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Q&A Section Summary from KSB Limited Earnings Transcript

1. Question: Can you provide insight on the export strategy, especially regarding exports from India and potential cost offsets related to exports to the Middle East?

Answer: Our global manufacturing network allows us to export specific products, including those for oil and gas. There's a structured internal supply chain that encourages all our plants, including India, to export. While we aim to grow our exports, the process involves obtaining necessary qualifications, which can be lengthy. However, we are increasingly being allowed to export directly, and we expect this to continue growing.

2. Question: There's been a slowdown in growth recently despite strong order intake. Can you explain the reasons behind this and provide guidance on returning to a double-digit growth trajectory?

Answer: The slowdown isn't due to weakness but rather delays in dispatching nuclear orders, which have caused temporary revenue impacts. We still have robust order backlogs that provide confidence for future growth, and we expect to return to double-digit growth driven particularly by nuclear projects once those hurdles are cleared.

3. Question: What is the current order book for the solar segment, considering your guidance of €107 million by 2027?

Answer: Our solar business is growing steadily, and we anticipate at least a 50% increase compared to last year's figures. The current order book for solar is around Rs.250 crores, which aligns with our cautious yet optimistic expansion into new states, beyond Maharashtra.

4. Question: When do you expect to begin delivering the Gorakhpur, Kudankulam, and Kaiga nuclear pumps?

Answer: We are optimistic about starting deliveries of some Kudankulam pumps this coming January. The dispatches of Gorakhpur and Kaiga will follow as documentation clearances progress, with several pumps expected to be delivered next year.

5. Question: How do you see SupremeServ evolving, and is there a target percentage of total revenue that it can achieve over the next few years?

Answer: Currently, SupremeServ comprises about 16-17% of our total revenue. With continued initiatives, we plan to increase this to 20% or more, acknowledging that while it poses a challenge in context of standard business, the growth is expected, especially with increases in nuclear business contributing to this segment.

6. Question: Can you discuss the expected market share in the firefighting segment and what initiatives you're taking to boost this area?

Answer: Our current market share in firefighting is in single digits, but we aim to grow this significantly as the market matures. This includes acquiring relevant certifications and introducing new products to meet market demands, pushing our share up towards double digits.

7. Question: What steps are being taken for certification to access the Saudi Aramco market, and how does this affect growth potential in that demographic?

Answer: We are targeting the API Monogram certification next year, which is critical for entering the Aramco market. Established competitors already dominate the area. Nevertheless, our strategy includes identifying niche markets and strengthening our position through partnerships and localized operations.

8. Question: Can you comment on the margins associated with emerging segments like mechanical seals and mining?

Answer: Margins in mechanics seals are good as they rely heavily on spare parts sales. Mining presents a favorable margin structure as well; however, the firefighting segment involves more system-based offerings, yielding lower margins. Nevertheless, this mix allows us to stabilize overall EBITDA levels.

This summary encapsulates the primary inquiries and detailed responses provided in the Q&A section of KSB Limited's earnings transcript within the requested character limit.