AXISCADES Technologies Limited — Q3 FY26

Axiscades Technologies Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Z1dGpB0-37o Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Q3 and 9 months FY26 earnings conference call of Access Gates 0:10 10 seconds Technologies Limited hosted by MUFG in time. As a reminder, all participant 0:18 18 seconds lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation 0:25 25 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:32 32 seconds zero on your touchstone phone. Please note that this conference is been recorded. I now hand the conference over to Mr. Sumit Ketan from MUGG in time. 0:44 44 seconds Thank you and over to you sir. 0:46 46 seconds Yeah, good evening everyone. I welcome you all to the earnings conference call to discuss Q3 and 9 months FI26 results 0:54 54 seconds of access gates technologies limited. To discuss the result we have from the management Dr. Sat Ravi Narayan, 1:01 1 minute, 1 second founder, chairman and managing director, Mr. Shashidar SK, chief financial officer along with the senior management team of accessgates technologies. 1:10 1 minute, 10 seconds They will take you through the results and the business performance after which we will proceed for Q&A session. Before we proceed with the call, I would like 1:18 1 minute, 18 seconds to mention that some of the statements made in the today's call may be forward-looking in nature and may involve risk and uncertaintities. For 1:26 1 minute, 26 seconds more details, kindly refer to investor presentation and other filings that can be found on the company's website. With this, I now hand over the call to the management for their opening remarks. 1:37 1 minute, 37 seconds Thank you and over to you, sir. 1:41 1 minute, 41 seconds Yeah, welcome. Uh um this is Raina and here um so first I thank all the investors to 1:49 1 minute, 49 seconds join and uh welcome as we conclude the third quarter. I'm happy to inform you that we are firmly 1:57 1 minute, 57 seconds on track to complete the FI26 as planned as projected and we are also laid the 2:04 2 minutes, 4 seconds foundation very clearly for FI27. I'm confident of achieving the results. 2:11 2 minutes, 11 seconds Basically, it boils down to EPS growth of nearly 40 to 50% each year. We will 2:18 2 minutes, 18 seconds achieve in FI26 and we will definitely achieve the same in FI27. So, we are on 2:25 2 minutes, 25 seconds track for that with uh enough uh uh forecast visibility everything. So, we are fine with that. So overall long-term 2:33 2 minutes, 33 seconds vision you know power 930 9,000 crores by 2030 we are piling up the pipeline at 2:40 2 minutes, 40 seconds this stage lot of things are being converted we are working on some large partnerships and deals as we speak and 2:47 2 minutes, 47 seconds again I believe we will be on track for the same of course all dependencies include the facilities uh some inorganic 2:56 2 minutes, 56 seconds activities acquisitions etc to gain strength and uh uh add new activities to 3:03 3 minutes, 3 seconds us and especially in manufacturing. Uh so that will happen and uh as another thing another major goal for us is to as 3:13 3 minutes, 13 seconds you know that we are moving from services to manufacturing and product solutions etc. So for that also very very firmly we'll accelerate the 3:21 3 minutes, 21 seconds process. We are trying to move faster than expected on that issue. So we hope that we'll have a significant percentage 3:28 3 minutes, 28 seconds this year. It will so far it is 39% on uh products and uh solutions and 61% on 3:35 3 minutes, 35 seconds the services. We will flip the same percentage by next year by 27. So then 3:43 3 minutes, 43 seconds uh now the facilities are operational especially that uh Yoland which has a fairly very very good uh uh electronic 3:52 3 minutes, 52 seconds manufacturing then certain labs are already operational and we are able to attract some good customer base especially from hyperscalers and large 4:02 4 minutes, 2 seconds companies out of US and Europe. So that's happening quite well. Dallas 4:09 4 minutes, 9 seconds kind of functionally ready and then back our ambitious project complex is getting ready. The radar 4:17 4 minutes, 17 seconds portion the complete radar hangers will be ready by in another by Q3 it should be completely ready. We are looking at large integration of ladars and maintenance of radars in that facility. 4:28 4 minutes, 28 seconds looking forward to that and uh again we have uh to handle the inorganic growth 4:35 4 minutes, 35 seconds organic tracking and also to uh focus on the growth areas and meet the power 930 4:43 4 minutes, 43 seconds and also have industry relationships. We have uh brought in Mukund. Mukund is with me now. Mukun Santanam. He comes 4:50 4 minutes, 50 seconds with three years of experience and uh from IIT Madras, IM Amdavan has a very good combination of technology and uh 4:59 4 minutes, 59 seconds finance. So he'll be assisting or helping us to achieve the results etc. 5:05 5 minutes, 5 seconds And overall uh we are on track. just wanted to reassure I will let Sashi to or CFO to 5:14 5 minutes, 14 seconds discuss with you on details of our performance and what's going forward. Thank you. 5:20 5 minutes, 20 seconds Thank you J and good evening everyone. Thank you for joining us today for the Q3 and 9 month 5:28 5 minutes, 28 seconds FI26 earnings call of access technologies limited. It's our privilege to present another quarter of strong operational execution and financial performance. 5:38 5 minutes, 38 seconds Q3 affect 26 has been a landmark quarter for us with revenue rising to 343 crores reflecting a 25% year-on-year growth and 5:46 5 minutes, 46 seconds 14.8% sequential growth. EITA for the quarter stood at 63 crores marking a 55% year-on-year increase and delivering our 5:55 5 minutes, 55 seconds highest ever quarterly AIDA margin of 18.3%. an expansion of 360 basis points year on year. Reported PAT for the 6:03 6 minutes, 3 seconds quarter to 87% yearonear to 28 crores at 8% PAT margin. Adjusted PAT after 6:10 6 minutes, 10 seconds removing the impact of labor code charge of 7.82 crores is at 35 crores at 10.3% PAT margin. Underlining the strength of 6:19 6 minutes, 19 seconds our improving weeks and operational discipline. Our growth domains aerospace, defense, and DI constituting 6:25 6 minutes, 25 seconds 78% of our total revenue continue to demonstrate significant momentum growing at 36% yearonear supported by 6:33 6 minutes, 33 seconds accelerated program rampups, robust order inflows, and healthy customer demand. These businesses remain central to our long-term value creation agenda 6:42 6 minutes, 42 seconds and continue to reinforce our margin profile. Now, talking about the 9 months performance, for the 9 months of FI26, 6:49 6 minutes, 49 seconds revenue grew 16.2% 2% year on year to 886 crores while aida reached 144 crores 6:57 6 minutes, 57 seconds surpassing the entire FIF5 beta within 9 months. Reported pack is at 72 crores with adjust after removing the labor 7:05 7 minutes, 5 seconds code impact at 79.5 crores which again 7:12 7 minutes, 12 seconds of 75% from 13%. 7:18 7 minutes, 18 seconds [clears throat] 7:22 7 minutes, 22 seconds Sorry to interrupt sir your voice is breaking sir while speaking. 7:32 7 minutes, 32 seconds Hello sir, we are not able to hear you as your voice is breaking soft. 7:41 7 minutes, 41 seconds Uh so uh are you able to hear me now? Yes sir. Yes sir. Loud and clear. 7:50 7 minutes, 50 seconds Yeah. For the I'll talk about the 9 months performance. Now for the 9 months of FI26 revenue grew 76.2% 2% year on year to 7:58 7 minutes, 58 seconds 886 crores while Aida reached 144 crores surpassing the entire FI25 Aida within 9 8:05 8 minutes, 5 seconds months. Reported PAT is at 72 crores with adjusted PAT after removing the labor code impact is at 79.5 crores 8:13 8 minutes, 13 seconds which again exceeded the full year FI25 PA of 75 crores. EITA margins improved to 16.2% from 13.8% 8% at 240 basis 8:22 8 minutes, 22 seconds points up year on year demonstrating our continued focus on portfolio optimization delivery productivity and 8:29 8 minutes, 29 seconds cost discipline. EITA margins for S3 for the three growth domains were at 21.4% as against 18.7% in the same period of 8:37 8 minutes, 37 seconds previous year and improvement of 270 basis points. Our annualized revenue per employee at 0.54 crores improved 38% or 8:46 8 minutes, 46 seconds 3.39 crores which was in the previous year. Our other verticles of heavy engineering, automotive and energy with a combined revenue of 194 crores for 9 8:55 8 minutes, 55 seconds months and constituting 22% of revenue continues to be impacted by macroeconomic and customer specific headwinds and is in the process of being 9:03 9 minutes, 3 seconds recalibrated. The diluted EPS for 9 months which is not annualized was at 16.73 which grew by 65% from 10.13 in 9:12 9 minutes, 12 seconds the same period of previous year. Our balance sheet remains robust with a net worth of 730 crores and a net debt of just about 65 odd crores as on December 31st. 9:21 9 minutes, 21 seconds This quarter further solidified our transition towards a solutions and product business model under the power 930 vision. The ratio of product versus 9:30 9 minutes, 30 seconds service revenues pivoted to 3961 as against 3367 in the same period of previous year. Our new infrastructure 9:37 9 minutes, 37 seconds the fully operational deanali aoland facility and the progressing deali a neighbor complex is already acting as a growth multiplier enabling advanced 9:46 9 minutes, 46 seconds manufacturing systems integration and new product development for global OEMs. 9:50 9 minutes, 50 seconds We are encouraged by DE wins in Q3, growing global customer engagement and a healthy order pipeline which strengthens our visibility for Q4 and beyond. As we 9:59 9 minutes, 59 seconds enter the final quarter of FI26, our financial foundation is stronger. Our revenue mix continues to improve and we are building a more recently entered 10:06 10 minutes, 6 seconds globally competitive access car capable of delivering long-term value for all the stakeholders. 10:12 10 minutes, 12 seconds Thank you and we now open the floor for questions. Thank you very much. 10:21 10 minutes, 21 seconds We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on 10:29 10 minutes, 29 seconds their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. 10:36 10 minutes, 36 seconds Participants are requested to use handsets while asking a question. 10:41 10 minutes, 41 seconds Ladies and gentlemen, we will wait for a moment while the question cube assembles. 10:48 10 minutes, 48 seconds We take the first question from the line of Bala Subramanyan from Arhan Capital. Please proceed. 10:56 10 minutes, 56 seconds Good evening sir. Uh thank you so much for the opportunities sir. My first question I'm looking at uh this geographic uh revenue side. US is grown 11:05 11 minutes, 5 seconds uh more than 50% year on year and APA is more than 30% year on year while Canada and Europe are uh like uh it's uh like 11:14 11 minutes, 14 seconds flat r flat range. Could you please explain despite having tariffs with US uh how like uh we have we have executed 11:23 11 minutes, 23 seconds and uh how how are the customers accepting uh that tariff levels and how we are managing managing what is the 11:30 11 minutes, 30 seconds arrange arrangement between uh uh with us and customers 11:37 11 minutes, 37 seconds and uh we have uh we are not impacted by direct peries we Hello. 11:46 11 minutes, 46 seconds So we are not Hello. Are you able to hear us? Yes sir. Yes. There's a background noise. 11:52 11 minutes, 52 seconds There is a background noise. Somebody has to mute and uh we are not impacted by the tariffs as it is. Uh we are uh 12:02 12 minutes, 2 seconds Europe is very steady for us. There is a growth a lot of growth happening in Europe. Uh but US also is doing quite 12:09 12 minutes, 9 seconds well at this stage. uh overall the the percentage will remain the same. We don't see any major shift. Uh overall Europe will remain very strong for us. 12:21 12 minutes, 21 seconds Continue to remain very strong for us. 12:23 12 minutes, 23 seconds We hope that it will maintain that one/ird US one/3 Europe and one/3 of India. That's ratio will kind of more or 12:30 12 minutes, 30 seconds less continue. And uh so that is what uh so there won't be any impact and with the European Union FDA we're hoping 12:40 12 minutes, 40 seconds Europe Europe can do better uh it's going to be slightly better and with our strong presence in Europe and because we are traditionally having a very very 12:48 12 minutes, 48 seconds strong presence in Europe Europe will continue to be a very strong uh hold for us and the US because few there are new 12:57 12 minutes, 57 seconds hyperscaler orders and a lot of things happening in ESA as you know DAG 100% of the revenues come from US. Uh if there 13:05 13 minutes, 5 seconds is lot of traction on ESI currently and we are getting lot of momentum with the new facility. So US will continue to 13:13 13 minutes, 13 seconds grow on ESI segment. Europe will continue to grow on ER space and defense segment. That's what I want to tell you. 13:20 13 minutes, 20 seconds Okay. 13:22 13 minutes, 22 seconds Okay sir. Sir on the defense side nearly 40%age of revenue share is there. I'm looking at uh uh the data grass margins 13:30 13 minutes, 30 seconds nearly 43.5% and uh aa margin 26.2 and a bit margin 25.6 six but if you look at 13:39 13 minutes, 39 seconds some of the defense competitors are anywhere 35 to 40% kind of range just want to understand how do you look at 13:47 13 minutes, 47 seconds defense margins and our depreciation level also uh nearly 10 million in this quarter uh we are doing massive capacity 13:55 13 minutes, 55 seconds expansion on that uh defense side uh how do you look at depreciation and uh capex 14:01 14 minutes, 1 second side over next two to three years right yeah so so essentially you know With with respect to your uh you know 14:09 14 minutes, 9 seconds question on gross margins and of course it depends on the quality of uh you know the programs as what we are executing in some quarters of course you know it will 14:17 14 minutes, 17 seconds be the programs as what we execute may be much more regretive uh in terms of margins and of course you know in terms of the capex it is still 14:25 14 minutes, 25 seconds work in progress and and um no there's a lot of background 14:33 14 minutes, 33 seconds noise so so with refer to capex the capex cycle will continue for whole of FA26 and better part of FA27 and FA28 14:42 14 minutes, 42 seconds and the the depreciation uh you know I would say will of course be as per the you know I would say the the the the 14:48 14 minutes, 48 seconds company rates as what is there so actually I'm trying to understand whether we can able to reach uh 33% kind 14:57 14 minutes, 57 seconds of marginal he's talking about the basically uh we are looking at uh see we are not going 15:06 15 minutes, 6 seconds to be anything different from the rest of the industry because we are working on the same programs almost similar programs as our competition because we 15:14 15 minutes, 14 seconds are sometimes winning against our competition. So all of us are in the same page as far as margins are concerned. Uh our owns are also not uh 15:24 15 minutes, 24 seconds that different at this stage. So what we are looking at is that because the marines may look slightly in the lower 15:32 15 minutes, 32 seconds side because a lot of warranty work is going on in defense. Lot of new programs or new wins are happening which requires 15:40 15 minutes, 40 seconds initial investment or initial timing. So as the program matures the margins will 15:47 15 minutes, 47 seconds keep on increasing. So definitely there is no difference between one company to other because we all winning in a 15:54 15 minutes, 54 seconds competitive way and uh so I think uh it's fair to expect 16:01 16 minutes, 1 second uh in and around 30% plus minus 5 as far as uh is concerned on a mature programs 16:08 16 minutes, 8 seconds and uh proportional operating margin. So currently most of our wins are from the new programs and so initial there will 16:17 16 minutes, 17 seconds be a little bit of uh uh impact but as we progress then the margins will keep on increasing that's what it makes. 16:27 16 minutes, 27 seconds Okay last question sorry man. Yes ma'am. 16:34 16 minutes, 34 seconds I would request you to join back back the queue as there are several participants waiting for their turn. Okay that's my job. Thank you sir. 16:42 16 minutes, 42 seconds Thank you. A request to the participants in order to ensure that the management is able to address questions from all the participants. 16:51 16 minutes, 51 seconds Please limit your questions to two per participant. 16:56 16 minutes, 56 seconds We take the next question from the line of Jatan Jadha from Surra Capital. Please proceed. 17:04 17 minutes, 4 seconds Hello. Am I audible? 17:07 17 minutes, 7 seconds Yes. Yeah. Please. Uh uh first of all sir congratulations on such an amazing set of numbers. Um my first question is 17:14 17 minutes, 14 seconds on the lines of sir u where are we uh based on the development of the seeker 17:21 17 minutes, 21 seconds um for for the different types of missiles which we were trying to address. Uh and just a follow up on that 17:28 17 minutes, 28 seconds question what kind of seeker are we building? Is it an RF speaker or a infrared image recognition speaker? So that's the first question. Sir, we are 17:38 17 minutes, 38 seconds developing the RFse for bigger missiles including for Bramos and uh Kusha etc. 17:46 17 minutes, 46 seconds And uh we had a very successful trial last week and uh so it has been kind of 17:52 17 minutes, 52 seconds in RF side has been done and proven and uh customer demo has been with all the RF functionalities has been completed on 18:00 18 minutes 4th of February. So now what is remaining is the mechanical housing 18:07 18 minutes, 7 seconds total integration and pruning. We hope that one level uh it'll be done by March and uh then it'll go through the trial 18:16 18 minutes, 16 seconds and certifications. So that may take another 3 months time. If everything goes well by God's grace we will be qualified. All ours will be the first 18:25 18 minutes, 25 seconds seeker to qualify in everything every aspect and the new new type of seeker. 18:31 18 minutes, 31 seconds So we hope to complete the whole process by uh Q2 basically and uh this is for uh 18:39 18 minutes, 39 seconds BRAMOS and a similar uh seeker will be available for uh Gusha and uh BROS will 18:47 18 minutes, 47 seconds be floating a new RFP by Q2. By that time we have to be ready and uh that new 18:54 18 minutes, 54 seconds RFP for the next future generation of seekers and we should be ready by that time. 19:01 19 minutes, 1 second Got it sir. Um so my second question was on the recent update you mentioned regarding the mission computer for the LCA Mark1. uh first of all amazing uh 19:10 19 minutes, 10 seconds work done but I wanted to understand let's say we if uh we can apply this mission computer uh B on any platform is 19:18 19 minutes, 18 seconds it platform agnostic of course certain changes will be required and the followup was the software which is used 19:25 19 minutes, 25 seconds by the mission computer is also developed by us and deployed uh sir the mission computer algorithm is 19:32 19 minutes, 32 seconds provided by the defense labs uh whereas the display process the basic software then AI algorithm is provided by us. Uh 19:40 19 minutes, 40 seconds technically it can be used for other platform also sir. And uh so it's platform agnostic. 19:46 19 minutes, 46 seconds Currently uh this is uh this is going to be in the uh all the pages 19:53 19 minutes, 53 seconds and uh the same thing is applicable to Suko and uh every other platform also. 19:59 19 minutes, 59 seconds So we will be hopefully the first choice partners as uh continue as far as CMC is concerned. Okay. 20:07 20 minutes, 7 seconds Got it. So thank you so much and I'll get back into the queue. All the best. Thanks. Thank you. Thank you. Thank you. 20:15 20 minutes, 15 seconds We take the next question from the line of Nali Gopali from Unique PMS. Please proceed. 20:23 20 minutes, 23 seconds Yeah. Hi. Uh thank you for the opportunity and congratulations on a good set of result. Uh so my question is on the guidance that we give out. Uh so 20:32 20 minutes, 32 seconds uh we still maintain the 40% growth in the core business in 2627 and followed by 70% in FI28. Right. 20:41 20 minutes, 41 seconds Absolutely. Absolutely no change 26 we are all set. We are one quarter away but we are expecting a very very good result 20:50 20 minutes, 50 seconds followed by Q3. So we will stick to that core uh increase of 40 plus%. and uh and 20:58 20 minutes, 58 seconds similarly 27 we have we have reviewed today also again the entire order book execution 21:06 21 minutes, 6 seconds details etc we are firmly on track again on the core increase of 40% plus so we are very much committed to that and we 21:14 21 minutes, 14 seconds are on track as far as 28 is concerned uh lot of dependency on the facilities but uh we are having a three-pronged 21:23 21 minutes, 23 seconds approach of course current business has to grow in the similar pattern then inorganic we are looking at few acquisitions immediately and then we are 21:31 21 minutes, 31 seconds also looking at facility based growth so it is uh we are very and we have packed a good pipeline and uh I'm very 21:40 21 minutes, 40 seconds confident about that also 28 also but currently let us focus on 27 we are very firmly on that okay I can assure you 21:49 21 minutes, 49 seconds about it okay so so just the question because so when you see EPS growth of 40 50% And when the core business is growing at such a 21:58 21 minutes, 58 seconds rate uh the bottom line should grow ideally much faster right uh because this is a higher margin business 22:06 22 minutes, 6 seconds uh am I missing out on something or are we seeing any pressure on margins on any of the segment core business 22:12 22 minutes, 12 seconds no the margins the overall percentage has come down because of uh the non-core activities if you look at it our core uh 22:21 22 minutes, 21 seconds we have increased the percentage point by nearly 270 points last Right now it is at averaging the 21.4 22:29 22 minutes, 29 seconds uh and uh because our non-core and other activities and uh so that is pulling down. Even in core our services are 22:38 22 minutes, 38 seconds lower margin solutions products and all these things are at 25 26% margin whereas services is at 18.5% margin. So 22:46 22 minutes, 46 seconds no sorry sorry to interrupt but by my question was on your EPS statement that you have mentioned in the presentation where you say that EPS will grow at 40 22:56 22 minutes, 56 seconds 50% because in the first 9 months only the EPS has grown much faster than that and if you grow the core business at 23:03 23 minutes, 3 seconds this rate then the bottom line growth should be much faster than 40 50% that you have mentioned and hence the question what is 23:10 23 minutes, 10 seconds you see the 50% is the minimum conservative number which we are talking about as you would have seen you know in the 9 months have grown by 65%. So 23:18 23 minutes, 18 seconds essentially the uh know the ratio downwards of ITA know is not is about uh 23:25 23 minutes, 25 seconds know at the moment it's about just about uh no uh uh one second 23:36 23 minutes, 36 seconds uh see I will tell you currently we have uh uh our uh bad our uh evida is going 23:45 23 minutes, 45 seconds to be fairly good for this here and our P we are expecting to close whatever ratio I'm giving it will be that 23:53 23 minutes, 53 seconds and uh that'll be a good uh number basically uh because we have uh based on uh because today the labor act uh this 24:01 24 minutes, 1 second thing because that has reduced recently we made from provisions and some ease of provisions we are making for the companies overall with all the growth 24:10 24 minutes, 10 seconds there is no pressure on the margins per se but extraordinary uh this thing like expenditures such as 24:17 24 minutes, 17 seconds ESOP and uh employee costs and then uh this especially in the labor this thing this will probably make us correct to 24:26 24 minutes, 26 seconds around 45% growth on uh EPS okay sash you want to add anything yeah so so basically as I said from from 24:34 24 minutes, 34 seconds a bida line to the you know PBT line it's about 78% as what we have and uh so essentially the conversion will be much much higher as compared to the 24:43 24 minutes, 43 seconds conservative number if you are putting putting Perfect. And just one last clarification. So in the 24:53 24 minutes, 53 seconds I would request you to join back the queue. Yeah, that's it. Thank you. Thank you so much. 25:02 25 minutes, 2 seconds We take the next question from the line of Koshik Moan from Ashikag. Please proceed. 25:08 25 minutes, 8 seconds Hi sir. Uh uh great set of numbers. So I just wanted to understand the clarity on the uh I'll just continue on the same last question. Uh can you give me 25:17 25 minutes, 17 seconds understanding on the EPS because last quarter uh so last year we did around uh 17.63 on the EPS and uh this uh year we 25:27 25 minutes, 27 seconds are telling around 40 50%age but when we look at uh exactly the uh Q3 Q3 we did 25:32 25 minutes, 32 seconds around 6.52 and Q1 we did around 5.42 and 4.88 in Q1. So almost around last 25:41 25 minutes, 41 seconds year the EPS is already achieved. So if the growth is considered then it have to come around 25 to 26 rupees. Is my understanding very clear on this part? 25:50 25 minutes, 50 seconds Absolutely. Absolutely. You are on target. We are looking at the same numbers around uh 25 26 EPS. We are looking at that. Okay. 25:59 25 minutes, 59 seconds Okay. Perfect. And also sir on the next year uh uh front uh so in one of the meetings in the recent Bangalore 26:06 26 minutes, 6 seconds meetings you also mentioned that uh uh we'll be having a very good attraction on the uh top line as well as on the AIDA level. So what what will be on the 26:15 26 minutes, 15 seconds AIDA level growth that we can expect from this year to next year. this year to next year again we are targeting conservatively about 45% growth in 26:24 26 minutes, 24 seconds emidas and uh minimum that is our bare minimum growth and we are on target for that it could be more but in and around 26:33 26 minutes, 33 seconds I'm just giving a band of 40 to 50% but currently we are well on track for the same uh we are looking at I don't want 26:41 26 minutes, 41 seconds to give numbers but you can compute that basically we are on track basically next year also we are looking at a number EPS 26:48 26 minutes, 48 seconds number you now we have got you this thing so you said 25 you keep 45% on the 26:55 26 minutes, 55 seconds top of 25 uh so approximately we will be able to reach that easily yeah yeah yeah I'm I'm very confident 27:04 27 minutes, 4 seconds and we are working towards that in fact that's our primary number we are targeting so we are back working our pat and all the revenue numbers and order 27:12 27 minutes, 12 seconds books everything based on uh optimizing the whole thing that's all that will be done for next Got it. Thanks. 27:23 27 minutes, 23 seconds Thank you. We take the next question from the line of Ruja Tamankar from Arte Securities. Please proceed. 27:34 27 minutes, 34 seconds Oh hello. Hello. Yeah, please go on. 27:40 27 minutes, 40 seconds Yeah, thank for the opportunity. So um how much is the current uh order book and can you give uh clarity on the uh 27:49 27 minutes, 49 seconds composition of the same um you're talking about the order book 27:57 27 minutes, 57 seconds right? Auto yeah we are our forecast visibility I would say because we are all program based so 28:04 28 minutes, 4 seconds we don't call that as an order book because depends on the number of number of uh uh items they are going to 28:12 28 minutes, 12 seconds order for example so we are qualified either the we are the first vendor or second vendor in most of the program so I'll call it as a forecast visibility 28:21 28 minutes, 21 seconds based on that uh we have a currently around 3,300 300 3,400 pros as our forecast 28:31 28 minutes, 31 seconds visibility at this stage and uh we have enough to numbers to close for next year 28:37 28 minutes, 37 seconds comfortably as we planned and the uh as far as pipeline is concerned we have very robust pipeline. So we are 28:46 28 minutes, 46 seconds comfortable and uh basically in terms of growth uh areas it will continue to be defense as a number one growth area for 28:55 28 minutes, 55 seconds us and uh followed by ESI and aerospace will be moving more towards the manufacturing for the next year. So the 29:05 29 minutes, 5 seconds growth will be good uh robust but overall we'll be able to manage the growth we are talking about. So it will 29:11 29 minutes, 11 seconds be defense first ESI next and the uh aerospace that's how I see that. Okay. 29:17 29 minutes, 17 seconds Okay. And uh what sort of programs are you looking for uh to be part of in the future in in defense space especially? 29:26 29 minutes, 26 seconds See we are uh as we uh we are we don't want to call it as programs as we have a three-pronged approach. We are a very 29:34 29 minutes, 34 seconds different company in defense compared to my our competitors. We are the only companies we work on three activities. 29:40 29 minutes, 40 seconds One is on the DRSU site which is program based and MOD which is bid based. Okay. 29:48 29 minutes, 48 seconds And then there is a OEM based which is not program based it's offset based. So we are working on all the three and uh 29:55 29 minutes, 55 seconds our main focus is on the uh OEM offset based is going to be our main focus area for growth main driver for growth in the 30:04 30 minutes, 4 seconds future. And uh of course D is stable currently most of our revenue comes from DL that public things and uh item number 30:13 30 minutes, 13 seconds one but uh we were we are also looking at we have got some interesting bits going on RFP is going on with government of India and uh hopefully we should win 30:23 30 minutes, 23 seconds some of this and uh basically in all the three we have a very very good chance as I said and uh in DO we are baseline is 30:33 30 minutes, 33 seconds assured because for the growth it is assured because it's all long-term we have five year visibility in most of the programs so we are firmly on track so 30:41 30 minutes, 41 seconds other two yes we are negotiating on the item number three and item number two we need to see some of the bits are going to be 30:49 30 minutes, 49 seconds known by Q1 Q2 of next year okay thank you thank you 30:58 30 minutes, 58 seconds thank you we take the next question from the line of Deepak Podas from Safire Capital please proceed Am I audible sir? 31:09 31 minutes, 9 seconds Yes please. 31:10 31 minutes, 10 seconds Yeah um thank you very much sir for this uh opportunity. So just wanted to understand first up you mentioned about very robust pipelines. Can you quantify 31:19 31 minutes, 19 seconds it? What's the pipeline we are looking at in terms of order and what's your current order book? 31:25 31 minutes, 25 seconds Current order book I mentioned last question. Uh so you can take it from there and 3,400 3,400. 31:33 31 minutes, 33 seconds Yeah. Yeah. Yes. Okay. 31:35 31 minutes, 35 seconds So uh pipeline wise uh we are looking at around uh uh nearly moving to what is 31:43 31 minutes, 43 seconds the 14,000 14,000 uh our CTO confirms it is around 14,000 crores as of today the 31:49 31 minutes, 49 seconds pipeline and uh this includes the bits we are submitted and the uh contracts 31:57 31 minutes, 57 seconds relationships we are signing especially with foreign long-term visibility of all these things we are discussing 32:04 32 minutes, 4 seconds put together qualified pipeline which is being vetted and so on. I I want to again don't take it as a guidance or 32:13 32 minutes, 13 seconds anything. This is a pipeline there is a fair chance of converting this but currently uh we are very confident about this 32:21 32 minutes, 21 seconds pipeline and this is for a period of mixed four years. Okay. and and the general conversion ratio uh I mean what's the conversion ratio 32:29 32 minutes, 29 seconds with the as I said OEMs it has a pretty high conversion ratios because they're all like relationship based and uh as 32:36 32 minutes, 36 seconds the discussion closes we will 100% convert them government in the conversion rate will be 50% 32:45 32 minutes, 45 seconds because there will always be one strong competition because there are two winners there will be about four winners 32:52 32 minutes, 52 seconds in so we are 50% conversion ratio in uh uh in mod it is a roll of the dice it 33:00 33 minutes could go anywhere but uh we are working on some interesting programs and they are qualified uh overall I can say good 33:09 33 minutes, 9 seconds chance of 50 60% conversion overall overall overall okay and uh on on the margin front uh so what's the 33:17 33 minutes, 17 seconds differential we see uh between product solution versus service margins as we I mean embark on a journey towards 80% 33:26 33 minutes, 26 seconds kind of product solution and do we aspire I mean any aspiration we have over the medium-term I mean next five six years to reach 33:35 33 minutes, 35 seconds any aspirational bitter margins that we might have basically we see a degrowth in services keeps on declining in terms 33:44 33 minutes, 44 seconds of margin and uh we struggle to get 18.5% evida this year for the core 33:51 33 minutes, 51 seconds services and uh non core it is very poor solutions margin are going down uh products and solutions margins are 34:00 34 minutes increasing and uh they are hitting at uh for 30% 25 and above so move faster we 34:07 34 minutes, 7 seconds move from uh services to products and solutions we are better off as far as your questions concerned target next 34:14 34 minutes, 14 seconds year will be about 20%. 20% uh this year we'll be closing at 17% average but next year it will be 20%. 34:22 34 minutes, 22 seconds That is what we are aiming at 20% margin. Uh the following year will be much better. Okay. Right. 34:30 34 minutes, 30 seconds 20%. 34:32 34 minutes, 32 seconds Does that include your other income as well? 34:35 34 minutes, 35 seconds No it doesn't include the Noah does not include other income. 34:39 34 minutes, 39 seconds Okay. I know. So I was I was trying to understand more on the aspirational part. In next four, five years do we have aspiration to reach 25% or something on those? 34:47 34 minutes, 47 seconds Yeah. Yeah. Yeah. Of course. Of course. 34:48 34 minutes, 48 seconds Once we flipped the 8020, you made the math. It is average products and solutions are at 25 at this stage. It is 34:56 34 minutes, 56 seconds growing also. The margins in the products and solutions area are increasing. Uh there is a definitely 35:03 35 minutes, 3 seconds there is a good margin available in the products as compared to services. Okay. 35:08 35 minutes, 8 seconds So we are aspirational. Yes. we are at uh we are looking at the uh we want to be the among the top uh margin companies 35:16 35 minutes, 16 seconds in the country. So we are looking at 25 if we call it the aspirational but in order to achieve that we should have a 35:25 35 minutes, 25 seconds we should completely move to products and solutions okay understood and any esop we had of Mr. 35:34 35 minutes, 34 seconds It's just a data point. I mean I'm done. 35:37 35 minutes, 37 seconds Yeah. So, so the the the current P&L includes an iss going to pull up in the coming year because there's a lot more outlay which 35:45 35 minutes, 45 seconds is being planned for is so 5 crores in third quarter or or overall uh no for all the 9 months of the 35:51 35 minutes, 51 seconds current financial year lot of so operator there's a lot of disturbance in 36:00 36 minutes the background. Can we ask everybody ask everybody to mute please? All right sir. 36:09 36 minutes, 9 seconds And what was this uh number for third quarter? 36:13 36 minutes, 13 seconds No, we take a charge of around two or ths every quarter as I said you know we are currently finalizing a res of plan 36:22 36 minutes, 22 seconds for the senior leadership and that's going to get enhanced from next financial year which we will you know kind of say talk about uh no in the 36:30 36 minutes, 30 seconds first quarter of next year okay it will get enhanced in FI27 so what's the ESOP cost you're looking for FI27 36:38 36 minutes, 38 seconds you see as I said the the the ESOP list is still being finalized we do not want to to kind comment on that. Uh so we 36:46 36 minutes, 46 seconds will we will kind of I would say have a clarity on this in an exponentially a one. 36:49 36 minutes, 49 seconds Sure. Sure. Okay. Okay. Okay. I think uh that's very helpful sir. Wish you all the way. Thank you so much. 36:57 36 minutes, 57 seconds Thank you. 37:00 37 minutes Before we proceed with the next question, a request to the participants when the management is speaking, please mute your lines. 37:09 37 minutes, 9 seconds The next question is from the line of Nu Sha from Ambika Finap. Please proceed. 37:17 37 minutes, 17 seconds Uh uh congratulations sir on a very good set of numbers. I just have one question sir. Uh in last couple three weeks we 37:26 37 minutes, 26 seconds have uh done our two press on order wins on ESI. Can we just quantify the scope because right now the order wins is around one and a half to $2 million but 37:35 37 minutes, 35 seconds what is the scope eventually after three to four years down the line? I'm assuming this is just a pilot. 37:42 37 minutes, 42 seconds Yeah, this is a pilot. We are going to scale up for the products and that's are our new facilities we are going to use all our US customers apart from design 37:51 37 minutes, 51 seconds we are also going to deliver the box build. So there we are expecting the large order pipeline from them. Last week uh the one of the world's leading 37:59 37 minutes, 59 seconds company uh came visited us inspected the facility. So we are expecting uh this is 38:06 38 minutes, 6 seconds a pilot so we are increasing a multiffold increase in the uh once the facility is accepted certified etc. Uh 38:15 38 minutes, 15 seconds last week uh the trials and inspection went very well. 38:18 38 minutes, 18 seconds Yes. And uh so hopefully all our leading is customers they shown 38:25 38 minutes, 25 seconds interest there are number of customer visit have been planned February and March. Okay. 38:32 38 minutes, 32 seconds So these two uh sorry sir go ahead. Yeah, these two particular customers uh we are engaging 38:41 38 minutes, 41 seconds in a bigger way and I also had a meeting with one of the customers, one of the hyperscalers in US last week who showed 38:49 38 minutes, 49 seconds interest in diversifying and engaging with more activities with us and uh the facility is come out well and uh apart 38:58 38 minutes, 58 seconds from the acoustic lab we asked to set up the home uh uh kind of home automation kind of thing with multiple sensors such 39:06 39 minutes, 6 seconds has uh 5 mm of radon sensor fusion. A large lab that can test multiple sensors 39:13 39 minutes, 13 seconds for uh elderly living and home automation for a hyperscaler who is doing uh one of the companies which they 39:20 39 minutes, 20 seconds now bought which is more into the uh home and hospital but they make senses for that. So 39:28 39 minutes, 28 seconds basically I had a meeting. So it looks multiple way as you know the other guy was a phone manufacturer and they 39:35 39 minutes, 35 seconds visited and we are looking uh uh like a bigger engagement with all these things we can't quantify but it will be as I 39:42 39 minutes, 42 seconds said this uh whatever we got could be a tip of the iceberg and it could be much bigger in the coming days. Uh so but I 39:51 39 minutes, 51 seconds just want to keep you informed by the time we finish all this pilot and everything will take about 6 months to one year. Don't expect something great 39:58 39 minutes, 58 seconds happening in FI 27. Uh where the audit book will be there but 28 onwards the facility will start giving much more risks. Okay. 40:08 40 minutes, 8 seconds Uh but sir this would be more like a CDMO contracts right. So the margins will not be what we are doing right now at 24% it will be much lower right. 40:17 40 minutes, 17 seconds No no it's higher. uh for for example I'll tell you uh because in the testing 40:25 40 minutes, 25 seconds uh we are also making the flex sports and this particular one customer we are talking about uh has to change this device every year so we have to make 40:33 40 minutes, 33 seconds this device and give it to all the OEMs every all that manufacturers every year so it is year onear change so it's 40:41 40 minutes, 41 seconds recurring plus the margins are very very good as good as the defense margins are even more in uh certain cases 40:49 40 minutes, 49 seconds So we are looking at a fairly decent margins. Uh competition is not much and uh we are we are okay with this thing in 40:57 40 minutes, 57 seconds ESI and the defense will have similar margins. Uh so far we are at 25 26%. In fact is slightly higher than defense as far as we are in. Okay. 41:08 41 minutes, 8 seconds So we are at 26 76 26 and in 25 in defense at this stage but we hope 41:16 41 minutes, 16 seconds to improve that at the coming uh as we progress. Okay. 41:21 41 minutes, 21 seconds Fair enough sir. Great sir. Thank you so much for the opportunity and all the best for the future quarters. Thank you. Thanks. 41:29 41 minutes, 29 seconds Thank you. 41:31 41 minutes, 31 seconds We take the next question from the line of Pujen Sha from Molecule Ventures. Please proceed. 41:38 41 minutes, 38 seconds Uh hi sir, thanks for the opportunity. The first question pertains to the different segments. So we we are quite u bullish 41:46 41 minutes, 46 seconds [clears throat] on the segment called QRSM from our uh customer and we were expecting in Q4 that order will able to 41:55 41 minutes, 55 seconds inflow. So are we all glad? So what are you hearing from your key customer? Is it uh uh is it on time on track or it is 42:04 42 minutes, 4 seconds now bit delayed? Uh can you just give a sense about that? 42:09 42 minutes, 9 seconds Yes sir. K sam we are expecting anytime uh our order to be closed sir we are shortly anytime should come. 42:18 42 minutes, 18 seconds Got it. Got it. uh maybe two weeks within two weeks that's not it's okay 42:27 42 minutes, 27 seconds and understanding the hyper hello uh please go ahead yeah yeah yeah understanding the hypers scale we understand that right now the 42:36 42 minutes, 36 seconds the the amount is too too small but just wanted to understand the context in like in how 42:45 42 minutes, 45 seconds many years it were able to scale up from 1 million to Let's suppose uh to get a 42:52 42 minutes, 52 seconds certain amount of uh comfortable size we have been expecting from hyperscala. So I understand es might be a uh understand 43:01 43 minutes, 1 second the long time cycle and order overview but just wanted to understand your uh projections on hyperscaler and how we will evolve uh with this. 43:13 43 minutes, 13 seconds Um basically we are talking about uh currently two customers you might have guessed. Okay. And uh the the one one uh 43:23 43 minutes, 23 seconds which can grow up very well is uh because they are shifting all their manufacturing to India. They are India is becoming one of their largest 43:31 43 minutes, 31 seconds consumers. So there are multiple manuscript lines coming up and what we are doing is an important every station 43:38 43 minutes, 38 seconds of the product we are providing the test kits in every station which is to be uh changed every year. So currently we are doing for one or two items for one line. 43:51 43 minutes, 51 seconds So basically imagine that it goes into most of the lines and around the world. 43:57 43 minutes, 57 seconds So the numbers look good and but we need to prove lot of things to do that. If I we can go from current level to 100x or 44:05 44 minutes, 5 seconds 50x if we go do it right. Uh I don't want to speculate but at the same time it is uh it can go up. How big is up to 44:14 44 minutes, 14 seconds our capability and our this thing uh competition is less maybe two or three maybe one more person in 44:23 44 minutes, 23 seconds India and around the maximum three four around the world. So we need to see how we are doing. As far as other person is 44:30 44 minutes, 30 seconds concerned, I believe we are the going to be the exclusive person for uh uh labs. 44:37 44 minutes, 37 seconds One lab we are already getting ready. 44:40 44 minutes, 40 seconds Another lab is the growth in this slower but still uh we'll have good numbers there. Basically again we can say 10x 20x are possible in that. 44:51 44 minutes, 51 seconds Got it sir. And just a bookkeeping question is telling you the ste split between the product and service uh business for defense. 45:01 45 minutes, 1 second Uh currently defense is almost totally into products and solutions. Okay. 45:07 45 minutes, 7 seconds We have reduced the services very less currently in defense. Currently our services are only a very little portion 45:14 45 minutes, 14 seconds in ISA and almost aerospace full aerospace. But uh as he said uh defense 45:22 45 minutes, 22 seconds is almost totally converted into a uh so product and solutions. Okay. 45:29 45 minutes, 29 seconds Got it. Got it. Thank you so much. 45:35 45 minutes, 35 seconds Thank you. We take the next question from the line of Lohan Maha from FCCom family office. Please proceed. 45:48 45 minutes, 48 seconds I would request Mr. Rohan to unmute and then speak. Hello sir, am I audible? 45:56 45 minutes, 56 seconds Yeah, please. 45:58 45 minutes, 58 seconds Thank you for the opportunity. So could you give me an update on the potential divestment of the non-core business and are we on track for a resolution by March end? Yeah, very much on track. 46:10 46 minutes, 10 seconds Absolutely. And uh so I don't want to distinguish but uh I hope the timing will be maintained. We are very much on track. Okay. 46:22 46 minutes, 22 seconds We definitely by next uh investor call you should be able to share all the details. 46:30 46 minutes, 30 seconds Okay. Perfect. Perfect. Thank you so much. 46:33 46 minutes, 33 seconds That's all from Thank you. 46:38 46 minutes, 38 seconds We take the next question from the line of Mayor Par from Wealth Managers India Private Limited. Please proceed. 46:47 46 minutes, 47 seconds Uh good evening sir. Uh thank you for taking my questions and uh congratulations to the entire team for uh continuously delivering uh quarter 46:56 46 minutes, 56 seconds after quarter and sticking to the directional uh where we are going in terms of narrative in terms of numbers and in terms of capabilities and our 47:05 47 minutes, 5 seconds execution. So uh uh great uh yes uh great execution s I just had uh two 47:13 47 minutes, 13 seconds questions. One is uh you know one of our slides talk about the headcount uh uh breakup uh and in that uh is the 47:22 47 minutes, 22 seconds industrial breakup of around 30% is what we say as the engineering side is that uh because the core is 60 and support is 47:30 47 minutes, 30 seconds nine. Um so that yeah 30% is the non-core as we projected right we have roughly around yeah non-core 47:38 47 minutes, 38 seconds this will be part of the diverse I understand so sir if we understand we've been looking for over now three four quarters uh that number has 47:47 47 minutes, 47 seconds actually started to already gradually scale down uh substantially it looks like is it will it be a because even 47:56 47 minutes, 56 seconds one year before the numbers and now so while the core may have remain rising and Maybe we may maybe adding people but 48:02 48 minutes, 2 seconds on the non-core side is the numbers have already started to come down. Is the is it efficiencydriven or we have started to scale down there? 48:11 48 minutes, 11 seconds Yeah, we are not filling the attrition for sure and uh anyway we are uh kind of 48:18 48 minutes, 18 seconds uh because we are in the as I said we are in the phase of uh uh doing this uh 48:24 48 minutes, 24 seconds hiding this uh thing. So we are not uh we we are going little clear on the 48:31 48 minutes, 31 seconds manpower not adding or adding anything at this stage. So anyway as I said we'll give you a clearer uh picture by the 48:39 48 minutes, 39 seconds next investor call which should have been over by that time. Okay. It's a very important goal for us internally. 48:46 48 minutes, 46 seconds So so that we start the next year on a very good note. That's what is very important personally for me. this I kept 48:53 48 minutes, 53 seconds it as my target for this particular financial year. So hopefully we should be able to that. Okay. 49:01 49 minutes, 1 second Right. Right sir. So wish you all the best for that. So last question on um on the kick side for the benefit of every 49:09 49 minutes, 9 seconds all of us it's slightly because uh you know it's very difficult to understand because the segments are defense and aerospace and you know what we are doing 49:17 49 minutes, 17 seconds at the eveni. So on the new facility if you can help us understand the scale and the capabilities which access is 49:25 49 minutes, 25 seconds building uh over the next you know or 12 months to 18 months so that you know we can fully uh understand uh what what 49:32 49 minutes, 32 seconds we're trying to do under various segments in terms of radar or missile or you know in terms of aeros you know so just to reiterate maybe just 49:40 49 minutes, 40 seconds yeah I I got your point see we are doing three facilities as you know DAL which is definely a lab then which is definely 49:48 49 minutes, 48 seconds a complex. Then there is MAC missile armanar complex. In this last one, missile armanar complex 8 acres we got the land. We are building the facility. 49:59 49 minutes, 59 seconds It will be tailored for all missile electronics and integration. Electronics means all the foreign OEM electronics we 50:07 50 minutes, 7 seconds are trying to build. This will include see onboard electronics uh then data 50:14 50 minutes, 14 seconds links for the missiles etc. And we are going to do it in collaboration with uh some world mages and uh also we'll do 50:22 50 minutes, 22 seconds for indigenous missiles. We are working on certain programs and this will be uh complete facility. This will be in two parts. One will cater only to foreign OM 50:31 50 minutes, 31 seconds only for India. It will have fairly good capabilities for missile integration mostly completely for missile 50:38 50 minutes, 38 seconds electronics. Okay. And it will be a cold assembly facility without the rocket motor or final ammunitions etc. It'll be 50:47 50 minutes, 47 seconds doing the final cold assembly facilities. If it is integrated it will take about 2 years time but it will be one of the finest facilities outside the 50:54 50 minutes, 54 seconds public sector once it is ready. It's very unique and that is what we are trying to do in uh Hyderabad. So that is 51:02 51 minutes, 2 seconds finest and largest will it finest and largest? 51:04 51 minutes, 4 seconds I I would say both both I would say both. Uh so far at at this point of time as we speak uh the definitely in the 51:13 51 minutes, 13 seconds segment we are operating will be the things we'll be addressing all the aircraft based missiles and so on. So I 51:22 51 minutes, 22 seconds think we are on a good target about that. Okay. and the art surface area kind of basically that will be our main 51:29 51 minutes, 29 seconds main focus on the hydro block facility and as far as uh Bangalore is concerned it is uh for about two to three 51:37 51 minutes, 37 seconds activities mainly radar we want to have a one of the best radar facilities again this is on a three-pronged approach one 51:45 51 minutes, 45 seconds is to build our own large radars integration for uh large radars which is 51:52 51 minutes, 52 seconds both airborne as well as ground radars to build it. So we are probably building arguably one of the biggest radar facility in India in the terms of height 52:01 52 minutes, 1 second and capacity etc. So it can go up to 60 ft or whatever it is with all the necessary hangers etc. This will also 52:09 52 minutes, 9 seconds cater to the maintenance of the radars because India has lot of radars which is very old 30 years 40 years. We are 52:16 52 minutes, 16 seconds looking at the retrofitting and maintenance of all the old radars and so on. So that is another second thing and 52:25 52 minutes, 25 seconds third is uh performance-based logistics and support for foreign foreign radars. 52:31 52 minutes, 31 seconds So that is also there. So this uh this is specific facility mostly catering to the radar and the other part will be 52:39 52 minutes, 39 seconds aerospace manufacturing mostly into tooling and certain parts and final inspection supply chain management etc. 52:46 52 minutes, 46 seconds that is on the second part of the attack facility. So you have radars you have aerospace. Third one is simulators and 52:53 52 minutes, 53 seconds mostly for the aircraft simulators we are trying to work with uh uh the world leaders like Indra where we are trying 53:01 53 minutes, 1 second to get mostly for the defense aircraft simulators. So those simulators will be manufactured and they will be supported in India. As you know we already done a 53:10 53 minutes, 10 seconds very successful implementation of DH simulator and uh it has been running very successfully in in air force and 53:18 53 minutes, 18 seconds possibly we will get probably a repeat or others and more simulators are expected. So that will be these are the three activities we will core activities 53:26 53 minutes, 26 seconds will be taken up in the US. As far as DAL is concerned, it's purely for ESI 53:32 53 minutes, 32 seconds mostly for ESI and uh and certain system integration activities where we are building the acoustic lab, we are 53:39 53 minutes, 39 seconds building the laser lab, we are building IR infrared, somebody asked about infrared seekers. So we are not only building for infrared seekers but also 53:48 53 minutes, 48 seconds we are looking at infrared uh counter measures basically. So it will 53:54 53 minutes, 54 seconds be a laser IR uh the acoustics and then uh MMA radar kind of small uh the sensor fusion all these things will be covered. 54:05 54 minutes, 5 seconds This is targeting a DAI and certain level of design activities. So with this we will probably arguably have in 54:12 54 minutes, 12 seconds private sector the most comprehensive R&D and support and manufacturing facility for these items in India. That's our goal. 54:23 54 minutes, 23 seconds We should be definitely the first choice outside public sector for all these products. That's our goal and we hope to achieve that in the next 12 to 24. Okay. 54:34 54 minutes, 34 seconds Great. Great sir. Wish you all the best. Thank you for a detail. Thank you. Thank you. 54:42 54 minutes, 42 seconds Thank you. 54:45 54 minutes, 45 seconds We take the next question from the line of Jatan Jada from Sahra Capital. Please proceed. Uh thank you for the opportunity again. 54:53 54 minutes, 53 seconds Um most of my questions have been answered but s regarding the missile facility you mentioned. Um it's very interesting that you mentioned that 55:02 55 minutes, 2 seconds you'll be catering to all types of missiles which are used on the aircraft. 55:07 55 minutes, 7 seconds So uh just for a further understanding what what kind of work will be will we be doing on these missiles? Will we be 55:15 55 minutes, 15 seconds upgrading them, testing them, maintaining them? Uh could you throw a little bit more light on that please? 55:21 55 minutes, 21 seconds Uh see testing is going to be done in Bangalore only. Uh we are looking at uh as you know government is very keen that 55:30 55 minutes, 30 seconds all the future missiles to be made in India. Now they are mandating from effective in 2025 26 post operation the 55:38 55 minutes, 38 seconds missiles have to be made in India most of the missiles. So they are going to reduce the dependency of foreign imports 55:46 55 minutes, 46 seconds even if it is foreign aircraft. The armaments slowly have to be made in India. So we are looking that first of 55:54 55 minutes, 54 seconds all as you know that uh just I'm giving you an example of number of foreign aircraft you'll be knowing there are 128 56:01 56 minutes, 1 second jaguars there are nearly about uh 36 + 29 assas there are about 50 garages and 56:09 56 minutes, 9 seconds uh there are going to be 287 that is sorry it is going to be light combat helicopters which is going to be 56:17 56 minutes, 17 seconds there made by all of them are requiring missiles at this stage And all of them are planning to use foreign missiles at 56:25 56 minutes, 25 seconds this stage on already using and uh so of course and these foreign missiles will be slowly replaced by Indian 56:34 56 minutes, 34 seconds missiles of the same type same type maybe same volume will supply to those things but completely made in India. So 56:42 56 minutes, 42 seconds that's a plan government of India has an ambitious plan and uh we are dying to be part of it. That's what we can say at 56:49 56 minutes, 49 seconds this stage we are doing everything in our this listing to get a small piece of action in this that's the whole theory 56:55 56 minutes, 55 seconds about this uh pack okay so I would say that and it is not about maintenance it 57:03 57 minutes, 3 seconds will be uh the upgrades and uh data links those kind of things will be there we say maintenance per se will be done 57:12 57 minutes, 12 seconds in uh value maintenance test equipments etc will be done but this will be more of new missiles or as you know missile 57:20 57 minutes, 20 seconds shelf life is about 10 years and the maximum six to 10 years so they keep on replenishing the missiles so that's what 57:28 57 minutes, 28 seconds we are targeting all right sir u my last question was on the mission computer Mr. Zatan, 57:37 57 minutes, 37 seconds I would request you to join back the queue as there are several participants waiting for. Thank you. 57:45 57 minutes, 45 seconds Thank you. 57:47 57 minutes, 47 seconds Before we proceed with the next question, a request to the participant, please limit your question to two per participant. 57:55 57 minutes, 55 seconds Take the next question from the line of J. Johan from three asset managers. Please proceed. 58:03 58 minutes, 3 seconds Good evening and thank you for the opportunity. I'm audible. Yes, you are. 58:08 58 minutes, 8 seconds Please um I just had a few questions on the Q1 F26 call management guided that FI26 58:16 58 minutes, 16 seconds core domain order book itself was around 1,2 cr with no major dependencies on execution and I you know as we have 58:24 58 minutes, 24 seconds reached 9 month FI26 and we have executed about 690 cr implying roughly 570 cr still pending. I just wanted a clarification on how much of this 58:32 58 minutes, 32 seconds remaining 570 cr is scheduled for execution in Q4 FI26 and uh which major defense aerospace and ESI programs 58:40 58 minutes, 40 seconds constitute you know this remaining FI26 executable order book. 58:45 58 minutes, 45 seconds Uh we are uh uh finally the numbers we are going to execute uh out of this 1260 58:53 58 minutes, 53 seconds we may end up uh executing remaining about 300 crores right now uh because uh the remaining uh 200 uh facility 59:03 59 minutes, 3 seconds dependence is there so we are pushing it to the next year but this is more than enough to meet our target numbers as you know uh probably we'll cross 1,000 59:12 59 minutes, 12 seconds crores in uh go if I do this approximately more than,50 that is our target which is compared to last year's 59:20 59 minutes, 20 seconds uh 750 it'll be still be 40 plus% increase uh so we are carrying forward 59:26 59 minutes, 26 seconds the left out to the next year so that's what uh you are guessing is as far as EI 59:34 59 minutes, 34 seconds the majority of this is uh defense and the aerospace will be completing almost most of the order book this year uh and 59:42 59 minutes, 42 seconds the ESI is the one which we are pushing for the next year also because the facilities are yet to be fully functional and certified. So to answer 59:51 59 minutes, 51 seconds you out of 1260 we are moving around 200 to the F27 and keeping that 10 59:58 59 minutes, 58 seconds approximately 1060 to be completed this year. So that is uh compared to last year 750 that will be a 40% plus 1:00:07 1 hour, 7 seconds increase in the core activities. Okay. S and which major you know programs 1:00:16 1 hour, 16 seconds constitute this remaining order book for defense and uh we have answered many times this whole 1:00:23 1 hour, 23 seconds thing. So I just want to go back as we are in almost all the major programs today uh both in aircraft and missiles we are 1:00:32 1 hour, 32 seconds targeting that and of course uh as I said we have a three-prong approach we are not only program to protect we are also doing some of the mod work and we 1:00:40 1 hour, 40 seconds are also looking at foreign mediums so yeah understood sir and uh also you guided 1:00:48 1 hour, 48 seconds for approximately 1,800 order book and visibility for fi 27 in core domains Um I just wanted to understand the source 1:00:55 1 hour, 55 seconds of this visibility like specifically just to assume that large part of F527 visibility is OEM led and long-term 1:01:02 1 hour, 1 minute, 2 seconds programs because I think uh as for my understanding MOD and DPS PSUS orders are more uh lumpy and you don't have 1:01:11 1 hour, 1 minute, 11 seconds long-term visibility for the same right uh yeah you are right and uh as far as uh next year is concerned again our 1:01:18 1 hour, 1 minute, 18 seconds target is about 40 45% growth in the core area so we are looking completion of you know that now I we discussed 1:01:26 1 hour, 1 minute, 26 seconds about the current uh score of uh uh 10,50 or something like that so you add about 40% to that that's what we want to 1:01:34 1 hour, 1 minute, 34 seconds execute the in the next year as far as score is concerned we are on target for that and that should be anything else will be again facility dependent and 1:01:43 1 hour, 1 minute, 43 seconds challen the following year and that will be covered in our uh initial projections detail on 39 growth so we are on track 1:01:51 1 hour, 1 minute, 51 seconds for that and uh as far as breakup is concerned uh uh in the defense side will be now we the foreign volumes will start 1:02:00 1 hour, 2 minutes kicking in uh in a good way in the next uh for the next financial year much more than this year and programs will 1:02:07 1 hour, 2 minutes, 7 seconds continue lot of programs are maturing and we are expecting couple of wins in the next one month and uh going forward 1:02:14 1 hour, 2 minutes, 14 seconds for the next this thing and uh very interesting wins we are having in the next one month almost the signing stage 1:02:22 1 hour, 2 minutes, 22 seconds And uh so we are looking at about 400 course within the next one month and for going forward for the program side and 1:02:30 1 hour, 2 minutes, 30 seconds uh mod we cannot predict anything. It is again as I said roller jice but we are working on uh between you and us we have 1:02:40 1 hour, 2 minutes, 40 seconds working with the world's largest AI company or one of the most prestigious AI company for bidding uh some of the AI 1:02:49 1 hour, 2 minutes, 49 seconds based uh uh complete uh uh drone management systems and fleet the 1:02:57 1 hour, 2 minutes, 57 seconds whatever you call it as so that is one thing which is big upcoming in a big way unbanned on uh so can you explain Babu 1:03:05 1 hour, 3 minutes, 5 seconds about this and this is something which we are focusing as far as MOD is concerned I don't want to reveal much but we are working with the number one 1:03:13 1 hour, 3 minutes, 13 seconds company in the world and we have a partnership with them so hopefully that materializes or the paradigm shift will 1:03:20 1 hour, 3 minutes, 20 seconds be there in our whole area because these each orders are big multi,000 cr orders so I don't want to put this as a 1:03:27 1 hour, 3 minutes, 27 seconds excitement or anything we have to keep our fingers crossed but defense is more focused towards it. Babu, can you just throw some light on what exactly the 1:03:36 1 hour, 3 minutes, 36 seconds type of protons? This is a future. This is a unmanned combat system. So, we will be uh we are working with the biggest OM 1:03:44 1 hour, 3 minutes, 44 seconds uh to implement the the autopilot and also uh to uh to entirely have the the war the mission planning system and also 1:03:52 1 hour, 3 minutes, 52 seconds the combat uh uh combat facilities on board the aircraft. So, this is a large program, one of the large program 1:04:00 1 hour, 4 minutes largest programs. So we are actively participating in this and also there are many more on a similar lines uh both with the automated autopilot and also with uh the munitions enabled on this. 1:04:12 1 hour, 4 minutes, 12 seconds These are all our activities. These are the first time a so that is going to be our big focus AIdriven and uh all the 1:04:19 1 hour, 4 minutes, 19 seconds intelligent combat systems unmanned intelligent combat systems that is the focus and we are sly we have a very for 1:04:26 1 hour, 4 minutes, 26 seconds good partnership and uh uh so but as I said see these are like you can treat the chances of 10% or something like 1:04:35 1 hour, 4 minutes, 35 seconds that I don't want to give too much of excitement because these orders are very very big and uh as I said control of the 1:04:43 1 hour, 4 minutes, 43 seconds D orderer but we have one thing going for us is the partnership we have probably the best in the world okay and 1:04:50 1 hour, 4 minutes, 50 seconds more than best it's the most proven in the world okay and uh and uh we have a partnership with a US company which is 1:04:59 1 hour, 4 minutes, 59 seconds proven uh battle proven and uh probably the arguably the leader in the combat systems okay and okay so I I just don't 1:05:07 1 hour, 5 minutes, 7 seconds want to so this is our uh road map going future as far as the mode is concerned OM is signed that going to be that's 1:05:14 1 hour, 5 minutes, 14 seconds going to be very good and as far as uh uh programs are concerned happening it's all happening and uh as he said money 1:05:22 1 hour, 5 minutes, 22 seconds next to me is our president uh he's confirming that he's expecting about 400 crores the next one month new orders for 1:05:30 1 hour, 5 minutes, 30 seconds new programs okay so that's it thank you understood understood and sir one last question 1:05:39 1 hour, 5 minutes, 39 seconds one last question just an update. So basically manager mentioned that the Takan development for Indra was completed and customer 1:05:48 1 hour, 5 minutes, 48 seconds approved there's a production order you know expected shortly and I just wanted to uh understand the current status of 1:05:54 1 hour, 5 minutes, 54 seconds that that taken madness. Yes. 1:06:02 1 hour, 6 minutes, 2 seconds Stand in Indra. 1:06:03 1 hour, 6 minutes, 3 seconds Yes, exactly. Well, you know, we signed a MOU in Indra to be the preferred partner in India programs. Aan it's 1:06:12 1 hour, 6 minutes, 12 seconds already almost finished the deal. We are closing the paperwork now and we will announce very soon. You know, it's in 1:06:20 1 hour, 6 minutes, 20 seconds partnership between Indra and Centum and us and uh and the agreement is is is full now. We will give some details in 1:06:28 1 hour, 6 minutes, 28 seconds the coming days. You know this is uh but just I want to mention that this is just the first of a very big pipeline of 1:06:35 1 hour, 6 minutes, 35 seconds joint opportunities between Indra and um and Axis Galades. You know this is in line with the Spain Indra Spain India 1:06:45 1 hour, 6 minutes, 45 seconds relationships that are flourishing. You know that next week president of Spain is visiting Modi strengthening ties on 1:06:53 1 hour, 6 minutes, 53 seconds the defense program and Indra is the leading defense company in in my country. it comes to be. So the relationship is excellent. This is the 1:07:01 1 hour, 7 minutes, 1 second first project and we have a huge pipeline of opportunities with them. Okay. Does it answer your question? Okay. 1:07:08 1 hour, 7 minutes, 8 seconds Understood sir. But I think you mentioned that the development was complete. Uh what led to this deferment? 1:07:14 1 hour, 7 minutes, 14 seconds No no the development is undergoing now we are doing is in the development and research and uh and the program I cannot 1:07:22 1 hour, 7 minutes, 22 seconds give you more details on the program confidential but now the initial phase now is is development the we are taking not only the role for manufacturing we 1:07:31 1 hour, 7 minutes, 31 seconds are the developers of the of part of the ton system and uh in very close cooperation and very good partnership with Indra thank you Dr. 1:07:47 1 hour, 7 minutes, 47 seconds Sumit uh with this we yeah with this we come to the end of the you know the earnest call for the Q3 and 9 1:07:56 1 hour, 7 minutes, 56 seconds months of the current financial year. We thank all the participants uh our investors and other stakeholders who are on the call. uh any queries which you 1:08:04 1 hour, 8 minutes, 4 seconds may have at least direct us uh direct this the queries at our investor relations uh know say person and he will answer that and I will also invite all of you to 1:08:13 1 hour, 8 minutes, 13 seconds come to Bangalore visit our facilities we'll have oneonone open house anytime you want please let us know we'll be very very happy to host you and answer 1:08:22 1 hour, 8 minutes, 22 seconds the question in thank you thank 1:08:35 1 hour, 8 minutes, 35 seconds And that's it. 1:08:40 1 hour, 8 minutes, 40 seconds Thank you. On behalf of Access Gates Technologies Limited, that concludes this conference. Thank you for joining 1:08:48 1 hour, 8 minutes, 48 seconds us and you may now disconnect your lines.