Arisinfra Solutions Limited — Q3 FY26

Arisinfra Solutions Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=wRBgMkgd8Sg Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Q3 FI26 earnings call of ARIS Infra Solutions Limited. As a 0:10 10 seconds reminder, all participant lines will be in the listen mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:19 19 seconds Should you need assistance during this conference call, please signal an operator by pressing star and zero on 0:25 25 seconds your touchstone phone. Please note that this conference is being recorded. 0:32 32 seconds Today we have with us Mr. Ronak Morvia, chairman and managing director, Mr. 0:38 38 seconds Shiniasan Gopalan, chief executive officer and Mr. Bavik K, full-time director and chief financial officer. 0:50 50 seconds We will begin the call with the opening remarks from the management after which we'll have the forum open for the interactive Q&A session. I must remind 0:59 59 seconds you that this conference call may include forwarding statements about the company which are based on the beliefs, opinions and expectation of the company 1:08 1 minute, 8 seconds has on date of this call. These statements are not the guarantees of future performance and involve risk and uncertaintities that are difficult to predict. 1:17 1 minute, 17 seconds I now hand the conference over to Mr. 1:19 1 minute, 19 seconds Shiniasan Gopalan, chief executive officer of Iris Infra solutions limited for his opening remark. Thank you and over to you sir. 1:30 1 minute, 30 seconds Good afternoon ladies and gentlemen and thank you for joining us. Before we begin, a quick update. Over the last few 1:39 1 minute, 39 seconds months, we have evolved our brand from AIS Infra to calling ourselves simply ARIS. This reflects what the business 1:48 1 minute, 48 seconds has grown into. AIS today is not just an infrastructure supplier. It is a network and an organized execution backbone for 1:57 1 minute, 57 seconds construction materials. The simpler name aligns the brand with the role we now play across supply execution and risk 2:05 2 minutes, 5 seconds management in the construction ecosystem. 2:08 2 minutes, 8 seconds Before stepping back into the broader context, let me briefly share what Q3 looked like us uh like for us because 2:17 2 minutes, 17 seconds this quarter clearly marks a step change in the business. Let me quickly run through the excellent performance that 2:26 2 minutes, 26 seconds we have had this quarter as compared to last year's same quarter. 2:32 2 minutes, 32 seconds Last year same quarter we had a revenue of 181 crores and the same period this 2:38 2 minutes, 38 seconds year is 270 crores marking a 50% rise in our turnover. The gross margins have 2:45 2 minutes, 45 seconds done exceedingly well from a 15.5% in Q3 2025 through a 17.4% 2:53 2 minutes, 53 seconds in Q3 2026 an increase of almost 200 basis points. The EITA increased 2.3 3:02 3 minutes, 2 seconds times from a mere 13 crores to a 30 crores and the EIA percentages last year 3:09 3 minutes, 9 seconds was at 9.38% which has improved itself to 11.75%. 3:15 3 minutes, 15 seconds And the pact increased nine times from a 2 cr to an 18.27 crores this quarter. 3:24 3 minutes, 24 seconds There are reasons for these things to happen. Apart from the profitability that we spoke about, it's important to know the networking capital days. The 3:33 3 minutes, 33 seconds networking capital days in Q3 2025 was 116 days which has come down drastically 3:40 3 minutes, 40 seconds by 42 days to 74 days. The increase in gross margins and EITA are very very 3:47 3 minutes, 47 seconds clearly defined and an outcome of the strategy that we have clearly worked on. 3:53 3 minutes, 53 seconds The contract manufacturing portion which is a highly profitable uh venture increased from a 35% of turnover to a 4:02 4 minutes, 2 seconds 48%. From a numbers perspective, it increased from 65 crores to 130 crores almost two times. Similarly, the 4:12 4 minutes, 12 seconds services where again the margins are exceedingly high. The percentage on sales last year was at 6% which 4:19 4 minutes, 19 seconds increased to 9% and then absolute terms increased from a mere 11 crores to a 4:25 4 minutes, 25 seconds current 24 crores showing more than 2x growth. To put the performance in 4:32 4 minutes, 32 seconds perspective, it's important to briefly look at the environment we are operating in and the opportunities that we have in 4:39 4 minutes, 39 seconds front of us. India is currently executing one of the largest infrastructure buildouts in the world. 4:46 4 minutes, 46 seconds The government of India has budgeted close to 11 lakh cr of capital expenditure in financial year 26 alone 4:54 4 minutes, 54 seconds nearly three times what it was 5 years ago. Large expressways, freight corridors, metro networks, airports, 5:03 5 minutes, 3 seconds ports, and urban infrastructure projects are under construction across the country spanning multiple regions and asset classes. What stands out is that 5:12 5 minutes, 12 seconds while these projects are large, organized, and institutionally funded, the materials that build them, namely 5:19 5 minutes, 19 seconds aggregates, concrete, and allied inputs, are still supplied through a fragmented and largely informal system. 5:28 5 minutes, 28 seconds As project sizes grow and timelines tighten, the lack of an organized execution distributor layer becomes a 5:36 5 minutes, 36 seconds real bottleneck. This is not a pricing issue. It is fundamentally an execution reliability and riskmanagement issue and 5:45 5 minutes, 45 seconds that is precisely the gap errors exist to address. Coming back to our business, one of the most important shifts we are 5:54 5 minutes, 54 seconds seeing now is where profitability is coming from. Not just how fast revenue is growing. 6:00 6 minutes ARIS operates across three segments. B2B trade, contract manufacturing and services. And together they form a very 6:09 6 minutes, 9 seconds deliberate progression in how customers engage with us. B2B trade acts as an entry layer. It gives us scale customer 6:18 6 minutes, 18 seconds relationships and steady demand across regions. As these relationships deepen, a larger share of business naturally 6:26 6 minutes, 26 seconds moves into contract manufacturing where we secure capacity, improve utilization and bring predictability into supply, 6:34 6 minutes, 34 seconds achieving the economics of manufacturing without owning plants, vehicles or carrying the operational burden of running them. The most powerful shift, however, is in our service offerings. 6:47 6 minutes, 47 seconds While services contribute a smaller share of revenue, they already contribute a disproportionately large share of EITA. This is because services 6:56 6 minutes, 56 seconds are built on execution capability, systems and trust, not on deploying capital. As this segment scales, EITA 7:04 7 minutes, 4 seconds grows with very little incremental capital. What this mix shift tells us is very important. As the business moves 7:13 7 minutes, 13 seconds from trade to manufacturing partnerships and into services, profitability improves while capital intensity reduces. This is why EITA is now growing 7:22 7 minutes, 22 seconds faster than revenue and why returns on capital are structurally expanding as the mix shifts towards services and 7:29 7 minutes, 29 seconds contract manufacturing. Looking at performance over the 9 months, revenue stood at 724 crores, representing a 33% 7:39 7 minutes, 39 seconds year-on-year increase. More importantly, EITA has grown by around 54% yearonear and profit after tax has increased 7:47 7 minutes, 47 seconds nearly six times over the same 9 month period as compared to last year. This clearly shows operating leverage and 7:54 7 minutes, 54 seconds improving earnings quality. Equally important is how this growth has been funded. Despite rapid scale up, net 8:03 8 minutes, 3 seconds networking capital has reduced from a well over 116 days last year to below 75 8:10 8 minutes, 10 seconds days now, unlocking capital within the business. This improvement has been driven by tighter credit discipline, 8:17 8 minutes, 17 seconds better counterparty quality and technology-led monitoring of receivables and execution. The practical implication 8:24 8 minutes, 24 seconds is straightforward. The business can now grow faster without requiring proportionately more capital which is often the key concern investors have in 8:33 8 minutes, 33 seconds this sector. When you put all this together, what becomes clear is that the model has entered a new phase. Scale is 8:41 8 minutes, 41 seconds improving margins, margins are improving cash generation and stronger cash generation is reducing capital intensity. 8:49 8 minutes, 49 seconds This feedback loop is what allows errors to compound in a disciplined and sustainable manner. As we move forward, 8:56 8 minutes, 56 seconds our focus remains unchanged. Deepen execution capability, strengthen risk and credit control and scale with 9:03 9 minutes, 3 seconds discipline. India's construction ecosystem is formalizing rapidly and the need for an organized execution backbone 9:12 9 minutes, 12 seconds for construction materials will only grow from here. We believe AIS is well positioned to play that role and to do 9:19 9 minutes, 19 seconds so in a very very capital efficient manner. Thank you for your time. We are happy to take any questions that you have. 9:29 9 minutes, 29 seconds Thank you very much sir. We will now begin the question and answer session. 9:34 9 minutes, 34 seconds Anyone who wishes to ask a question may press star and one on their touchstone telephone. 9:41 9 minutes, 41 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. 9:51 9 minutes, 51 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 10:03 10 minutes, 3 seconds The first question comes from the line of Deepak Bodar with Safire Capital. Please go ahead. 10:11 10 minutes, 11 seconds Am I audible sir? Yes. Yeah. 10:14 10 minutes, 14 seconds Okay. Okay. First of all, I mean many congratulation from great set of numbers. I mean I could see your overall improvement even your working capital 10:22 10 minutes, 22 seconds has improved a lot. Um so many congratulation on that front. So so now I just wanted to understand on your mix 10:29 10 minutes, 29 seconds now it's 47% B2B 44% contract and 9% is services and uh that's a marked improvement from what we have seen last 10:38 10 minutes, 38 seconds year. I mean 33% contract manufacturing to 44% now. So so how should one look at this mix going ahead? 10:45 10 minutes, 45 seconds Um I mean though our focus remains on contract and services but but how how are you seeing the mix? 10:54 10 minutes, 54 seconds Yeah just like to rectify a little bit the contract manufacturing segment now contributes to 48% of the revenue. It was 44% at the end of quarter 2. Uh we 11:03 11 minutes, 3 seconds are seeing uh you know improved utilization. uh you know even while rapidly scaling uh the the revenue 11:10 11 minutes, 10 seconds contribution has increased and we expect that as the utilization improves going further the revenue contribution will 11:17 11 minutes, 17 seconds increase and as we move uh you know as we shift more towards asset like manufacturing and services the improved 11:26 11 minutes, 26 seconds profitability is here to sustain and that's how the model is designed okay so so so given uh improved 11:35 11 minutes, 35 seconds profitability is sustainable. So I mean without other income your AITA margin is close to 11% uh this quarter. Uh so is 11:43 11 minutes, 43 seconds that a sustainable thing uh that that we should keep it as a base going forward? 11:49 11 minutes, 49 seconds Yes. Yes. Uh we do believe so because the improvement is uh structural uh margins are improving due to mix and 11:56 11 minutes, 56 seconds execution not temporary pricing or one-offs. As long as this mix continues and working capital stays disciplined, profitability should remain stable and improve gradually. 12:07 12 minutes, 7 seconds Understood. Understood. And and and and and is there any levers which can drive this 11% even further higher? I mean can you throw some more light on that? 12:18 12 minutes, 18 seconds uh at the moment uh you know we are happy with how uh the model is turning out and with all the capital efficiency that is coming to play now and the 12:25 12 minutes, 25 seconds improved profitability is only a reinforcement of the business model that we have at play. So the focus is going to be on improving this mix uh focusing 12:34 12 minutes, 34 seconds on uh you know capital efficiency and as long as these underlying uh uh underlying matters are in place I think the profitability will sustain. 12:45 12 minutes, 45 seconds Okay, fair enough. And just one last thing uh in terms of your growth I mean um we have seen very good growth on your top line since last two quarters I mean 12:54 12 minutes, 54 seconds 39% for second quarter and 49% in this third quarter. Now now for this entire year a 40% growth is what we have been 13:02 13 minutes, 2 seconds seeing in the past. So so we are on track for that. 13:06 13 minutes, 6 seconds Yes we are absolutely on track for uh the guidance that we have given which is 40% yearon-year growth. However, uh you know, having said that, uh you know, we 13:15 13 minutes, 15 seconds are projecting good profitability as well. So, yes, well in line to achieve the growth numbers that we predicted. 13:20 13 minutes, 20 seconds Okay. And and we are going into the strongest quarter, right? Fourth quarter ideally would be the strongest. So, how's that traction? Can you throw some light? How's the on ground situation in 13:28 13 minutes, 28 seconds terms of traction on the on on the customers? 13:31 13 minutes, 31 seconds Absolutely. Absolutely. Uh quarter 4 is usually the strongest. We've been preparing for this ever since we started going into December planning our 13:39 13 minutes, 39 seconds production lines revenue visibility and because of the projects that we are involved in the the customers that we have onboarded and the recurring orders 13:46 13 minutes, 46 seconds that we've been getting we have real good visibility on the demand not just this quarter but for the next three to four quarters and that's why we're 13:53 13 minutes, 53 seconds confident of achieving these good numbers. 13:56 13 minutes, 56 seconds Okay. So, so we have got good visibility from customer in quarter four as well. Right. Absolutely 100%. 14:01 14 minutes, 1 second Okay. and and on the in the supply side how how we looking at in the supply side uh in terms of getting more mills and 14:08 14 minutes, 8 seconds all to to contract with you guys I mean can you throw some more light on that? 14:13 14 minutes, 13 seconds Yes. So yeah two things here uh in with respect to contract manufacturing as uh uh you know mentioned in the last call 14:21 14 minutes, 21 seconds uh we are currently uh we currently have about 9 million metric tons of capacity under our control through this network uh and that is spread we have nine right 14:30 14 minutes, 30 seconds 9 million 90 lakh metric tons annually uh that is spread across stone aggregates and uh readym mix concrete uh but recently we also made an 14:38 14 minutes, 38 seconds announcement uh uh you know of entering a new segment which is called asphalt uh and that's a segment which looks pretty exciting for the future. So that is one 14:47 14 minutes, 47 seconds new vertical that we have added. We are in the process of forming a joint venture for the same and uh we have executed two projects which kind of uh 14:56 14 minutes, 56 seconds give us experience of how this business is done and uh we have real good visibility with respect to the orders uh 15:03 15 minutes, 3 seconds in the next few quarters. uh we made a couple of announcement uh in that aspect as well uh of uh a 35 crore order from 15:11 15 minutes, 11 seconds uh an infra company and we recently executed a small order for APCO uh in Mumbai as well. So uh contract 15:18 15 minutes, 18 seconds manufacturing uh looks very very exciting uh for the next few quarters. 15:23 15 minutes, 23 seconds Okay. And what can be the potential of this uh asphalt opportunity size for us? 15:28 15 minutes, 28 seconds I Yes. Uh we are projecting uh revenue in the north of 80 to 100 crores in the next 12 to 18 months. 15:38 15 minutes, 38 seconds In next 12 to 18 months. Yes. 15:40 15 minutes, 40 seconds And and margins are in line with the company level margins or is it better? 15:45 15 minutes, 45 seconds Uh it will be in line with the company level margins and that is why we are confident of sustaining these margins as well as we go further. 15:52 15 minutes, 52 seconds Understood. Understood. Um I mean that's very helpful sir. I mean that's it from my side and wish you all the very best. Thank you so much. Great. Thank you so much. 16:02 16 minutes, 2 seconds Thank you. The next question comes from the line of Koshal Sharma with Equinox Capital. Please go ahead. 16:11 16 minutes, 11 seconds Hi sir, very good evening. Am I audible? Good evening. Yes. Yes. 16:17 16 minutes, 17 seconds Yeah. So my question is on your congratulation first of all for very good set of numbers. So my question is 16:24 16 minutes, 24 seconds on your uh working capital size. Could you please uh tell me what is the current receivables as on date in our 16:30 16 minutes, 30 seconds books and how much is for more than 6 months and less than 6 months and what about our drawings as of now? 16:39 16 minutes, 39 seconds Yeah, the current receivable number is approximately 385 crores and above 6 months the number is close to about 50 16:48 16 minutes, 48 seconds to 55 crores and overall borrowing as of now. 16:57 16 minutes, 57 seconds Uh our current borrowings are in the range of around 40 crores and this is only the working capital facilities and a small long-term debt of about 6 crores. 17:08 17 minutes, 8 seconds And so I can see in your result in note number seven that we have utilized almost 100% of our working capital that 17:14 17 minutes, 14 seconds we have raised through IPO but now we are projecting a good aggressive growth of 35 to 40%. So how would we source 17:21 17 minutes, 21 seconds these incremental working capital going ahead and currently we are securing a good amount of capacities in terms of contact manufacturing against which we 17:30 17 minutes, 30 seconds require certain deposits. So if we expand our compact manufacturing as like we are growing so we require certain 17:38 17 minutes, 38 seconds amount for these uh security deposits as well. So how we are going to fund will this increase our borrowings going forward and what kind of levels are we targeting? 17:49 17 minutes, 49 seconds Yeah first on the utilization of IPO proceeds for working capital. Uh this is not locked up capital. These are vendor 17:56 17 minutes, 56 seconds payments that are returned through customer receivables and we have had two very healthy quarters of receivables. So it's back in the system which are being 18:04 18 minutes, 4 seconds reinvested as uh you know working capital. A note on trade deposits and advances. Uh it's very [clears throat] important to note what these deposits 18:12 18 minutes, 12 seconds are. Um they are a strategic enabler not idle capital. Deposits actually help us secure capacity prior prioritize supply 18:20 18 minutes, 20 seconds and better commercial terms in a fragmented ecosystem. In return, we get reliability and higher throughput 18:28 18 minutes, 28 seconds without owning assets. So as utilization improves, incremental growth requires relatively lower incremental deposits. 18:37 18 minutes, 37 seconds So that is the advantage that we have or that is the model that we are operating on where we invest one-time deposit to generate multi-year returns. 18:48 18 minutes, 48 seconds So what kind of sustainable boring levels are we looking in our business going ahead? 18:55 18 minutes, 55 seconds So I think we have mentioned this in this range what? Sorry sir. 19:03 19 minutes, 3 seconds So what kind of range are we expecting in terms of our borrowing going ahead? 19:08 19 minutes, 8 seconds We would be we would be between 04 to.5 uh as our leverage at any point in time. 19:14 19 minutes, 14 seconds We will not increase that. To answer your question specifically uh though it shows that the working capital limits from the proceeds are 19:23 19 minutes, 23 seconds used as uh mentioned by Ronach these have come back as dattors collections and we have a healthy cash balance of 19:30 19 minutes, 30 seconds more than 150 crores in the balance sheet. 19:34 19 minutes, 34 seconds So even if we have to create new capacities we have enough gunpowder to provide deposits. However, if you look 19:42 19 minutes, 42 seconds at the deposits that we have already provided and the kind of capacity utilization that we have, we still have around 30 to 40% room to grow in the existing uh deposits uh itself. 19:56 19 minutes, 56 seconds Okay. So that that will not increase our borrowing in the near future, right? No, that will not. 20:02 20 minutes, 2 seconds Okay. And sir, what is our current existing contact manufacturing capacity and what is our target in terms of securing further and utilization? 20:13 20 minutes, 13 seconds Yes, the current capacity is about 9 million metric tons. As of quarter 2, we were at a utilization of 45% plus. Uh as 20:21 20 minutes, 21 seconds of quarter 3 now, we are at a utilization of 55% plus. So there is significant headroom even with the current capacity that we have. And that 20:28 20 minutes, 28 seconds is why we are confident that the revenue from contribution from contract manufacturing will increase as we uh you know grow further in the next few 20:36 20 minutes, 36 seconds quarters. And what is the terms of the security deposit that we need to give against securing these capacity like 20:43 20 minutes, 43 seconds when will these securities uh realize in our business? 20:48 20 minutes, 48 seconds So these deposits are refundable in nature. These are multi-year deposits as in when the the uh concerned plant uh 20:56 20 minutes, 56 seconds utilization increases and improves to about 80% plus and when the cash flows of that particular plant become healthy, these deposits uh will be returned back 21:05 21 minutes, 5 seconds into the system and be invested somewhere else to increase the capacity. That is how these deposits are designed. 21:12 21 minutes, 12 seconds Okay sir. Got it. Thank you very much for answering my question and all the very best. Thank you so much. Thank you. 21:19 21 minutes, 19 seconds The next question comes from the line of Namesh Gupta, an individual investor. Please go ahead. 21:30 21 minutes, 30 seconds Hello. Yes. 21:32 21 minutes, 32 seconds Oh yes sir, you're audible. Please go ahead. 21:35 21 minutes, 35 seconds Okay. Uh sir, congratulations on a very good set of numbers. Uh thank you 21:43 21 minutes, 43 seconds question days 21:49 21 minutes, 49 seconds around 120 to 130 days industry level benchmark 22:06 22 minutes, 6 seconds competitors infrastru market. 22:21 22 minutes, 21 seconds So sir 22:32 22 minutes, 32 seconds Standard builders 23:01 23 minutes, 1 second but efficiency. 23:04 23 minutes, 4 seconds Pay number 23:25 23 minutes, 25 seconds of receivables. Okay. Okay. 23:39 23 minutes, 39 seconds I think same line of business 23:52 23 minutes, 52 seconds numbers in terms of receivables without affecting vendor payment or 24:00 24 minutes concent Concentration on focus or focusity of 24:10 24 minutes, 10 seconds relationship orders. Okay. 24:20 24 minutes, 20 seconds Retention ratio retention. 24:30 24 minutes, 30 seconds Yes. 24:50 24 minutes, 50 seconds project. 25:05 25 minutes, 5 seconds Okay. Okay. 25:09 25 minutes, 9 seconds Question. I mean actually 25:35 25 minutes, 35 seconds contractors like Gross margin. 25:59 25 minutes, 59 seconds Correct question. 26:08 26 minutes, 8 seconds Manufacturers or suppliers operating profitability. 26:40 26 minutes, 40 seconds volume discounts. 26:49 26 minutes, 49 seconds It is only because of this combination of supply, services and technology which is our differentiator gross margin or operating profit. 26:58 26 minutes, 58 seconds Okay. 27:05 27 minutes, 5 seconds PTS margin. 27:38 27 minutes, 38 seconds Aggregates manufacturing margin manufacturer aggregates aggregates manufacturer. 27:54 27 minutes, 54 seconds Okay. Okay. Okay. 27:59 27 minutes, 59 seconds Organized marketing. 28:28 28 minutes, 28 seconds Okay. Last question. 28:49 28 minutes, 49 seconds tax system like GSTized 29:05 29 minutes, 5 seconds B2B segment retail 29:26 29 minutes, 26 seconds Okay. 100%. Take care. Thank you, sir. Thank you. 29:35 29 minutes, 35 seconds Thank you. 29:38 29 minutes, 38 seconds [clears throat] 29:41 29 minutes, 41 seconds Thank you. 29:43 29 minutes, 43 seconds Ladies and gentlemen, if you wish to ask a question to the management, you may press star and one. 29:51 29 minutes, 51 seconds Participants, if you wish to ask a question to the management, you may press star and one. 29:58 29 minutes, 58 seconds The next question comes from the line of Kapil Auja with Equinox Capital. Please go ahead. 30:09 30 minutes, 9 seconds Yeah. Hi, I'm Yes. Yes sir. 30:13 30 minutes, 13 seconds Yeah. A I wanted to have some clarification on receivables. 30:19 30 minutes, 19 seconds So you told that you have rece 55 cr above 6 months. So are they coming to 30:27 30 minutes, 27 seconds company or what is the status of the 55 cr receivables because 6 months is a bit template? 30:34 30 minutes, 34 seconds Yes. So uh the six month receivables as a percent of total revenue close to uh total receivables is just about 12 to 14%. This has been continuously moving 30:43 30 minutes, 43 seconds and every quarter we are seeing a reduction in the number of receivables. 30:46 30 minutes, 46 seconds Uh we expect all of these first of all are moving accounts. Uh the ACL that we have taken which is basically the 30:54 30 minutes, 54 seconds expected credit loss has been updated and uh we are following a waterfall mechanism to calculate that as well. 31:00 31 minutes this 55 crores all of the accounts are moving and we expect this number to come down to about 30 to 35 crores by March and then we expect further movement in the next uh few quarters. 31:12 31 minutes, 12 seconds We are not expecting any um write offs in this no whatever we are factored that in the ACL number which is already there in our PNL. 31:24 31 minutes, 24 seconds Okay fine and uh secondly regarding this is the same question that previous participants have also asked or I want 31:32 31 minutes, 32 seconds to I want some clarification on this top line that you are growing 35 to 45 35 to 40% every year for uh for FI27 if you go 31:42 31 minutes, 42 seconds for 1100 cr target as per your guidance so how will you manage your receivables because even if you go for the 90 to 100 31:50 31 minutes, 50 seconds days of a stable cycle so you'll is having receivables of above 300 crores. 31:56 31 minutes, 56 seconds So how they can't come from internal approvals and how will you manage this working capital of course I can't uh yeah on 32:06 32 minutes, 6 seconds this well I think yes the concern would be that you know the the business would become more capital hungry as it scales 32:14 32 minutes, 14 seconds but thatern normally applies to traditional models models not ours uh we secure capacity instead of owning assets 32:22 32 minutes, 22 seconds and services which are growing scale with very little increment capital. I mean the fact that the networking 32:29 32 minutes, 29 seconds capital now is below 80 days and it is continuously improving uh right you know down from about 120 days uh it just 32:37 32 minutes, 37 seconds tells us growth is becoming less capital intensive not more. So that could impact the margins also. 32:47 32 minutes, 47 seconds No, in fact uh Y is scaling rapidly and the networking capital days down below 80 days and with the gross margin improving to [clears throat] about 17% 32:55 32 minutes, 55 seconds plus and ITA growing from growing to about 11% plus uh I think the efficiencies are you know uh in terms of 33:04 33 minutes, 4 seconds profitability and capital efficiency it's all coming into play. So the model now I think we believe we are at an inflection point where the model will 33:11 33 minutes, 11 seconds now compound itself and as we move further the benefits of scale in terms of profitability will also be visible. 33:19 33 minutes, 19 seconds So okay so I'm getting you so uh after three 2 three years when you are talking of 1800 crime so this model will apply 33:28 33 minutes, 28 seconds and you will be managing working capital days efficiently am I right? Yes. Yes. 33:36 33 minutes, 36 seconds Okay. Thank you. That's all from my side. 33:42 33 minutes, 42 seconds Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Sinas Gopal for closing remarks. 33:53 33 minutes, 53 seconds Thank you ladies and gentlemen. Uh we always keep looking forward for your blessings and confidence in our company. 34:00 34 minutes We thank you for that and look forward for more such uh uh updates. Thank you. 34:10 34 minutes, 10 seconds Thank you on behalf of ARIS Infra Solutions Limited. That concludes this conference. Thank you for joining us and 34:18 34 minutes, 18 seconds you may now disconnect your lines. Thank you.