials for that or is it just that we had booked some? It is on partial completion basis based on which there is a reduction. Sir, you did mention that 850 Crores order inflow in the quarter how much of this was domestic? Actually I derived it and I gave you the figures how I derived it. The opening order book, so if you take roughly about 370 to 400 Crores of domestic order booking which should have taken place based on the arithmetic. Last question, would it be possible to get more than six months receivables? I do not think we can share those kinds of detailed data. Thank you, very much and wish you good luck. The next question is from the line of Sumit Agarwal from MetLife. Please go ahead. Sir, just wanted to check with you in terms of the execution side you have mentioned that the first half has been relatively muted, how do you see the execution in the second half as well as for the year? As Mr. Shah had mentioned, the two projects on which there is a slow execution in international market, swing up is required. We are hopeful that in the second half the turnover from those jobs should be higher than the first half. Do you see a growth happening and as a result the MEP business on an overall basis for FY11 will report a positive growth in excess of 5% or 10%? Once again we do not give forward-looking statements. So if you ask me 10%, 5% I would not be able to say, but yes, definitely we see some growth taking place in the overall results. Sir, I just wanted if you can break me again a broad sense in terms of your second segment, which is the HNC business, how much of the EBIT was contributed from the sale of the textile business? We do not give those kinds of numbers. Only breakup we give is commission, non-commission, beyond that we do not give the details. Also sir, I was looking at your balance sheet number for this quarter. I will explain the reason why we do not go into these kinds of details, because one is that the mix keeps changing. For what really is relevant for you is whether a commission income whether it is coming from textile machinery business or it is coming from mining and construction or elsewhere you are neutral to that. So long as the profits are coming in the turnover is coming. So what is important is how much is the commission business and how much is non-commission business and how they are increasing over a period of time. The reason why I was asking was because I was looking at the LMW textile sales? We have to wait for LMW results to come out. It is already been out. Then you know the figures.

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Sumit Agarwal: It has grown by 61% while we are talking of the commission business growing at 30%-35%, so is that. I did not say it was growing by 30%-35%, we said of the turnover of the second segment about 25%-30% is commission income and the balance is non-commission income because the turnover itself in the second segment has grown by about 8%. I was looking at your balance sheet numbers and what I find is that there has been a significant increase in the working capital in this first half. I explained that earlier about the inventories and receivables. How it has been constantly increasing from the first half to full year? I believe the volumes are also increasing, so the working capital is bound to increase along with it. What you need really to look at is the turnaround of working capital and the number of days. Those are also on a deteriorating front. I am not looking at just an absolute basis. Look at annual basis. Do not look it at quarter-to-quarter, because I have explained to you why the working capital is high, because of certain inventory issues, etc. I am fine as of now. Thank you. Thank you. The next question is from the line of Yogita Shenvi from Wealth Managers. Please go ahead. Good afternoon Sir. Sir, this quarter end the domestic order book is about 1500 Crores, can I have the same figure for the last year same quarter? I do not have it readily available, but if you look at our website the concall transcript will be available over there and there the break up is given or Mr. Garudachar can separately send it to you. Fine. Sir, this is Mayur here and a very good afternoon to the management. Sir, I just wanted to have Just to answer earlier question is my recollection is my net order book debt stood at about 1250 Crores at that point of time, but we will reconfirm. Sir, I just wanted an update on how our effort on the electrical balance front is panning out. I know it is a very small segment, but just to have an incremental understanding on how this is panning out? Electrical depends on the power plants, on the industrial investment, it is growing but it is not growing at the same pace as we had anticipated. Okay and how do we see it going let us say a year-end? As I said starting 2011-12 we anticipate a new boom face, it will be of course beginning in 201112 but over the next five six years there should be significant requirement for all kinds of work that we do including electrical, including HVAC and even things like tunnel ventilation for metro railways, etc., so we see significant growth in all these businesses not to forget even water. Just an update on, we were expecting some orders to flow in and probably even

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M. M Miyajiwala: I think I have covered it in my initial speech that we expect the results to be seen towards the end of the year. We have seen a strong order inflow in the last three quarters, mainly the entire 5000 Crores order book has got substantially built up over the last three quarters of good inflows. The entire FY10 most of the quarters or first nine months are very slow on that side, this better order intake when do we expect to actually start flowing into the numbers. I mean will it be by the end of the year or will it be in the next year only? I think next year. Thank you, very much. The next question is from the line of Sanjay Satpathy from Merrill Lynch. Please go ahead. Hello Sir, my question is relating to the order, you just mentioned that in Qatar you have some 1500 Crores worth of order in which you are seeing delay and you just mentioned that some 75% of that project is being delayed. Can you just tell us the net of all those projects, which has seen delayed, how much of order we are really executing at this point of time so that you give us some visibility over next two quarters? Let me clarify when we say delayed it does not mean that after 25% completion of orders are stuck and no movement is taking place. Normally when we look at large projects there is a particular pace. They get completed in two to two and a half years. In this particular case debt execution cycle is getting elongated, so it is not that the orders have stopped or the execution has stopped, but the execution is not moving at a pace at which we would have liked them to. And another thing is out of this 3430 Crores order that was there at the end of September you have already added something in the October month, is that project is also going to be executed in the current year itself? That depends. Most likely the engineering work will happen. The mobilization work will happen in the current year and main execution will start in the next year. Can you just give us whatever order backlog you have what are the timelines of execution for domestic and international? It would be around 18-22 months. For the international one and for the domestic? Domestic is fast execution. As I mentioned earlier in the context of some other question, we have about 1000 jobs going on at any point in time and most of the jobs get completed with a cycle time of about 12 months. Sir, my other question is that after you have adjusted all the numbers and you have got the EBIT margin of 11.5% for the Segment 1, and which I think is fantastic and you are saying that may not be really sustainable going forward. Is 11.5% the best way to look at it or it is likely overstated because of all the adjustments? In the project business there is many changes, which take place from quarter-to-quarter, so the best way of looking at project business margins are on an annualized basis. That is why I specifically said it would not be correct extrapolate margins from a quarter to the full year either whether it is unitary cooling product or the first segment. Actually for any segment you cannot extrapolate because the second segment also depends on the composition of commission business, non-commission business, our efforts are always to keep increasing the margins but you ideally should look them on an annual basis.

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Sanjay Satpathy: Sir, can you just tell us that you have already mentioned something about the order inflow that you were going to see and possibly you were talking about order backlog at the end of the year to be as 25% higher. Is that what my correct conclusion? I said it figuratively that if we say significance, significant to be 20%, 25%, 30%, 35%, so I was just trying to explain what I mean by significance but I am not giving any guidance, I am not giving any forward-looking statements. Thanks a lot, Sir. Thank you. The next question is from the line of Mr. Nirmal Shah from Alchemy. Please go ahead. I just wanted to check in case of domestic order inflow how are you seeing the order inflow from IT sector? IT sector is still slow. And Sir, do you expect revival happening in second half of the current year? IT sector the hope is that it will revive because if you look at the newspaper reports about bench strength which is being increased from time-to-time I think they will require more phase and therefore some investment should start coming in. And Sir, when you mention in your press release the second half would be bettering as compared to the first half that was with respect to order inflow as well. That is right. Sir, just one data point I wanted the total order inflow in the first half can you give a figure? The way I arrived at the figures, if you take the figures per say we had a turnover of about 1400 Crores in the half year and from my recollection we have increased the order book by something like 300 Crores or so in this period. So if you add the two order inflow will be of the order of 1700-1800 Crores. Thank you Sir. Thank you. The next question is from the line of Nilesh Shetty of Quantum AMC. Please go ahead Thanks for taking my question. I just wanted to know in the unitary cooling products at the end of Q1 when we reported a 40% kind of growth, we were quite hopeful that the entire year we will have similar growth, but this quarter suddenly decelerated to 18%. You are talking about the unitary cooling product, right? Yes, exactly. Depending on the climatic issues the demand will keep changing and that is what I mentioned that in the first two months it was almost 100% and then after the rain started the growth amount started decelerating. So it all depends because of the seasonal factors, but I would think that even 30%-35% growth is reasonably good and we should be happy with. The volume growth has been 35% in this quarter, is it? Yes.

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Voltas Limited October 27, 2010

Nilesh Shetty: M. M Miyajiwala: The value wise it is 18%, so realizations have collapsed that much? Depends on the mix because if you sell more of window air conditioners then the volume growth will not reflect into similar revenue growth. So we can imply that this quarter there has been more windows AC sold? There is a mix of room for window air conditioners, split air conditioners, commercial coolers, and even water dispensers etc., so it depends on which items move faster. Just wanted to understand we being in the business for quite a long time Sir, what caused this overestimation of profits at the subsidiary level, it is quite a sizable amount of 19 Crores. I think to some extent it should be inexperience. It could be just being overoptimistic so I would not like to get into details of why the overestimation took place, but primarily it was an error in estimating what the revenue and the cost would be. Sir, typically your overseas order book execution cycle is about 24 months? You will not find such variations coming in Voltas itself because we have been in this business for the last 55 years. And there are people who are not used to PCM method that partial completion method of accounting so things can happen. Sir, our overseas order book typically execution cycle is about 24 months because we are getting so much of deferral what could be the average execution cycle of the order book? What we are expecting is that wherever the delay is taken place and the execution has been slow will get compressed in the remaining period of time. So all the orders will eventually bunch up and there will be a spike in revenue, so when do you expect that to happen? It can happen. Thanks. Thank you. Ladies and gentlemen that was the last question. I would now like to hand the floor back to Mr. Shreegopal Jaju. Thank you and over to you, Sir. Thank you Mr. Miyajiwala, Mr. Garudachar and Mr. Utsav for the call. Pleasure is ours. Thank you very much Sir. Thank you. Thank you gentlemen of the management. On behalf of B&K Securities that concludes this conference call. Thank you for joining us and you may now disconnect the lines.

Nilesh Shetty: M. M Miyajiwala:

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M. M Miyajiwala:

Nilesh Shetty: M. M Miyajiwala:

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M. M Miyajiwala: Nilesh Shetty: Moderator:

Shreegopal Jaju: M. M Miyajiwala: Shreegopal Jaju: Moderator:

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