Aimtron Electronics Ltd — Q4 FY26

Aimtron Electronics Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=nI7b3Dn6opU Published: 2 weeks ago

0:00 Ladies and gentlemen, on behalf of Captify Consulting investor relations team, I welcome you all to the H2 and 0:08 8 seconds FI26 post earnings conference call of Amtron Electronics Limited. Today on the call from the management, we have with us Mr. 0:16 16 seconds MKkesh Wasani, chairman and promoter, Mr. Sna, full-time director and Miss Nikita Sha, chief financial officer. As 0:25 25 seconds a disclaimer, I would like to inform all of you that this call may contain forward-looking statements which may involve risk and uncertainties. Also, a reminder that this call is being 0:33 33 seconds recorded. I would now request the management to briefly run us through the investor presentation and the business and performance highlights for the 0:40 40 seconds period ended March 2026, the growth plan and vision for the coming year post which we will open the floor for Q&A. 0:47 47 seconds Over to the management team. 0:51 51 seconds Good afternoon everyone and thank you Veni. 0:55 55 seconds On behalf of Intron Electronics Limited and our board of directors, I warmly 1:02 1 minute, 2 seconds welcome all our investors, analysis, shareholders, advisers and stakeholders in today's call. 1:10 1 minute, 10 seconds Please welcome. We sincerely appreciate your continued trust, support and interest in AMR's journey. last two 1:19 1 minute, 19 seconds years almost actually we are only a few days away few weeks away from our you 1:26 1 minute, 26 seconds know two finishing the second years so you know last two years entran journey 1:33 1 minute, 33 seconds your confidence encourages us to keep building entran with a long-term vision strong governance and discipline 1:42 1 minute, 42 seconds execution at entran we are moving forward with our entran 2.0 or vision with strengthening 1:49 1 minute, 49 seconds our core electronics manufacturing capabilities expanding our global presence. You see that we have already acquired a company in you know Decator 1:59 1 minute, 59 seconds Illinois and building a deeper customer relationship like you know a stickiness of the customer and creating a more 2:06 2 minutes, 6 seconds professional scalable and future ready organization. 2:10 2 minutes, 10 seconds We remain focused as we promised previously also on sustainable growth, 2:18 2 minutes, 18 seconds operational excellence, innovation and long-term value creation for all stakeholder. Again, thank you so much 2:26 2 minutes, 26 seconds for taking the time today. As you know, we are only one year away from main 2:34 2 minutes, 34 seconds board entry and we are very prepared. I guess all the check box already checked off except we have a 3 years timeline. 2:44 2 minutes, 44 seconds So with your support you know once we finish 3 years we'll move forward on that also and we started the 2:51 2 minutes, 51 seconds preparation. I think today your interest is more on question answers and result. 2:57 2 minutes, 57 seconds So I will hand over to sn and nikita to just give a little overview about and result and then we'll talk for question and answer again. Thank you so much. 3:07 3 minutes, 7 seconds Really appreciate. Thanks MKkesh for the brief. 3:15 3 minutes, 15 seconds Certainly I think it has been a great story like past 2 years uh to what trajectory we have changed. So 3:24 3 minutes, 24 seconds considering that as MTROM so initially we used to be more on like PCB assembly 3:31 3 minutes, 31 seconds more of an EMS which we redirected towards ESDM uh ODM le manufacturing design manufacturing kind of an activity 3:40 3 minutes, 40 seconds and uh that is now getting surfaced in last couple of quarters result as well. 3:45 3 minutes, 45 seconds So as Mron basically we are termed as an ESDM electronics system design and manufacturing. So we are in like 3:53 3 minutes, 53 seconds manufacturing facilities in two one is in US which we recently acquired 4:02 4 minutes, 2 seconds one company that is renamed as MTON international controls and then the presence in Bangalore as well and 4:12 4 minutes, 12 seconds sectors we'll go more in depth on which are the sector we are already there. So this year we 4:20 4 minutes, 20 seconds added more like one was agro tech one and aerospace and defense where we got qualification under certification of ESN. 4:35 4 minutes, 35 seconds Hello. Yeah. Yes. Please continue. Okay. 4:41 4 minutes, 41 seconds So this year like we trusted telecom partner and railways 4:48 4 minutes, 48 seconds also like we started encountering the orders and our DSO approvals will takes place in next couple of quarters and agreed again. 5:05 5 minutes, 5 seconds So these are the global certifications that we have in place. For instance, 13485 makes us uh visible globally for 5:12 5 minutes, 12 seconds METTE products along with CDSO which are now mandatory for made in India equipments. So we do several things 5:20 5 minutes, 20 seconds under uh METTE 1694 approved for uh specific to automotive 5:28 5 minutes, 28 seconds as we stated uh we recently got approval last year and trusted telecom partner that also got approved. We are already approved under that last year and RDSO 5:37 5 minutes, 37 seconds is something that is under progress and probably this year by first half or probably by third quarter we expecting a closure on that part. 5:51 5 minutes, 51 seconds Next. 5:58 5 minutes, 58 seconds So probably like this is more on how the soronic electronics India is an holding 6:06 6 minutes, 6 seconds company. So we created one subsidiary called Mron meatronics. Uh that's a green field project. We acquired a space here in Vadra itself where down the line 6:15 6 minutes, 15 seconds we are expecting uh to have injection molding sheet metal and all that in house and uh then we created wholly own 6:22 6 minutes, 22 seconds subsidiary MTON electronics LLC that is in Texas and uh that is like basically wholly 6:30 6 minutes, 30 seconds owned subsidiary of MTO India itself and then MTON international controls is like AL probably falls under AL LLC AIC falls under ELLLC us. 6:43 6 minutes, 43 seconds [clears throat] 6:47 6 minutes, 47 seconds Next uh BL we uh applied for ECMS under SFP 6:54 6 minutes, 54 seconds segment uh small fiber optics. So just to give a more brief like small form factor pluggables that comes from 1G to 7:01 7 minutes, 1 second 50G probably India demand is getting aggregated uh and it's expected like to 40 uh to go up to 40G capacity range and 7:11 7 minutes, 11 seconds that is what we are also advancing in that direction. So we are working on toot as of now transfer of technology with one of the international player 7:19 7 minutes, 19 seconds that is in progress as of now and once we get that like toot sign and probably down the line we'll be eyeing on how do we have more rollover on that part. So 7:28 7 minutes, 28 seconds that will be under meatronics. So this is like more often solutions that we provide uh product engineering solutions 7:37 7 minutes, 37 seconds uh PES we call so that includes like hardware software firmware mechanical and if you see last half of the year 7:44 7 minutes, 44 seconds proud to say that our PCBs were like in 26th January uh to what parade it was 7:52 7 minutes, 52 seconds been displayed drones were displayed for the complete China plus one kind of 8:01 8 minutes, 1 second story because it was more of a defense level. Then we entered railway where we are providing uh like SL4 level 8:10 8 minutes, 10 seconds integrated systems uh that is anti-olizen advanc collision system along with a couple of signaling orders that we have started uh getting in uh 8:19 8 minutes, 19 seconds data centers uh story probably into the market has started now. We have been working on this since almost a year 8:26 8 minutes, 26 seconds where we got one of $12 million. uh there where we are uh like designing from scratch starting 8:35 8 minutes, 35 seconds from 1 KB 2k with 3k with battery without battery and then company where we are as of now going with three 8:42 8 minutes, 42 seconds variants six uh SKUs of it and probably down the line we are expecting to go more and then AI dashboard camera uh 8:51 8 minutes, 51 seconds it's as of now getting used in GSRTC uh local bus state road transportation and down the line that is expected to get 8:59 8 minutes, 59 seconds rolled over in pan India Yeah, again not immediately but down the line that's what so this is all are getting manufactured at Mron itself factory 9:10 9 minutes, 10 seconds next maybe Nikita I can take this 9:21 9 minutes, 21 seconds everyone uh a warm welcome for the financial discussion regarding the 31st 9:28 9 minutes, 28 seconds March 2026 6 uh for H2 20 uh 26 MTON electronics uh reported consolidated 9:36 9 minutes, 36 seconds revenue from operations uh of 1786 millions and EBA was 369 millions u and 9:46 9 minutes, 46 seconds profit after tax was 257 million. H2 FI26 revenue grew at 45.7 percentage over H1 FY26. 9:59 9 minutes, 59 seconds Over a fullear basis, FY26 consolidated revenue from the operations grew at 89.2%age 10:06 10 minutes, 6 seconds year on year that is 3012 million compared with the 1592 million of FY25. 10:15 10 minutes, 15 seconds Profit after tax increased at 79.4%age. 10:18 10 minutes, 18 seconds 4 percentage to 460 million compared with the 256 million in financial year 25. 10:28 10 minutes, 28 seconds EA margin stood at 22.6%age. 10:33 10 minutes, 33 seconds In FY26, PAT margin stood at 15.3%age in FY26. 10:43 10 minutes, 43 seconds This is after the uh consolidation of the subsidiaries and for the current financial year. 10:56 10 minutes, 56 seconds So next slide. 10:59 10 minutes, 59 seconds I think SN you want to take the order book. 11:06 11 minutes, 6 seconds Thank you Nikita guys. So if we combine all group of companies probably we stand at somewhere around 600 K kind of an 11:13 11 minutes, 13 seconds open order book that includes MTON India as well as AIC in total and uh geography wise probably it's more of an India it's 11:21 11 minutes, 21 seconds more of an international client uh with around 20 25% as an export and when it comes specific to EIC it's already domestic that is specific to US market. 11:31 11 minutes, 31 seconds Thank you. Next [clears throat] we can 11:42 11 minutes, 42 seconds start question answer you have any more slide or you can start the question answer I think we'll move to Q&A 11:50 11 minutes, 50 seconds yeah because that's the main yeah yeah thank you and thank you Nikita and snare 11:57 11 minutes, 57 seconds sharing we had some voice a bit rating but uh hopefully our investor uh you know see that uh maybe you can see 12:05 12 minutes, 5 seconds on the website and look at the full presentation and and see uh yeah 12:14 12 minutes, 14 seconds yeah so we'll take the we'll take the first question from Asho Shukla Ash you can go ahead and ask your 12:21 12 minutes, 21 seconds question audible yes yes you are 12:28 12 minutes, 28 seconds uh hello uh sir can you tell me the impact of PCB price increase and DRM shortage impact in the business. 12:39 12 minutes, 39 seconds So you know ENS business currently you know we have already some of the lock in price and you know so we do not have 12:48 12 minutes, 48 seconds that much impact directly indirectly at this point and because we are not the end user and what we do we communicate 12:55 12 minutes, 55 seconds with our customer and make sure they are prepared and so we transfer that cost to our you 13:03 13 minutes, 3 seconds know customer. So at this point in trans book yes we have some semiconductor shortage but we do not have that uh any 13:11 13 minutes, 11 seconds pricing impact at this point on our or on our brand. 13:21 13 minutes, 21 seconds Hello. Okay. And one more question. 13:24 13 minutes, 24 seconds Sure. uh with uh L&T recently entering in electronic manufacturing services and 13:31 13 minutes, 31 seconds ESDM space and commissioning its PCB assembly and manufacturer facility uh facility in Quimur. How do you see this 13:39 13 minutes, 39 seconds development impacting your competitive positioning pricing environment and overall growth prospect? 13:47 13 minutes, 47 seconds So I think I think uh you know we already in previous call we already shared some of the information that this 13:54 13 minutes, 54 seconds is a huge pie a trillion dollar pie a pizza you know it's not even lent can 14:01 14 minutes, 1 second eat everything so there is always a way if you have a niche market if you have a specialty business you have a hardened 14:09 14 minutes, 9 seconds electronics you have some special things then there is no way you know they can beat us. So I think the there is there 14:18 14 minutes, 18 seconds is enough business and if you look at our open order book and a uh pipeline 14:25 14 minutes, 25 seconds right now is almost 70 $80 million just worth of pipeline we have. So I don't think so it's going to exploit us and 14:34 14 minutes, 34 seconds also you know when bigger company comes they have a bigger overhead and you know it's very hard to move Titanic versus a speedboat. So our entrance goal is to be a speedboat versus Titanic. 14:46 14 minutes, 46 seconds Thank you. 14:50 14 minutes, 50 seconds Okay sir, we'll take the next question from the line of AI. Samit, you can unmute and go ahead please. 15:05 15 minutes, 5 seconds I think we'll take the next question from the line of Mr. Priyu. 15:18 15 minutes, 18 seconds I'm audible sir. Go ahead. 15:21 15 minutes, 21 seconds [clears throat] 15:22 15 minutes, 22 seconds Hi sir. Uh congratulations on good set of results. Um every quarter we come and like uh you surprise us with the 15:29 15 minutes, 29 seconds results. Uh I have few questions sir. Uh first is on the um uh like uh topline basis. So for this year sir what is the 15:37 15 minutes, 37 seconds internal target which we are targeting for this year? 15:44 15 minutes, 44 seconds uh probably we'll keep uh our strategy in line uh with 40 50% CGR growth because next couple of years uh with 15:53 15 minutes, 53 seconds this SMB year I would say next couple of years we are eyeing on thousand cr kind of a journey that is what our ultimate goal is so you can keep in tech with 40 16:01 16 minutes, 1 second 50% CAGR kind of and growth that would be that we'll try to continue to deliver okay sir uh so second question is on the 16:10 16 minutes, 10 seconds beta margin side. So recently we acquired uh IC uh like the ICT one. Uh so due to that we are seeing some impact 16:18 16 minutes, 18 seconds on the AITA margin some consolidated levels around 22%. 16:24 16 minutes, 24 seconds 22.5 so probably uh we already have stated so that company uh AIC now entron 16:33 16 minutes, 33 seconds international controls. So if you see when we bought at that phase of time it was kind of early double digit itself. Yeah. 16:40 16 minutes, 40 seconds And it's hardly two months we already have started activities on that part. So ultimate goal is like slowly and gradually probably now this financially 16:48 16 minutes, 48 seconds it will get consolidated full year. So we'll see the scope of improvement on what it was there before and what it is now because we do lie have expertise on 16:57 16 minutes, 57 seconds that ESDM market and best part is we are seeing the synergies and already transition phase has started and completed. So we know now where exactly 17:05 17 minutes, 5 seconds to tap and where exactly we can make the bottom line out. So that is where we have started working on that part and probably down the line you will see the 17:13 17 minutes, 13 seconds results probably like couple of years down the line we are even eyeing on how do we take it up to the mron kind of a margin amron level margin for AITA as well as pet. 17:23 17 minutes, 23 seconds Okay sir, so like on consolidated levels we can assume 22% is the conservative like the most least uh ITA margins we 17:31 17 minutes, 31 seconds can see going forward right couple of years down the line not immediately uh 17:39 17 minutes, 39 seconds this year it was early double digit kind of 11 somewhere around 11% every time uh sir on consolidated levels you're 17:47 17 minutes, 47 seconds saying standalone specific to EIC Okay. Uh uh sir I'm talking about on 17:55 17 minutes, 55 seconds consolidated levels like so consolidation we will be intact to what pet margins and we are into so that that 18:03 18 minutes, 3 seconds pad 15% like couple of percentage one or two percentage here and there aita 20 to 22% kind of a range we'll be intact on the consolidation mode. 18:12 18 minutes, 12 seconds Okay sir. So uh third is on the uh like top line as aiming for 1,000 cr. So like uh I think for the next two years we 18:21 18 minutes, 21 seconds don't require any kind of a capeex but after that we are planning is there anything which you want to disclose right 18:29 18 minutes, 29 seconds so so I think you can see that our meatronic facilities coming out and there is some you know uh capacity will 18:37 18 minutes, 37 seconds be there also so right now we don't need to spend any more unless you have let's say 5 10 cr here and there you know 18:45 18 minutes, 45 seconds minor tools uh you know upgrade or maybe small machines upgrade but we are not seeing another huge expansion uh cost uh 18:54 18 minutes, 54 seconds you know in the m existing setup but meatronic will have another setup with you know two ascent line to start with 19:01 19 minutes, 1 second and four ascent lines over there if you look at this you don't need that much we already have a nine ascent lines right 19:08 19 minutes, 8 seconds now so in nine ascent line we can easily go up to 800 900 cr so I think uh at 19:16 19 minutes, 16 seconds this point we don't need uh any other capex uh at this point but thank you so much uh we can take next 19:24 19 minutes, 24 seconds sure thank you sir I would restrict I would request all participants to limit two questions in the initial first round and then come back in the queue we'll 19:32 19 minutes, 32 seconds take the next participant rush sha rush you can go ahead please am I audible yes 19:40 19 minutes, 40 seconds uh sir could you please clarify that how much percent of IPS are developed inhouse and how much of that is sold 19:48 19 minutes, 48 seconds externally or externally acquired. How is company able to manage its design function with relatively low employee benefit costs? Especially given that 19:57 19 minutes, 57 seconds designled businesses typically incur higher talent costs. 20:03 20 minutes, 3 seconds Okay. So we do have like design team in house where we have hardware, software, firmware, mechanical everything. So we 20:10 20 minutes, 10 seconds have somewhere around team of 45 to 50 and then we do have a design partners. 20:15 20 minutes, 15 seconds So including that we have a team of around 150 uh team members and IP typically remains with customer. 20:21 20 minutes, 21 seconds We don't own the IP. Uh so we try to be build from scratch and take the manufacturing licensing kind of an 20:28 20 minutes, 28 seconds activity and uh we do support them from scratch from concept to design to prototype to production and that too for complete box system integration. 20:38 20 minutes, 38 seconds With that said, you know, we about our, you know, customers requirement to get to the market easy. We have about 80 20:47 20 minutes, 47 seconds platforms ready, you know, that means those are the IPs. 20:52 20 minutes, 52 seconds We have about you know number of IPS in the IoT in you know other areas controls or uh you know storage power those areas 21:01 21 minutes, 1 second we already have a a basic design configuration is ready and whenever customer comes in 3 to 4 months hey here's the product so you can take it 21:10 21 minutes, 10 seconds and if they pay then they own it if they don't pay then we take the royalty or contract for five seven years. 21:17 21 minutes, 17 seconds Okay. Uh so management is guiding around 40 50 sorry 21:26 21 minutes, 26 seconds yeah yeah please continue yeah so management was guiding uh roughly around 40 50% revenue growth in FY27 if we uh considered the numbers of 21:35 21 minutes, 35 seconds consolidated IC business there seems uh almost no growth in X ICS business so 21:44 21 minutes, 44 seconds can you please throw some light on Right. 21:50 21 minutes, 50 seconds Sure. So specific to ICS we have clearly stated uh growth definitely is there. So growth here focus is more on AITA and 21:59 21 minutes, 59 seconds PAT level. Revenue definitely it is not going to be same as India like 40 to 50%. So growth over there would be in 22:07 22 minutes, 7 seconds double digits specific to revenue. But here the main focus is on how do we take it up for double digit kind of a pat and double digit kind of an epitita. 22:19 22 minutes, 19 seconds Sure sir. We'll take the next question from Akash Shivas Akash. Go ahead please. 22:29 22 minutes, 29 seconds On delivering very strong result. Uh sir actually I have got all my answers and 22:37 22 minutes, 37 seconds all all the questions of my I have received answer to all my questions. So I don't have anything further to ask. 22:46 22 minutes, 46 seconds Thank you. Thank you Akash. 22:48 22 minutes, 48 seconds Okay. We'll take the next question from Pratik Badia. Pratik, you can go ahead please. Hi, am I audible? 22:56 22 minutes, 56 seconds Yes. 22:58 22 minutes, 58 seconds Uh first of all, congratulation for a great set of numbers. Uh I have few questions. Uh first, can you take me 23:05 23 minutes, 5 seconds through the revenue split between uh India versus abroad and also if you could split between different sectors 23:14 23 minutes, 14 seconds like railways, defense and so on. Sure. 23:21 23 minutes, 21 seconds Uh Kamish if you can just open up the presentation. I don't have the numbers handy but if you can just open up the present a slide. 23:27 23 minutes, 27 seconds So you see like probably like this year as well uh 70 approximately around 70% kind of an activity was more towards an 23:36 23 minutes, 36 seconds domestic customers with international clientele and uh focus was more on a box build we have stated before as well. So 23:43 23 minutes, 43 seconds if you see like major uh industrial telecom and power and IOD robotics were the top five contributing uh uh sectors 23:51 23 minutes, 51 seconds in terms of industry and if you see geography like India and US were the top two and almost split of PCBA to box 23:58 23 minutes, 58 seconds build was 7030 kind of a ratio and ODM model uh because it's like design cost is generally less as compared to the 24:05 24 minutes, 5 seconds overall project size. So ODM model that is end to end solution gets uh splitted to less than 5%. 24:14 24 minutes, 14 seconds So the new addition of uh clients happened basically in which sector in the last 6 months? Uh it has been a 24:22 24 minutes, 22 seconds combination of all just an example new sector if I say then aerospace and defense we added somewhere around 2% overall railway we started entering into 24:30 24 minutes, 30 seconds that along with oil and gas. Soil and gas probably now we are looking at on something on higher side because last 24:37 24 minutes, 37 seconds year if I see just give uh just giving a number we did almost 424 prototypes. So 24:44 24 minutes, 44 seconds considering that number like oil and gas we are seeing a good traction and considering what geopolitical situations 24:51 24 minutes, 51 seconds are. So it seems to be on a better side to get on that spot as well. So overall 24:58 24 minutes, 58 seconds if you see like uh telecom sector, power sector and uh uh robotics is something that we added in second half of the year. 25:08 25 minutes, 8 seconds So do we foresee the same uh tailwinds in the similar sectors in the next one or two years or do you see railways or defense coming up as a bigger players? 25:20 25 minutes, 20 seconds Railways and defense definitely we are eyeing on it but uh as it is more uh like uh like uh more I would say 25:28 25 minutes, 28 seconds conversion cycles are too high so it's not that it is these two sectors are going to dominate it we are going to be part of that sectors uh where again we 25:37 25 minutes, 37 seconds would be focusing on more of a niche market segment kind of activity to what typically we do because as we stated like this 26th January parade to what 25:45 25 minutes, 45 seconds drones were displayed we supplied the PCBas so you would like to continue with same kind of an project, same kind of an momentum but other sectors apart from 25:54 25 minutes, 54 seconds these two to what you have stated probably will try to dominate for this year as well this current financial year as well. 26:01 26 minutes, 1 second Okay, fair enough. Thank you. And my second question would be uh what would be the top three four risk that you see in the coming two years in terms of execution. 26:11 26 minutes, 11 seconds So majorly as of now if you see uh like inventory levels if you see has moderator increased and uh like due to 26:19 26 minutes, 19 seconds three reasons one was more of uh if you see like what global situations are going around chips are getting on like 26:28 26 minutes, 28 seconds shortage and price are getting increased so that supply chain side is the only factor we see can be a challenge best 26:34 26 minutes, 34 seconds all I don't think so apart from that and that is where we started we already have like start taking the annual orders with 26:42 26 minutes, 42 seconds like monthly and quarterly split deliveries based on customer requirements. So to what all inventory we carry probably it's more often 26:49 26 minutes, 49 seconds customer projects oriented only where we have minimal or we we don't have any impacts from our side at least 26:57 26 minutes, 57 seconds I think if we have a a very n market people has to use it or take it is that 27:03 27 minutes, 3 seconds correct so you know even corona time in did not have any problem so I think uh 27:10 27 minutes, 10 seconds if we continue focusing on the market the complex box We will not have that much problem because there is always need and there 27:19 27 minutes, 19 seconds is always requirement for those kind of product and we always you know ready to go one step beyond and that's how we 27:27 27 minutes, 27 seconds prepare for that also you know very strong infrastructure we have so something happened let's say in a in a 27:35 27 minutes, 35 seconds geopolitical situation and and all these buildings all these properties even you know US facility in run international So 27:44 27 minutes, 44 seconds control we have 4 acre land and we have about 58,000 square foot building also. 27:49 27 minutes, 49 seconds So we have you know land and building every single place. So we don't have to worry about uh any kind of uh you know 27:56 27 minutes, 56 seconds turmoil. So as N said mainly supply chain but we are communicating with the customers and make sure you know I think 28:04 28 minutes, 4 seconds that's what the main we see the mitigation for risk. 28:12 28 minutes, 12 seconds Thank you. Do you have any further question? 28:21 28 minutes, 21 seconds We'll take the next next question from Tah. Tah, you can go ahead please. 28:26 28 minutes, 26 seconds Uh, hi sir. Uh, thank you for the opportunity and congratulates on the good set of numbers. Sir uh first question from my side will be sir can 28:34 28 minutes, 34 seconds you please provide uh info on the operational SMT lines we had for the entire FI26 and the plans which we had 28:42 28 minutes, 42 seconds to expand the in uh expand our SMT lines uh green field expansion like about we have planned to add one more line in 28:51 28 minutes, 51 seconds FI27. So what are the updates on that part? 29:01 29 minutes, 1 second we have Fuji platform uh both as well as Bangalore and uh the new uh 29:09 29 minutes, 9 seconds green field project that we are coming up with also will be with same Fuji platform itself that's in Japanese made and as of now like collection is 29:17 29 minutes, 17 seconds completed and constructions are ongoing so that facility uh construction is done probably it will be Q3 and Q4 probably 29:24 29 minutes, 24 seconds it will be Q4 this financial year and Suppose that at that phase of time we'll be having that uh setup up and running 29:32 29 minutes, 32 seconds and initially we'll be having mechanical setup up and running and then as phase two we'll be having uh this electronics or uh PCB or assembly lines commissioning done. 29:43 29 minutes, 43 seconds Okay. Okay. 29:44 29 minutes, 44 seconds So we are planning to get it operational by Q3 F7 uh for the mechanical part and assembly 29:53 29 minutes, 53 seconds line will be uh after that in phase two and when and what is the timeline for that part a quarter more on addition of Q4. 30:04 30 minutes, 4 seconds Okay. So we are planning to add one one SMT lines by end of FI27. 30:12 30 minutes, 12 seconds FI27 or Q1 calendar Q1 next financial year latest by that time. 30:19 30 minutes, 19 seconds Okay. Okay. Uh then uh second question was on the margins front. Uh uh our 30:27 30 minutes, 27 seconds gross margins has decreased from around 31% in FI H1 FI 26 to 28% in H2. uh due 30:37 30 minutes, 37 seconds to the increase in COMMC uh was there any raw material price impact during this period? 30:47 30 minutes, 47 seconds probably I would request or suggest that if you can compare uh year on year because if you see always first half to 30:54 30 minutes, 54 seconds second half uh there is always going to be a change because I I would prefer to go on the year year-to-year basis 31:01 31 minutes, 1 second because if you see year on year probably we are in line and quarter first half to second half we have scaled up and initially like there are couple of 31:10 31 minutes, 10 seconds orders from ODM models which got from ODM got shifted to manufacturing and couple 31:17 31 minutes, 17 seconds reasons where geopolitical regions where shipment costs were on higher side, supply chain constraints were there. So considering all that aspects there are 31:25 31 minutes, 25 seconds going to be minor fluctuation here and there. But if you see the complete year then probably we are going to be in line with to what we have been projecting 31:33 31 minutes, 33 seconds also. If we remember you know we discussed also last call also on previous couple times that in trans journey is still you know compared to 31:42 31 minutes, 42 seconds like 1,000 cr is still you know 300 cr is like you know sometimes it's going to be all the ratios will not meet I hope 31:50 31 minutes, 50 seconds I'm communicating so because sometimes one customer you know one sector one area is going to be up and down a little 31:58 31 minutes, 58 seconds bit so hopefully if you have a maybe year after we can ask that question we have a better answer for you you know so 32:07 32 minutes, 7 seconds that's why you will see a a real result year over year and quarter over quarter so once we enter the main board you will 32:14 32 minutes, 14 seconds see a better by the time our at least our revenue will be more than 500 cr I think that's what that's what I'm I'm 32:21 32 minutes, 21 seconds just adding to the snare 32:24 32 minutes, 24 seconds [clears throat] 32:28 32 minutes, 28 seconds so we'll take the next participant Mr. 32:30 32 minutes, 30 seconds Akshi Kalia Aki you can go ahead please sir uh thanks for taking my question and 32:38 32 minutes, 38 seconds uh congratulations on the great setup number. My first question is regarding the cash flow. So we have generated 40 cr negative cash flow this financial 32:47 32 minutes, 47 seconds year and by can we expect to generate positive cash flow and what percentage of IITA can we convert over the next two 32:54 32 minutes, 54 seconds to three years and also there is one line item of 70 K loans and advances given to other parties. So can you please elaborate on that part? 33:08 33 minutes, 8 seconds Sure. So we'll take second question first. uh Nikita if you can take that up because that's more of an internal just an example like acquisition done for AIC 33:17 33 minutes, 17 seconds and uh projection for construction of Mron meatronics so we can give more brief on that part Nikita if you can 33:24 33 minutes, 24 seconds just add that yes uh regarding the consolidation 33:31 33 minutes, 31 seconds figures uh I can see that uh loans and advances that is showing uh at uh 50 Uh 33:40 33 minutes, 40 seconds 8.3 sorry uh 33:51 33 minutes, 51 seconds so uh it uh are you referring to the consolidated value or a standalone value? 33:57 33 minutes, 57 seconds Uh ma'am I am referring to the consolidated cash flow at one item one line item is the 16.8 cr of the loans 34:05 34 minutes, 5 seconds and advances. I am referring to that only. Just a second. 34:14 34 minutes, 14 seconds Yeah, mute location. 34:15 34 minutes, 15 seconds We can take the other question in the meanwhile. A do you have any other question? 34:18 34 minutes, 18 seconds Sure. Sure. Not an issue. Uh we can also connect. 34:22 34 minutes, 22 seconds Yeah, actually 16.8 cr is given to LLC in Texas. in electronics in taxes to 34:29 34 minutes, 29 seconds acquisition and that is the part of the payment we did from our you know acquisition from uh you know international in international control. 34:38 34 minutes, 38 seconds So that is the money you see over there cash flow but yeah take an expression by the time. 34:45 34 minutes, 45 seconds Okay sir. Okay understood. 34:49 34 minutes, 49 seconds So yeah, so my uh second part on that question was to when can we generate the positive cash flow and by what 34:56 34 minutes, 56 seconds percentage of EBIT we can generate over the next two to three years. 35:02 35 minutes, 2 seconds Probably if you see we are in a uh aggressive growth trajectory and that is where like this impacts have been there. 35:09 35 minutes, 9 seconds So if we see like uh once we reach to the stable phase of thousand cr so we may continue with this kind of a momentum because of aggressive growth 35:18 35 minutes, 18 seconds that we are hanging into 40 50% and above because even if you see past 2 years it has been 60 to 70% and even above uh when it comes to the growth 35:27 35 minutes, 27 seconds trajectory. So initially uh to accommodate that growth uh we may need to accommodate on that part but once we reach a thousand K kind of a journey 35:36 35 minutes, 36 seconds post that we'll be able to see the stabilization on that part. 35:40 35 minutes, 40 seconds Sure. Thank you. We'll take the next question from Deepak Poda. Deepak we can go ahead please. 35:46 35 minutes, 46 seconds Yeah I'm a yes you'll have to speak up a bit louder. 35:50 35 minutes, 50 seconds Okay. Okay. Great. So just a few things from my side now. ICS what's the current revenue and and this 280 to 300 crores 35:58 35 minutes, 58 seconds target that we have is over next three years right I mean ideally that a,000 crores we are targeting out of the,000 36:05 36 minutes, 5 seconds 300 we are expecting to come from ICS uh yes so on peak we can take it up to 36:13 36 minutes, 13 seconds 25 to 30 million that is what we are eyeing on from specific to EIC M international controls and uh this year 36:20 36 minutes, 20 seconds will be somewhere around 17 million approximately that is what We are into 17 million FI27. 36:29 36 minutes, 29 seconds Yeah. 36:30 36 minutes, 30 seconds So 17 million effectively means around 170 cr something like that right approximately. 36:36 36 minutes, 36 seconds Okay. Okay. So so ideally when we say 45 50% growth so from 300 even if I take 50% growth we are reaching from 300 to 36:44 36 minutes, 44 seconds 450 crores right. So that is a increase of 150 crores but 170 crores is coming from this new facility only right new air conditioning. 36:54 36 minutes, 54 seconds So uh definitely you are good in maths no doubt with that but uh I would say on 300 we are still coming up with 40 to 37:03 37 minutes, 3 seconds 50%. Because uh there would be organic growth as well as a part of India. So if we see on the consolidation mode uh like 37:10 37 minutes, 10 seconds inorganic as well as organic probably would be in that range. 37:14 37 minutes, 14 seconds Okay. So, so this 40 50% is conservative right because if you see organic growth as well plus the acquisition so ideally your growth would be much higher right I 37:22 37 minutes, 22 seconds mean historically I found you guys to be very conservative right so would that be a right assumption this 40 50% is a conservative number 37:30 37 minutes, 30 seconds so G you know G I think we don't know the geopolitical situation is correct I think we are very conservative and we 37:39 37 minutes, 39 seconds are very transparent in numbers and commitment if I say okay I'm going to do 70 80 compared to last year and they 37:47 37 minutes, 47 seconds cannot do it then I want I don't want to make that mistake so would like to go with conservative you know that's the growth we are eyeing on 40 to 50% 37:55 37 minutes, 55 seconds because we are seeing the open water group we are seeing the pipeline and if we can get more is that good for everybody is that correct so that's what 38:03 38 minutes, 3 seconds you know we are looking for more we are looking triple but you know it may not be possible tomorrow what happened in the white house tomorrow what happened 38:10 38 minutes, 10 seconds in the world we don't know so at this point with the current open We are eyeing on 40 to 50% growth. 38:17 38 minutes, 17 seconds Oh, and and we do expect organic growth as well, right? That that's what you mentioned. 38:26 38 minutes, 26 seconds Thank you. You think I think you Yeah. So I was asking you do expect organic growth as well, right? Yes, definitely. 38:33 38 minutes, 33 seconds Okay. Okay. So my second question is on your RFQS. I mean you you mentioned around 900 to 950 crores of RFQS we 38:41 38 minutes, 41 seconds have, right? Um um so so so by what sort of conversion we are expecting um and by when and and we have we have around 240 38:49 38 minutes, 49 seconds crores of inventory and of money locked in inventory and receivables. Uh so so how should one look at that? I mean it's a substantial number. 38:58 38 minutes, 58 seconds It's a sales question for you. 39:01 39 minutes, 1 second Second question first uh specific to uh inventory uh as now we are more focused 39:07 39 minutes, 7 seconds on ODM model. One of the prime reason uh where you see that inventory numbers are 39:15 39 minutes, 15 seconds uh increasing it's not to that spike but there's a moderate increase and first is like you see if you see our ODM business has grown to almost 2x as compared to 39:24 39 minutes, 24 seconds the last year and ODM business naturally requires higher inventory as we need to manage components of assemblies and product readiness at our end compared to 39:33 39 minutes, 33 seconds pure EMS players. So if you see secondly the strong growth visibility and customers order pipeline for FI27 39:42 39 minutes, 42 seconds that's also one of the important reason that considering the current geopolitical issues we are because we have to stock up certain critical 39:50 39 minutes, 50 seconds components proactively to get avoid getting stuck in supply chain uncertaintities. 39:55 39 minutes, 55 seconds So considering that uh inventory is moderately high. So that's that's one part receivables if you see like uh 40:03 40 minutes, 3 seconds couple of payments are if you see this is more often 31st March results uh so out of which almost 40 30 40% has 40:11 40 minutes, 11 seconds already been received because some are 60 days some are 75 days kind of a story so we all started receiving their payments they not worried because that 40:18 40 minutes, 18 seconds conversion cycle keeps on rotating around thank you we'll take the next question 40:25 40 minutes, 25 seconds from Surendra Surend you can go ahead Sir, congratulations on a good set of numbers. 40:34 40 minutes, 34 seconds Uh so my first question is uh like you mentioned in the last call like we have received a uh like order in the defense 40:41 40 minutes, 41 seconds from the mini ratna. So are we expecting more kind of orders on that segment and may know the margins on that front? 40:51 40 minutes, 51 seconds Uh certainly yes. uh because a couple of Naratna BSUs like we already started working with them 41:00 41 minutes low or mid-level kind of a quantities and uh where like prototypings and pilot phases are already done and now we are 41:08 41 minutes, 8 seconds trying to see on how can we scale that projects. So we are working with different different divisions of it and margins probably will be at MRON level 41:16 41 minutes, 16 seconds when it comes to aerospace and defense some somewhat I would say bit on higher side as well but when it comes to consolidation like we generally I on 15% 41:24 41 minutes, 24 seconds kind of a patch margins that we typically look into okay uh yeah okay sir and the second question 41:33 41 minutes, 33 seconds is like uh is there any acquisitions going or like is any any under developments like under final stage kind of thing ex just like ICS or something. 41:45 41 minutes, 45 seconds I think uh it's too early to say. The reason is uh current geopolitical situation is kind of a vulnerable so we 41:54 41 minutes, 54 seconds look at it couple more but right now we put on a board right now u but ICS it's called AIC now but AIC is already up and 42:03 42 minutes, 3 seconds running and we start making money on that and and all start sending you know so it's it's good thing that so we are settled down now for that one we 42:12 42 minutes, 12 seconds [clears throat] put new ERP system we put new internet system we put all this whatever requirement But coming back to your questions, yes 42:20 42 minutes, 20 seconds we are looking couple of places one of the design companies we are looking in North America and in European market. So 42:29 42 minutes, 29 seconds we just wait and watch kind of situation right now. 42:33 42 minutes, 33 seconds Thank you. We'll take the next question from Sumit Chopra. Sumit you can go ahead please. [clears throat] Yeah. Hi. Am I audible? 42:41 42 minutes, 41 seconds Yes. 42:43 42 minutes, 43 seconds Yeah. Hi sir. I just need one clar clarification to the question of previous participants. So any specific 42:50 42 minutes, 50 seconds percentage you would like to uh guide or comment upon from the organic growth point of view because those numbers are 42:58 42 minutes, 58 seconds not reconciling because like uh he was also quoting 40 50% growth with the current 43:09 43 minutes, 9 seconds see there any organic growth on a so 43:16 43 minutes, 16 seconds I I got you you are uh you are guiding this percentage number uh from a conservative point of view but anything 43:24 43 minutes, 24 seconds any color you would like to throw from Amtron without without AIC if you want to comment upon 43:32 43 minutes, 32 seconds this is the EMS business you look at it every single company there's a tons of orders and tons of materials works in in 43:39 43 minutes, 39 seconds the pipeline from everyone for everybody so considering that we are seeing 43:45 43 minutes, 45 seconds organically also uh you know 40 to 50% growth plus additional you know AIC so 43:53 43 minutes, 53 seconds we give you a range for 450 to 550 at the end of the year so you you never know what going to happen in this 44:01 44 minutes, 1 second geopolitical situation so again we could have a 550 then your math will be right correct if you go let's see if I say our 44:10 44 minutes, 10 seconds next year will be around 5 to 600 cr then everybody will be happy but let's see tomorrow happen something happen in in Iran or Iraq or somewhere then we 44:19 44 minutes, 19 seconds going to be screwed up again. So however you going to do mathematics our end goal is to get thousand cr journey if you're 44:27 44 minutes, 27 seconds going to do either with 40 to 50% growth or inorganic but we will get that uh that's our and goal and that will that's 44:37 44 minutes, 37 seconds we are prepared for that I we cannot give you exact numbers or a very close number because we do not know the 44:44 44 minutes, 44 seconds situation so that is the reason yes mathematic doesn't fit in my mind also But right now my goal is let's see if I 44:53 44 minutes, 53 seconds give you 550 to 600 for end of next year I think you'll be happy and your match will fit in that but something happened 45:00 45 minutes then you will be unhappy and I'll be unhappy so that is the reason thank you also I think uh we need to clarify in 45:08 45 minutes, 8 seconds the presentation what we've given is CAGGR which is a 3 to 5 year trend that we talking about and not just one year growth number yeah thank you is 45:18 45 minutes, 18 seconds correcting. [clears throat] Sumit do you have any further question? 45:29 45 minutes, 29 seconds Yes sir. [clears throat] Yeah. 45:32 45 minutes, 32 seconds Yeah sir. My second question is regarding the mix of box build and PCBA. 45:37 45 minutes, 37 seconds So as we can see in H2 this mix has improved from the H1 but but the same is not visible in our AEA margin. So any 45:44 45 minutes, 44 seconds specific reason uh for that it's more of a combination of that mode 45:54 45 minutes, 54 seconds itself because that is getting more of a value addition chain. So for instance initially with our existing customers we were just doing PCB [clears throat] as 46:02 46 minutes, 2 seconds just an example I'm giving uh where from there we shifted back to complete box or complete system integration. So for instance, initially the PCB value would 46:11 46 minutes, 11 seconds be 1,000 rupees which has now increased that turnar around to 2,00 or 1,500. So bottom line still remains the same to 46:18 46 minutes, 18 seconds what we used to before or it has rather like been on the positive side where even it has helped us for top line as well. So it is a combination of top line as well as [clears throat] bottom line. 46:32 46 minutes, 32 seconds Sure. We'll take the next question from Anojara. Anoj you can go ahead please. 46:37 46 minutes, 37 seconds Um yeah hi congratulations a great set of numbers just following up on the previous participants question right I mean ideally um we spoken that box build 46:47 46 minutes, 47 seconds has a higher margin higher set of margins compared to PCVA so what you just said doesn't make sense right if you're earning the same percentage of 46:54 46 minutes, 54 seconds [clears throat] margins by expanding the order value that just doesn't fit in the logical framework from what was uh 47:01 47 minutes, 1 second commented earlier so if you See like along with that there has been change in order trajectory as 47:10 47 minutes, 10 seconds well. So initially if you see it used to be like 5 10 cr kind of an activity for a single order which trajectory is now changed to 25 to 40 cr to 50 cr kind of 47:19 47 minutes, 19 seconds a single orders. So that is also a part of it where it's say it's a combination of all factors not only just for PCBA to box build because if you see ODM model 47:28 47 minutes, 28 seconds then ODM model probably would have higher margin as compared to box build as well. So but if you see what we try to do is we try to combine all the 47:35 47 minutes, 35 seconds factors and try to see on how do we maintain the patent level and avar and above [clears throat] understood. Uh so so for the coming year 47:44 47 minutes, 44 seconds that's FI27 we expect the same split that is a 70% of box build and 30 approximately 30% of PCB or you expect 47:52 47 minutes, 52 seconds the percentage of box build and ODM to rise up to nearly 80%. 47:58 47 minutes, 58 seconds uh it is going to be more or less the same uh activity where box build is going to be around 65 to 70 and PCB is 48:06 48 minutes, 6 seconds going to be in that 30% kind of an range itself got it if I if I a little bit to sn here 48:14 48 minutes, 14 seconds every company has to start with the PCB is correct cannot have 100% box built directly but what intron is looking for 48:22 48 minutes, 22 seconds where is a complex PC board where is a very you know high X uh you know high dollar those we forecast those those we 48:31 48 minutes, 31 seconds target. So in our dictionary we don't separate too much as a box wheel versus PCB versus design. We look at first and 48:39 48 minutes, 39 seconds our team is prepared hey is fit in our range 13 to 15 or 20 to 24 percentage a range. If not fit then it doesn't matter 48:48 48 minutes, 48 seconds for us is a box build or as a PCB only or it's a defense or as an IoT or as a 48:56 48 minutes, 56 seconds telecom. So so we are a little different in EMS trend right now. We would like to be a role model to set up a new trend versus you know separating everything. 49:08 49 minutes, 8 seconds Find a medical customer they are doing X-ray imaging. Find a medical customer they are doing defibrillator. Find a 49:16 49 minutes, 16 seconds drone who is a working as a surveillance. So find those kind of customer or a a Mercedes car or as 49:23 49 minutes, 23 seconds somebody Tesla or somebody find those customer they have either either PC board or caterpillar. they don't care 49:31 49 minutes, 31 seconds you know either the PC board or either you do just the metal part still is the same margin so that is something we are 49:38 49 minutes, 38 seconds eyeing on and that is something our you know DNA I think uh again I'm not just 49:45 49 minutes, 45 seconds discouraging you but you know those are the thoughts we had you know a lot of question we had in 3 years your machine how many you know you know per hour how 49:54 49 minutes, 54 seconds many do pick and place how many parts they place doesn't matter now what is our every bottom line I think that's what we focus us and that is our our DNA and that's our goal also. Thank you. 50:06 50 minutes, 6 seconds Thank you. We'll take the next question from Sachin Gulati. Sachin you can go ahead please. [clears throat] Am I audible? 50:13 50 minutes, 13 seconds Yes. 50:14 50 minutes, 14 seconds Yeah. Uh thank you for the opportunity and congratulations for good set of numbers. So before asking question I have one or two suggestions. 50:23 50 minutes, 23 seconds uh one is if we can share this PPT little bit in advance because it is just shared so that we can come prepared and 50:30 50 minutes, 30 seconds go through in advance. Second, till we migrate to main board can we consider some quarterly business update. 50:40 50 minutes, 40 seconds Very good question and uh first question will be you know me and Vin we work together and and see next time. Our goal 50:48 50 minutes, 48 seconds was to set a trend to give early result you know. So you know my goal is to give every you know first last Monday of 50:57 50 minutes, 57 seconds every year or every quarter I would like to give the results. So that is the reason we have to rush little bit here and there but we are we are you know setting the trend and we will go from 51:06 51 minutes, 6 seconds there and then next time we'll make sure we'll give you that you know a day in advance. So that is our goal and we'll 51:11 51 minutes, 11 seconds do it for sure. Um next question here is quarterly. Yes. Yes. Yes. Just please go ahead. 51:21 51 minutes, 21 seconds Yeah. So quarterly we are ready for the quarterly. Uh I think this new audit auditor system we will try to you know 51:29 51 minutes, 29 seconds do a quarterly but at least we would like to give you a quarterly update for sure and you know we have only three quarter left you know and then we have 51:38 51 minutes, 38 seconds to go quarterly anyway. So we are preparing our team to start quarterly. 51:42 51 minutes, 42 seconds Let's see how it goes. Uh our goal is to give you quarterly but maybe uh anyway we have to learn that anyway. So uh so I 51:51 51 minutes, 51 seconds think we are ready for that. Uh we'll let you know and we'll announce accordingly uh you know at the time comes. [clears throat] 51:58 51 minutes, 58 seconds Yeah. And second is uh our PCB was used in drone showcased in Republic Day parade. So what is further progress 52:05 52 minutes, 5 seconds update as far as this zone segment is concerned? 52:10 52 minutes, 10 seconds Sales question. So basically we are uh regularly doing monthly shipments uh for specific to drone for domestic as well 52:19 52 minutes, 19 seconds as international market and down the line we are even eyeing on how do we enter to box wheel space like uh uh just an example camera box assembly and 52:27 52 minutes, 27 seconds somewhat of that kind payload and all that. So that exploration is already going on but as of now PCBA we are already supplying them on regular basis. 52:36 52 minutes, 36 seconds uh wire harness we have recently started encountering on that part too and down the line we're exploring on how can we do like uh payload systems camera module 52:44 52 minutes, 44 seconds assemblies and all and along apart from that we are also exploring if we can do a complete box system integration as well 52:52 52 minutes, 52 seconds thank you we'll take the next question from Roshin Sha Roshin you can go uh sir can you please explain the 53:02 53 minutes, 2 seconds difficulty level of designing a PC board like how difficult it is to design a PCB board. Is it very like uh the difficulty 53:10 53 minutes, 10 seconds level is very easy that everyone can do or there are any uh levels to difficulties that we do some very high 53:18 53 minutes, 18 seconds difficult task which is reflected in our margins compared to other peers. 53:29 53 minutes, 29 seconds you need new or hello. Certainly certainly like it can be defined to different levels of uh difficulties, different stage of it. 53:39 53 minutes, 39 seconds Just an example like video game every like every like layer or every stage you clear that comes the criticality 53:46 53 minutes, 46 seconds increases. So we are into that niche market kind of an activity where just an example where someone is making just say 53:53 53 minutes, 53 seconds uh PCB of fan or tube light that's too easy to do get things done but to make this 1 KB 2 KB 3 KB ups you need an 54:01 54 minutes, 1 second expertise for specific to power electronics high [clears throat] voltage kind of an activity where uh instrument cost itself is around 30 35 lakh to test 54:10 54 minutes, 10 seconds that equipment and for battery load testing and all specific to UPS I'm saying as of now just in or electronic 54:17 54 minutes, 17 seconds subject. If you see uh like we uh it took us four to 6 months just to develop one category of 54:26 54 minutes, 26 seconds product. So that too because we have an expertise or else it takes years and years of time and still people are not able to get the products ready. 54:34 54 minutes, 34 seconds So V in the time can you take a shorter question and shorter answer maybe one question from everybody only one question? 54:42 54 minutes, 42 seconds Yeah yeah let's finish this first sir. 54:44 54 minutes, 44 seconds Uh sir can I ask one last question we got covered for last time also rush already asked two questions before also if you don't mind let have other people 54:53 54 minutes, 53 seconds please take and we'll take it sure we'll take the next question from dash sha we'll request all participants to restrict question for participant 55:02 55 minutes, 2 seconds please yeah yeah you can go ahead hi uh sorry I couldn't go to the 55:09 55 minutes, 9 seconds presentation properly so can you let me know how much was the consolidation that happened uh uh from the acquisition in 55:16 55 minutes, 16 seconds the current financials $1.6 $6 million and uh it was specific 55:24 55 minutes, 24 seconds for two months specific to EIC I'm talking about correct we'll take the next question from Sil 55:32 55 minutes, 32 seconds Jane Somil you can go ahead please congrats on a 55:44 55 minutes, 44 seconds strong FI26 uh one question on the order book and revenues uh telecom is a segment which 55:52 55 minutes, 52 seconds is if I remember correctly not a large contributor to revenues last year by last year I mean FI25 but in FI26 it has 56:01 56 minutes, 1 second been a significant contributor and also as a part of the order book it's a you know significant part of that uh and similarly power and data center segment 56:10 56 minutes, 10 seconds is again a significant uh part of the order book can you talk about product here so ramp up within these products 56:19 56 minutes, 19 seconds are these led by a single uh order single customers, single products and you know with the potential scale that we can get with uh these products that that'll be from my side. Thank you. 56:31 56 minutes, 31 seconds Sure. So uh if you see specific to like power segment and data centers so power electronics like there are couple of 56:39 56 minutes, 39 seconds customers in that but of which one of the biggest contributor is S&P 500 company Fortune 500 company Ohio based 56:46 56 minutes, 46 seconds uh company which are a leading player in data centers. So as of now we are working with them on 1 KV to 3 KV kind 56:54 56 minutes, 54 seconds of six variants of it where we do have a visibility of going up to 20 KVA kind of an opportunity just from that one 57:02 57 minutes, 2 seconds customer uh fortune 500 customer I'm talking about so which can be like a kind of uh this year revenue size as 57:09 57 minutes, 9 seconds well so can be that big opportunity again not immediately but down the line once we are going ahead in this uh 57:17 57 minutes, 17 seconds journey and uh specific to telecom we are Wi-Fi 6, Wi-Fi 7 kind of M equipment and apart from that SFP and all that 57:26 57 minutes, 26 seconds fiber optics or optical trans receivers and all that are also going to be part of it uh down the line. So it is going to be a combination of all factors and 57:34 57 minutes, 34 seconds multiple orders. It's not only one customer contributing to all the complete sector. 57:41 57 minutes, 41 seconds Thank you. We'll take the next question from Rohan. Rohan, you can unmute and ask your question. 57:54 57 minutes, 54 seconds We'll first go ahead please. Uh am I audible? 57:59 57 minutes, 59 seconds Yeah. Not all my question was with respect to something that just mentioned um on the data center end I think we received some 58:08 58 minutes, 8 seconds 100 cr order and just wanted to have some more light on that what is the sort of product and what is the opportunity 58:16 58 minutes, 16 seconds what is the revenue that we foresee in the coming future when I was 58:23 58 minutes, 23 seconds so as I stated we are making UPS uh for that uh there are six variants uh three sub three sub categories 1 KV 2 58:33 58 minutes, 33 seconds KV 3 KV with battery without battery that are going to be used in data centers EPC and commissioning as a 58:40 58 minutes, 40 seconds backup and uh as of now it's a fortune 500 company and uh certainly if you see can be as big as like uh uh last year's 58:49 58 minutes, 49 seconds revenue as well but again it is not going to be immediate and one one shot it is going to be a long-term association 58:59 58 minutes, 59 seconds Thank you. We'll first give a chance to participants who've not had a chance to ask any question. We'll take the next question from Arian Bhya. Arian, you can go ahead please. 59:15 59 minutes, 15 seconds Yeah, Arian, you're on mute. Please go ahead. I think there's a problem in his line. 59:25 59 minutes, 25 seconds We'll take the next question from Jani. you can go ahead please. 59:30 59 minutes, 30 seconds Yeah. Hi. Uh first of all, congratulations, sir, on a great set of numbers once again. Uh hope it continues 59:36 59 minutes, 36 seconds for a long time. Uh just one question uh which is related to the acquisition. So uh could you I if I heard it correctly 59:45 59 minutes, 45 seconds the U IC or AIC is doing 11% margins um as of now on aa level and large part of 59:54 59 minutes, 54 seconds your growth say next year will come from this business and the full consolidation of this business and it will take some time for this to ramp up to uh 1:00:03 1 hour, 3 seconds standalone margins which are about 20% odd. So do you foresee some margin pressure [clears throat] on uh a 1:00:10 1 hour, 10 seconds near-term basis till this gets uh kind of uh coming down to our levels of 20% or on the standalone basis and just on a 1:00:19 1 hour, 19 seconds data keeping one uh what is the execution timeline for the order book that we have of about 570 KS uh by when can we see the execution of this? 1:00:28 1 hour, 28 seconds So let me let me just give you a little heads up on this one. answer in this. So if you see um 1:00:37 1 hour, 37 seconds after we acquired we almost slashed lot of expenses we using lot of Indian I 1:00:44 1 hour, 44 seconds know our Indian talents over there in the back end let's see we have they have four people in purchasing now we have only one person purchasing and three 1:00:52 1 hour, 52 seconds people over here so from 11% to jump to already 15% right there I should give a 1:00:59 1 hour, 59 seconds range but just give you 11 to let's say 11 to 12 double digit. We had some low double digit. So now we mid double digit. Now also all the machines all 1:01:09 1 hour, 1 minute, 9 seconds these efficiencies they didn't have that much uh capacity wise they have only 55%. So we are adding more that saving 1:01:16 1 hour, 1 minute, 16 seconds some overhead you know. So it easy to get from lower double digit to higher 1:01:23 1 hour, 1 minute, 23 seconds double digit by mid this year and even the later this year it will be a very 1:01:29 1 hour, 1 minute, 29 seconds close to you know lower double digit to higher double digit let's say 18 to 20%. 1:01:36 1 hour, 1 minute, 36 seconds So that's our accomplishment will be um even though let's say now perceing power going to be increased you know let's say we used to buy only 200 K worth of 1:01:45 1 hour, 1 minute, 45 seconds material per now we are buying 300 k now so that's way it's it's going to be also two to 3% saving right there so those 1:01:53 1 hour, 1 minute, 53 seconds are the things in acquisition we are getting talents we are getting a lot of other stuff uh so that is the reason you know from lower double digit to higher 1:02:03 1 hour, 2 minutes, 3 seconds double digits will be very easy to and it it will be within a year or two as we promised it will be an internal um margin. 1:02:15 1 hour, 2 minutes, 15 seconds So his other question was on the execution timeline of the current order book. 1:02:20 1 hour, 2 minutes, 20 seconds So execution is always 12 to 18 months normally we take order only 12 months but some customer let's say well settle 1:02:28 1 hour, 2 minutes, 28 seconds customer like ABB Snider over there is getter dealer. So those customer they are very stable and they wants to buy 1:02:35 1 hour, 2 minutes, 35 seconds some of the parts for longer. So we give them 6 months extra but otherwise normally in EMS industries 12 months is the blanket order. So current open order book is 12 to 16 months. 1:02:47 1 hour, 2 minutes, 47 seconds Sure we'll take the next question from Shia Sajani. Short please. 1:02:53 1 hour, 2 minutes, 53 seconds Uh hello hi MK GI. Hi Sne. Uh just first of all congratulations on a fantastic set of numbers. Um I honestly just 1:03:01 1 hour, 3 minutes, 1 second wanted to fundamentally understand the rational behind the IC acquisition. You know more on the product, the market size, the competitive positioning, what 1:03:10 1 hour, 3 minutes, 10 seconds synergy it has with our Indian Amtron is it different you know just fundamentally understand what value add is it 1:03:19 1 hour, 3 minutes, 19 seconds providing to the company other than the top line and bottom line addition like you know what efficiencies we can achieve etc. 1:03:26 1 hour, 3 minutes, 26 seconds So if you if you find some time go to Aiman media page. Nurmal gave us about 1:03:33 1 hour, 3 minutes, 33 seconds 15 minute just for this uh you know what we are getting out of this acquisition you know he gave also 10 other 1:03:41 1 hour, 3 minutes, 41 seconds comparison and why we selected IC we call AIC. Now in the essence of plan I'm not going to go too much in depth but 1:03:48 1 hour, 3 minutes, 48 seconds you need to really need to see the video and that video has every single answer of your questions about how what kind of 1:03:55 1 hour, 3 minutes, 55 seconds mindset of the ownership you know what kind of system they have why we select you know ICS and and whole 9 yard we 1:04:03 1 hour, 4 minutes, 3 seconds call in technical American language so coming back to main is regarded electronics regarded electronics means 1:04:10 1 hour, 4 minutes, 10 seconds lot of indoor work is that correct we are doing indoor let's say a Home automation is an indoor but we are 1:04:17 1 hour, 4 minutes, 17 seconds doing outdoor out to the sun over there let's say farming equipment uh you know the equipment is kind of more moisture 1:04:25 1 hour, 4 minutes, 25 seconds or rugged or coding or paring so those are the expertise they have plus they have some agreech IP uh also they have 1:04:34 1 hour, 4 minutes, 34 seconds there means we have now agre IP we have also agree means agriculture technology it's another subject we don't have that 1:04:41 1 hour, 4 minutes, 41 seconds much over here because we are doing a a simple a farming with tractor only but if you look at that all these uh tools 1:04:49 1 hour, 4 minutes, 49 seconds over there is very very you know advanced in agriculture also so those are the scenarios we had and that's why 1:04:57 1 hour, 4 minutes, 57 seconds we selected but if you have some times please visit the mtron and we can we can give you more in-person demo what is 1:05:05 1 hour, 5 minutes, 5 seconds beneficiary and you are most welcome to visit our ICS or AIC facility over there when you are in you know state so most 1:05:12 1 hour, 5 minutes, 12 seconds welcome to see that also And next call I will bring some videos also so you can see that uh then differentiation 1:05:21 1 hour, 5 minutes, 21 seconds due [clears throat] to due to shortage of time we'll take the last question from Surendra ready Surendra you can go ahead and ask your question please 1:05:29 1 hour, 5 minutes, 29 seconds thank you for the opportunity uh like all come together like organically inorganically and as like a defense 1:05:36 1 hour, 5 minutes, 36 seconds everything like what is the top line and bottom line we can expect for FI27 1:05:45 1 hour, 5 minutes, 45 seconds Say hi sales uh we uh already gave that updates probably we are running on 40 to 50% 1:05:54 1 hour, 5 minutes, 54 seconds caggr kind of an roll over year on year so that's the strategy we are building and that's the platform we are trying to 1:06:01 1 hour, 6 minutes, 1 second build for both top line and specific to bottom line if you see that it is more of an uh 15% kind of a margin uh with 1:06:10 1 hour, 6 minutes, 10 seconds few percentage or few raises point here and there. That is what we are eyeing now. 1:06:15 1 hour, 6 minutes, 15 seconds [clears throat] 1:06:16 1 hour, 6 minutes, 16 seconds Sure sir. Since that was the last question for the day, would you like to give any closing comments before we end this call? 1:06:22 1 hour, 6 minutes, 22 seconds I I I really appreciate this uh you know investors community and uh sometimes we have to they say different. So sorry you 1:06:31 1 hour, 6 minutes, 31 seconds know sure you know somebody I said you know no second question but in the essence of time but our goal is to be transparent. Our goal is to bring 1:06:40 1 hour, 6 minutes, 40 seconds American quality with Indian talent and that is scalability we have. Um we do have a differentiator is we are American 1:06:49 1 hour, 6 minutes, 49 seconds company means American mindset company and if you look at our building if you look at our here floor over there you 1:06:56 1 hour, 6 minutes, 56 seconds will see the differentiator. So let's hope to get you know thousand journey as 1:07:02 1 hour, 7 minutes, 2 seconds soon as possible and and that's our goal. With that, really appreciate everybody's time and thank you so much. 1:07:09 1 hour, 7 minutes, 9 seconds Thank you, sir. Thank you for joining on the call and thank you to all the participants for joining on the call. 1:07:14 1 hour, 7 minutes, 14 seconds This brings us to the end of today's conference call. Thank you.