Apollo Micro Systems Limited — Q2 FY26

Apollo Micro Systems Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=qIFVzvSAQD8 Published: 6 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Apollo Micros Systemystems Q2 FY26 earnings conference call. As a reminder, all participant 0:10 10 seconds lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance 0:18 18 seconds during this conference call, please signal an operator by pressing star then zero on your touchstone phone. I now hand the conference over to Mr. Mohit 0:26 26 seconds Lohia from ICICI Securities. Thank you and over to you sir. Yeah. Hi good good morning everyone. 0:34 34 seconds Thank you for joining us today for quarter 2 and H1 Ay 26 earning call of Apollo Micros systemystems limited. 0:40 40 seconds First of all I would like to thank management for providing us the opportunity to host this call. From the management side we have Mr. Badam Karnakar ready managing director. Mr. 0:50 50 seconds Adapali Sai Krish Kumar all-time director operations. Mr. Sudaran Chil Chilu chief financial officer of the 0:57 57 seconds company. So without further delay, I would now hand over the call to management for the opening remarks. Thank you and over to you sir. 1:06 1 minute, 6 seconds Thank you so much. Good morning everyone. Happy Gurup Nima to all of you. Thank you for being with us today. 1:12 1 minute, 12 seconds It's always a privilege to engage with our valued investors and provide updates on our performance strategy and future outlook. I am pleased to share that we 1:21 1 minute, 21 seconds have delivered our highest ever quarterly revenue and PAD marked by consistent execution, operational discipline and a strong commitment to 1:30 1 minute, 30 seconds indigenization and the make India initiative. 1:34 1 minute, 34 seconds I trust you have had the opportunity to review our financial results and letter to shareholders and press release and investor presentation. This marks our 1:43 1 minute, 43 seconds second interaction for the fiscal year 2026. 1:48 1 minute, 48 seconds Let me first take you through our consolidated performance for halfearly and second quarter ended September 30th 2025. 1:56 1 minute, 56 seconds H1 FI26 marked another period of strong growth and operational excellence as we continued to build on the remarkable momentum achieved in FI25. 2:07 2 minutes, 7 seconds Revenue grew by 42% semiannually to 359 crores up from 250 crores in H2 FI25 2:15 2 minutes, 15 seconds which is almost in line with the kind of a guidance that we have been giving supported by steady execution of our 2:23 2 minutes, 23 seconds healthy order book and the seamless ramp up of several products into serial production. 2:28 2 minutes, 28 seconds Abita stood at 100 crores reflecting a robust 81% semiannual increase. AITA 2:35 2 minutes, 35 seconds margin also expanded by 600 basis points to 28% in F H1 FI26 compared to 22% in 2:43 2 minutes, 43 seconds H2 FI25 underscoring our sustained focus on the productivity improvement and cost optimization. 2:51 2 minutes, 51 seconds Profit after tax rose sharply by 97% year-on-year basis to 48 crores as against 24 crores in H2 FI25. The PAT 3:01 3 minutes, 1 second margin improved by 330 basis points, reaching 13.3% in H1 FI26, driven by 3:08 3 minutes, 8 seconds enhanced operational efficiency and a more favorable product mix. 3:13 3 minutes, 13 seconds In Q2 FI26, we delivered another outstanding performance continuing on the momentum from a landmark FI25. 3:21 3 minutes, 21 seconds Revenue surged by 69% quarteron-quarter basis to 225 crores up 3:27 3 minutes, 27 seconds from 134 crores in Q1 FI26 a result of our robust order book execution and successful transition of multiple 3:36 3 minutes, 36 seconds products into the production phase. Our EIT rose sharply by 45% reaching 59 3:42 3 minutes, 42 seconds crores in Q2 FI26. PAT registered a 70% quarter and quarter increase to 30 crores compared to 18 crores in the 3:49 3 minutes, 49 seconds previous quarter. These results underscore our continued operational excellence and reaffirm the strength of our growth trajectory into FI26 and 3:59 3 minutes, 59 seconds beyond. We are pleased to begin with two significant milestones that marked our continued growth and global progress. 4:07 4 minutes, 7 seconds First update updating on the corporate actions. Um on the capex side 4:14 4 minutes, 14 seconds um unit three um phase one civil structure is complete. Phase two civil structure you know has already started 4:23 4 minutes, 23 seconds and uh partial production in the phase one has already started and the full-fledged production uh you know will 4:31 4 minutes, 31 seconds be starting from you know uh end of this financial year or probably by Q1 uh next financial year. 4:37 4 minutes, 37 seconds Uh as far as the acquisition point of view is concerned, we have already paid 107 crores for acquiring 100% 4:46 4 minutes, 46 seconds uh equity of Ideal Explosives Limited which we have already informed uh to all our investors. 4:52 4 minutes, 52 seconds Looking ahead, we expect revenue to grow at Kagar of 45 to 50% over FI26 and FI27 5:01 5 minutes, 1 second driven solely by the core business exe excluding any contributions from the recent acquisition. This growth is underpinned by a healthy order book and 5:09 5 minutes, 9 seconds multiple products entering the production phase one after the other. We have evolved from being a subsystem and systems manufacturer to establishing 5:19 5 minutes, 19 seconds ourselves as a full-fledged weapons manufacturer, a significant milestone in our journey of growth and technological 5:26 5 minutes, 26 seconds excellence. Building on 40 years of technological excellence, we are poised to evolve into a multid-disciplinary 5:33 5 minutes, 33 seconds defense system powerhouse to drive next generation innovation. Our vision is bold, build on strong fundamentals and 5:41 5 minutes, 41 seconds an unwavering commitment to creating value for our stakeholders. Thank you for your continued trust and support. We now look forward to addressing your questions. 5:52 5 minutes, 52 seconds Thank you very much. We will now begin with the question and answer session. 5:55 5 minutes, 55 seconds Anyone who wishes to ask a question may press star N1 on the touchstone telephone. If you wish to remove yourself from the question queue, you 6:03 6 minutes, 3 seconds may press star N2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 6:13 6 minutes, 13 seconds The first question is from the line of Nilabja from Ashmore Research. Please go ahead. 6:19 6 minutes, 19 seconds Okay. Uh sir, good morning and congratulations on excellent set of numbers. I think uh you are on your trajectory of the maintaining the 6:26 6 minutes, 26 seconds guidance. Sir actually my fundamental question like in case I go through your presentations very carefully you have a 6:34 6 minutes, 34 seconds strong dependence on the domestic sector everything but how you are thinking of managing or catching up the whole 6:42 6 minutes, 42 seconds defense spend happening specifically say in Europe and uh what about the strategic tie up because some of your competitions are already doing the same 6:51 6 minutes, 51 seconds they are connecting with the some of the Europe's key defense manufacturing companies So because there is the 6:58 6 minutes, 58 seconds domestic cyclicality of these orders are uh we know how difficult sometimes it become. Can you throw some lights how 7:06 7 minutes, 6 seconds you are going to uh tackle that exports and tying strategic tie-ups and building uh more international uh uh footprint. 7:15 7 minutes, 15 seconds Thank you. 7:17 7 minutes, 17 seconds Yeah, thank you so much um you know um and for you know keenly understanding you know what we are doing. So primarily 7:24 7 minutes, 24 seconds you know we have been a out and out you know uh technology development company in I mean it's a core technology 7:31 7 minutes, 31 seconds development rather than a system integration company or a lead integration company you know right from the beginning actually of late we have 7:38 7 minutes, 38 seconds been working for last 40 years with you know DDo programs primarily and as we have already told you several times that 7:45 7 minutes, 45 seconds you know we have presence in every indigenous missile program of uh you know DRDO last uh you know few years as you 7:53 7 minutes, 53 seconds rightly pointed out you know last few years uh it uh we have started you know uh trying to look forward to making a 8:02 8 minutes, 2 seconds complete you know system or a platform by ourselves. So our journey on this particular direction has started a bit 8:08 8 minutes, 8 seconds late compared to other lead integrators who are actually getting a tie up with other companies and doing a system integrating job. Okay, that we we caught 8:17 8 minutes, 17 seconds up a little bit late but carried by a huge technological you know experience that we have and you know uh 8:26 8 minutes, 26 seconds right from a system and a subsystem level. We have recently started entering a strategic tires with different 8:33 8 minutes, 33 seconds companies which we have recently also announced that we have entered an you know partnership with an American company for developing a rocket motor 8:41 8 minutes, 41 seconds where the complete grad rocket is being developed by us. We already have few you know interest coming up with you know different countries. We also have been 8:49 8 minutes, 49 seconds communicating with you that you know we have certain technologies which are already matured in the navl domain which we are talking to different companies 8:58 8 minutes, 58 seconds from different countries. We have submitted our proposals. We also submitted the request to mod to give us 9:06 9 minutes, 6 seconds a clearance for export of such technologies. These being a very sensitive systems you know uh it will take some time. Yeah. But the interest 9:13 9 minutes, 13 seconds is very long and you know multiple due diligence are already taken up by these you know uh you know service companies 9:22 9 minutes, 22 seconds you know from different countries particularly from Middle East and from the European region and going forward you will see that you know we will be 9:29 9 minutes, 29 seconds able to clinch a big ticket projects for these technologies and I wish you would appreciate the point that these will be a 100% indigenous technologies rather 9:38 9 minutes, 38 seconds than just being a lead integration system uh exporter Great. 9:44 9 minutes, 44 seconds Our participation is there domestic projects know number of programs our participation is there with our present facility we are not able to take up even 9:53 9 minutes, 53 seconds foreign orders you know like um I think you know we have already announced no one one project a good project from UK we are holding one order uh it is the 10:02 10 minutes, 2 seconds 113 cr order we are holding uh and we are expecting more and more orders from other Saudi also we are expecting some 10:10 10 minutes, 10 seconds orders and Europe side also we They're expecting some orders. Yeah, it's going on. 10:15 10 minutes, 15 seconds Great. Unit three is ready. Then unit three is ready. Then number of people visited already there. In fact, uh we 10:23 10 minutes, 23 seconds are time to time we are updating the overseas companies. Once our facility is ready, they want to come and audit the 10:30 10 minutes, 30 seconds our facility and they want to have a MO with us. 10:35 10 minutes, 35 seconds Like uh last time no MB big team has visited almost 67 people team has visited uh the present facility they 10:42 10 minutes, 42 seconds visited they're so happy and they even visited our upcoming units also once uh we are fully operational then they're 10:49 10 minutes, 49 seconds going we are going to enter into MU sir wishing you all the best thank you thank you 10:57 10 minutes, 57 seconds thank you the next question is from the line of d sha from capital please go ahead 11:05 11 minutes, 5 seconds Hello sir, first of all congratulations for very good results and uh sir my two 11:13 11 minutes, 13 seconds three questions regarding growth of our company since we have completed the corporate 11:20 11 minutes, 20 seconds action about acquisitions of IDL IDL is now 100% subsidiary of our company sir 11:28 11 minutes, 28 seconds can you please elaborate on what will be the our strategy for IDL for a short term for one year and for the long term 11:36 11 minutes, 36 seconds of three year where you see the IDL after 3 years because as a lemon investors as far as explosive is 11:45 11 minutes, 45 seconds concerned we see huge opportunity and only listed entity for a listed entity is solar industries. So we tend to compare IDL with the solar industries. 11:56 11 minutes, 56 seconds So what is management view about IDL? So can you elaborate about the ideal 12:03 12 minutes, 3 seconds strategy then I will come up with next question sir please. 12:09 12 minutes, 9 seconds Thank you DIY. Um um so uh very you know rightful question but uh I will be able 12:16 12 minutes, 16 seconds to give you a very short glimpse not a very detailed one at this point of time because you know we are evolving a much detailed presentation on it. We will 12:24 12 minutes, 24 seconds come back to investors and do it subsequently. But broadly I will tell you which we have already given a you know rational for you know acquiring 12:31 12 minutes, 31 seconds this company. I would not like to take any of my you know other companies name. 12:37 12 minutes, 37 seconds They are all one of my big customers as well and also a competition to some extent. So the point here is that you know the acquisition of IDL is a both 12:46 12 minutes, 46 seconds backward as well as a forward integration for us. That's point number one. So several of these systems that have already got matured you know we 12:53 12 minutes, 53 seconds wanted an explosive chain also to be available with us that's how you know we have started you know looking for an explosive company for acquisition that's how we have acquired ideal explosive so 13:02 13 minutes, 2 seconds point number two is that you know individually as an explosive company you know we would be moving towards a direction of you know 13:11 13 minutes, 11 seconds manufacturing you know critical high energy explosives in ideal explosive and also creating a multiple you know 13:19 13 minutes, 19 seconds filling lines for different calibers of uh you know artillery uh as well as for the weapons actually. 13:26 13 minutes, 26 seconds So for which we have already started you know uh you know preparing a proposals for it and we have already negotiating 13:34 13 minutes, 34 seconds with some of the manufacturers for acquiring the machinery you know all such you know aspects of it we have already started taking you will get to 13:42 13 minutes, 42 seconds hear a lot of you know actions happening on ideal explosives you know uh in I I think in next one week 10 days onwards 13:50 13 minutes, 50 seconds you know we will keep announcing on it you know we are entering into some strategic uh relationship ship with different companies both domestic as 13:57 13 minutes, 57 seconds well as international along with the you know the existing captive requirement that Apollo has. So this is a glimpse of 14:05 14 minutes, 5 seconds what we wanted to you know share with you as of now. More in detail we'll keep you you know keeping keep you posted. Um 14:12 14 minutes, 12 seconds but broadly I can tell uh largely to all investors that you know um uh that lot of initiatives are being planned you 14:20 14 minutes, 20 seconds know specific consultants are appointed you know for you know complete overhaul of ideal explosives. You'll get to hear from time to time sir. 14:29 14 minutes, 29 seconds But sir my gut feeling is that is that IDL can be as good as or bigger than 14:36 14 minutes, 36 seconds Apollo itself. So is it possibility after 3 years on the Gurima day? Why should I say no sir? 14:45 14 minutes, 45 seconds That's a positive answering we are aiming. Okay that's what we can say. Yes. 14:51 14 minutes, 51 seconds Okay. Okay. And sir my second question is regarding our growth prospects capex for unit 14:59 14 minutes, 59 seconds three. I think first phase is just operational started and I think uh it will be over by March 26 or first 15:07 15 minutes, 7 seconds quarter as you in know your opening remark. So generally last year you have 15:14 15 minutes, 14 seconds projected a growth of about 45 to 50% for Apollo. So after the unit three 15:22 15 minutes, 22 seconds starts first phase. So what is your expectations for growth for financial year 27? 15:29 15 minutes, 29 seconds Generally like if you compare the present facility and once unit 3 is ready we are 15:37 15 minutes, 37 seconds enhancing our capacity to eight times present this thing to the once our unit three is ready it is almost eight times 15:46 15 minutes, 46 seconds enhancing the production capacity and same time lot of domestic this thing also you must have here now government 15:54 15 minutes, 54 seconds is one by one they're clearing uh maybe we are maybe before this final year and we are expecting good orders 16:01 16 minutes, 1 second from our MOD and also once unit 3 is ready uh we are also going to sign M 16:09 16 minutes, 9 seconds with some of these companies also u good growth will be there once once we start 16:16 16 minutes, 16 seconds in three okay sir my last question about the IITA 16:23 16 minutes, 23 seconds margin I think in previous conference call you have just co that the IITA margin in second quarter will be little 16:31 16 minutes, 31 seconds bit less and this quarter for IBITA margin is about 26.3%. 16:37 16 minutes, 37 seconds So can we consider this CIA margin as the lowest or uh still we can go lower. 16:45 16 minutes, 45 seconds Sir, we have been telling constantly that you know there there will be a revenue growth but sometimes in some quarters some of the projects will get speeded up faster some of the projects 16:54 16 minutes, 54 seconds will get slowed down based on the end customer requirement where one common customer we know we are handling multiple projects. So depending upon the 17:02 17 minutes, 2 seconds product mix you know certain you know margin levels you know small here and there you know small variation will be there but uh you know uh the momentum 17:10 17 minutes, 10 seconds you know is definitely not going to be you know disappointing for any one of us actually that's how I know broadly with the kind of the current order book that 17:19 17 minutes, 19 seconds we have that that's how I can com comment as of now okay sir all thank you and all the best sir thank you thank you 17:28 17 minutes, 28 seconds thank The next question is from the line of Rupes from Long Equity Partners. Please go ahead. 17:38 17 minutes, 38 seconds Uh hello sir. Uh thank you for the opportunity and congratulations and fantastic result. I have two questions. 17:45 17 minutes, 45 seconds Uh first question sir is uh recently we won a tot for meatronic fuse for grenades. Uh so so can you just give 17:54 17 minutes, 54 seconds some color around the opportunity size when will the toot be completed when can we see some trial orders commercial 18:02 18 minutes, 2 seconds orders some color around that and then the second uh question is on the naval 18:09 18 minutes, 9 seconds uh component so I think we're present in all torpedo programs uh LWT SWTOS and I 18:16 18 minutes, 16 seconds think some of the orders uh I think are are there so if you And in for each each of the three programs if if you can tell 18:25 18 minutes, 25 seconds where we are how many and what is the opportunity size when will we receive the order when will it be executed so these are the two questions sir 18:34 18 minutes, 34 seconds sir size at this point of time we are restricted to you know give you the size of the opportunity but a alwt 18:42 18 minutes, 42 seconds approval has already come which is there in the market last couple of weeks back you know ministry of defense already given you'll also see a good order you 18:49 18 minutes, 49 seconds know flowing uh for ESWT to you know Paradnamics Limited from Indian Navy and we having a significant participation in 18:57 18 minutes, 57 seconds the program we are also going to get most likely that you know this ESWT orders most likely we may get within March is what we are getting to know as 19:05 19 minutes, 5 seconds of now okay so ALT AI is already released you know once you know the tender is out BDL is a partner for it and you know our share of you know uh 19:13 19 minutes, 13 seconds business we'll be getting in that as well sir so sir Balastra And then the meatronic 19:21 19 minutes, 21 seconds fuse sir meatronic fuse you know recently we have taken a meatronic so basically a mechanical fuse um we have developed few 19:30 19 minutes, 30 seconds mechanical and mechanical plus electronic fuses indigenously but for certain applications you know instead of we developing you know we have you know 19:38 19 minutes, 38 seconds uh taken a tot from DRDO which is applicable for certain motor applications you know that's a thing the opportunity size is very big it's a 19:45 19 minutes, 45 seconds recent toot um so we will be absorbing the technology by developing a few prototypes in next you know one or two quarters and get it validated and 19:54 19 minutes, 54 seconds something I think in next one year down the line you know I think you know we'll start you know taking the opportunities you know already we have some already interest coming up from various 20:02 20 minutes, 2 seconds customers that's how you know this fuse to we have we have started taking from T okay okay sir and and final question if 20:11 20 minutes, 11 seconds I may squeeze you sir do I think is coming up with er extended range and bamos NG so do we do we have some 20:17 20 minutes, 17 seconds presence in that and I it it at least to me it seems like in emergency procurement that that is one of the big uh programs. So can you just comment on it? 20:28 20 minutes, 28 seconds The new version our participation is there. One of the sub subsystem already we received order we are working on it and uh other things we have participated 20:37 20 minutes, 37 seconds and uh they're going to decide any time maybe next one two months time. Uh that now we we are also expecting couple of 20:46 20 minutes, 46 seconds uh couple of project from RAM also but one project already 20:54 20 minutes, 54 seconds one project already and sorry go ahead sir 21:01 21 minutes, 1 second uh brahmos one project already we are doing and uh if I remember correct some five to six projects already we have participated technical evolution is 21:10 21 minutes, 10 seconds going on once that companies know going to decide actually we are expecting more and more orders from Ramos next 2 three 21:18 21 minutes, 18 seconds months time what is the outlay sir at the program level at at at ministry level do you have some number 21:27 21 minutes, 27 seconds um I think that's not appropriate you know to share you know we have certain you know critical information but I 21:33 21 minutes, 33 seconds think it's not appropriate to share okay okay sir I I'll come back in the queue for more questions yeah 21:41 21 minutes, 41 seconds okay Okay, thank you. The next question is from the line of Pratik Bia who is an individual investor. Please go ahead. 21:51 21 minutes, 51 seconds Yeah. Hi, good morning sir. First of all, congratulation for a great set of numbers and thanks for giving me this opportunity. So I have few questions. 22:00 22 minutes First I just wanted to talk about the promoter pledge part. So as I can see in the September quarter it has reduced to 22:07 22 minutes, 7 seconds almost 35%. So just wanted to know if we are on track of the earlier guidance of getting it to zero by FI26. Are we on track on that? 22:17 22 minutes, 17 seconds Yeah like if you see we are reducing I think um uh next one week time we are going to see you know like um uh I think 22:25 22 minutes, 25 seconds we have every month we are reducing something. Yeah definitely uh next five 6 months time I'm going to close all the 22:34 22 minutes, 34 seconds uh pledge part that's what I I'm I'm planning. Okay, thanks a lot sir for that answer. 22:40 22 minutes, 40 seconds My second part I wanted to know is on the receivable side. So the CPR receivable is almost 360 crores that is 22:48 22 minutes, 48 seconds close to Q1 and Q2 revenue. So can you throw some light on it as in is it going to be the same going forward as well? So 22:56 22 minutes, 56 seconds this financial year end you will see a significant uh reduction in receivables actually some some of the uh you know 23:04 23 minutes, 4 seconds longestation projects you know which for which the you know uh the receivable this thing is over it has almost come to a final phases actually I think you know 23:12 23 minutes, 12 seconds I uh Q3 to some extent visibility will be there Q4 significant reduction will be there so I assume that going forward from FI27 23:21 23 minutes, 21 seconds onwards receivable should be on the lower side is is my understanding correct comparative levels. 23:27 23 minutes, 27 seconds Let us say we are doing more of production or the receivable will this thing will reduce the production item. 23:34 23 minutes, 34 seconds No line of production will be there once we supply immediately within 30 days time we'll be getting this thing. Uh if it is R&D development plus production 23:42 23 minutes, 42 seconds order that it takes more time for the releasing acceptance and uh releasing payment. 23:48 23 minutes, 48 seconds Okay. Okay. And some final question is uh on the export side. So last time when we spoke about this I think um u my 23:56 23 minutes, 56 seconds understanding was that we don't directly apply for export orders but via organizations like DRDO. So I just 24:03 24 minutes, 3 seconds wanted to understand what kind of opportunity do we see in the export size the protest and probably in the next one 24:11 24 minutes, 11 seconds or two years what would be the revenue split between domestic and exports. If you can throw some light on this. 24:18 24 minutes, 18 seconds See primarily there are two aspects of it certain technologies which we have developed where you know along with the DRDO for 24:27 24 minutes, 27 seconds that you know we need to take both DRDO approval and ministry of defense approval both okay certain technology which we have developed inhouse we just 24:34 24 minutes, 34 seconds need to take a ministry of defense approval for exports okay so this is the how the process would be there in for a type of business that we are currently 24:42 24 minutes, 42 seconds working as the day stands we are having little over about you know 100 crores you know uh opportunity of you know as 24:51 24 minutes, 51 seconds an export order which is presently a kind of a development project actually okay and it's a very critical avionic 24:57 24 minutes, 57 seconds system um and uh as far as the mix is concerned you know at this point of time 25:04 25 minutes, 4 seconds you know we are not able to give any guidance for it but in subsequent quarters you know as we get more such opportunities and orders you know then 25:12 25 minutes, 12 seconds we will be able to give further guidance on that. 25:15 25 minutes, 15 seconds So but the process would remain the same that we are going to apply through organizations like DR only. We are not directly going to apply for the same for 25:22 25 minutes, 22 seconds any it is same for any procedure we have to follow. Yes. 25:27 25 minutes, 27 seconds Okay. Okay. Thanks a lot sir. Thank you and good luck. Yeah. Thank you. 25:32 25 minutes, 32 seconds Thank you. The next question is from the line of Anand from GK Globus. Please go ahead. 25:40 25 minutes, 40 seconds Uh so thank you for the fantastic presentation. Can you please elaborate on your order book? 25:48 25 minutes, 48 seconds So um little less than 800 crores is the order book as on September end actually. 25:55 25 minutes, 55 seconds Okay. Um over and above that in last one one and a half month we have uh received few more orders you know and uh little 26:03 26 minutes, 3 seconds amount of production orders but significant amount of you know new development orders you know for uh the next generation you know weapon programs and next generation platform programs 26:11 26 minutes, 11 seconds actually um so that that that's how you know I can say and what is the execution timeline of 26:18 26 minutes, 18 seconds this order book so it basically it's we we keep getting some short-term projects some medium medium and long-term projects. But I 26:27 26 minutes, 27 seconds think you know as far as this financial is concerned you know as the day stands whatever guidance we have been giving you know we are maintaining it and I 26:35 26 minutes, 35 seconds think going forward for the next two quarters also we will be maintaining the similar guidance actually. Okay. Thank you sir. 26:44 26 minutes, 44 seconds Thank you. 26:44 26 minutes, 44 seconds Thank you. The next question is from the line of Amit Kumar from HDFC Securities. Please go ahead. 26:52 26 minutes, 52 seconds Uh good morning sir. Uh first of all congratulations to all of you for a great set of numbers. I wanted to understand about the proportion of 27:00 27 minutes developmental projects uh in overall PI compared to the production. So maybe you can spend it some time on explaining the 27:08 27 minutes, 8 seconds proportion with respect to revenue with respect to order book and uh in our product portfolio how much would be the 27:15 27 minutes, 15 seconds uh developmental proportion and uh how much of this is actually going towards production from development to production it is moving. So that would 27:24 27 minutes, 24 seconds be helpful 25 to 35% in between band you know is the production uh size compared to the 27:32 27 minutes, 32 seconds development uh development core development development come production orders actually going forward you know 27:38 27 minutes, 38 seconds we it it may increase up to 45% you know that's what we are contemplating as you all know that we are expecting some very 27:46 27 minutes, 46 seconds large cap you know projects you know going forward you know for which all of us are waiting very eagerly our infra is getting ready all in all aspects we are 27:54 27 minutes, 54 seconds fully getting geared up for it. So in once that strikes I think and then that revenue kicks off you know and in once 28:02 28 minutes, 2 seconds the order comes within two to three quarters you know I think the revenue mix in terms of the production versus this can significantly you know vary 28:10 28 minutes, 10 seconds which will also you know anchor a lot of change in the overall revenue mix as well as you know the you know numbers 28:17 28 minutes, 17 seconds that you see in the P&L and balance sheet as well. It's a total demography change of uh the you know the numbers as well as both in terms of the working 28:26 28 minutes, 26 seconds capital cycle and all you will see a lot of change but yeah presently this is the mix broadly you know I can say 28:33 28 minutes, 33 seconds uh sir sorry uh just to clarify this 25 30% you said is uh developmental as of now or otherwise production 28:41 28 minutes, 41 seconds production production production okay so more of development right now which will move into production and hence the benefits 28:49 28 minutes, 49 seconds we We have footprint we have footprint in almost every missile program of DRDO. 28:55 28 minutes, 55 seconds So you can imagine like you know the development projects are hu numerous numbers actually and different types of technologies. We are not a single type 29:03 29 minutes, 3 seconds of technology company. There are variety of technologies different groups different group heads and team leaders and engineer sets as a as a individual 29:12 29 minutes, 12 seconds like a company you know in you know in our R&D chain. So who are working on the more than 60% of subsystems we are Apollo micros system is doing today. 29:21 29 minutes, 21 seconds Okay great to hear and sir what would be the margin profile movement once a product moves from development to 29:28 29 minutes, 28 seconds production some ballpark would be great to understand. 29:33 29 minutes, 33 seconds It depends on the type of the system type of technology there's nothing like uh you know specific uh you know ballpark and that to similar technology 29:41 29 minutes, 41 seconds for different application it is different actually. So it's like that production will do more but obviously the production margins are higher higher 29:49 29 minutes, 49 seconds comparment basically I'm trying to understand whether it is singledigit margin in development and production it becomes 29:56 29 minutes, 56 seconds 25% 26% or so or or is it similar to each other I mean is there a stark difference 30:05 30 minutes, 5 seconds sensitive information hopefully let us think okay no problem just last bit uh that 30:12 30 minutes, 12 seconds this proportion if you can please guide that by FY 26 and 27 and how this proportion would move 30:20 30 minutes, 20 seconds maybe 2 years down the line or so I already told some anchoring projects a very large cap projects we are expecting 30:26 30 minutes, 26 seconds of you know this this 25 30% 35% will shift to 40 45% is what we can give you 30:33 30 minutes, 33 seconds a broad guidance as of now thank you so much sir and all the best for future quarters thank you 30:42 30 minutes, 42 seconds thank Thank you. The next question is from the line of Pinkesh Jane from Shri Stockvision Securities Limited. Please go ahead. 30:51 30 minutes, 51 seconds Hello. Yeah. Yeah. Yes sir. 30:55 30 minutes, 55 seconds Yes. Uh so just wanted to check about the installation of new testing facilities because earlier we said that 31:02 31 minutes, 2 seconds uh uh this testing of all the products also take consumes a lot of time which further elongates our working capital 31:10 31 minutes, 10 seconds cycle. So just if you can throw some light on that. 31:14 31 minutes, 14 seconds Yes. Yeah. See like uh present facility we don't have every facility like some of the facilities now we we are depend 31:22 31 minutes, 22 seconds on DR facility and other private company facility we are using where you know like unit three we are going to have all 31:29 31 minutes, 29 seconds the facilities like uh emmc is there so it takes lot of time and uh we we had to 31:36 31 minutes, 36 seconds be maintained queue know like um 2 3 months time um in fact now we are losing every time but once our facility is 31:43 31 minutes, 43 seconds ready then we we can do uh in house only we can do the all the testing we are going to have all kinds of test facility 31:51 31 minutes, 51 seconds in in our in three so so that completely like reduces our dependence on DDO for the purpose of 32:00 32 minutes testing totally 100% 100% facility we are going to have in unit three 32:06 32 minutes, 6 seconds okay and so we will be spending a sizable capex on the testing facilities also sir out of the total capex 32:15 32 minutes, 15 seconds around 60 course we are spending only on test. 32:19 32 minutes, 19 seconds Okay. Okay. Okay. And uh that also helps in reducing the working capital days right 32:25 32 minutes, 25 seconds that can reduce the uh like um execution time that's what working right. Okay. Yeah. Thank you. 32:34 32 minutes, 34 seconds Thank you. 32:36 32 minutes, 36 seconds Thank you. The next question is from the line of Manish Gupta from Equinox Investment Advisors. Please go ahead. 32:44 32 minutes, 44 seconds Yeah, good morning sir and thank you for the opportunity. 32:48 32 minutes, 48 seconds Uh sir, this is regarding u uh newspaper reports that Indian government is uh actively considering uh to allow wholly 32:56 32 minutes, 56 seconds owned uh subsidiaries of foreign defense uh manufacturers to qualify as Indian vendors. 33:03 33 minutes, 3 seconds So uh how uh that would affect uh you know the domestic uh defense manufacturers in general and let's say I mean Apollo micro system in particular. 33:16 33 minutes, 16 seconds So very interesting uh point you have raised particularly you know um it I we would not say that you know it's not a 33:24 33 minutes, 24 seconds welcoming gesture but definitely not a very good move is what you know we uh we 33:30 33 minutes, 30 seconds can say but in one way we can also say that by this fully owned you know uh you 33:39 33 minutes, 39 seconds know companies you know which are 100% uh you know investment by these companies once these companies start establishing you know their 33:48 33 minutes, 48 seconds offices here in India. A lot of further you know ecosystem also gets developed and the existing ecosystems will have a 33:56 33 minutes, 56 seconds share of you know improving upon their you know technological base and other things like you know and also a lot of opportunity which will come to several 34:05 34 minutes, 5 seconds companies like us. So it's a flip of the coin like you know both sides. Okay. So majorly if we see that you know if a very large cap companies are coming in 34:13 34 minutes, 13 seconds terms of for example some kind of an aircraft manufacturing something larger communities in terms of the medium scale large scale and small scale industries 34:21 34 minutes, 21 seconds also will get benefited but certain areas and technologies that you know may may still continue to have it but for 34:29 34 minutes, 29 seconds Apollo micros systemystems both it's an advantage also at the same time we also see that you know our footprint is majorly with the DR and those programs 34:37 34 minutes, 37 seconds are not going to have any effect by these you know foreign OEMs coming and fully you know setting up their shops back in uh the country. So you know you 34:46 34 minutes, 46 seconds you'll have to you know look it in in that direction both in the company perspective as is a general perspective. 34:52 34 minutes, 52 seconds Okay. So the broad understanding that one should take away is that Apollo is not going to be largely affected by the advent of these companies in India 35:01 35 minutes, 1 second though some part of our uh let's say production or orders might get uh affected by the impending competition is 35:09 35 minutes, 9 seconds that correct sir yeah not related to a strategic programs of course but yeah there are defense is an ocean of a kind of a requirement you 35:18 35 minutes, 18 seconds know there are various other for example now the male UAV is you know uh you know program you know very large program is coming up there is no such you know 35:26 35 minutes, 26 seconds similar kind of a capability company presently available you know which is matured so obviously some foreign OEM will come the ministry of defense has 35:35 35 minutes, 35 seconds stipulated that 50% of the system has to be indigenous actually so it's both advantage to some extent and for certain players who are eyeing for certain type 35:43 35 minutes, 43 seconds of things it could be disadvantage for a very large system integrators who are eyeing in a different way but we being at a medium level currently you know I 35:51 35 minutes, 51 seconds think you know for next few years I think we don't see a fious dent for us actually it could also you know result in opportunity only we'll get yeah 36:01 36 minutes, 1 second okay and sir just a clarification uh I think I heard that you said after unit 3 is completed your capacity will go up by 36:08 36 minutes, 8 seconds 8x so is that correct sir yes sir all right and uh how much is the capeex 36:15 36 minutes, 15 seconds for unit 3 sir total uh 250 crores uh uh uh what we are investing All right. All right. Thank you, sir. I I'll fall back in the queue. Thank you. 36:26 36 minutes, 26 seconds Thank you. 36:29 36 minutes, 29 seconds The next question is from the line of Shrians Kotlani from SG Securities. Please go ahead. 36:37 36 minutes, 37 seconds Hi, good afternoon sir. I had a few questions. So, one was uh in the presentation we not mention of the RF strategy or any products related to RF. 36:47 36 minutes, 47 seconds So we've been talking about that for a while now in terms of an acquisition also. If you could give an update on where we are with that and what business 36:54 36 minutes, 54 seconds uh uh you know we have on that yeah in fact RF side 37:02 37 minutes, 2 seconds level team in fact only one team has joined. Okay. And uh we are very good in sonar side. There are lot of 37:09 37 minutes, 9 seconds technologies we have established and uh now we are working under seeker electronics for various missile 37:15 37 minutes, 15 seconds application uh and yesterday only some senior level team know from uh some other company uh three three people are 37:25 37 minutes, 25 seconds joined and some more people uh now also some five six people are joining. So we 37:32 37 minutes, 32 seconds are now going to concentrate on Arab side also the acquisition point of view it is going a little slow because we were 37:40 37 minutes, 40 seconds trying to make a consolidation in the current uh uh existing acquisition that we have done you know once that gets completed we'll start steering up the 37:49 37 minutes, 49 seconds other one activity also but yes it's there on the cards. 37:53 37 minutes, 53 seconds Got it. Got it. Uh so my second question is on the ideal capex. So uh like for it does not currently uh cater to you know 38:02 38 minutes, 2 seconds like a defense explosive as such. Uh so do we need additional capex uh on the 38:08 38 minutes, 8 seconds IDL side uh to you know uh build capabilities uh in that front 38:15 38 minutes, 15 seconds and also given the current balance sheet like will we need uh additional rounds of funding anytime soon given the uh 38:24 38 minutes, 24 seconds cash levels that we have or do you take on do you look to take on additional debt uh given the way we are growing and the working capital requirements 38:32 38 minutes, 32 seconds as I already answered to one of the other you know uh investor you know there are a lot of overhaul requirements 38:40 38 minutes, 40 seconds that we would be doing in ideal explosive owing to their current balance sheet size and you know uh not in terms of the size the health and other point 38:48 38 minutes, 48 seconds of view um from time to time we'll keep you updated about it obviously there's a lot of capex and many other initiatives 38:55 38 minutes, 55 seconds that you know we would be doing in it um as and when we keep taking a you know call on that you know we'll keep you posted about Right. 39:04 39 minutes, 4 seconds Got it. So, but for Apollo, we are not looking to, you know, raise funds uh in in anytime anytime soon. Uh you know, 39:14 39 minutes, 14 seconds uh I I would reserve my you know uh answer for this. You know, there are certain things which we are contemplating as in when a board gives a kind of an approval, I think, you know, we will reach out to you for backing. 39:25 39 minutes, 25 seconds Okay. Uh and uh my uh last question is that since the QR sam uh you know order is out uh you know the order value and 39:35 39 minutes, 35 seconds uh you know BDL uh BDL expects the order to come in March. So if now given that it's out like could you quantify like 39:42 39 minutes, 42 seconds what would be our contribution uh to QRSM? 39:47 39 minutes, 47 seconds uh uh some good contribution is there uh and uh it is in RFQ stage you know like 39:56 39 minutes, 56 seconds Bell BDN know they're participating in this thing sanction has come and they're participating in a tender I think before 40:04 40 minutes, 4 seconds March Bell and BDL is expecting order maybe uh we are also expecting before March or maybe first quarter of next 40:12 40 minutes, 12 seconds finalist year right no um my question was like The government has sed but I request you to rejoin the question 40:21 40 minutes, 21 seconds queue for followup question as there are many participants left in the queue. Okay. Right. 40:26 40 minutes, 26 seconds Thank you. I request each participants to ask two questions from now on. The next question is from the line of 40:34 40 minutes, 34 seconds Nishita from Safia Capital. Please go ahead. Um yes. Hello. 40:42 40 minutes, 42 seconds Yeah. So uh I uh yeah uh so I just wanted to ask uh IDEL is currently loss making by when do we envision it will be profitable? 40:53 40 minutes, 53 seconds We have started taking certain initiatives. Uh uh I think you know um by Q2 next financial year I think you 41:02 41 minutes, 2 seconds know we we should be in a position to make some good turnaround. 41:08 41 minutes, 8 seconds Okay. Okay. Understood. And uh so uh our uh AITA margin 41:15 41 minutes, 15 seconds will is that going to stay in the range of 26 to 28% for FY26 because I see that since past three quarters there's been a 41:24 41 minutes, 24 seconds lot of up and down in the margin. 41:29 41 minutes, 29 seconds Yeah, as we told you know the quarteronquarter basis the different product mix have a different margin profiles actually. So broadly it is all 41:38 41 minutes, 38 seconds guided based on that actually. So it it will be varying in those ranges actually. 41:44 41 minutes, 44 seconds Okay. Okay. Understood. Thank you so much. Thank you. Thank you. Thank you. 41:52 41 minutes, 52 seconds The next question is from the line of Nilad Jade from Ashmur Research. Please go ahead. 41:58 41 minutes, 58 seconds Okay sir. Another questions I have that uh sir how what you are do many of the Indian specifically you are focusing on 42:05 42 minutes, 5 seconds the products. So currently your R&D spend around annual around 33 crores 42:11 42 minutes, 11 seconds annually if I'm not wrong from the date you mentioned. So like to know that uh what's your and many of you and you are 42:20 42 minutes, 20 seconds closely working with but uh beyond that how you are uh scaling your R&D spins and also the hiring of the people 42:28 42 minutes, 28 seconds because as we understand so multiple industry people that uh getting right kind of people in this being a very nent 42:36 42 minutes, 36 seconds industry is very difficult. So specifically can you throw some light on your uh talent acquisitions and R&D spend part. 42:45 42 minutes, 45 seconds So we generally believe on retention uh mantra rather than a recruitment mantra. 42:51 42 minutes, 51 seconds So you know you have rightly understood that you know getting in new talent and then you know nurturing them is very 43:00 43 minutes difficult and already an existing talent you know to you know uh what do you call recruit you know who is already working 43:09 43 minutes, 9 seconds in some other place is also not so very easy uh because there are different disciplines in which 43:16 43 minutes, 16 seconds we are working electronics electromechanical and you know a mix of various other you know systems coupled by a domain knowledge or domain 43:24 43 minutes, 24 seconds expertise to certain extent which will make them a proper you know calling as a you know talent primarily. Okay, this 43:31 43 minutes, 31 seconds community as a defense you know systems and particularly more so you know in the areas where we are working the very limited resources available but what we 43:39 43 minutes, 39 seconds do is that you know there are some you know existing you know uh seniors who have more than 15 20 years experience we 43:47 43 minutes, 47 seconds are retaining them more than 5 to 8 years experience of team leaders we are retaining them and over and above that you know certain talent of 0 to2 years 43:55 43 minutes, 55 seconds experience you know freshers we recruit and you know we nurture and you know we hold on to them It's not that you know freshly every time at new talent and all 44:03 44 minutes, 3 seconds over and above that you know we are complimenting them with the you know experts in the specific domain of that particular area who are retired you know 44:12 44 minutes, 12 seconds scientists from you know the different labs of DRDO and in some places you know the production engineering and quality sites you know experts who have already 44:21 44 minutes, 21 seconds you know got retired from different PSUs maybe BDL we have you know people who are retired from HL from Bat Electronics 44:28 44 minutes, 28 seconds from ordinance factory like So this is how a mix you know with which you know we uh actually you know pull our overall R&D as a uh resource. 44:38 44 minutes, 38 seconds Okay. Okay. Thank you sir. Thanks a lot. 44:41 44 minutes, 41 seconds Thank you. The next question is from the line of Rifat Fatma from Yashi Securities. Please go ahead. 44:49 44 minutes, 49 seconds Hi good afternoon. Good afternoon. 44:54 44 minutes, 54 seconds Yes. So my question would be on ideal side when can we expect ideal financials to get consolidated at a micro 45:02 45 minutes, 2 seconds Q3 Q3 Q3 okay and what are the margins that we can expect then 45:11 45 minutes, 11 seconds um so currently IDL uh is uh um a lossmaking company at a beta level 45:17 45 minutes, 17 seconds actually um as I was telling the other investor also that you know we are doing you know we have started taking some 45:24 45 minutes, 24 seconds overall initiatives in that um and uh to certain extent you know we have been successful in uh you know certain areas 45:31 45 minutes, 31 seconds not much I'll be able to diverge on a call or you know other things but you will see a lot of you know improvement coming in from the next financial year 45:40 45 minutes, 40 seconds in uh the ideal as well that's how I can broadly comment as the day stands okay thank you so much 45:49 45 minutes, 49 seconds thanks thank you the next question is from the line of Dhal Jane from Sequent investments. Please go ahead. 45:56 45 minutes, 56 seconds Uh hello sir, I'm audible. Yes. 46:01 46 minutes, 1 second Yeah. Uh sir, I just wanted to uh get an update that uh you had mentioned earlier that our order book would be almost um 46:08 46 minutes, 8 seconds 3x of our uh F25 order book. Are we on track to achieve that? Because you just said that we have a order book close to 800 crores right now. 46:19 46 minutes, 19 seconds Yeah, Daval. So um it is we have initially given a guidance by March you know we will be having owing to one some large cap you know projects which we 46:28 46 minutes, 28 seconds were expecting as the day stands it is actually going on track you know uh we are also you know uh you know fingers 46:35 46 minutes, 35 seconds crossed you know waiting you know keenly for it um even if it uh you know in case misses by March you know by first quarter it should happen that's what you 46:43 46 minutes, 43 seconds know we are feeling but a is much awaited you know the you know various uh stages of you crossing the A1 has 46:51 46 minutes, 51 seconds already passed through is what we are understanding from our customer as of now. I think a very soon A1 and um 46:59 46 minutes, 59 seconds approval should be coming. Um as soon as A1 approval comes, it's as good as you know a project primarily for us. But uh 47:06 47 minutes, 6 seconds expecting that this things is going this is going to happen you know as I told you know uh during the beginning of this uh this thing itself that you know we 47:14 47 minutes, 14 seconds have uh fully gearing up you know for the full-fledged production of it. Um and both in terms of you know the integration and in terms of the 47:22 47 minutes, 22 seconds explosive chain you know and all other aspects you know uh we are getting fully geared up you know by the time the order 47:29 47 minutes, 29 seconds hits into our uh records you know we'll we'll be able to quickly start the production that's how you know broadly I 47:36 47 minutes, 36 seconds can uh give a guidance to you all right uh so is this order based on uh we getting the MIGM order that we and 47:44 47 minutes, 44 seconds BDL are the two companies in it uh is That understanding is one of the case. Okay. Even QSM is 47:52 47 minutes, 52 seconds that is also from QSM also we are expecting big orders. Okay. And ESW also EST also we are expecting bigers like 48:00 48 minutes ALT already DIC approval has come and that that part from that that program also we are expecting some orders 48:08 48 minutes, 8 seconds right. uh just a clarification on this like I in the last con call you had mentioned that uh uh the MIGM order that 48:16 48 minutes, 16 seconds we are expecting is around uh I mean broad range of 4,000 crores so uh how what is the track of us uh you know 48:25 48 minutes, 25 seconds getting this order by end by end of this FI26 are we on track to give get that order from the uh said agency 48:34 48 minutes, 34 seconds that 4,000 crores is not for Apollo alone it's for Apollo BL put together Okay. Right. 48:39 48 minutes, 39 seconds And uh and I the second part of your question I already answered that you know A we are expecting any movement 48:47 48 minutes, 47 seconds hopefully if you know it comes faster you know the you know file movement takes place you know the RFU comes and all by end of March if it comes it's 48:54 48 minutes, 54 seconds welcoming even if it misses also by Q1 it should be coming but we are closely monitoring it but the preparedness is already there as if the order is already 49:02 49 minutes, 2 seconds with us that's how you know I can say because that's how you know you know we are getting a followup from uh from our client as well. So accordingly we have full getting fully geared up for that. 49:13 49 minutes, 13 seconds Okay sir. Thank you so much. Thank you. 49:18 49 minutes, 18 seconds I request each participants to ask two questions. The next question is from the line of Mano Jane who is an individual investor. Please go ahead. 49:28 49 minutes, 28 seconds Uh namaste sir and good afternoon and congratulations for the excellent set of numbers. Uh my question is regarding 49:35 49 minutes, 35 seconds this MIGM uh which is that uh so far I gathered uh is that it's about 4,000 cr 49:43 49 minutes, 43 seconds order which is going to divided between BDR and U and so it will be about a 2,000 cr opportunity for this company. 49:49 49 minutes, 49 seconds Now my question is has all the you know all the steps for getting this order been approved? So it's just we are 49:58 49 minutes, 58 seconds waiting for the order that's it or is it some other steps are needed for in order to for this order to mature for us if 50:06 50 minutes, 6 seconds you can kindly guide is in a four stages appro is required uh 50:13 50 minutes, 13 seconds what we heard from my colleague know my my colleague is sitting in Delhi uh almost third stage going to get cleared 50:22 50 minutes, 22 seconds any time once third stage is clear then it goes for the DS approval uh anything uh like December we are 50:31 50 minutes, 31 seconds expecting before the December end DC approval we are expecting. 50:35 50 minutes, 35 seconds Okay. And after that it will come anytime means uh that approval which is that means we are going to get after that. Okay. So by March maybe 50:44 50 minutes, 44 seconds yeah after DS April know the then RFQ this thing submission of this thing negotiation all those things things will be there uh 2 3 months time it will take once after uh DS approval. 50:55 50 minutes, 55 seconds Okay. Okay sir. Okay. So thank you for that. And uh my second question is that uh I'm hearing about the government 51:03 51 minutes, 3 seconds approving uh big ticket orders emergency acquisition and stuff like that. So means when would something from there 51:11 51 minutes, 11 seconds percolate to Apollo like you know all those big things with 70,000 crores you know one lakh crores and all those things are happening. So something some 51:18 51 minutes, 18 seconds orders from there would you expect to get something from there? every every approval our contribution also is there 51:26 51 minutes, 26 seconds once uh it come into order we are also expecting good or from all these programs 51:35 51 minutes, 35 seconds one of the clearance DA has given us 72,000 course clear has given 35,000 course Q something they have given some 51:44 51 minutes, 44 seconds novel based recently also one clearance has come every this thing now our contribution is there and we are also expecting good or from all these appro 51:53 51 minutes, 53 seconds But if you talking about single 70,000 cr I think you know we do not have any opportunity eyeing for it actually. 52:00 52 minutes Okay something will percolate from there and you'll get out of it. Okay and and and one last quing quizing question 52:07 52 minutes, 7 seconds which is that you know that unit 3 will become fully operational by which time by June end is going to be fully operational before June. 52:17 52 minutes, 17 seconds Okay sir. Okay sir. Thank you very much. Thank you very much. 52:22 52 minutes, 22 seconds Thank you. The next question is from the line of Rahul Sha who is an individual investor. Please go ahead. 52:30 52 minutes, 30 seconds Hello sir, great set of numbers. Hello. Yeah, thank you. Hello. Uh so I have two questions. 52:40 52 minutes, 40 seconds One was what would be the typical contribution of IDL on top line and bottom line in FYI 2728 52:51 52 minutes, 51 seconds and secondly is there a ESOP policy or some kind of a policy in place to retain talent in both IDL and Apollo. 53:03 53 minutes, 3 seconds Yeah. 53:05 53 minutes, 5 seconds Go ahead. Um uh presently um the complete share transfer agreement uh you know uh is 53:14 53 minutes, 14 seconds likely to get completed in next couple of weeks sir after which you know uh implementation of any and other things 53:21 53 minutes, 21 seconds and all how we have to do and all we will have to think internally. The first uh you know uh you know um the main 53:29 53 minutes, 29 seconds elephant uh in the box you know is the how to overhaul the company and uh bring uh you know you know at a different this 53:37 53 minutes, 37 seconds thing. Okay, that's something which is very important for us that overall is is what we are trying to do presently at a 53:45 53 minutes, 45 seconds you know uh you know improving the overall AITA margins and improving the bad margins bringing into a profit uh 53:53 53 minutes, 53 seconds you know margins is something which is very important for us actually. Okay, that is something phase one we will be doing. Subsequently the other things you 54:01 54 minutes, 1 second know we would be doing as I told to other investors also lot of things are planned continuously we are working on 54:08 54 minutes, 8 seconds ideal although the complete share transfer legally you know it has not yet happened all that you know uh management control partially we have taken we did 54:17 54 minutes, 17 seconds not take fully we have started implementing you know all those things you will start getting to hear you know one after other you know whatever 54:25 54 minutes, 25 seconds actions that you are taking in IDEL from time to time we'll be very welcome about it. Uh and we want all our investors to appreciate you know how we are going to make this turnaround. 54:36 54 minutes, 36 seconds Okay. Okay. Okay. 54:43 54 minutes, 43 seconds Thank you. The next question is from the line of Raja Moan who is an individual investor. Please go ahead. 54:51 54 minutes, 51 seconds Yeah. Thank you for the opportunity and congratulations on another great set of numbers. uh the new capacity which would 55:00 55 minutes be eight times our existing capacity going that way the country is rapidly indigenizing and we are converting to a weapons manufacturer from subsystems. 55:11 55 minutes, 11 seconds Could we say this capacity would be put to full use or optimum use over the next 5 years? 55:20 55 minutes, 20 seconds If everything goes fine for the next 3 years also it can it can happen. 55:24 55 minutes, 24 seconds There are certain anti-ubmarine warfare rockets which are currently under advanced phase of development. It will be going for you know trials and testing 55:31 55 minutes, 31 seconds in next one and a half quarters from now. There are the matured underwater uh you know mine projects. one already we are talking about that we are going to 55:40 55 minutes, 40 seconds get a production order very soon and there's an another variant of mine which we have already developed and one 55:47 55 minutes, 47 seconds variant of mine you know is is in in the face of development that also will hit production very fast and there are groundto-air rockets and groundto-air 55:56 55 minutes, 56 seconds you know guided rockets and grad rocket you know which are under development there are other very small miniaturaturized you know diver carrying 56:05 56 minutes, 5 seconds mines which are going for it top attack And mines are also will be developed. So there are bouquet of products you know 56:12 56 minutes, 12 seconds if I you know if I can count you know I can tell you more than 12 to 13 fully uh you know uh you know full-fledged weapon 56:21 56 minutes, 21 seconds products you know are um will be hitting production in next 2 years on a very you know uh large scale 56:29 56 minutes, 29 seconds basis is what we are contemplating as of now sir actually. So if all that fruifies and we are able to get orders for it um you know touchwood I think you 56:38 56 minutes, 38 seconds know the facility may not be sufficient also but as we know that you know the defense projects are all staggered and you know it happens you know one after 56:45 56 minutes, 45 seconds other we still foresee that we would still have a time you know for us to you know gear up further 56:52 56 minutes, 52 seconds that's extremely impressive sir and uh connecting that to the point that you indicated to getting some people for RF 57:01 57 minutes, 1 second uh how much further employee expertise in terms of external and probably international uh technology experts would we be needing in terms of 57:09 57 minutes, 9 seconds percentage to the current employee base or is it not material as we would be more converting the production to a production ecosystem which could be done 57:18 57 minutes, 18 seconds by incremental employee addition presently there are no foreign employees that are there with us all are Indian 57:25 57 minutes, 25 seconds employees only that's point one most of them are you know uh you know homegrown talent you with the captive within the company or working with the company for 57:34 57 minutes, 34 seconds quite some time and there are some new talent that we keep acquiring from time to time which I have already told you know who are a domain experts and other 57:41 57 minutes, 41 seconds things like as the day stands both the R&D you know come production come integration and testing all the teams 57:48 57 minutes, 48 seconds are sitting here as the unit 3 full-fledged operation starts from you know Q4 onwards this financial year the 57:55 57 minutes, 55 seconds R&D team will continue to situ at the unit one which is the corporate headquarter and we We are going to make it little more robust. We are going to 58:03 58 minutes, 3 seconds add up new you know capabilities you know in terms of the technologies and augment the you know uh you know overall 58:11 58 minutes, 11 seconds methodological way of working of R&D also like you know we may uh we may add up an AI team going forward we are 58:19 58 minutes, 19 seconds already we have started a full-fledged RF team you know earlier RF team was a very limited team but we we you know we 58:27 58 minutes, 27 seconds have taken some core experts who just joined you know u um you know yesterday itself And at the same time certain technologies where we are not fully 58:36 58 minutes, 36 seconds matured you know we are going ahead and acquiring those companies actually which are there in the you know frame which we have been you know for quite some time 58:43 58 minutes, 43 seconds actually. So this is how you know the expansion overall is going to take place. So specific to each technology it 58:51 58 minutes, 51 seconds will be an independent group by itself and specific to team you know technological buildup groups will also be built in next you know few financial 59:00 59 minutes years you will see like that like for specifically for example a naval architecture or naval based systems a specific group will be formed. So that's how you know an independent group under 59:09 59 minutes, 9 seconds that you know there will be a subgroups of you know core technological groups which will be there. So this is how the overall chain of the you know uh uh 59:17 59 minutes, 17 seconds Apollo as an you know R&D you know would be you know working as thank you very much sir and best wishes 59:25 59 minutes, 25 seconds to convert to a successful uh company to weapons kind of organization. Thank you so much. Thank you. 59:31 59 minutes, 31 seconds Thank you. The next question is on the line of Ajinka Jada from Chris PMS. Please go ahead. Okay. 59:39 59 minutes, 39 seconds Yeah. Thanks for the opportunity. Uh in an answer to one of the participant you said that uh we have a good capabilities 59:48 59 minutes, 48 seconds on the sonar end. If you can elaborate more on this and if you can uh let us know how we are trying to improve on 59:55 59 minutes, 55 seconds this land that's a that's a great information sir. 1:00:00 1 hour Actually this thing like like sonar this thing basically homing system uh for 1:00:09 1 hour, 9 seconds lightweight tpo and heavyweight tpo and all in fact we are the only private company working on 1:00:16 1 hour, 16 seconds inside is nothing but a seeker electronics in the underwater and also we are working on deai system 1:00:23 1 hour, 23 seconds like tuto systems and all we are working uh in fact we we are the only people working on uh Decai systems and target roing systems. 1:00:34 1 hour, 34 seconds So m mining side BDL is there. BDL is a production agency identified as a second vendor technology development side. We are going to people working in fact. 1:00:44 1 hour, 44 seconds Okay. Like uh are we there in the anti-ubmarine warfare like LFDs or at zone? 1:00:52 1 hour, 52 seconds Yeah. Yeah. Yeah. Yeah. Yeah. We we are there very much there. 1:00:56 1 hour, 56 seconds Okay. Okay. So we have a collaboration with we have as we have variety of ASW 1:01:03 1 hour, 1 minute, 3 seconds systems we are doing both on weapon side as well as on the decoying side which is an electronic warfare side actually so 1:01:11 1 hour, 1 minute, 11 seconds that's where you know you can understand from okay and for LFPDS are we have a collaboration with summer or like we 1:01:19 1 hour, 1 minute, 19 seconds develop this tech in house we have our own uh this stand okay Got it. 1:01:28 1 hour, 1 minute, 28 seconds Last 35 years we are working on sonar side. Okay. Okay. Yeah, that helps. Thank you. 1:01:37 1 hour, 1 minute, 37 seconds Thank you. We will take that as our last question for today. I now hand the conference over to the management for closing comments. 1:01:49 1 hour, 1 minute, 49 seconds Thank you so much. So um we extend our sincere gratitude to Ministry of Defense Government of India for their continued 1:01:57 1 hour, 1 minute, 57 seconds trust in the defense manufacturing ecosystem. Their confidence reflected through substantial investments is a 1:02:04 1 hour, 2 minutes, 4 seconds strong endorsement of our national nation's industrial capabilities and innovation potential. We remain steadfast in our commitment to 1:02:11 1 hour, 2 minutes, 11 seconds delivering advanced solutions that bolster operational readiness and strengthen national security. It is 1:02:18 1 hour, 2 minutes, 18 seconds indeed an honor to serve the nation and we stand fully prepared to support our armed forces under all circumstances. I along with my managing director Mr. 1:02:28 1 hour, 2 minutes, 28 seconds Karnakari and our CFO Mr. Sudashan extend our heartfelt thanks to all our esteemed investors and analysts for 1:02:36 1 hour, 2 minutes, 36 seconds being with us today. Your continued trust and partnership mean the world to us. Your participation and feedback are 1:02:43 1 hour, 2 minutes, 43 seconds invaluable to us. We remain committed to enhancing our performance and driving substantial growth. We look forward to welcoming you to our facilities where 1:02:52 1 hour, 2 minutes, 52 seconds you will have the opportunity to observe our operations and initiatives at a ground level. Should you have any further questions or wish to share your 1:03:00 1 hour, 3 minutes thoughts, please don't hesitate to contact our investor relations team or write to us at investors.reations at the rate apolloyenmicro.com. 1:03:10 1 hour, 3 minutes, 10 seconds Thank you once again for your time and interest. We look forward to reconnecting with you during our Q3 update. Wishing you all a great day ahead. Jin, happy Gurupa. 1:03:22 1 hour, 3 minutes, 22 seconds Thank you. 1:03:22 1 hour, 3 minutes, 22 seconds On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.