Apollo Micro Systems Limited — Q3 FY26

Apollo Micro Systems Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=tVgDLEAy-P4 Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to the Apollo Micros Systems Q3 F526 earnings conference call hosted by 0:09 9 seconds ICICI Securities Limited. Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertaintities. 0:21 21 seconds As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask 0:28 28 seconds questions after the presentation concludes. Should you need assistance during the conference call, please 0:34 34 seconds signal an operator by pressing star 10 on your touchstone phone. Please note that this conference is been recorded. I now hand the conference over to Mr. 0:45 45 seconds Vikash Singh. Thank you and over to you sir. Thank you. Good evening everyone. 0:53 53 seconds Welcome to Apollo Microsystem Q3 FI26 and 9month FI26 results conference call. 1:00 1 minute From the management side we have with us Mr. Badam Karunakaretti, managing director, Mr. Adiple Krishna Saiar, full-time director operations and Mr. 1:10 1 minute, 10 seconds Sudhasan Shilugeru CFO. Without taking any much time, I'll hand it over to Mr. 1:16 1 minute, 16 seconds Edi for his opening remark. Over to you, sir. 1:21 1 minute, 21 seconds Yeah, good morning. Uh this is Karnakari, managing director joined with me Mr. Saiikumar and our CFO Mr. Chashinaru. 1:32 1 minute, 32 seconds Uh Mr. Saikumar will be presenting then um after questioning this thing answering this thing I will be 1:39 1 minute, 39 seconds uh responding to you. Okay. Go to Saikumar please. Thank you sir. Good evening everyone. Um thank you for being with us today. It's always a privilege 1:48 1 minute, 48 seconds to engage with our valued investors and provide updates on our performance, strategy, and future outlook. I'm pleased to share that we have delivered 1:56 1 minute, 56 seconds our highest ever quarterly and highest ever 9-month revenue marked by consistent execution, operational discipline, and a strong commitment to 2:04 2 minutes, 4 seconds indigenization and the make India initiatives. I trust you have had the opportunity to review our financial results, letter to shareholders, press 2:13 2 minutes, 13 seconds release, tear sheet, and investor presentation. This marks our third interaction for the fiscal year 2026. We 2:21 2 minutes, 21 seconds are pleased to begin with two significant milestones that mark our continued growth and global progress. 2:27 2 minutes, 27 seconds First, we are also pleased to announce that an additional acquisition by ADIPL which is expected to be completed before 2:35 2 minutes, 35 seconds the end of this financial year. This acquisition will significantly enhance our organic growth and overall strength. 2:42 2 minutes, 42 seconds Looking ahead, we expect revenue to grow at least at a kagger of 45 to 50% over the next 3 years which has always been 2:50 2 minutes, 50 seconds our you know guidance since few quarters solely by the core business excluding any contribution from the recent 2:58 2 minutes, 58 seconds acquisition or the future acquisitions that we do in this financial year. This growth is underpinned by a healthy order book and a multiple products entering 3:06 3 minutes, 6 seconds into the production phase. Let me now take you through our consolidated performance for 9 month and third quarter ended 31st December 2025. 3:14 3 minutes, 14 seconds In Q3 FI26 we delivered highest ever um highest revenue ever and the revenue 3:20 3 minutes, 20 seconds surged by 70% YI basis to 252 crores up from 148 crores in Q3 FI25 as a result 3:28 3 minutes, 28 seconds of our robust order book execution and successful transition of multiple products into the production phase. Our EITA excluding other income rose sharply 3:37 3 minutes, 37 seconds by 33% reaching 50 crores in Q3 FI26 PAT registered at 25% Y increased to 23 3:45 3 minutes, 45 seconds crores compared to 18 crores in the previous year same quarter the order book as on 31st December stood at 39.5 3:53 3 minutes, 53 seconds crores on a consolidated basis considering 9 month FI26 we have delivered highest ever performance in 4:00 4 minutes our history our revenue from operations has spiked 53% % to 611 crores up from 400 crores in 9 months FI25. This trend 4:10 4 minutes, 10 seconds has been continued in the AITA excluding other income which has increased by 61% to 151 crores compared from 93 crores in 9 months FI25. 4:20 4 minutes, 20 seconds AITA margin has been expanded by 134 basis points in 9 month FI26. Our PAT 4:27 4 minutes, 27 seconds has climbed by 67% to 71 crores up from 42 crores in 9 month FI25. These results underscore our continued operational 4:36 4 minutes, 36 seconds excellence and reaffirm the strength of our growth trajectory in FI26 and beyond. We have evolved from being a 4:43 4 minutes, 43 seconds subsystem and system manufacturer to establishing ourselves as a full-fledged weapon system manufacturer, a significant milestone in our journey of growth and technological excellence. 4:54 4 minutes, 54 seconds Building on 41 years of technological excellence, we are poised to evolve into a multid-disciplinary defense system powerhouse to drive next generation 5:01 5 minutes, 1 second innovation. Our vision is bold, built on strong fundamentals and an unwavering commitment to create value for all our 5:09 5 minutes, 9 seconds stakeholders. Thank you for your continued trust and support. We look we now look forward to addressing your questions. 5:19 5 minutes, 19 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 5:27 5 minutes, 27 seconds star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 5:36 5 minutes, 36 seconds requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question assembles. 5:50 5 minutes, 50 seconds We take the first question from the line of Sukrit Deep Part from Isite Fentrate Private Limited. Please proceed. 5:58 5 minutes, 58 seconds Good evening to the team. I have two questions. My first question to Mr. uh Badam is uh looking ahead, how do you 6:06 6 minutes, 6 seconds see Apollo microsystems balancing between expanding defense and aerospace contracts, investing in new technology 6:13 6 minutes, 13 seconds and protecting profitability as a demand for advanced electronic growth? What will guide your decision on which of 6:20 6 minutes, 20 seconds these areas should get the strongest focus in the coming quarters? That's my first question. I'll ask my second question after. 6:28 6 minutes, 28 seconds Yeah. See like um uh you know the last uh last quarter result also I was talking to your people. If you see the 6:35 6 minutes, 35 seconds government of India is already D has cleared already defation council has cleared already you must be knowing QRM 6:43 6 minutes, 43 seconds one program is going B production and another program is Akashi also is going for a few members and if you see these 6:51 6 minutes, 51 seconds two programs our major contribution is there QRM also Akashi also our contribution is there and other side N systems also limited series production 7:00 7 minutes we have completed heavyway and we Now expecting bulk production order we are expecting and uh also we are also doing 7:10 7 minutes, 10 seconds the complete one of the program like nine program underwater nine programs three four programs we are doing uh one 7:18 7 minutes, 18 seconds program complete test test trials also completed and uh anytime anytime this month I'm expecting uh defense 7:26 7 minutes, 26 seconds acquisition called D clearance also we are expecting that is going to be major order what we are looking for immediately and other programs also 7:33 7 minutes, 33 seconds underwater mind side if you see couple of variants other variants also we are doing limped mine two variants of limpet mines we are doing we are also doing no 7:41 7 minutes, 41 seconds like deeper depth there's a program called mood mind that mood mind also anytime we are expecting we are going to 7:49 7 minutes, 49 seconds sign DCPP partner the DCPP partner we are going to sign with the devo that is also we are already fortunately know the mood 7:58 7 minutes, 58 seconds mine uh dair already happened the fund is in Okay. Uh only thing user trials we 8:05 8 minutes, 5 seconds are yet to perform once we complete user trials. So we are expecting a very big order like MIGM mode also going to be a 8:14 8 minutes, 14 seconds big game change order for Apollo micro system and many other program like short range programs short-range missile 8:21 8 minutes, 21 seconds programs or participation is there long range like a 5 A one also going for a bul production our major contribution is 8:29 8 minutes, 29 seconds there in this programs also and as I explained you previous meeting missile technology side if you see we have good 8:37 8 minutes, 37 seconds contribution Subsystem wise if you see 63% of our contribution is there you name any program from short range 4 km range to 8:45 8 minutes, 45 seconds 5,000 km missile kind of thing if you consider 63% of subsistence in fact Apollo max system is supplying to more 8:53 8 minutes, 53 seconds than more than 80 90 programs and already we are we become DCP partner for couple of programs we are also expecting 9:02 9 minutes, 2 seconds uh two more programs be participated anytime uh the is going to decide We are expecting one novel based 9:10 9 minutes, 10 seconds missile program now anti-ship program we are expecting that also I think this month is going to decide and as you know 9:18 9 minutes, 18 seconds like we are uh one program we are doing uh RGB 60 program is a anti-ubmarine 9:24 9 minutes, 24 seconds program and uh we have done I think lab test and all we have done we are going for a uh I think a trial test anytime we 9:33 9 minutes, 33 seconds are planning for a technical trial and other programs like complete weapon fight and one of the program like anti- 9:41 9 minutes, 41 seconds drone summer drones hard killing rocket we are making that also I think we are 9:49 9 minutes, 49 seconds going for trials next month first quarter first first quarter first quarter we are going for trials all culary checks and all lab test and all 9:56 9 minutes, 56 seconds we have completed all simulations and all we have completed the product is ready the first quarter we are going for trials and many many other programs are 10:04 10 minutes, 4 seconds doing at least couple of 100 programs few hundred programs we are doing every program our contribution is there as as I explained 10:12 10 minutes, 12 seconds you n side also we have contribution and if you see land based systems like launcher systems and all also we have 10:19 10 minutes, 19 seconds contribution missile technology if you see also our contribution is there LCA mark is there ama is therea also we are 10:26 10 minutes, 26 seconds participating already we started doing couple of subsystems uh LCA mark also we are doing almost 10:34 10 minutes, 34 seconds some something like five subs very critical system. So data development activity we are doing uh uh and as you 10:42 10 minutes, 42 seconds know like explosive company also like we we acquired ideal explosive we are now going for a good expansion we want to 10:49 10 minutes, 49 seconds produce defense grade uh explosive we want to produce and I think we we are going to start another 6 months time uh 10:57 10 minutes, 57 seconds we we definitely going to start producing defense grade explosive also that is another plan is going on and also we are planning to acquire a couple companies where we don't have presence. 11:09 11 minutes, 9 seconds Uh I think in fact uh I think before this financial year and at least some three companies we are going to uh we 11:16 11 minutes, 16 seconds are going for dur due diligence due is going on at least one we will be able to close for sure. 11:23 11 minutes, 23 seconds Yeah. If everything goes well three companies are in pipeline and at least one or two companies acquisition we want to complete before the this financial year end. That's all. 11:33 11 minutes, 33 seconds Thank you. Thank you. My second question to Mr. 11:36 11 minutes, 36 seconds Chiru is uh again along the similar lines as Apollo Microsystems plans for the next few quarters. What financial 11:43 11 minutes, 43 seconds signals or metrics will be most important in guiding you uh to take the decisions on cost control, working 11:50 11 minutes, 50 seconds capital and capital allocation for R&D and capacity expansion. How do you see these levers shaping the company's ability to protect the margins and 11:58 11 minutes, 58 seconds deliver sustainable growth in the coming few quarters? Want to understand your plan of action on this? 12:05 12 minutes, 5 seconds As you already know, if you visualize, we have been spending around 9 to 10% of 12:12 12 minutes, 12 seconds our outlay uh top line as a R&D expenditure. Since our company is a bread and butter is R&D unless we do 12:21 12 minutes, 21 seconds R&D, we cannot sustain and we cannot grow in the business. That's why sizable amount is allocated for R&D and we have 12:31 12 minutes, 31 seconds even availed a term loan sanctioned by one of the bank 75 crores. Lot of programs we have taken up for R&D and uh 12:41 12 minutes, 41 seconds around 50 to 60 crores we are going to spend in the near future on R&D itself. 12:46 12 minutes, 46 seconds That is one part. The other part is we have massive expansion plans as you know 12:54 12 minutes, 54 seconds phase three at a hardware park we have already uh commissioned partly in the 13:01 13 minutes, 1 second October end uh with a 150 crores outlay with a term loan of 110 crores from 13:09 13 minutes, 9 seconds state bank of India with our margin 150 crores worth of projects we have already implemented and another 2.5 acres we 13:16 13 minutes, 16 seconds have acquired and we have started civil works uh for further expansion and also we have recently got a lotment of 13:23 13 minutes, 23 seconds another 5 acres of land addition to the existing expansion uh plant uh from 13:30 13 minutes, 30 seconds government of Telangana where we will be spending uh at least 100 to 150 crores for 13:37 13 minutes, 37 seconds further expansion. So it will be a state-of-the-art project once we complete entire thing of uh project in 13:46 13 minutes, 46 seconds the 10 acre 10.5 acres of land that is our expansion plan and as far as growth 13:53 13 minutes, 53 seconds is concerned we have been growing at a ph of 30 to 35% for the last 2 three 13:59 13 minutes, 59 seconds years the same tempo if everything goes well whatever we are we are having plans of getting the orders and all that if it 14:08 14 minutes, 8 seconds uh certified and uh we will be growing at 35 to 40% in the years to come. As far 14:18 14 minutes, 18 seconds as the order book is concerned, we are comfortable and with the addition of ideal explosives we are into we we will 14:26 14 minutes, 26 seconds be growing into a a full weapon manufacturer thing. Earlier we were having only a subsystem 14:34 14 minutes, 34 seconds manufacturer. Now we can manufacture the entire uh missile. 14:41 14 minutes, 41 seconds So order book is good and as far as finance is concerned we have mobilized funds as you know uh through 14:50 14 minutes, 50 seconds preferential issue and uh bank finance is also made available to us as long as 14:56 14 minutes, 56 seconds we need it and uh all the things are in place. 15:02 15 minutes, 2 seconds Yeah. One more thing uh I want to share with you. Um see like cost cutting wise we are now going for we have implemented 15:11 15 minutes, 11 seconds SAP and we started migrating into SAP and also we are doing one automation complete all factories now we are going 15:20 15 minutes, 20 seconds for automation we are almost implementing industry 4.0 0 we are implementing where you know the management can see the complete 15:28 15 minutes, 28 seconds missionary how missionary utilize how manpower is working what is the missionary running and so anybody any of 15:36 15 minutes, 36 seconds my customer want to see also they can remotely they can see through video they can see and uh they their status and all 15:45 15 minutes, 45 seconds and in the text form also the available customer can monitor management side also microlevel monitoring uh what we want to 15:53 15 minutes, 53 seconds where manpower utilation and machinary utilation properly we want to do because now unit two we are we have two units are there explosive if you see explosive 16:01 16 minutes, 1 second side four five units are there and third unit third unit itself some four units within 10 acres campus we will be having 16:08 16 minutes, 8 seconds four units in fact four different buildings and it is a huge almost going to have five lakh square ft area kind of thing each each one main 16:18 16 minutes, 18 seconds building is 2.6 Six lakh square ft² area and other three buildings also more than lakh square ft area where we building. 16:25 16 minutes, 25 seconds So same time we are going for automation so proper utilation of manpower and complete missionary utilation also we 16:32 16 minutes, 32 seconds want to monitor in a automize the thing. Yeah. So the what what CFO has talked about the R&D 16:42 16 minutes, 42 seconds investment in in the we have already allocated 100 cr uh you know for the R&D fund is uh already in place some of 16:50 16 minutes, 50 seconds which investments have already taken place the 9 to 10% what he talked about is in the subsequent years you know up to 9 to 10% is the investment that we 16:59 16 minutes, 59 seconds are going to do in R&D which is currently you know earlier it has been 7 to 8% then it got dipped to 6% primarily 17:06 17 minutes, 6 seconds because our revenues started kicking you know on a continuous basis but going forward you know the investments in R&D 17:13 17 minutes, 13 seconds you know will further increase so that that's uh one thing that I want to add to what the CFO has uh you know told as a clarification as well actually yeah we 17:22 17 minutes, 22 seconds can go to the next question thank you and best wishes 17:30 17 minutes, 30 seconds thank you thank you thank you we take the next question from the line of Dshant from DB Bwell. Please proceed. 17:41 17 minutes, 41 seconds Hello sir. Congratulations from the members. Um sorry to interrupt Dshan. 17:46 17 minutes, 46 seconds I would request you to come closer to your device and then speak. Sure. Um congratulations management. Congratulations on the topline growth. 17:55 17 minutes, 55 seconds Um we are seeing uh a significant u rise of cost in our employee expenses and our 18:03 18 minutes, 3 seconds other expenses. While I understand that we are in a growth phase right now and we are doing acquisitions employee 18:11 18 minutes, 11 seconds expense might go up but uh what's the major contributor to other expense? 18:18 18 minutes, 18 seconds So if you see compared to the previous quarters are you know the other expenses in terms of the um finance cost and other things you know got significantly 18:27 18 minutes, 27 seconds reduced actually obviously the depreciations you know going forward also will increase because you know a lot of investment in terms of capex 18:34 18 minutes, 34 seconds and continuous investment in terms of the capital work in progress which is there in R&D you know every quarter on quarter basis you know we keep 18:41 18 minutes, 41 seconds capitalizing actually okay and uh other things like okay so but if you see the employee expenses you 18:49 18 minutes, 49 seconds We have we have gone in for a very very very large expansion. 18:53 18 minutes, 53 seconds Okay. From the current uh you know size of the facility we have uh you know contemplated for an expansion of you 19:01 19 minutes, 1 second know five and a half to 6 and a half times. Now now with the addition of the you know new facility which we have 19:08 19 minutes, 8 seconds recently announced that you know we have been allotted 5.6 6 acre up to 12 to 13x times you know the facility will increase proportionately the manpower 19:17 19 minutes, 17 seconds also will be increasing actually. So in the next few months the manpower which is required you know for the next financial year that recruitments also 19:25 19 minutes, 25 seconds have started continuous basis hence the financial because you know the training and other things like you know at all levels you know the manpowers have got 19:32 19 minutes, 32 seconds increased from a managerial level the head of the department level the team leader level and at a junior level also. 19:39 19 minutes, 39 seconds So obviously the manpur you know has also got increased because the number of you know um um per employee number of 19:49 19 minutes, 49 seconds projects handled by per employee is increasing on a continual basis. So we are continuously increasing the manpower. So the uh the cost of the 19:56 19 minutes, 56 seconds manpower is increasing on a uh on a quarterly basis actually. So what is the uh core sort of other expense that is 20:04 20 minutes, 4 seconds happening because uh depreciation I understand the sort of uh interest cost we are getting that also makes sense but what is it the other expenses that are really hitting us. 20:15 20 minutes, 15 seconds Um I will tell you there is a um expense expenses related to you know uh in the 20:24 20 minutes, 24 seconds generally normally what happens uh that uh certain expenses in the u Q3 and Q4 20:32 20 minutes, 32 seconds will increase actually primarily owing to I mean this has been the trend primarily owing to we have an annual uh function you know happening uh in um so 20:42 20 minutes, 42 seconds that is one expense that gets added we participate in the you know international shows and exhibitions that is one expense that gets added actually. 20:51 20 minutes, 51 seconds So these are certain expenses you know which gets increased. But uh in last uh you know few quarters you know our travel expenses also have got 20:58 20 minutes, 58 seconds significantly you know you know increased uh primarily going to huge business development uh you know activity that is taking place and the uh 21:07 21 minutes, 7 seconds in terms of the execution and integration also you know a lot of travel is happening across uh uh multiple laboratories across India pan 21:15 21 minutes, 15 seconds India basis actually. So these are the different heads under which you know the you know the costs have got increased in the um doing trials lot of trials. 21:25 21 minutes, 25 seconds Yeah trials the cost of the triens. 21:27 21 minutes, 27 seconds [clears throat] 21:28 21 minutes, 28 seconds So um so next I have two quick questions one is that you have mentioned 45 to 50% kagger growth for the next 3 years in 21:36 21 minutes, 36 seconds your opening remarks and that's something that has been consistent. So what kind of margins on net that we can 21:44 21 minutes, 44 seconds expect now because since we are now going through a new leap of growth in our business which as investors we are 21:50 21 minutes, 50 seconds proud of but uh what kind of net margins can we see now see on a pat level if I talk about um we 21:59 21 minutes, 59 seconds are going we are targeting for a 15% level yeah consolidated there could be a small 22:06 22 minutes, 6 seconds you know dip in a consolidated basis okay I just want to talk on a standard stand alone basis you know I just want to talk about standalone basis that you 22:15 22 minutes, 15 seconds know standalone basis the net profit percentage pad percentage will we are targeting for 15%. consolidated basis you know primarily what happens there's 22:23 22 minutes, 23 seconds only one major consolidation which is happening which is ideal explosive actually okay there you know we are we are having a little dip because of the 22:31 22 minutes, 31 seconds you know previous RC contracts of the coal India which ideal was handling actually um that may that may have a 22:38 22 minutes, 38 seconds little small impact towards you know our this thing but I think overall on consolidated basis also if you see on a year-on-year basis there will be a 22:46 22 minutes, 46 seconds significant improvement in the you know pat level margins which will be Even even after you know uh uh you know 22:53 22 minutes, 53 seconds the consolidation so uh you are expecting that uh this year end the next quarter we will see 23:01 23 minutes, 1 second around a 15% on consolidated basis plus minus% or so on standalone basis 15%. There will 23:08 23 minutes, 8 seconds be a dip in the consultation you know because of the IDL that's what I was trying to say so what would be the number sir but it will be better than yearon-year 23:17 23 minutes, 17 seconds basis consultation that's what I was trying to say uh if possible can you give us a number sir 23:25 23 minutes, 25 seconds quantifying at this point of time is very difficult we are just taking control of the map full control of the management because there are spread 23:32 23 minutes, 32 seconds across seven plants continuous basis you know we are reducing wherever there there is a redund tendency of you know the expenses or the manpower and other 23:40 23 minutes, 40 seconds things cost and other things you know are being uh you know done. You have to accept a you know fact that you know the acquisition and you know this thing is a 23:49 23 minutes, 49 seconds very organic process. We cannot take you know actions overnight because there are traditionally employees which are older than this company. There are 41 42 years 23:58 23 minutes, 58 seconds since you know employees are there who are working in the company actually stage by stage we are doing but you know currently guidance point of view to give 24:05 24 minutes, 5 seconds also you know I I do not have a clarity of the numbers currently but from Q1 next financial year onwards you know we will be able to give a guidance on the 24:13 24 minutes, 13 seconds consulted basis but the only thing uh guidance that I can give at this point of time not in an absolute number is 24:20 24 minutes, 20 seconds that even after consolidation even after there is a small dip also yearon-year point of The pat level margins are going 24:27 24 minutes, 27 seconds to be on higher side. Target for the what do you call standalone basis we are targeting for a 15% margin. That's what is our internal target. 24:37 24 minutes, 37 seconds So lastly is on underwater mines. This is something that we have been expecting from the government and from our 24:45 24 minutes, 45 seconds partners with PSUs for some time now. So what's been update on this and what's like uh been a deterrent for us right 24:53 24 minutes, 53 seconds now? All all necessary approvals at all levels are over. Actually it is just awaiting for a DAC approval. Uh you know 25:01 25 minutes, 1 second it has come to that level. Actually we are most positive and likely that you know it may the file may come up for the DAC approval in the upcoming DAC meeting 25:09 25 minutes, 9 seconds or maybe if it gets slipped you know for an operational reasons because certain files certain number of X number of files only they take up actually if it slips it may go for another DAC meeting. 25:19 25 minutes, 19 seconds some clarity is yet to come for even for us. As much as you are waiting the same way we are also waiting operational wise you know everything is set you know we 25:27 25 minutes, 27 seconds are ready up for production the documentation quality plans everything are up and ready from our end we are fully geared up the moment the switch is 25:35 25 minutes, 35 seconds on you know we can do production that's the stage we have already geared up ourself we are still waiting as much as you went as as something comes out you 25:42 25 minutes, 42 seconds know we will we'll give our disc this would be a 22500 order that we are thinking of right 25:48 25 minutes, 48 seconds yes it is going to be uh 2,500 course plus we are also expecting my other DCP 25:56 25 minutes, 56 seconds partner BDL also going to take equal order from that also we are expecting few hundred course orders because do I have permission to ask one more 26:04 26 minutes, 4 seconds question sir pardon me yeah yeah can I ask one more question 26:11 26 minutes, 11 seconds um so sir um u right now uh we are also sort of seeing uh some increase in uh 26:19 26 minutes, 19 seconds approval So um the production stage that we are going to go into at what point can we expect our porks to like you know 26:28 26 minutes, 28 seconds start uh going down uh you are going for automation and everything else. So at what point right now it's around 70% are 26:35 26 minutes, 35 seconds materials consumed right. So at what point can we see a significant improvement here? 26:41 26 minutes, 41 seconds Yeah. Um see this question we have been giving a reply to all the investors. 26:45 26 minutes, 45 seconds Once again I will give there a significant improvement at the COGS level will happen once a large scale production orders kick kick up and there 26:53 26 minutes, 53 seconds which are going to be an anchoring orders over the overall top lines actually till such a time you know the similar cog levels would be maintained 27:01 27 minutes, 1 second actually because predominantly most of the projects that we are addressing are you know typically R&D projects and you know the uh you know uh there is no 27:11 27 minutes, 11 seconds control at a cox level actually for that but as the you know large scale production orders which we are awaiting. 27:16 27 minutes, 16 seconds Okay, they are they are something you know which are going to give a significant benefit at a cost level for them and you must be knowing already uh D 27:24 27 minutes, 24 seconds clearance know I think around two lakhs crus given clearance many many programs n programs missile 27:33 27 minutes, 33 seconds programs couple of missile programs and longrange missiles pres all all together two less scores so that already defense 27:41 27 minutes, 41 seconds council has already cleared so I think um so these are all production orders what he means to say these are all production orders once once they get into system 27:50 27 minutes, 50 seconds integrator level we we we are going to get the production orders which will definitely give a benefit. 27:56 27 minutes, 56 seconds Is there any timeline for these dark meetings sir that we're aware of? 28:00 28 minutes It is not in our control sir. It depends on availability of the raam mantri various other officials who are part of the thing. It's not in our control. 28:08 28 minutes, 8 seconds Nor do we have any we not to the informations also most of the time. 28:12 28 minutes, 12 seconds No I get it sir that's confidential on on their level but I get it. Jen sir thank you so much for continue to work on this. Right. 28:21 28 minutes, 21 seconds Yeah. I request everyone to restrict themselves with the two questions. I am available tomorrow day after tomorrow for the two different conferences. You 28:29 28 minutes, 29 seconds know you will have uh you know if you are attending the conference you know if you are in Mumbai I I you can meet me in person uh also but I think you know 28:37 28 minutes, 37 seconds because we'll have to give opportunity for many of them. Some of them are you know messaging me personally also. Uh that two questions I request most relevant two questions. 28:46 28 minutes, 46 seconds Thank you sir. Thank you. 28:59 28 minutes, 59 seconds We take the next question from the line of Abi Sha from Sidi Technology. Please proceed. 29:07 29 minutes, 7 seconds One question regarding the subsidiary IDL explosives. So uh there is a uh 29:15 29 minutes, 15 seconds standard on losses on the books of uh ideal explosive. So what is the figure 29:21 29 minutes, 21 seconds and when can we expect this figure to turn around positive when on an aid thea margin and also on the net income basis. 29:32 29 minutes, 32 seconds So when the uh subsidy could turn positive 29:38 29 minutes, 38 seconds um see primarily you know if you see u there is uh uh four crores loss that got 29:47 29 minutes, 47 seconds added actually in the quarter. Okay. Uh out of the 45 days that this thing is there. This quarter I [clears throat] 29:55 29 minutes, 55 seconds think you know we are expecting an EIA level to be you know break even break even. Okay. From next financial year Q1 30:02 30 minutes, 2 seconds onwards you know it uh the EIA level and at the PAT level it was going to be a uh 30:10 30 minutes, 10 seconds positive PAT a positive AITA company actually. 30:14 30 minutes, 14 seconds Okay. So can we expect a margin dilution this this year? Uh in FI26 30:22 30 minutes, 22 seconds there will definitely be a margin dilution. There will definitely be a margin dilution which we have told last quarter also actually. Okay. We have given that indication very brightly last 30:31 30 minutes, 31 seconds uh quarter itself. But you have to also observe that you know the uh margin 30:38 30 minutes, 38 seconds levels of the standalone financials it has significantly got increased you know owing to you know multiple types of 30:45 30 minutes, 45 seconds systems you know also enter which which have got entered into production order in this financial year which has given a 30:51 30 minutes, 51 seconds benefit at a you know I mean say ua level as well as at the overall at the 30:58 30 minutes, 58 seconds pat level. Okay. So owing to that you know although there is you know certain you know u in the consolidation basis 31:07 31 minutes, 7 seconds there is certain impact that is going to be there but on overall as a consolidated basis although there is an impact because of consolidation on a 31:15 31 minutes, 15 seconds comparative basis of yearon-year there is still going to be an improvement in the all the friends both at the eeta level as well as at the pat levels 31:23 31 minutes, 23 seconds that's how we would like everyone to look at the rational behind the purchase of ideal at the time of you know entering The SPA agreement also we have 31:30 31 minutes, 30 seconds given in very much in detail detailed comprehensive you know presentation we have given that it is a strategy with 31:38 31 minutes, 38 seconds which you know the ideal explosive is acquired and you know it takes few quarters for us to you know implement that strategy and bring on bring it on 31:45 31 minutes, 45 seconds to you know defense grade explosive you know pull this thing a huge capex is also being planned in IDL which will contemplate for the future energetic 31:54 31 minutes, 54 seconds requirement both in terms of the propellant as well as in terms of the war explosive you know for uh uh you know uh for our backward integration and 32:03 32 minutes, 3 seconds also for you know forward integration as a vertical integration all three levels. 32:07 32 minutes, 7 seconds So uh it it this transition will take some time. At the same time you know in our investor presentation also we have 32:14 32 minutes, 14 seconds told that you know there will also be an improvement from the next financial year owing that you know we are doing a huge business development for ideal explosive 32:22 32 minutes, 22 seconds loans on a standalone basis also where you know huge export oriented you know market which was untapped earlier is also being explored. Okay. And we have 32:31 32 minutes, 31 seconds also given decent amount of funnel is already there in place which which will further improve the you know um margins of the company. 32:40 32 minutes, 40 seconds uh traditionally whatever you know the levels at which this is there it is going to be you know u subdued or compensated with the export business as 32:49 32 minutes, 49 seconds well as increase in the domestic business predominantly the business comes from the coal India but also other uh you know mining and infra projects 32:56 32 minutes, 56 seconds also one after other you know we have started getting projects and uh we have played a you know key role by fighting in the court of law for the ban of coal 33:05 33 minutes, 5 seconds India to be lifted actually and that was successful we got coal India project. So the survival point of view there's no problem. But Q1 onwards from the next 33:13 33 minutes, 13 seconds financial year the AIA is going to be positive. PAT is going to be positive. 33:17 33 minutes, 17 seconds This year there could be a small you know impact but there is not going to be a serious dent on the financials at a 33:24 33 minutes, 24 seconds beta level or PA level because the margin expansion has significantly been there in the last three quarters for 33:31 33 minutes, 31 seconds Apollo on a standalone basis. So that small uh you know impact of uh you know the consolidation may not have a 33:37 33 minutes, 37 seconds significant impact on the uh consult console side. 33:42 33 minutes, 42 seconds Thanks for the detailed answer. Uh so again one question I want to ask regarding the order book. So can you just uh guide me what is the order book for ideal exclusives this quarter? 33:56 33 minutes, 56 seconds this quarter uh uh the the the complete uh uh order book of ideal is standing at 34:03 34 minutes, 3 seconds around 500 odd crores actually 500 cr okay and okay yeah that's it 34:14 34 minutes, 14 seconds thank you before we proceed with the next question participants please limit your question 34:21 34 minutes, 21 seconds to two per participant as there are several participants waiting for their We take the next question from the line 34:28 34 minutes, 28 seconds of Akshai from AK investment. Please proceed. 34:33 34 minutes, 33 seconds Hello, thanks for giving me the opportunity and uh uh [clears throat] sorry to interrupt Mr. Ashai. Could you please come closer to your device and then speak? 34:43 34 minutes, 43 seconds Hello. Am I audible now? Yeah. 34:48 34 minutes, 48 seconds Okay. Uh thank you sir. Uh and uh thanks for giving me the opportunity sir. My first question is about uh the IITA 34:55 34 minutes, 55 seconds margin. So at consolidated level not for this year because we have acquired IDL and margin stress somewhat for that 35:02 35 minutes, 2 seconds reason but for the next financial year and FI28 what would be the consolidated margins going forward? What are our targets? 35:13 35 minutes, 13 seconds No margin levels guidance you know for the EITA or at a PAT levels you know at a Q3 35:21 35 minutes, 21 seconds level you know I am not in a position to give you okay guidance we will give you you know once the Q4 quarter ends based on the outstanding order books that we 35:30 35 minutes, 30 seconds have and the funnel that we have at the end of the 31st March okay that is point number one but broadly there is an internal target of maintaining on a 35:38 35 minutes, 38 seconds standalone basis 15% margin at a pat level this is what is the guidance that we and we continue to stand on our guidance on the topline revenues of increase of 35:47 35 minutes, 47 seconds 45 to 50% growth. Okay, that that uh that guidance we have been giving and we'll continue to stand on that point. 35:55 35 minutes, 55 seconds Okay, sir. Answer my second question is about the promoter pledge. So uh when by when are we clearing the promoter pledge? 36:06 36 minutes, 6 seconds Okay. So like um everything goes well know like um uh next 36:13 36 minutes, 13 seconds we are we are working towards it in few quarters you know we should be coming out. We have initially contemplated to come out in uh this quarter actually but 36:21 36 minutes, 21 seconds I think in next few quarters you know step by step one after another we should be coming out. Yeah. Okay. Thank you. 36:29 36 minutes, 29 seconds Thank you. Thank you. 36:34 36 minutes, 34 seconds We take the next question from the line of Manoj Jane from Jane HUF. Please proceed. 36:41 36 minutes, 41 seconds Uh namaste sir and Jahind. Uh I would like to uh first state that you know on the 5th of January I had sent an email 36:51 36 minutes, 51 seconds uh to you asking a certain question but I don't know why it was unanswered. Now the question I would like to where which I placed there I am placing it once more 36:59 36 minutes, 59 seconds here which is that uh recently in the in CNBC uh TV8 and other some websites some 37:07 37 minutes, 7 seconds allegations some articles came on on uh this your company in which it was alleged that uh something like that the 37:17 37 minutes, 17 seconds shareholders had rejected a proposal for approving related party transactions uh in tune of 500 crores between Apollo 37:25 37 minutes, 25 seconds Defense, Apollo strategic technologies and ideal uh explosives with 19 almost 99% of the institutional uh shareholders 37:35 37 minutes, 35 seconds voting against the resolution. So is this true? I don't know why the company did not uh refute it or uh say anything about it. So if you can kindly clarify on this matter. 37:45 37 minutes, 45 seconds I will clarify sir. Um the point is like this. It is not a neither an allegation nor falser. 37:55 37 minutes, 55 seconds It is in a public domain. We have went we have gone in for a approval to shareholders 38:02 38 minutes, 2 seconds stating that um we would like to give a corporate guarantee to our subsidiary companies actually. Okay sir. 38:10 38 minutes, 10 seconds Okay. The fact which the fact which every investor has to understand is that if we are taking a stake in a company 38:17 38 minutes, 17 seconds maybe a 100% acquisition or a minor stake or a majority stake those companies typically rely on a parent 38:25 38 minutes, 25 seconds company for support in terms of the financials right sir yes yes being a support to the you know financial support to those companies you 38:33 38 minutes, 33 seconds know some certain guarantees has to be given as a corporate okay we have to stand as a guarantee and give that comfort to where either they are lending 38:42 38 minutes, 42 seconds partners or we may have to give some guarantees when they want to bid for a higher you know tender projects or something like that. Okay. 38:50 38 minutes, 50 seconds for that purpose. You know, in order to give such kind of a comfort letters or a corporate guarantees, you know, this this 38:57 38 minutes, 57 seconds resolution has, you know, been moved by us, you know, which shareholders largely shareholders have accepted 39:04 39 minutes, 4 seconds actually. But certain shareholders you know they have gone with the uh what do you call uh biased 39:13 39 minutes, 13 seconds uh uh what do you call reports of certain report certain agencies who have made a report that you know certain RPT 39:22 39 minutes, 22 seconds related party transaction based you know uh corporate action is being initiated by Apollo. Okay, here the related party 39:31 39 minutes, 31 seconds transaction point of view none of the you know uh the the fund is not coming going to any of the you know what do you 39:38 39 minutes, 38 seconds call promoters no such this thing is being given only corporate guarantee we are standing as a guarantee corporate guarantee has to be given without which 39:47 39 minutes, 47 seconds you know those companies survival will become difficult actually okay further we we there is nothing to refute nor is 39:54 39 minutes, 54 seconds it a allegation there are you there are certain people who will write some you know irrational topics in the social 40:03 40 minutes, 3 seconds media which are being picked by few other people and you know we do not want to respond certain things which are there on that actually the fact is that 40:12 40 minutes, 12 seconds the resolution got defeated because certain people did not understand whoever has voted negative we have reapproached and we have given a presentation but they being certain 40:20 40 minutes, 20 seconds mutual funds they go by these agencies reports actually okay we did not further move that resolution once again for a 40:27 40 minutes, 27 seconds reason that even if we move now for the next financial year starting from 1st April we'll have to once again approach for you know shareholder approval okay 40:35 40 minutes, 35 seconds for the purpose of this one or two months you know there's no point in taking approval because once again we have to take it's a cost for the company it is your company who is incurring loss 40:44 40 minutes, 44 seconds by again again going to the it is 20 25 lakhs expenditure for me actually okay I did not want to send that we have 40:51 40 minutes, 51 seconds requested our bankers to you know you know maintain certain refrain over it and wait for some time we will further go in for shareholder approval. This 41:00 41 minutes time we will make a comprehensive presentation to all the people. Whoever has written reports to them also we will approach you know and we will tell them 41:08 41 minutes, 8 seconds the rational. There is no benefit that is being awarded to any of the you know subsidiary companies nor any benefit 41:15 41 minutes, 15 seconds accorded to any of the promoters by moving this resolution. It is purely for the purpose of supporting the subsidiary companies so that they become 41:24 41 minutes, 24 seconds independently they will be able to run over a period of time till such a 41:38 41 minutes, 38 seconds actually yes. 41:47 41 minutes, 47 seconds We appreciate and understand the concerns of that reporting agencies. We are going to address it. I will come back with the resolution. I will convince them once again we will get it 41:56 41 minutes, 56 seconds passed. That is the thought process that we have internally. I hope this is clear and there is nothing hanky panky happening there. 42:04 42 minutes, 4 seconds Okay. Actually the report was made in such a way that as a shareholders you know I I couldn't understand that what was going on you know so that's why I 42:12 42 minutes, 12 seconds wanted clarification and one one more thing sir the I I don't know why my my question was not answered 42:19 42 minutes, 19 seconds again sir I request please when reading when you read the report whether the report has been written you know uh 42:28 42 minutes, 28 seconds appropriately by understanding what what further resolution has been moved or not is also I request you to understand it not just reading the report alone 42:37 42 minutes, 37 seconds because reports are being prepared by certain analysts not understanding because you know when you prepare a report see I ask like you are an 42:44 42 minutes, 44 seconds investor whenever I we conclude a call also now also I want to tell if when you are talking to us over the call of half an hour 1 hour you'll not understand 42:52 42 minutes, 52 seconds anything about the company please visit us talk to the management at least once in a lifetime okay then only you will understand after that we can have any 43:00 43 minutes number of calls so whenever whoever is writing analyst also I request analyst to please visit visit us understand us we can give you 1 hour one and a half 43:07 43 minutes, 7 seconds time or you can ask the question sir what is not clarified I'll clarify again yes yes sir regarding this only I said 43:14 43 minutes, 14 seconds that I had sent an email to you people but you know regarding this only and but it was not answered sir that's [clears throat] that's 43:21 43 minutes, 21 seconds I regret it is unanswered sir verbatim it will be answered in next 72 hours okay sir thank you thank you for this and one more thing one one more question 43:30 43 minutes, 30 seconds small question I can ask that any further plans of equity Equity dilution for your company means can you give any kind of indication that any kind of 43:39 43 minutes, 39 seconds equity dilution in the future which you're planning as and when as and when it is contemplated we'll keep you informed sir. 43:46 43 minutes, 46 seconds Okay sir. Okay. Thank you very much ma'am. Thank you. Thank you. Thank you. 43:55 43 minutes, 55 seconds The next question is from the line of Anko Shagarwal from Capital. Please proceed. 44:01 44 minutes, 1 second Hi. So just a clarification uh so you said out of 1300 crores of order book 500 crores is ideal unless uh 800 crores 44:10 44 minutes, 10 seconds is our Yes sir yes sir yes yes so 800 plus 500 that's the number right 44:18 44 minutes, 18 seconds yes order book oh that was all thank 44:25 44 minutes, 25 seconds thank you we take the next question from the line of shriansi from HJ securities. Please proceed. 44:35 44 minutes, 35 seconds Hi, good evening sir. I had a question on the acquisition. Uh so if you did give some more details around you know which space the acquisition is in and 44:44 44 minutes, 44 seconds what size of acquisition are we doing what revenues uh just some more details on uh what we're looking to acquire. 44:53 44 minutes, 53 seconds Acquisition is a strategic in nature once again okay but we are bound by NDA. I cannot 45:00 45 minutes disclose you know you know on exactly what it is actually because many of the people you know will make their own 45:08 45 minutes, 8 seconds assumptions out of it. But uh good strategic acquisition wherever we are doing acquisitions we will be doing 45:15 45 minutes, 15 seconds where we do not have a significant presence or we do not have a presence at all. 45:22 45 minutes, 22 seconds Got it. So no just like any in which specific space because I know that we are looking to acquire some RF company for a while now. 45:30 45 minutes, 30 seconds NDA is signed and NDA is signed due diligence is in the process after we do our internal due diligence it will come 45:38 45 minutes, 38 seconds to merchant bank stage actually. Okay where the merchant banker is involved right from the NDS stage itself actually. Okay this is what I can tell you. 45:47 45 minutes, 47 seconds Got it. Okay. Uh as the second question is on the QRSM order it's already passed DAX. So when do we expect that order 45:55 45 minutes, 55 seconds coming in because I assume that that will also be uh quite a significant order for us. 46:01 46 minutes, 1 second Yeah QRM order bell already negotiation is going on. Mod is negotiating with Vat Electronics. 46:08 46 minutes, 8 seconds Uh I think uh anytime anytime this month only I think uh B is going to sign the U MU with MOD. 46:19 46 minutes, 19 seconds Um I think this month we are expecting before March all subsystem level orders also they want to finalize that is what 46:29 46 minutes, 29 seconds the public BL is going to produce the missile overall project Bat Electronics is going to handle. So BDL we are in 46:36 46 minutes, 36 seconds touch with BL because missile onboard systems we are doing BL already they started negotiations and um u 46:45 46 minutes, 45 seconds I think before March they want to finalize in that Got it okay that that's very helpful thank you that's all for my 46:52 46 minutes, 52 seconds thank you thank you we take the next question from the line of Vive an individual investor 47:00 47 minutes please proceed and thank you for the opportunity and congratulations on good set of numbers Uh my question uh one is probably I did 47:08 47 minutes, 8 seconds not hear clearly this uh order of mood mines would be somewhere around 2500 crores. 47:15 47 minutes, 15 seconds Yeah. Da appro there in place 25 I think 2,500 correct. Yes. 47:21 47 minutes, 21 seconds Okay. Okay. Uh another question. Uh this two varants we are doing one appro already is there in place. One appro is 47:30 47 minutes, 30 seconds in place. Old man already approved is there MIGM we are expecting anytime this month. 47:35 47 minutes, 35 seconds Okay. Regarding this directed energy weapons any progress on the order uh from the BC? 47:43 47 minutes, 43 seconds I'm not getting no sir. It it will take some more time. Okay. Thank you so much. 47:50 47 minutes, 50 seconds Thank you. 47:53 47 minutes, 53 seconds Thank you. We take the next question from the line of Disha from Sappire Capital. Please proceed. 48:01 48 minutes, 1 second Hello. Yeah. Am I audible sir? Yeah very much. Yes. 48:08 48 minutes, 8 seconds Yeah. Thank you so much for this opportunity. So uh so just couple of questions. So what has been the contribution for IDL so far in terms of the revenue? 48:19 48 minutes, 19 seconds Um uh you mean say in the consolidation? Yeah. Yeah. 48:25 48 minutes, 25 seconds See there is a consolidation happened for 45 days actually. Okay. 48:30 48 minutes, 30 seconds With a clock date of 16th November. So, uh in terms of the top line, the contribution is around 50.8 crores. 48:38 48 minutes, 38 seconds And what what sort of contribution are we expecting overall for this year? 48:47 48 minutes, 47 seconds This quarter could be around 90 crores. 48:51 48 minutes, 51 seconds Okay. And so just going ahead, I think you mentioned 45 to 50% is what we're planning on a standalone basis that is organic loan. But with this ideal we'll 48:59 48 minutes, 59 seconds get the full year for uh consolidation next year and a lot of other acquisitions also that are in pipeline. 49:05 49 minutes, 5 seconds What sort of growth are we targeting for FI27 and for years going ahead? 49:12 49 minutes, 12 seconds The futuristic acquisitions may not add to the consolidation even even if it is done before 31st March actually because hardly any time will be left that may 49:21 49 minutes, 21 seconds not be very significant actually but the typically whatever consultation has happened I told whatever guidance 49:28 49 minutes, 28 seconds happened I told actually so on a consultation basis you know guidance I told you uh um I I will not be able to give any guidance on the consultation my 49:37 49 minutes, 37 seconds my guidance is only on a standalone basis guidance start giving from the next financial year onwards on a consolidated basis. 49:46 49 minutes, 46 seconds Okay. Okay. Fair enough. And for the IDL I think you mentioned just to like so my so my guidance seizes 49:53 49 minutes, 53 seconds till now whatever guidance we have given that seizes as of 31st March 2026 fresh guidances you know on a because you know now that consolidations are happening 50:02 50 minutes, 2 seconds fresh guidance on a consolidated basis we'll start giving from the next financial year onwards. 50:07 50 minutes, 7 seconds Okay. All right sir. And just so just to clarify you mentioned that IDL will be uh EIA break expecting by this quarter 50:15 50 minutes, 15 seconds and uh Pat and Eida positive from first QFY 27 right yes yes 50:22 50 minutes, 22 seconds okay all right that's it from my side thank you so much and all the best thank you 50:29 50 minutes, 29 seconds thank you we take the next question from the line of Santo Singh an individual investor please proceed Uh good evening sir. 50:40 50 minutes, 40 seconds Hello. Am I audible? Hey, good evening. Good evening. 50:44 50 minutes, 44 seconds Uh sir uh my question is around the debt level. Uh how are you going to fund these acquisitions which you have planned and how would the date would look like? That is my first question. 50:57 50 minutes, 57 seconds Um continue sir. You ask all the questions you know I will answer at a time. Okay. That that is the first question. 51:05 51 minutes, 5 seconds Yeah. 51:08 51 minutes, 8 seconds Um um as far as you know the uh ADIPL you know which is going to do the acquisition. 51:18 51 minutes, 18 seconds Okay. We are going to infuse funds into that you know which will uh which will meet that uh this thing actually. 51:27 51 minutes, 27 seconds Yeah. 51:28 51 minutes, 28 seconds Okay. No uh my my question was basically is it from internal accur or you are going to raise more fund uh that can you do more clarity on that? 51:39 51 minutes, 39 seconds Internal approval sir. 51:42 51 minutes, 42 seconds Okay. Okay. Uh second uh question was around uh the this order line I mean uh order which you have what is execution 51:51 51 minutes, 51 seconds timeline you are targeting uh I mean and what percentage of that will be you know um uh executing uh uh each quarter or 52:00 52 minutes maybe a yearly can you give some idea around that coming rate of execution basically 52:08 52 minutes, 8 seconds coming orders you are talking about sir which order uh uh order book which you have 3,500 52:16 52 minutes, 16 seconds right uh so uh how how is that going to be you know executed uh per year per 52:23 52 minutes, 23 seconds the current outstanding order book is around 1,300 course okay consolidated on a consolidated basis actually okay so 52:33 52 minutes, 33 seconds partially of that will be you know concluded in this financial year and some running orders you know fresh orders you know keep coming on a short on this thing but majorly you know the 52:42 52 minutes, 42 seconds current for for the next 45 days, 50 days to uh for the end of this financial year. You know, for that you know the orders what has to be executed everything are already in the pipeline. 52:53 52 minutes, 53 seconds Rest of the orders you know uh what do you call are the ones which will be executed in the next financial year 53:00 53 minutes where we have further funnel you know where we are expecting orders you know to contemplate for the guidance that is that is given on a standalone basis for the company actually. 53:11 53 minutes, 11 seconds Oh okay may okay I got it. Uh my last question uh would be basically what percentage we are I mean maintaining our 53:18 53 minutes, 18 seconds R&D expenditure uh could you help me with that currently sir average of 6 to 8% has been 53:26 53 minutes, 26 seconds traditionally our R&D spend sir actually okay okay this year uh it it may cross that uh trend actually that's how I can tell you. 53:37 53 minutes, 37 seconds Okay got it sir. Yeah, thank you for answering uh all my questions uh and best businesses for uh the next quarters. Yeah, thank you so much. 53:46 53 minutes, 46 seconds Thank you so much. Thank you. 53:49 53 minutes, 49 seconds Thank you. We take the next question from the line of Deep Pay from Philip Capital. Please proceed. 53:57 53 minutes, 57 seconds Hi, uh thank you for the opportunity and congratulations on a great set of numbers. So my first question is on the lines of your acquisition for Ideal 54:06 54 minutes, 6 seconds Explosives. So sir I wanted to understand as to where have we reached in terms of licensing and certification pertaining to the defense explosives and 54:15 54 minutes, 15 seconds what all are what more certification and licensing are pending how much time it could take us and when can we start with 54:23 54 minutes, 23 seconds the commercial production and maybe even forclosives 54:30 54 minutes, 30 seconds the um sir it it is too um uh detail and information which I am not in a position 54:38 54 minutes, 38 seconds to disclose at this point of time. But broadly I will answer your question that a detailed compendium of you know uh the 54:47 54 minutes, 47 seconds different um explosives related to high you know defense explosives uh has is already 54:55 54 minutes, 55 seconds ready and we are for some of the things you know we have already started placing orders for the missionary for some of 55:03 55 minutes, 3 seconds the things you know negotiation is going on parallelly licensing activity is also parallelly going on and there is a team 55:10 55 minutes, 10 seconds of expert consultants who have been nominated to do this job. Actually next financial year we are likely to get you know large cap you know weapon system orders for which we are geared up. 55:24 55 minutes, 24 seconds Um got it sir. Uh sir uh in one of the DPSU's commentary we so they told us 55:32 55 minutes, 32 seconds that there was some supply chain issue that they are facing. So any slowdown from ordering from DPSUs that you might be seeing in or any commentary on the 55:40 55 minutes, 40 seconds industry side of it obviously when the when the context of IDL has come you know I I told uh to the previous uh you know uh in this thing 55:50 55 minutes, 50 seconds also that this is a backward integration for us it's also a forward integration for us and a vertical integration also. 55:58 55 minutes, 58 seconds Okay, we are going we are building capacities which will not only meet our internal captive requirement going forward but will also be you know serving as an outsourcing for the many. 56:09 56 minutes, 9 seconds So the in in the current scenario you know doing it in a very very large quantity. The ecosystem is very small 56:16 56 minutes, 16 seconds and the requirements are growing exponentially on you know every quarter by quarter basis. Every month rather uh 56:23 56 minutes, 23 seconds I should position it as and we are we are observing the trend as we do not have a full although we have a clarity 56:30 56 minutes, 30 seconds and idea. We have appointed you know very very senior consultant panel actually not one member okay a panel of senior consultant who is expertise in 56:39 56 minutes, 39 seconds the explosives in the different types of someone who is expert in the war someone who's expert in propellant within propellant someone who is expert you know in different thing someone who is 56:48 56 minutes, 48 seconds expert in you know ammunition okay so like this you know artillery okay like that you know panel of you know consultants are you know uh working on 56:57 56 minutes, 57 seconds it you know in terms of the current captive requirement of us and the future futuristic requirement of to serve different industries. Both are the 57:04 57 minutes, 4 seconds public sector and there is a growing demand in the private sector. A lot of people are entering into this partic going forward. 57:16 57 minutes, 16 seconds Um got it sir that's all from my side. 57:18 57 minutes, 18 seconds Wish you the best. Thank you for the opportunity. Thank you sir. 57:24 57 minutes, 24 seconds Thank you ladies and gentlemen. That was the last question for the day and I would now 57:31 57 minutes, 31 seconds like to hand the conference over to the management for closing comments. Over to you sir. 57:38 57 minutes, 38 seconds Thank you so much. Um [clears throat] we extend our sincere gratitude to the ministry of defense government of India for their continued trust in the Indian 57:47 57 minutes, 47 seconds defense manufacturing ecosystem. Their confidence reflected through substantial investments is a strong endorsement of our nation's industrial capabilities and 57:55 57 minutes, 55 seconds innovation potential. We remain steadfast in our commitment to delivering advanced solution that bolster operational readiness and strengthen national security. It is an 58:04 58 minutes, 4 seconds honor to serve the nation by all of us from the company and we stand fully prepared to support our armed forces under all circumstances. 58:13 58 minutes, 13 seconds I extend my heartfelt thanks to all our esteemed investors and analysts for being with us today. Your continued trust and partnership mean the world to 58:21 58 minutes, 21 seconds us. Your participation and feedback are invaluable to us. We remain committed to enhancing our performance and driving sustainable growth. We look forward to 58:29 58 minutes, 29 seconds welcoming you to our facilities where you will have opportunity to observe our operation and initiatives at a ground level. Should you have any further questions or wish to share your 58:38 58 minutes, 38 seconds thoughts, please don't hesitate to contact our investor relation team or write to us at investors.reations@apollifenmicro.com. 58:46 58 minutes, 46 seconds Thank you once again for your time interest. We look forward to reconnecting with you during our Q4 update. Wishing you all a great day. 58:54 58 minutes, 54 seconds Jin, thank you. 58:58 58 minutes, 58 seconds Thank you team, you know, for arranging this call. 59:05 59 minutes, 5 seconds On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.