Avalon Technologies Limited — Q3 FY26

Avalon Technologies Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=ag2d9E8Wyn0 Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Avalon Technologies Limited Q3 FI26 earnings conference 0:08 8 seconds call. As a reminder, all participant lines will be in a listenonly mode and there will be an opportunity for you to ask questions after the presentation 0:16 16 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:23 23 seconds zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Jignesh Takur from GM Financial. 0:34 34 seconds Thank you and over to you sir. 0:36 36 seconds Good afternoon everyone and a warm welcome to the Q3 FY26 earnings call of law technologies to take us through the result today we have with us from the 0:45 45 seconds manager Mr. Kunamed Vija chairman and managing director Mr. Baskar Shirinasan President Mr. Suresh Suresh VR chief 0:53 53 seconds financial officer Mr. Shiram Vijay Raguan Chief Operating Officer and Mr. Weni Wenites Chief Sales Officer Mr. 1:01 1 minute, 1 second Bicha will give an overview of the business performance and will be followed up by Mr. Suresh's remark on the financial performance post which we 1:08 1 minute, 8 seconds will open the floor for the Q&A. As we move forward, it is important to bear in mind that any forward-looking statement made during the call during this call 1:16 1 minute, 16 seconds are subject to potential risk and uncertainties both known and unknown. 1:20 1 minute, 20 seconds Now without any further delay I will hand over the floor to Mr. Bija for his initial remark the CMD. Thank you and over to you sir. 1:31 1 minute, 31 seconds Thank you Jignesh. Good evening ladies and gentlemen. 1:36 1 minute, 36 seconds On behalf of Avalon Technologies we extend a very warm welcome to our Q3 FI26 earnings call. We thank our 1:45 1 minute, 45 seconds investors for your continued trust and support. Your confidence in Avlon has been an important contributor to our 1:52 1 minute, 52 seconds consistent progress in execution, financial performance, and operational discipline. 1:59 1 minute, 59 seconds Q3 FI26 marks our sixth consecutive quarter of sustained growth. We delivered improved 2:07 2 minutes, 7 seconds performances performance across key financial and operational metrics including revenue growth, profitability, 2:15 2 minutes, 15 seconds orderbook growth, net working capital days, asset turns, cash flow from operations, net debt to equity and 2:24 2 minutes, 24 seconds return on capital employed. We have also made steady progress in new product in introductions including semiconductor 2:32 2 minutes, 32 seconds manufacturing equipment and power systems. 2:36 2 minutes, 36 seconds The external environment is also supportive of our long-term growth. US tariffs have reduced from 50% to 18% 2:45 2 minutes, 45 seconds benefiting our US export business. In India, the government direction towards India semiconductor mission 2.0 do with 2:53 2 minutes, 53 seconds a focus on semiconductor equipment aligns well with our capabilities and recent business wins. Our efforts to 3:01 3 minutes, 1 second build a meaningful sales presence in Europe over the last few quarters also coincide with the India Europe trade 3:08 3 minutes, 8 seconds deal. Overall, we believe we are well positioned from both a company and market perspective. 3:17 3 minutes, 17 seconds Q3 FI26 saw highest ever revenue and profit after tax in the history of the company. This is supported by 3:26 3 minutes, 26 seconds well diversified growth across both verticals and geographies. 3:32 3 minutes, 32 seconds With improved business visibility, a better macro environment and ongoing project rampups. We are 3:40 3 minutes, 40 seconds revising our FI26 revenue growth guidance upward to around 40% from the earlier guidance of 28 to 30%. 3:51 3 minutes, 51 seconds Moving on to the key financial highlights for 9 months FI26 3:59 3 minutes, 59 seconds revenue for 9 month FI26 was at rupees 1,123 crores 4:06 4 minutes, 6 seconds representing a year-on-year growth of 48.7%. 4:11 4 minutes, 11 seconds Our average revenue growth over the last six quarters has been 46%. 4:18 4 minutes, 18 seconds Our focus on manufacturing complex box bill systems continued to gain traction with box bill contribution improving 4:27 4 minutes, 27 seconds from 49% in FI25 to 53% in 9 month FI26. 4:37 4 minutes, 37 seconds As of December 31, 2025, our order book grew 26.5% 4:44 4 minutes, 44 seconds yearonear to 2016 crores with an average execution period of 14 months. In 4:51 4 minutes, 51 seconds addition, long-term contracts with execution timelines ranging from 15 to 36 months is at rupees 1,183 5:02 5 minutes, 2 seconds crores. Autobook growth remains well balanced and diversified across industry verticles and geographies. 5:11 5 minutes, 11 seconds Gross margin for 9 months FI26 was at 34.6% at the upper end of our guided range of 33 to 35%. 5:22 5 minutes, 22 seconds ITA for 9 months FI26 was at rupees 116 cr reflecting a growth of 59.2%. 5:35 5 minutes, 35 seconds ITA margin improved to 11.5% in Q3 FI26 5:42 5 minutes, 42 seconds supported by operating leverage profit after tax for 9 months FI26 5:48 5 minutes, 48 seconds was at 72 crores an increase of 83.3% year-over-year profit after tax for Q3 5:56 5 minutes, 56 seconds FI26 was rupees 33 crores India manufacturing operations which 6:04 6 minutes, 4 seconds continue to serve both domestic and global customers accounted for 78% of our total revenue in Q3 FI26 6:14 6 minutes, 14 seconds delivering a very healthy profitability with an IITA margin of 16.7% and a PAT margin of 11.9%. 6:25 6 minutes, 25 seconds Revenue from our US manufacturing operations contributed the remaining 22%. 6:32 6 minutes, 32 seconds Networking capital continued to improve during the third quarter. 6:37 6 minutes, 37 seconds On a quarteronquarter basis, networking capital improved by 13 days from September 2025 to December 2025. 6:47 6 minutes, 47 seconds Receivables reduced by 8 days sequentially. Inventory declined by 3 days sequentially as programs moved into 6:55 6 minutes, 55 seconds execution phase. Payables also improved by 2 days sequentially. 7:00 7 minutes Overall the improvement in networking capital supported a positive cash flow from operation of rupees 51 cr in Q3 FI26. 7:12 7 minutes, 12 seconds We continue to follow a capex light model. Asset turns improved from 7.5 times in FI25 to 9.5 times in Q3 FI26. 7:25 7 minutes, 25 seconds Net debt remained low with a net debt to equity ratio of 0.04. 7:32 7 minutes, 32 seconds As a result, return on capital employed improved to 18.8% 7:39 7 minutes, 39 seconds from 11.3% a year ago, reflecting continued efficiency in capital utilization. 7:49 7 minutes, 49 seconds On the topic of tariffs, the long awaited trade deal has been announced with US tariffs on imports from India reduced from 50% to 18%. 8:01 8 minutes, 1 second During this period, we were able to recover 99% of the applicable tariffs from our customers. 8:11 8 minutes, 11 seconds Supported by a long-standing presence in the US, deep market understanding and a strong customer relationships. 8:18 8 minutes, 18 seconds More importantly, this period of elevated tariffs helped us accelerate on new set of business opportunities. 8:28 8 minutes, 28 seconds Along alongside wins in the domestic Indian market, we accelerated new program wins in the US for US manufacturing. 8:37 8 minutes, 37 seconds as customers look to diversify supply chains and reduce risk. At the same time, we have made progress in expanding 8:44 8 minutes, 44 seconds exports to Southeast Asia, further broadening our geog geographic footprint. With the tariff production 8:51 8 minutes, 51 seconds now in place, another another growth lever comes into play. India manufacturing for US 8:58 8 minutes, 58 seconds customers becomes even more attractive, strengthening one of our core competencies. As a result, domestic 9:05 9 minutes, 5 seconds growth, new regions of export and US focused India manufacturing are coming together, giving us confidence in a 9:12 9 minutes, 12 seconds strong and well balanced growth journey ahead. 9:18 9 minutes, 18 seconds Now moving on to key growth drivers and an update on major programs. We remain encouraged by progress across our three 9:26 9 minutes, 26 seconds growth drivers. One, existing business. 9:32 9 minutes, 32 seconds This is driven by long product life cycles, missionritical products and steady recur recurring revenues. Growth 9:39 9 minutes, 39 seconds remained well diversified across rail, aerospace, industrial, clean energy and communication. 9:48 9 minutes, 48 seconds In 9 months, FI26, the industrial vertical contributed 35% of our revenue and grew 67% yearonear. 9:59 9 minutes, 59 seconds Rail as part of our mobility segment contributed 16% and grew 70% 10:06 10 minutes, 6 seconds yearonear while aerospace contributed 8% and grew 64% yearonear. Clean energy 10:15 10 minutes, 15 seconds accounted for 19% of our revenue and grew 35% year on year. Two new business wins. 10:24 10 minutes, 24 seconds This is built on sustained effort over the past two years with these programs now translating into fresh orders and 10:32 10 minutes, 32 seconds production ramps across multiple verticals. 10:36 10 minutes, 36 seconds Our dwellshore model and the new Chennai export facility have supported the scale up. 10:44 10 minutes, 44 seconds The energy storage system program is fast growing and ramping in line with our plan. 10:52 10 minutes, 52 seconds Also we are making steady progress in aerospace cabin sub assemblies. We have successfully completed the first strands of prototypes for the communication 11:00 11 minutes customer where we are manufacturing control units for satellite antenna systems. We expect volley moders to 11:07 11 minutes, 7 seconds commence from FI27. Our prototypes catering to industrial processing sector and power sector have commenced 11:18 11 minutes, 18 seconds in the semiconductor equipment. We have completed the project readiness phase for a key customer marking an important 11:26 11 minutes, 26 seconds milestone ahead of volume production. We expect this program to begin contributing meaningfully to revenue during FI27. 11:35 11 minutes, 35 seconds The government's ISM 2.0 0 focus on semiconductor equipment aligns well with our capabilities and recent wins. 11:43 11 minutes, 43 seconds We are progressing steadily in this space partnering with global major to deliver industry 4.0 compliant complex systems. 11:54 11 minutes, 54 seconds Three opportunity pipeline. We continue to see a diverse and expanding set of opportunities progressing towards 12:01 12 minutes, 1 second finalization with encouraging potential in both size and scope. 12:07 12 minutes, 7 seconds In recent quarters, we onboarded new customers across industrial and defense segment. Products include missionritical 12:15 12 minutes, 15 seconds power inverter platforms. Critical components for an integrated battlefield command system 12:22 12 minutes, 22 seconds in what could be the first Avalon. We are bidding on exciting opportunities in advanced metal cockpit assemblies and 12:29 12 minutes, 29 seconds landing gear components in the aerospace segment. Further, we are on the cusp of paraying into cable commodity with a 12:37 12 minutes, 37 seconds major customer in aerospace. Last but not the least, we are witnessing increased interest from aerospace majors in our 12:46 12 minutes, 46 seconds cable and electronics commodities. These opportunities are long-term in nature and we hope to continue our focus on developing the aerospace vertical. We 12:55 12 minutes, 55 seconds will continue to provide updates as projects evolve. 13:02 13 minutes, 2 seconds In summary, Q3 FI26 reflects the period of sustained execution and disciplined profitable 13:09 13 minutes, 9 seconds growth to Avalon. We del we delivered our sixth consecutive quarter of sequential improvement. 13:16 13 minutes, 16 seconds Achieved the highest revenue and profit to date. Strengthened margins. 13:22 13 minutes, 22 seconds improved working capital, generated positive operating cash flow and enhanced return on capital all while 13:30 13 minutes, 30 seconds maintaining a capex-l like balance sheet. 13:35 13 minutes, 35 seconds Our growth remains well diversified across verticals and geographies supported by a healthy expanding audible 13:43 13 minutes, 43 seconds steady progress in new programs and multiple growth levers coming together. 13:48 13 minutes, 48 seconds Recent tariff production announcement of ISM 2.0 We know progress in semiconductor equipment and expansion in 13:57 13 minutes, 57 seconds into [clears throat] new export markets further set things a long-term growth outlook. 14:06 14 minutes, 6 seconds With all the three growth drivers gaining momentum, manpower cost stabilizing and operating leverage 14:13 14 minutes, 13 seconds beginning to play out, we are well pushed for the next phase of profitable growth. We remain focused on execution 14:21 14 minutes, 21 seconds and will share our FI27 outlook once our budgeting excise is completed next quarter. 14:28 14 minutes, 28 seconds With this I would like to hand over to our CFO Suresh Viran for a detailed overview of our financial performance. 14:38 14 minutes, 38 seconds Thank you. 14:39 14 minutes, 39 seconds Thank you Ki and good afternoon everyone. Thank you for joining the call today. Our growth journey would not have been possible without your continued 14:46 14 minutes, 46 seconds trust and support. They are delivering strong and sustainable growth supported by improving profitability, cash generation and capital efficiency. 14:55 14 minutes, 55 seconds Revenue growth was 49% year-on-year in both Q3 FI26 and 9 month FI26. This performance has been accompanied by 15:03 15 minutes, 3 seconds improvement in operating cash flows, networking capital, and return on capital employed. Over the past few quarters, we have seen consistent 15:10 15 minutes, 10 seconds sequential progress with each quarter building on the previous month. This reflects the strength of our diversified business model and a disciplined approach to execution and capital 15:19 15 minutes, 19 seconds management. Growing domestic demand, the government's ISM 2.0 focus on semiconductor manufacturing equipment and recent trade developments with the 15:27 15 minutes, 27 seconds US are strengthening the Indian electronic manufacturing ecosystem. 15:31 15 minutes, 31 seconds Coming to our Q3 FI25 performance, revenue for Q3 FI26 was INR 418 crores, 15:38 15 minutes, 38 seconds up 48.7% yearon year from INR 281 crores in Q3 FI25 and 9.2% sequentially. 15:47 15 minutes, 47 seconds For 9th FI26, revenue from operations was 1,123 crores, delivering a year-on-year increase of 48.7% 15:55 15 minutes, 55 seconds supported by diversified growth across industries and geographies. In Q3 FI26, revenue mix was 36% from India and 54% 16:04 16 minutes, 4 seconds from the US. For 9 month FI26, the revenue mix was 38% India and 62% US. 16:11 16 minutes, 11 seconds India grew 35% year-on-year while the US grew 59% yearonear in 9 month FI26. 16:17 16 minutes, 17 seconds Gross margin for Q3 FI26 was INR 143 crores with a margin of 34.2%. 16:24 16 minutes, 24 seconds For 9 month FI26 gross margin was INR 389 crores with a margin of 34.6%. 16:30 16 minutes, 30 seconds Representing a year-on-year growth of 42.7%. Margins remain within the guided range. 16:36 16 minutes, 36 seconds During the period of elevated tariffs, we were able to pass on over 99% of the tariff impact to customers. 16:44 16 minutes, 44 seconds As a result, there was no material impact on absolute margins. Although gross margin in percentage was impacted by approximately 100 basis points during 16:52 16 minutes, 52 seconds this period. EIDA for Q3 FI26 was INR 48 crores up 38.5% yearon year with a margin of 11.5%. 17:02 17 minutes, 2 seconds For 9 month FI26 EIDA was INR 115 crores up 59.2% yearonear with a margin of 10.4%. 17:10 17 minutes, 10 seconds Margin expansion during the quarter is driven by operating leverage as revenues continues to scale. 17:17 17 minutes, 17 seconds PAT for Q3 FI26 was INR 33 crores up 35.9% yearonear with a margin of 7.1%. 17:25 17 minutes, 25 seconds For 9 months FI26 pack was INR 72 crores up 83.3% year on year profitability 17:32 17 minutes, 32 seconds continues to strengthen delivering sustained profitable growth on the new labor code. Our existing 17:39 17 minutes, 39 seconds practices are largely aligned with it with the requirements and we do not anticipate at this stage a material impact on the group's financials. 17:48 17 minutes, 48 seconds The estimated incremental impact of INR 33 lakhs has been recognized in the quarter. Financial implications will be further evaluated as relevant rules and 17:57 17 minutes, 57 seconds clarifications are notified by the moving to the balance sheet. Networking capital days improved to 118 days in 18:04 18 minutes, 4 seconds December 2025 from 150 days in December 2024. a reduction of 32 days. Inventory days improved from 103 days to 97 days, 18:13 18 minutes, 13 seconds while trade receivable days reduced from 94 days to 72 days. Over the same period, trade payable days increased from 46 days to 52 days. On a 18:22 18 minutes, 22 seconds quarteronquarter basis, networking capital days improved by 13 days from 131 days in September 2025 to 118 days 18:30 18 minutes, 30 seconds in December 2025, supported by improvement across inventory, receivables, and payables. In the previous call, we had guided networking 18:38 18 minutes, 38 seconds capital gains in the range of 120 to 130 by March 2026. And we are currently below this range as of December 2025. 18:46 18 minutes, 46 seconds Cash flow from operations was positive at INR 51 crores in Q3 FA26 supported by improved working capital management and 18:53 18 minutes, 53 seconds profitable growth. As of December 31st, total debt was INR 143.2 crores with cash equal investments of INR 130 crores 19:02 19 minutes, 2 seconds resulting in a net debt of INR 29.8 crores. 19:06 19 minutes, 6 seconds Capex for Q3 FI26 and 9 months FI26 was INR 10.7 crores and INR 35.1 cr 19:14 19 minutes, 14 seconds respectively. We continue to operate a capex rate model with assert turns at 9.5 times. Return on capital employed 19:21 19 minutes, 21 seconds improved to 18.8% compared to 11.3% a year ago. Avlon's dual presence in India 19:28 19 minutes, 28 seconds and the US provides strategic flexibility. Our India operations offer a costefficient and scalable manufacturing base while our US 19:36 19 minutes, 36 seconds facilities support localization and talent management. This positions us well to support customers amid evolving trade dynamics. 19:44 19 minutes, 44 seconds With improved business visibility, we have revised our FI26 revenue growth guidance upward to around 40% from the earlier guidance of 20 to 30%. To 19:53 19 minutes, 53 seconds summarize, Q3 FI26 delivers strong operating and financial performance supported by broad-based growth across segments and geographies. 20:02 20 minutes, 2 seconds We continue to see growing demand from Indian customers and increasing program activity across other geographies including the US and Southeast Asia. 20:11 20 minutes, 11 seconds With our extraordinare operating model and expanding capabilities, Avalon is well positioned to capitalize on the opportunities ahead 20:19 20 minutes, 19 seconds and support customers through the next phase of growth. Thank you. We request the moderator to open the floor for questions. 20:28 20 minutes, 28 seconds Thank you very much, sir. 20:31 20 minutes, 31 seconds We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on 20:38 20 minutes, 38 seconds your touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. 20:45 20 minutes, 45 seconds Participants are requested to use handset while asking a question. 20:50 20 minutes, 50 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 21:04 21 minutes, 4 seconds The first question comes from the line of Summit Nha with Mcquaryy. Please go ahead. 21:12 21 minutes, 12 seconds Yes, thank you very much. Um, couple of questions. So, first uh congratulations on a good quarter. Secondly, talking 21:20 21 minutes, 20 seconds about the the guidance implication, 40%, that's obviously uh very strong, but that implies like fourth quarter revenue 21:27 21 minutes, 27 seconds growth of about 20 21%. Is that your uh continued conservatism or are you thinking about it from a high base 21:35 21 minutes, 35 seconds perspective? Last uh year, fourth quarter was also very strong. Secondly, um you obviously went through a series 21:42 21 minutes, 42 seconds of investments to increase your uh operational capacity. 21:46 21 minutes, 46 seconds Are those investments done? And secondly, uh you know, we're talking about your growth being much higher than probably expected at least externally. 21:55 21 minutes, 55 seconds Uh what sort of these high asset turns when do you need to probably reinvest to kind of uh continue to grow at at a high 22:03 22 minutes, 3 seconds pace in fiscal 27 because that seems like several new uh customers coming on board uh large customers coming on board fiscal 27. Thank you. 22:14 22 minutes, 14 seconds So it's it's dynamic. 22:16 22 minutes, 16 seconds Thank you sumit um for your kind words as well as the question. I'll try to answer all of them. If I miss something 22:24 22 minutes, 24 seconds just ask me. Um see we've always maintained that we'll do asset turns between 22:31 22 minutes, 31 seconds 7 to 10 times and we'll continue to do so. We still believe there's enough 22:38 22 minutes, 38 seconds capacity looking for apart from the two new facilities coming up for space. Um 22:45 22 minutes, 45 seconds so we still think that our capex is around uh 50 crores a year which is lower this year but u uh we'll be around 22:54 22 minutes, 54 seconds 50 crores a year for the next couple of years at least and u uh in the next two 23:00 23 minutes or three years we may look uh for a larger facility uh or duplicating what we have in Avalon but not in the near 23:08 23 minutes, 8 seconds term or midterm and again uh on the first part of your question is that yes we are conservative. Okay, because the 23:17 23 minutes, 17 seconds different programs cut in at different times for us and um and this last 9 months is been tariffs, no tariffs, what 23:25 23 minutes, 25 seconds tariff, you know what percentage. So we were really reluctant uh to come out um with 23:35 23 minutes, 35 seconds with a specific number because we didn't know we didn't know what the tariffs are going to do to our business and you know very happy to say the team has 23:44 23 minutes, 44 seconds managed this very well and you've seen this growth in spite of the tariffs okay coming in both in India as well as um in 23:51 23 minutes, 51 seconds our geographies and saying that we're expanding to other geographies also so that we'll never be in this situation again where uh uh the tariffs are in our 24:01 24 minutes, 1 second future. So we will have it diversified but our focus will also be on export just not India and India is very key to 24:09 24 minutes, 9 seconds our larger growth. Did I answer everything sumit or is there something else I missed? 24:14 24 minutes, 14 seconds I think there was one question about your operational uh investments that you started at the beginning of the year and you had said that that'll end by the 24:21 24 minutes, 21 seconds third quarter. So has that uh all those investments made maybe it was headcount maybe it was systems and operations are those done 24:29 24 minutes, 29 seconds the yeah you can you can see that in our numbers itself uh it's you know it's been flat quarter to quarter um there'll 24:38 24 minutes, 38 seconds be some swings as as you grow at this pace uh but in by far I would say for the existing programs we are well 24:47 24 minutes, 47 seconds covered but our hope is that we get much larger programs in the future so we'll have to focus on basically people based 24:54 24 minutes, 54 seconds investments uh to get the right um right person on board. Uh so as of in the 25:01 25 minutes, 1 second short term I think uh it it is going to be flat or you know plus or minus points. So you want to add something to that? 25:10 25 minutes, 10 seconds I think you'll cover it. Yeah sorry go ahead. 25:17 25 minutes, 17 seconds So there will be a combination of uh existing programs which continue to ramp up from pilot phase to ramp up phase and there will always be new programs which 25:25 25 minutes, 25 seconds will come in parallelly as well. So uh I think uh with the kind of uh pilot 25:33 25 minutes, 33 seconds programs that are expected to ramp up in the near term we covered in terms of investments but it's going to be a combination of both. 25:41 25 minutes, 41 seconds Got it. And is one final question in terms of this 99% recovery of tariffs. 25:46 25 minutes, 46 seconds Is there a rupee number that you can give us like what was the leakage? I'm just trying to understand if that goes away that doesn't become a headwind how 25:53 25 minutes, 53 seconds much your margins could expand next year. 26:00 26 minutes So uh typically we do not share a tariff absolute number over there but just to give you a heads up on that uh let's say 26:07 26 minutes, 7 seconds without tariff our gross margin percentage would have been better by 100 bits. 26:15 26 minutes, 15 seconds That's perfect. Okay. Thank you very much. Congratulations once again. Thank you sir. 26:22 26 minutes, 22 seconds The next question comes from the line of Danesha with Dam Capital. Please go ahead. 26:29 26 minutes, 29 seconds Um, hi sir, good afternoon and congratulations on a great set of numbers. Um, and uh, so just wanted to confirm uh, the numbers that we spoke in the open uh, in the opening commentary. 26:40 26 minutes, 40 seconds Uh, we said that revenues from um, uh, US this time was around 64%. Is that right for the for the third quarter? 26:51 26 minutes, 51 seconds That's correct. 26:52 26 minutes, 52 seconds 6436 right and manufacturing was uh manufacturing was around 7 uh could you could you repeat the manufacturing 27:00 27 minutes number for me please sure so in FI26 US manufacturing is 22% and India 27:08 27 minutes, 8 seconds manufacturing is 78%. Perfect, perfect, perfect. Thanks, thanks for confirming that. Um, now secondly, um, right in 27:16 27 minutes, 16 seconds terms of, uh, areas of growth, right, Ver obviously seeing a lot of broad-based growth across applications, um, you know, across each segment, could 27:24 27 minutes, 24 seconds you potentially highlight, uh, what are the particular clients which you're sort of working for, not in terms of names, but rather applications and, uh, going 27:33 27 minutes, 33 seconds forward, how do we expect that? So, we just spoke about how the existing base is obviously going to grow. So if you could just highlight some color on that 27:42 27 minutes, 42 seconds and further the incremental growth which is come through what are those applications which you're kind of looking at. 27:49 27 minutes, 49 seconds So that's a tough one to answer when you're chasing broad-based growth. So um so we uh we would have a time when 27:57 27 minutes, 57 seconds certain parts of industrial will be split into different vertical. Let's say when there's meaningful growth in the 28:04 28 minutes, 4 seconds semiconductor equipment, we will split that out from the industrial vertical. 28:10 28 minutes, 10 seconds Um but what what we are seeing is you know uh growth in a lot of our segments where we are focused and we're going to 28:18 28 minutes, 18 seconds go deeper into the segments because some of the customers we have are fortune 100 type customers where there's enough um 28:27 28 minutes, 27 seconds uh enough room to grow apart from the new customers. So whether it's a commodity or u a capability we are going 28:35 28 minutes, 35 seconds to target that. Did I answer that question for you? Uh sure sure. Um so and obviously uh the 28:44 28 minutes, 44 seconds Indian margins have been the Indian operation margins have been extremely strong right and I think we're scaling up out there quarteron quarter but uh 28:51 28 minutes, 51 seconds you know would you sort of give some update on uh how we're looking to improve uh you know the US uh burn which we're kind of seeing right now quarteron 28:59 28 minutes, 59 seconds quarter I mean obviously we're ramping up manufacturing out there but any direction which you would sort of give 29:05 29 minutes, 5 seconds in terms of uh the US margin profile Sure. So uh with respect to US 29:13 29 minutes, 13 seconds manufacturing which constituted 22% of our business for this quarter, the pack losses are at around - 7 crores. If you 29:21 29 minutes, 21 seconds look at the last couple of quarters, it was approximately at around - 9 cr each quarter. We've been talking about a 29:29 29 minutes, 29 seconds possible operating leverage opportunity in US manufacturing as well along with India manufacturing. The the beginning of that is what we see this quarter. We 29:38 29 minutes, 38 seconds believe the the next year uh with the growth in energy storage systems and some of the new businesses that we have won in US can help in that direction. 29:47 29 minutes, 47 seconds So we are trending towards a direction of better profitable profile in the US manufacturing as well. 29:54 29 minutes, 54 seconds And you also will have to recognize that you know in the last 9 months um that was the best thing that we could have 30:02 30 minutes, 2 seconds had where having a US manufacturing. So uh some of the programs are getting started prototyping there and hopefully 30:09 30 minutes, 9 seconds in the next 6 months to a year we we may start moving some of it to India manufacturing. So it's it's just not a 30:16 30 minutes, 16 seconds factory to factory. It is also the future of uh export business in India is tied to tied to that factory. 30:27 30 minutes, 27 seconds Perfect. So perfect. Thank you so much for answering our questions and wishing you all the very best. Thank you. Thank you. 30:34 30 minutes, 34 seconds The next question comes from the line of Archett Sha with BNK securities. Please go ahead. 30:41 30 minutes, 41 seconds Uh thank you for the opportunity and congratulations sir for a very good set of numbers. Uh so first question is regarding tariffs. Now earlier because 30:50 30 minutes, 50 seconds of 50% tariff uh we are planning to increase our US manufacturing for some sensitive clients you know. So now what 30:58 30 minutes, 58 seconds is the outlook on clients especially on the stickiness and their comfort level after being better off in terms of geography versus our Asian others or 31:07 31 minutes, 7 seconds Asian peers. Uh are we do we specific to increasing US manufacturing or are we keeping it uh you know keeping it at 20% around? 31:19 31 minutes, 19 seconds Thank you AI. U the ideal goal for us is you know 80/20 we've always kind of said that on the I mean um but 31:28 31 minutes, 28 seconds today we have a set of customers who are come to us some of them want to stay in the US do not want to take a risk for a 31:36 31 minutes, 36 seconds couple of years with all these things changing on a daily on a daily basis u uh so they have decided to next two 31:45 31 minutes, 45 seconds years uh they're going to make it there and the other you know half is going to move uh when things settle down right because uh some of these programs take 31:54 31 minutes, 54 seconds six months to a year at least to get going and we have started on these programs so we will not change the prototyping from our US location and 32:02 32 minutes, 2 seconds when the time comes uh of course cost does matter to the customer he will make the choice when to move but in the short 32:10 32 minutes, 10 seconds term we don't expect any knee-jerk reactions because these are large customers you know they have made their uh policy decision or I would say you 32:18 32 minutes, 18 seconds know strategic ation uh to do one year in the US and then move but they have the option to do that and uh once uh 32:26 32 minutes, 26 seconds things settle down with the tariffs because status also is very relative right it's one thing today and then you know things could change in two months 32:34 32 minutes, 34 seconds okay so we just um but the good thing is business is coming from all sides okay answer your question 32:43 32 minutes, 43 seconds uh yeah kind of but just one thing I didn't understand was since you recovering 99% of tariffs. Uh how do uh 32:51 32 minutes, 51 seconds it impacts your growth margin still by 100 bits? you know when he said that if there were not tariffs then you could have uh your gross margin would have 32:59 32 minutes, 59 seconds been better by 100 bits right okay I think so uh 33:07 33 minutes, 7 seconds absolute gross margin doesn't get impacted but the gross margin is a percentage because we incur tariff and then we pass it on to the customer so 33:15 33 minutes, 15 seconds both the numerator and denominator gets uh expanded to that extent so as a percentage optically uh it could have been 100 bits Yeah. 33:25 33 minutes, 25 seconds Okay. Okay. Okay. Got it. Uh so my second question is regarding our uh manufacturing margins. So firstly you 33:32 33 minutes, 32 seconds know despite our US manufacturing base increasing to think 192 crores uh our 33:39 33 minutes, 39 seconds margin seems at negative 7% only yet uh which was the same that earlier at 340 33:46 33 minutes, 46 seconds crores also. So uh are we still investing over there and uh what kind of scale do we need to achieve to you know start seeing the declining trend and 33:55 33 minutes, 55 seconds secondly on India margin 16.7% are very strong. So are those sustainable numbers or is it just quarterly bits and on 34:02 34 minutes, 2 seconds annual basis we should expect around 13 and a half or 14% of sustainable margin. 34:10 34 minutes, 10 seconds Sure. So first things first, most of our business if not all of our business uh are recurring type of nature, long-term 34:17 34 minutes, 17 seconds businesses. So there is nothing uh one time or one quarter from a business perspective. Uh these are all long-standing customers for us. That is 34:25 34 minutes, 25 seconds our key strength. Uh with that said, our India manufacturing revenues which constitute 78% of our business delivered 16.7% AIDA and 12.2% PAT. 34:38 34 minutes, 38 seconds So this significant number is something that we have been talking in the previous quarters as well where operating leverage can come and help once the revenue scales. That is what 34:46 34 minutes, 46 seconds probably we are seeing in the India manufacturing side with respect to the US manufacturing the uh energy storage system business as well as the some of 34:55 34 minutes, 55 seconds the other new businesses started kicking in and we have been discussing about this in our calls over the last four five calls as well. So uh overall the 35:04 35 minutes, 4 seconds the pack has reduced from - 9 crores in Q1 Q2 the last two quarters to approximately - 7 crores now uh but like 35:11 35 minutes, 11 seconds you rightly said the AIDA is slightly uh higher than the previous two uh AIDA losses are slightly higher than the previous two quarters primarily because 35:19 35 minutes, 19 seconds of product mix if you look at from a full year basis let's say give it another quarter or two from a full year basis I think it should get better as 35:26 35 minutes, 26 seconds well so uh in in a summary I think US manufacturing also within later part of next fiscal year uh can get much better than where it is today. 35:38 35 minutes, 38 seconds Okay. Okay. Sure. That's it from my side. Thank you so much sir. Thank you. Thank you. 35:46 35 minutes, 46 seconds The next question comes from the line of Vlog Shastawa with Philip Captain. Please go ahead. 35:56 35 minutes, 56 seconds Good good afternoon. Just speaking through on the order book side uh we have seen uh 25% growth on the order book side whereas revenue has grown by 36:03 36 minutes, 3 seconds more than that. So any reason why this slowdown or we are expecting a pick up in quarter four. 36:12 36 minutes, 12 seconds Thank you for the question. 36:14 36 minutes, 14 seconds For me we believe the order book has done really well in the last last 36:19 36 minutes, 19 seconds quarter. Um so it's grown 26% uh look at on your basis the business is 36:28 36 minutes, 28 seconds growing faster but the key is you know we're not tying all the orders uh we're giving you a 14mon number okay which is 36:35 36 minutes, 35 seconds at 2,000 crores um and we are giving you a number which is you know for 14 months to 36 months which is,83 36:43 36 minutes, 43 seconds crores or so 11 1183 uh so totally we have 3,199 if you look 36:50 36 minutes, 50 seconds at that for a 3-ear period. Okay, we've got orders from 3 years to 15 years after that. We're not counting all that in the order book. 36:57 36 minutes, 57 seconds Just to add to that, uh KB, so VRO, if you look at our FA25 revenues, it was approximately 1,00 crores. Today, we 37:04 37 minutes, 4 seconds have an order book of 2016 crores. Just to put that in perspective. Uh secondly, for many of the new programs, we are we'll be probably having prototype 37:13 37 minutes, 13 seconds orders right now getting referred in the order book. Uh so once it ramps up the volume favors can come and get added in the uh can come and get added in the later quarters. 37:24 37 minutes, 24 seconds Sure. Uh sure sir that makes sense. And lastly sir on the ISM since you mentioned ISM in your uh introductory uh 37:30 37 minutes, 30 seconds uh introduction. So just quickly is the company planning to go for any of these incentives in terms of goods capital man 37:39 37 minutes, 39 seconds in terms of manufacturing requirements or you are just optimistic that if semicon manu semicon come to India you are you will benefit out of you are you 37:47 37 minutes, 47 seconds will benefiting as a manufacturer or you directly want to enter this IMC so uh to answer your question there's 37:54 37 minutes, 54 seconds been the OAD piece then there's the fab piece uh now we don't know the full details yet but The ISM 2.0 talks about 38:03 38 minutes, 3 seconds semiconductor equipment. This is exactly where we are for. Okay. And we believe let the um 38:13 38 minutes, 13 seconds details come out and we believe there'll be something for us to uh to finally use 38:20 38 minutes, 20 seconds some PL scheme to get going. This is one of the industries of focus for us. Right. 38:27 38 minutes, 27 seconds And also remember we have just got into one customer. There's a few hundred customers out there in case that Yeah. Thanks a lot. Thank you. 38:42 38 minutes, 42 seconds Thank you. The next question comes from the line of Santo Shashadri with Aendespar. Please go ahead. 38:51 38 minutes, 51 seconds Yeah. Hi. Uh uh thanks for the opportunity. Uh so just wanted to uh ask first question on this is uh 2.0. So 38:59 38 minutes, 59 seconds [snorts] 39:00 39 minutes uh uh so what is the sort of revenue opportunity and cam size that you're talking about uh with respect to uh uh your capital equipment uh manufacturing? 39:11 39 minutes, 11 seconds Uh that's my question number one. And uh is there any import substitution angle uh that you you know that you're seeing here or is it mostly an export market? 39:23 39 minutes, 23 seconds So um you talk I I missed the first part. you're talking of semiconductor equipment or Yeah. Yeah. 39:30 39 minutes, 30 seconds Yeah. So, so this is primarily uh for the export market. So, it'll come back to India. Uh just not for the Indian 39:38 39 minutes, 38 seconds ecosystem. So, that's why we are very much excited that uh on the approvals most of it is done and with production 39:46 39 minutes, 46 seconds starting uh this the first set of equipment we are making. I mean the parts of larger machines. uh we 39:53 39 minutes, 53 seconds anticipate to see more parts come through as uh we go forward. So it's uh it's not only for India, it's primarily 40:02 40 minutes, 2 seconds um for the um for the global market. 40:08 40 minutes, 8 seconds Uh thank you. And on the second part of the question, is there any way to size this market opportunity uh in India and globally? 40:19 40 minutes, 19 seconds Now we don't want to go there since it's you know we have our own calculation of where we need to be but uh let us let us 40:26 40 minutes, 26 seconds get the approvals the production going you know and then we'll probably comment on that when we move this into a separate vertical in the near future. 40:38 40 minutes, 38 seconds Uh thank you and my uh just one last question on this uh uh and on the India us 40:46 40 minutes, 46 seconds uh so can you clarify the uh impact of this uh proposed status reductions uh uh you know uh uh if you could get some 40:55 40 minutes, 55 seconds color on the duty advantage that you have versus uh Mexico or other Southeast Asian countries 41:02 41 minutes, 2 seconds uh that would be great. So we've been in the US for the last 25 to 30 years. So we understand the market well. Uh in the 41:10 41 minutes, 10 seconds last 7 8 months there have been a lot of customers you know on the fence because uh I can't say I can make it India faster, better, cheaper but you pay 50%. 41:20 41 minutes, 20 seconds Okay. So a lot of people have just put a hold but today with the 18% number you're better than lot of the southeastern 41:28 41 minutes, 28 seconds economies better than China. Um so I think overall India stands to gain across the board I'm just not talking 41:35 41 minutes, 35 seconds about Avalon now but across the board um and with the combination of having the US front ending and India backending 41:43 41 minutes, 43 seconds over the future that is I think uh the the dual model we have is where customers are uh confident as well as 41:52 41 minutes, 52 seconds they know uh is just [clears throat] not set in stone on the status right somebody changes their mind every every 42:00 42 minutes every few months like what happened with South Korea recently. Um so you know it is being in the two locations helps us 42:09 42 minutes, 9 seconds quite a bit because customer is you know uh not as concerned as just taking out and having one country specifically. 42:19 42 minutes, 19 seconds Thank you. 42:22 42 minutes, 22 seconds Yeah that does. Thank you. Uh maybe if I may just ask one more question uh on this impact of commodity price increase in your business. Uh I understand that 42:30 42 minutes, 30 seconds it's a pass through for most of the MS companies but uh uh can you discuss if there is any lag in that pass through uh and how should we think about the impact 42:39 42 minutes, 39 seconds of uh uh you know uh commodity price increase on gross margins. 42:46 42 minutes, 46 seconds Yeah. Hi sir here. Yeah, there recently we have seen some um uh commodity price fluctuations. Uh we've uh you know like 42:56 42 minutes, 56 seconds how we do with the tariffs, we're very active in terms of working with our customers to uh recoup possible. Um 43:03 43 minutes, 3 seconds obviously a lot of this there are puts and takes here based on you know uh different customers, different materials and scenarios. So we're actively working 43:11 43 minutes, 11 seconds through that and we ensure uh to the best of our ability you know these things are covered and you're trying to collect in the same quarter. 43:18 43 minutes, 18 seconds Yeah. And within the same quarter you just to add to that uh we were able to maintain our gross margins within the guided range of 30 to 35 sometimes 43:26 43 minutes, 26 seconds slightly more over the last five six years. So that is something that we've been doing in the in the past. 43:34 43 minutes, 34 seconds So that should continue right? 43:38 43 minutes, 38 seconds That should in all all ways should Yes. Thank you very much. 43:45 43 minutes, 45 seconds Thank you sir. 43:51 43 minutes, 51 seconds The next question comes from the line of Karan Sanwal with Dish. Please go ahead. 43:57 43 minutes, 57 seconds Uh thank you for the opportunity. Uh so I have a couple of questions uh regarding our semiconductor uh business. 44:05 44 minutes, 5 seconds So if you could you know uh broadly highlight uh how big is the opportunity that we are anticipating uh in this 44:13 44 minutes, 13 seconds semiconductor space and what exactly what hello can you just repeat the question we just lost you for some time here can you 44:21 44 minutes, 21 seconds repeat the question kum yeah so we uh wanted to understand like uh how big is the opportunity in the 44:28 44 minutes, 28 seconds semiconductor space and what what products exactly are we targeting uh in that space from the you know customers that we have already onboarded. 44:40 44 minutes, 40 seconds So what we're doing is um part of their larger system. We're not making the whole equipment. These usually are 20 44:47 44 minutes, 47 seconds $30 million machines and we are doing small parts of that. 44:52 44 minutes, 52 seconds Okay. Uh so again we don't want to give a number the opportunity. You know these companies earn hundreds of billions. So 45:00 45 minutes we um you know we getting our small steps in there with the hope that it's going to be a big part of what we do. 45:08 45 minutes, 8 seconds Uh understood. Uh and uh apart from the customer that we have already onboarded are there any uh advanced talk with uh 45:17 45 minutes, 17 seconds other customers in the uh particular uh semiconductor space and uh from the customer that you have already on board 45:24 45 minutes, 24 seconds on boarded. Do we have any confirmed order book or uh is it in uh you know uh in a prototype stage uh only? 45:33 45 minutes, 33 seconds So the first customer is you know one of the top customers in the world but um uh 45:41 45 minutes, 41 seconds we have prototyping we have orders proto orders and things going on and then there's the production ramp which is what we're waiting for for the orders to 45:48 45 minutes, 48 seconds come in and all that. uh saying that we also have a second large customer in talks but it's early conversations. Um 45:58 45 minutes, 58 seconds so we hope to have you know as we have to prove ourselves with one then I think there's a lot will which will follow because this is a very difficult market 46:06 46 minutes, 6 seconds in the sense of complexity in the sense of what we need to achieve because of our box build experience uh is where I 46:15 46 minutes, 15 seconds think we are succeeding. So I believe um it's uh tip of the iceberg. 46:21 46 minutes, 21 seconds No understood. Uh thank you so much and all the very best. Thank you. Thank you. 46:30 46 minutes, 30 seconds Ladies and gentlemen, if you wish to ask a question to the management, you may press star and one. 46:37 46 minutes, 37 seconds Participants who wish to ask a question may press star and one. 46:45 46 minutes, 45 seconds The next question comes from the line of Ju Punjabi with Invest Techco Capital. Please go ahead. 46:52 46 minutes, 52 seconds Yeah, hi uh you know great growing great numbers. Thank you. I have two broad questions. One you know in the context 47:00 47 minutes of the current environment and also you kind of talked a little bit about all the excitement that's happening in the semi- chain and all the other moving 47:09 47 minutes, 9 seconds parts. My question is as a management team what are the two or three pieces on 47:16 47 minutes, 16 seconds a 12 18 month that is most visible and excite exciting to execute on uh both in 47:24 47 minutes, 24 seconds India and the US and the second let me I'll ask the second question after we go through this one but what I'm just trying to get is some color on what 47:33 47 minutes, 33 seconds seems visible tractionable and growable quite well over the next 12 18 months 47:40 47 minutes, 40 seconds and what what's exciting within that of course like you mentioned we've got the um semiconductor vertical we also in 47:48 47 minutes, 48 seconds the industrial side have a certain set of u how would I put this um in the 47:56 47 minutes, 56 seconds transmission business as the wall goes through um a power super cycle whether it's in India US uh wherever in the 48:04 48 minutes, 4 seconds world with the data centers coming in uh we are hoping um to play a role in which We believe that we have uh started in 48:12 48 minutes, 12 seconds India with one of the global majors and start in the US with the other global major. So I think um that kind of uh 48:19 48 minutes, 19 seconds excites us because this is a 10 20 year businesses. What when we look for businesses we don't look for today's orders is this sustainable over 5 10 48:27 48 minutes, 27 seconds years right so some of the arrow businesses are 15 year contracts so we can invest and reap the benefits of uh for the next 10 to 15 years to come. 48:38 48 minutes, 38 seconds Right? So that's the arrow business is growing okay which is another exciting you know the number of planes which are coming out we have number of parts in 48:46 48 minutes, 46 seconds the two majors through tier ones and I think that number will grow because the 48:53 48 minutes, 53 seconds arrow you look at it has grown 60% yearover year this quarter so these are the type of business we look at is it 49:01 49 minutes, 1 second sustainable over a long period of time that's why we're not in the consumer business that's that's why we are in certain businesses which come and go 49:08 49 minutes, 8 seconds which price sensitive. We don't um we don't get into that in the long term. 49:14 49 minutes, 14 seconds Okay. Thank you. And I'm fully supportive of not being in the consumer business and staying focused on the B2B side. The the second question is if we 49:23 49 minutes, 23 seconds kind of hear the whole uh commentary so far and what you are talking about, would it be fair to assume that the 49:30 49 minutes, 30 seconds growth rates in FY27 sustain at the same levels they've done in 26? like I mean would be fair to kind of think a 25 30% 49:39 49 minutes, 39 seconds topline growth and sustainable margins over the next 12 18 months I believe uh that you know we will do 49:48 49 minutes, 48 seconds that number you mentioned and more we are conservative in approach but we don't just want to come out and tell the numbers so for example this year we 49:56 49 minutes, 56 seconds upward rise because we don't know where the world is going uh three times okay so and we will continue to 50:04 50 minutes, 4 seconds do that But we are very confident of the future and I you look at us from a three-year period you know of course there'll be one small quarter here or 50:12 50 minutes, 12 seconds there where we have an issue but in the longer term we are very confident because the number the business we assigned like the last time last 50:19 50 minutes, 19 seconds question I answered is for the next five or 10 years right so once it comes in it stays there. Absolutely. 50:26 50 minutes, 26 seconds Just to add to that sorry go ahead. Sorry, just to add to that uh uh the last six quarters our 50:34 50 minutes, 34 seconds average growth has been around approximately 46%. And some of the new programs what we get getting in have a long product life cycle and we're just 50:42 50 minutes, 42 seconds in the beginning of uh with the cusp of it uh uh it ramping up uh which means the amount of opportunity is also 50:50 50 minutes, 50 seconds exciting for us. It is just that we are in the process of completing our budget so that we'll be able to give a better picture for FIT 27 once we complete 50:58 50 minutes, 58 seconds that. Um but just like the past I think the next three five years is looking uh promising for us. No absolutely and and 51:06 51 minutes, 6 seconds and and one so look I was just trying to get color on high level high level growth trajectory and I think that's a very fair comment you've given but my my 51:15 51 minutes, 15 seconds last question is assuming this uh tariff deal doesn't happen in 51:22 51 minutes, 22 seconds the same format it's been kind of headlined at 18% da da da da but if it 51:29 51 minutes, 29 seconds doesn't happen does that in any way change your trajectory or is your trajectory tree tenated on this playing 51:37 51 minutes, 37 seconds the the tariffs playing out as articulated see that the future you know I think uh 51:45 51 minutes, 45 seconds lies in the governments we can't comment on it when it changes it changes we hopeing it goes downwards and not upwards um but you know if you take the 51:54 51 minutes, 54 seconds past you know how we dealt with the last 9 months or 10 months when this tariff 52:00 52 minutes thing started uh we have not broken our stride. Okay, we have continued uh 52:07 52 minutes, 7 seconds growth. You know, it was confusing tell when we're going to grow but we have we've been you know persistent and there's some amount of luck also that we 52:16 52 minutes, 16 seconds have continuously grown. So I think that will continue and if uh you know if a curve ball is thrown on us I think uh we 52:24 52 minutes, 24 seconds will survive. It's not you know nothing is stopped because of the long term nature of our customers and products is 52:32 52 minutes, 32 seconds and it takes you know months or even year and a half to change. So even the customers decided you know let's stick 52:41 52 minutes, 41 seconds and see what's going to happen right so it's happened in a positive way now but through the whole process they've been very supportive uh to what we're doing 52:50 52 minutes, 50 seconds to add to that or uh the opportunities what we have are domestic which is India for India and 52:59 52 minutes, 59 seconds over the last uh year or two we have also grown the opportunities on India for Southeast Asia exports plus within 53:06 53 minutes, 6 seconds the last nine nine months The US for years is also acting in a nice way with these three growing. How 53:14 53 minutes, 14 seconds about the tariff production? The fourth growth lever on uh India manufacturing for us customers has added to that. So 53:22 53 minutes, 22 seconds our growth opportunities are well diversified not dependent on one geography or one industry or one set of 53:29 53 minutes, 29 seconds opportunities. It is well diversified in its two sense. 53:33 53 minutes, 33 seconds Okay. And if I can uh if I can sneak in one more quick question which is u this 53:40 53 minutes, 40 seconds whole best opportunity which we're seeing in a very significant way coming out in power solutions that people are 53:47 53 minutes, 47 seconds offering u end customers is does this seem will this over the next two three years be a significant part of your 53:56 53 minutes, 56 seconds entire offering the battery I believe and what we yeah so this we do because it's country for country right 54:04 54 minutes, 4 seconds so in the US they want want to make in the US and this we have worked on for four years or more okay finally the 54:13 54 minutes, 13 seconds fruits of the labor has come through and uh it is going to be a significant play 54:20 54 minutes, 20 seconds for us uh into the future okay and we've already ramped up and ramping up further 54:26 54 minutes, 26 seconds and we are really excited uh on um on that and the uh the company's well positioned to execute it not not only as 54:35 54 minutes, 35 seconds our customer is well sought out sought out of product now it's the highest end of BSA you know fantastic keep up the good work 54:44 54 minutes, 44 seconds and we're fully supported thank you so much once again thank you thank you 54:53 54 minutes, 53 seconds thank you next question comes from the line of Avin Nhata with Parami Financial 55:00 55 minutes Services please go ahead Am I audible? 55:06 55 minutes, 6 seconds Yes, Ainach you are. Uh thanks for the opportunity. Two quick questions. Uh one is what is the 9 month number for the uh cash flow from 55:15 55 minutes, 15 seconds operations? If I would have missed out 40 crores is the 9 month cash flow from operations. Q3 is 51 crores. 55:27 55 minutes, 27 seconds 9 month you said is 40 crores. uh and uh 9 months is 41, Q3 is 51. 55:33 55 minutes, 33 seconds Okay, got it. And uh with scale uh what is the uh improvement in networking capital possible over the next one or 55:42 55 minutes, 42 seconds two years? Uh we have done uh so far uh very good job coming from 160 or 218. So 55:49 55 minutes, 49 seconds what is the I mean uh fair assessment from your point of view over the next one two years? 55:57 55 minutes, 57 seconds In the past we have operated uh even better than this but uh with a with a current growth rate I think what 56:06 56 minutes, 6 seconds we had earlier guided was a 120 to 130 day by March 26 we've already uh surpassed it by reaching 118 days by 56:14 56 minutes, 14 seconds December 25. Uh we hope to improve and maintain maintain and improve on this trajectory over the next two three 56:20 56 minutes, 20 seconds years. let's say by another uh let's wait for the budget for our budget to complete so we'll be able to share a 56:28 56 minutes, 28 seconds little better picture on FA27 but we are in the path of improving our networking capital yeah just to add to that Shriam here uh 56:35 56 minutes, 35 seconds so we've uh we've had a quarter overquarter improvement in networking capital across inventory uh receivables 56:42 56 minutes, 42 seconds and payables this is a structural improvement that we've been working on for a while and you're seeing the fruits 56:49 56 minutes, 49 seconds uh or the benefits of that Now uh we're hoping that this continues over the next few quarters and we will keep updating you uh you know as to how we are 56:58 56 minutes, 58 seconds progressing on this. Uh we we expect to continue uh this uh trajectory going forward as well. 57:06 57 minutes, 6 seconds Yeah. Thanks a lot. That's all from my side and all the very best to the team. Thank you Anash. 57:16 57 minutes, 16 seconds Thank you ladies and gentlemen. We'll take this as the last question. It's from the line of Arch Sha with BNK securities. Please go ahead. 57:26 57 minutes, 26 seconds Uh thank you sir for the followup question opportunity. So one just one question in our clean energy uh business uh one of the large portfolio is for uh is the energy storage system in the US. 57:38 57 minutes, 38 seconds So we manufacture one of the customers who does this for residential customers over there. So is is the is the revenue 57:47 57 minutes, 47 seconds for our customer dependent on government subsidy in US for these solar products or energy storage products battery management products and if so yes then 57:56 57 minutes, 56 seconds what is the visibility on government policies over there and could be affected by any let's say if they take back those 58:04 58 minutes, 4 seconds subsidy or anything u thank you see the the fastest growing 58:12 58 minutes, 12 seconds segment in clean energy in the device is uh uh battery systems for storage. You know, it's been growing in the last 58:19 58 minutes, 19 seconds couple of years and um and it's not impacted by um the pulling off subsidy 58:27 58 minutes, 27 seconds uh in the sense um which happened in the wind and some of the other solar stuff. 58:33 58 minutes, 33 seconds uh this is the focus um uh for um us because of the uh um the grid okay and 58:42 58 minutes, 42 seconds with all the data centers coming in so there's getting closer to home and I think um this is uh supposed to you know 58:50 58 minutes, 50 seconds so but the only issue is that you have to make it in the US okay and we are we are well pushed for that and that's what we're doing though some sub parts go 58:59 58 minutes, 59 seconds from India okay so that one of requisites that you have to make in US for those parts and you cannot transfer to India for 59:07 59 minutes, 7 seconds manufacturing part of it. Uh so we do subsystems here and then final there. 59:15 59 minutes, 15 seconds Thank you. Thank you so much. That's it for my welcome. 59:22 59 minutes, 22 seconds Thank you ladies and gentlemen. That was the last question for today. With that we conclude today's conference call. On 59:30 59 minutes, 30 seconds behalf of GM Financial, that concludes this conference. Thank you for joining us and you may now disconnect your lines.