Azad Engineering Ltd — Q3 FY26

Azad Engineering Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=S1we1gYsgwg Published: 2 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Azad Engineering Limited Q3 0:07 7 seconds FI26 earnings conference call. As a reminder, all participant lines will be in the listenon only mode and there will 0:15 15 seconds be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please 0:24 24 seconds signal an operator by pressing star then zero on on your Touchstone phone. Please note that this conference is being 0:33 33 seconds recorded. Before we begin, a brief disclaimer. This conference call may contain forward-looking statements about the company which are based on the 0:42 42 seconds beliefs, opinions, and expectations of the company as on date of this call. 0:47 47 seconds These statements are not the guarantees of future performance and it may involve risk and uncertainties that are difficult to predict. I now hand the 0:56 56 seconds conference over to Mr. Rakkesh Choptar, Chief Executive Officer and Chairman. Thank you and over to you sir. 1:05 1 minute, 5 seconds Thank you. Good morning everyone and thank you for joining us for the Q3 and 1:11 1 minute, 11 seconds 9month FI26 earnings call. I'm Rakkesh Shobda, chairman and CEO of Azad 1:18 1 minute, 18 seconds Engineering Limited. On the call with me today are Mr. Mishu Walpani, fulltime director and Mr. Ronak Jaju, our CFO. 1:27 1 minute, 27 seconds The results and investor presentations have been uploaded on the stock exchange and the company website. I hope everyone has had the opportunity to review them. 1:39 1 minute, 39 seconds Let me begin by saying that this quarter reflects discipline execution across all fronts. Revenue growth margin, 1:47 1 minute, 47 seconds stability, new customer onboarding, contract expansion and steady progress on our capacity creation road map. 1:56 1 minute, 56 seconds Let me talk about the performance overview for Q3 FI26. We reported revenue of 2:03 2 minutes, 3 seconds 155.8 8 crores registering growth of over 31% yearonear. 2:10 2 minutes, 10 seconds Eida for the quarter stood at 60.1 crores registering growth of over 40.7% year on year. 2:18 2 minutes, 18 seconds Profit after tax was 34 crores registering growth of over 40.1% year on year. 2:26 2 minutes, 26 seconds Despite expansion related costs and ongoing ramp activities, margin remain 2:33 2 minutes, 33 seconds strong and stable. This reflects operating discipline, product strength and execution consistency. 2:42 2 minutes, 42 seconds For 9 month FI26 revenue has grown nearly 32% yearonear and pat have shown significant growth 2:51 2 minutes, 51 seconds over last year. Importantly, our 9th month profitability has already exceeded the full year of FI25 level. 3:01 3 minutes, 1 second This demonstrates the structural strength of our business model. 3:06 3 minutes, 6 seconds Our focus continues to remain on profit growth. We are not chasing scale at the cost of margins. Every growth initiative 3:15 3 minutes, 15 seconds is aligned with long-term sustainability and value creation. Autobook and customer engagement. 3:23 3 minutes, 23 seconds Autobook remains strong at over 6,500 crores plus providing multi-year revenue visibility. 3:32 3 minutes, 32 seconds Since listing, we have consistently grown our order book quarter after quarter. This reflects increasing trust 3:39 3 minutes, 39 seconds from global OEMs and the expansion of wallet share across both new and existing customers. 3:46 3 minutes, 46 seconds A key highlight this quarter is our engagement in contract progression with Saffron and Flatten Whitney for highly 3:54 3 minutes, 54 seconds engineered critical rotating aerospace components. 3:58 3 minutes, 58 seconds These partnerships are built over years of engineering validation, qualification and performance consistency. 4:06 4 minutes, 6 seconds They represent high entry barriers and deep integration stickiness into customer programs. 4:14 4 minutes, 14 seconds Energy and oil and gas continue to contribute the majority of revenues. At the same time, aerospace and defense is steadily increasing its share and will 4:22 4 minutes, 22 seconds play an increasingly important role over the medium term in creating a well diversified business mix 4:31 4 minutes, 31 seconds on the capacity expansion. As we have stated in previous calls, FI26 is a year of stabilization. 4:40 4 minutes, 40 seconds The new plants dedicated to G Mitsubishi Seammen's programs have been capitalized. 4:46 4 minutes, 46 seconds Each plant is currently at a different stage and under stabilization. 4:52 4 minutes, 52 seconds Qualification of both facility and products while scheduling the customer demand. 4:58 4 minutes, 58 seconds It is important to understand that stabilization in our industry is not immediate. 5:04 5 minutes, 4 seconds Aerospace and energy components require stringent validation, certification and customer audits before full capacity utilization is achieved. 5:14 5 minutes, 14 seconds We expect stable operating levels by FI27 and maximum utilization starts by FI28. 5:25 5 minutes, 25 seconds The capacity we are creating is substantial. 5:29 5 minutes, 29 seconds These are not incremental expansions. We are building multiffold scalable infrastructure designed to support long-term growth visibility already secured through firm contracts. 5:42 5 minutes, 42 seconds Managing uh managing simultaneous constructions, equipment commissioning, workforce training, certifications and deliveries 5:51 5 minutes, 51 seconds is complex. However, our team have executed this phase with discipline and focus 5:59 5 minutes, 59 seconds on the growth outlook. uh based on plant readiness, secured order book and customer demand visibility, we remain 6:07 6 minutes, 7 seconds confident of achieving 25% plus revenue growth over the coming years. 6:14 6 minutes, 14 seconds FI26 remains a transition year where stabilization efforts continue. 6:21 6 minutes, 21 seconds The larger operating leverage benefits will be more visible from FI27 onwards as capacity utilization improves. 6:30 6 minutes, 30 seconds We are building capacity against firm contracts and long cycle programs. 6:35 6 minutes, 35 seconds There is no speculative expansion. With that, I will now invite Mr. 6:43 6 minutes, 43 seconds Mishnuani to provide operational insights. Thank you. 6:51 6 minutes, 51 seconds Thank you chairman uh for a insightful discussion on the quarter results. Now 6:59 6 minutes, 59 seconds I'm Vishnu Malpani, whole time director of Aad Engineering. I will take you through some additional information of our operational uh performance this 7:08 7 minutes, 8 seconds quarter. From an operational perspective, Q3 and the 9month period have been about disciplined execution like chairman mentioned and structured 7:16 7 minutes, 16 seconds ramp up. This also this quarter also represents our highest ever quarterly and nine monthly performance. We've 7:24 7 minutes, 24 seconds delivered revenue growth across all our business segments. During this quarter, our operational efforts have been focused on strengthening execution and discipline across the organization. 7:35 7 minutes, 35 seconds We have continued to embed lean principles into our newly built facilities. These manufacturing facilities that have been designed have 7:43 7 minutes, 43 seconds been designed with absolute precision around workflow based layouts, monitoring systems and world-class 7:52 7 minutes, 52 seconds infrastructure. As our volumes build and operating leverage comes in, we will improve through natural fixed cost absorption and cycle time optimization. 8:01 8 minutes, 1 second At the same time, we are also strengthening our supply chain reliability. 8:06 8 minutes, 6 seconds We are seeking customer approvals and progressively improving our domestic sourcing to improve agility and reduce our lead times also helping us manage 8:15 8 minutes, 15 seconds our working capital better. However, all such initiatives remain fully aligned with OEM qualification requirements, 8:23 8 minutes, 23 seconds traceability, compliance and quality integrity remain non-negotiable. 8:28 8 minutes, 28 seconds Equally important has been for us to build capability. Scaling infrastructure without scaling human resource or people is unsustainable. 8:37 8 minutes, 37 seconds We've added in this financial year skilled engineers, machinists, quality professionals across the organizations 8:45 8 minutes, 45 seconds across levels and training still remains an important part of our entire employee journey. Aerospace and energy 8:53 8 minutes, 53 seconds manufacturing demand, repeatability, documentation, discipline and order readiness. Operational capability is 9:01 9 minutes, 1 second therefore a structural investment and not a tactical one. From an operational standpoint, FI26 remains a year of 9:08 9 minutes, 8 seconds calibrated ramp up. Stabilization will continue through the year and by FI27, we expect these facilities to start 9:16 9 minutes, 16 seconds operating at stable levels enabling stronger operating leverage. 9:21 9 minutes, 21 seconds Our approach remains measured. We're scaling against firm contracts, long-term revenue visibility. We are 9:28 9 minutes, 28 seconds maintaining quality leadership in ensuring that our growth is both disciplined and sustainable. With this, 9:35 9 minutes, 35 seconds I will now hand over the call to Mr. Ron Jaju, our chief financial officer to give us a quick overview on financials. 9:43 9 minutes, 43 seconds Thank you. Over to you, Ron. Thank you, Vishnu. 9:49 9 minutes, 49 seconds From a financial standpoint, quarter 3 and 926 reflect both strong growth 9:56 9 minutes, 56 seconds momentum and margin stability even as we continue to execute one of the largest capacity expansion in the history of the 10:04 10 minutes, 4 seconds company. Let me walk you through the key highlights of the results. For quarter 3 10:10 10 minutes, 10 seconds FI26, revenue stood at 155.8 8 cr reflecting over 31% year-on-year growth 10:19 10 minutes, 19 seconds for the 9month period. Revenue growth remain close to 32% supported by the strong execution across energy programs 10:28 10 minutes, 28 seconds and steady scaling within the aerospace segment. Importantly this growth is broad-based. 10:35 10 minutes, 35 seconds It is not dependent on single customer geography or a segment. That diversification provide resilience and visibility. 10:45 10 minutes, 45 seconds Abita for quarter 3 was 60.1 cr. On a sequential basis, this represent growth 10:52 10 minutes, 52 seconds of approximately 16.9% and for the 9month period, AIA has grown by approximately 38.4% yearon-year 11:00 11 minutes basis. Despite the initial ramp up cost associated with the new facility and higher depreciation from recent 11:07 11 minutes, 7 seconds capitalization of assets, margins have remained stable. This stability reflect a combination of improved product mix, 11:16 11 minutes, 16 seconds rising discipline across long-term contracts and better absorptions of the fixed overhead and ongoing supply chain optimizations. 11:24 11 minutes, 24 seconds As utilization level improve from FI27 onward, we remain confident our long-term AITA margins profile is in 11:32 11 minutes, 32 seconds range of 33 to 35% is sustainable over a longish period of time. Profit after tax for quarter 3 is stood at 34 crores 11:41 11 minutes, 41 seconds reflecting strong year and year of growth. For 9 month 26, PAT has grown by 11:48 11 minutes, 48 seconds 55% yearon-year basis significantly outface revenue growth. This is primaryly driven by operating leverage, 11:57 11 minutes, 57 seconds stable margin and interest income from fixed deposit of QIP proceeds. Notably, our 9-mon profitability has already 12:05 12 minutes, 5 seconds exceeded fullear FI25 level as CMN as explained. This enforce the scalability 12:12 12 minutes, 12 seconds of our operating platform from a capital allocation perspective. 12:17 12 minutes, 17 seconds Capital deployment continue in line with our expansion road map. Every major in investment is directly linked to the 12:24 12 minutes, 24 seconds secured order visibility and long cycle pro customer programs. We are not building speculative or idle capacity. 12:33 12 minutes, 33 seconds Each facility has defined demand backing it. 12:38 12 minutes, 38 seconds At the same time, we remain financially disciplined. Balance sheet prudence remain a priority even as we support 12:45 12 minutes, 45 seconds long-term growth. Given the strength of our order book, plant readiness, progressive stabilization and stable 12:52 12 minutes, 52 seconds margin structure, we remain confident in delivering 25% plus revenue growth over the coming years with a sustainable 13:00 13 minutes margin in range of 33 to 35% at a levels. Our financial approach remain conservative in planning while enabling 13:09 13 minutes, 9 seconds ambitious and disciplined operational executions. Thank you. Now floor is open for question and answers. 13:17 13 minutes, 17 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please 13:26 13 minutes, 26 seconds press star and one on your touchstone telephone. If you wish to remove yourself from the question queue, you 13:33 13 minutes, 33 seconds may press star and two. Participants are requested to use handsets while asking a 13:39 13 minutes, 39 seconds question. Ladies and gentlemen, we'll wait for a moment while the question Q assembles. 13:52 13 minutes, 52 seconds The first question is from the line of Vikas Singh from ICICI securities. Please go ahead. 14:00 14 minutes Good morning sir and congratulation on a very good set of numbers. So my first question pertains to our next four sheds 14:08 14 minutes, 8 seconds which we are under commissioning. Could you give us the timeline and uh is there any more dedicated shed which we have 14:16 14 minutes, 16 seconds already tied up with any OEMs at this point of time? Yeah. So uh thank you for the question. 14:23 14 minutes, 23 seconds Um look the the facilities which are already inaugurated right? So that that that when we say it's inaugurated, so 14:30 14 minutes, 30 seconds the building is up, machines are in and it's ready to you know uh start the uh the production wise. But h as I 14:39 14 minutes, 39 seconds mentioned uh before we even start the production though uh uh like we were doing in our existing facility here and 14:46 14 minutes, 46 seconds the new facility requires a lot of u uh you know the audits if they have to reordit the facility uh you know there's 14:53 14 minutes, 53 seconds certifications the validations that that took that will take some time and as we finished with you know with G Mitsubishi 15:00 15 minutes and semens we have we have we are in progress and almost we are in the finishing stage so as we finish the validations we start the production. So 15:08 15 minutes, 8 seconds not all the floor happens together. So it goes with few machines and few product line and once they are approved then the production starts. So I that's 15:17 15 minutes, 17 seconds what we mentioned like it will be done by you know FI26 stabilization and FI27 we can see that we can start the the 15:25 15 minutes, 25 seconds operating stable we can we can stabilize the operations and maximization start by FI28. 15:32 15 minutes, 32 seconds So it's a process it's a process that we all have to follow. 15:37 15 minutes, 37 seconds Yeah, noted sir. So, so second question pertains to now we have tied up with saffron and there is a huge possibility 15:44 15 minutes, 44 seconds of that Indian manufacturing ecosystem for Rafael to get developed in India. Uh how do we see our you know wallet size 15:54 15 minutes, 54 seconds with them? Is there any clear idea you which you can give and uh 16:01 16 minutes, 1 second effectively given our capacity constraints the main hurdle for the higher growth can do we expecting to now 16:10 16 minutes, 10 seconds go for that 75,000 square ft third facility simultaneously how should we look at your growth plans from here 16:18 16 minutes, 18 seconds onwards now yeah if you speak if you talk specially about saffron uh just to remind do any of the OEMs which Azad is working today 16:28 16 minutes, 28 seconds it's not on the offset policy we work with them we are a global supplier right so if if Saffran or G or Bitsubishi or 16:37 16 minutes, 37 seconds any OEM are giving business to Azad that's not under uh obligation of the offset policy we are a global supplier 16:46 16 minutes, 46 seconds so whatever requirement comes in it goes to the global global benchmark right so we we will not know which country is 16:53 16 minutes, 53 seconds using our product line in which which uh country they are selling their engines. 16:57 16 minutes, 57 seconds However, now Saffron coming to India that gives an additional boost to Azad you know companies like Azad where we 17:04 17 minutes, 4 seconds have extra benefits coming in. So Azad is playing global as well as will benefit from the obligations what Saffron must be having of you know uh 17:12 17 minutes, 12 seconds doing business in India with the the the domestic suppliers you know. So this is a nothing but a bonus. 17:21 17 minutes, 21 seconds So that way I would clarify Azabad is just not a domestic supply. It's also a global supplier. 17:29 17 minutes, 29 seconds Noted sir and sir lastly on the development of that small engine which you were doing any update on the same? 17:37 17 minutes, 37 seconds Yeah that's that's still under progress. 17:39 17 minutes, 39 seconds Uh we have finished I think uh a good progress we are around 70 75%. We are as you ask me the progress scale we are 17:47 17 minutes, 47 seconds around 75% on that and by when you can expect the 100%. 17:54 17 minutes, 54 seconds We we are planning very soon I mean couple of months I think we should be able to uh be positioned to deliver the 18:01 18 minutes, 1 second engine notice thank you and congratulation every once again for very good set of numbers. 18:09 18 minutes, 9 seconds Thank you. 18:11 18 minutes, 11 seconds Thank you sir. The next question is from the line of Amit Digshit from Goldman Sachs. Please go ahead. 18:20 18 minutes, 20 seconds Uh yeah, hi good morning everyone and uh congratulations for a very good set of numbers on all the friends. Uh couple of 18:27 18 minutes, 27 seconds questions from my side now. Uh if we see the overall ecosystem I mean the Mitsubishi GE all are raising their 18:36 18 minutes, 36 seconds guidance on energy front. uh Saffran reported uh couple of days back again a very good set of numbers in increase in 18:44 18 minutes, 44 seconds guidance. Even some of your peers like arrow edge for example has given uh has increased its uh guidance on the leap uh 18:52 18 minutes, 52 seconds engine leap components delivery. So in this context I mean how do you see the traction in your line of business since 19:00 19 minutes we are also now we have a foothold uh in most of these key accounts. Uh so uh how 19:08 19 minutes, 8 seconds do you see actually uh you know these uh uh these foreign OEMs uh kind of uh coming to you the engagement with them 19:16 19 minutes, 16 seconds has it increased and in that sense uh just wanted to ask that this order book that we are having 6,500 crores um how 19:25 19 minutes, 25 seconds do we see the trajectory of this let us say in next couple of years I'm not expecting a quarter or a you know six monthly view it's like over a couple of years kind of view. Yeah, thanks Amed. 19:35 19 minutes, 35 seconds Thanks uh uh for the question. And uh uh if we talk about uh 19:43 19 minutes, 43 seconds the engagement with the OEMs, right? So if we see when we started with energy uh 19:50 19 minutes, 50 seconds Mr. ES or G and Seammens or any other good great customers we have and 19:57 19 minutes, 57 seconds in the years 2010s and 12s and 14s what we remember as we started engagement with these all these OEMs and we were at 20:04 20 minutes, 4 seconds exactly the same stage what we are with today with with Saffrans or Rolls-Royce or or a G or you know Braden Whitney. So 20:14 20 minutes, 14 seconds I would say the as as we progress as we progress it's it's uh with the with the qualifications we are doing with the 20:22 20 minutes, 22 seconds existing uh you know the customers which are in hand like we signed up with Saffron we signed up with Pratt and Whitney we signed up with Rolls-Royce 20:29 20 minutes, 29 seconds and as we move the as we move forward with the contracts which we have signed and the product line which we have already secured all right but that gives 20:37 20 minutes, 37 seconds us an edge that we are not new to them now it's not that knock here we come we are a you you know to introduce and we start a thing it has already started it 20:47 20 minutes, 47 seconds has already started and it is started taking a shape once this is established you know the best part is Azad has got a a beautiful track record of of 20:55 20 minutes, 55 seconds delivering you know the most complex solutions we we can any any OEM is seeking today they come to Azad that's that's the beauty of Azad here that we 21:03 21 minutes, 3 seconds we can give all of all kind of solutions where the customer needs so that has been established so what are we waiting for is to just finish the cycle of this 21:10 21 minutes, 10 seconds qualification once this tick in the box is there in you know and then the door opens and it's already open open for us and we know what's coming we know what's 21:19 21 minutes, 19 seconds what are the pipelines they have we know we have the visibility what each and every OEM is is looking at as you know that these these these parts are not uh 21:28 21 minutes, 28 seconds quarter as you rightly said we cannot gaze this by quarter quarter this goes this goes in a very long strategy right they they we plan it very we look at a 21:36 21 minutes, 36 seconds very look at uh forward-looking uh thing which has to be uh very well uh managed before they even give us a production 21:44 21 minutes, 44 seconds order. So all these preparations are going on well. 21:50 21 minutes, 50 seconds Great. Uh the second one is essentially there were a lot of I think concerns on the investive side on the possible tariffs by the US but with now uh US 21:59 21 minutes, 59 seconds India deal is mostly done. I believe those concerns would be over. Now in that context uh how do you see the 22:08 22 minutes, 8 seconds opportunity for us shaping up uh both in terms of US and in terms of Europe of 22:15 22 minutes, 15 seconds course with EU uh India FDA also in place. I'll give you context. I was speaking to the uh you know the India 22:23 22 minutes, 23 seconds head of patent with me the other day and uh he made a remark which was very interesting that you know they are looking to increase their delivery from 22:31 22 minutes, 31 seconds India by 10x. Earlier it was 6x the way but after US India uh trade deal they are looking to increase it multiffold. 22:39 22 minutes, 39 seconds So how do you see uh the US India trade deal as an enabler for your business? Of course in all the conquests you have maintained that you know this doesn't 22:47 22 minutes, 47 seconds really matter for your kind of product but just wanted to get your thoughts on this new yeah yeah I mean I was about to answer 22:54 22 minutes, 54 seconds that you know that in my previous calls also I mentioned that these tariffs won't affect the products what Azad is holding because they are uh essential 23:04 23 minutes, 4 seconds they are something long long very long qualification products where even the tariff goes double it will not it will 23:12 23 minutes, 12 seconds just not go away from us because it takes a lot of time to develop any other supplier. So in that angle there's no effect before there's no effect after. 23:20 23 minutes, 20 seconds However the customers at ease you know they are more happy that okay we don't have to pay that tariff and we are back on track with Azad. So that is where uh 23:28 23 minutes, 28 seconds the best part what having is happy happy environment that's what that is only changed nothing else has changed 23:36 23 minutes, 36 seconds and in terms of cost competitiveness now earlier there was some you know lingering I would say doubts that okay with 50 55% and it may be the cost 23:45 23 minutes, 45 seconds competitiveness of aat could be compromised but with now 18% I think used to be very very comfortable yeah yeah yeah exactly that's what I'm 23:53 23 minutes, 53 seconds saying customers are very happy now before they were like you know okay we we are paying some tariff but we have no choice but now we are happy that we are back with Azad and we are happy with 24:01 24 minutes, 1 second Azad and uh we are we are you know nothing has you know it is back back the olden days where how we used to work and 24:09 24 minutes, 9 seconds they were more happy than working with Azad on on the pricing the quality the deliveries so I think it's it's it has 24:16 24 minutes, 16 seconds turned around more positive wonderful sir great congratulations and all the best thanks 24:24 24 minutes, 24 seconds thank you sir the next Question is from the line of Manish Odwal from Nirmal Bank Securities Private Limited. Please go ahead. 24:34 24 minutes, 34 seconds Yes sir. Thank you for the opportunity and uh good set of numbers and maintaining the extraordinary execution 24:40 24 minutes, 40 seconds track. Uh sir I was uh have a slightly longerterm question on the company's 24:47 24 minutes, 47 seconds growth and the uh capital u uh decision making. So I was tracking like since the IPO the company have built a formidable 24:55 24 minutes, 55 seconds customer profile and 39% revenue CGR which is quite impressive and uh we have raised money through QIP and the IPO 25:03 25 minutes, 3 seconds almost 940 crores and for the funding of capex program as well as the some deleveraging because of that as I model 25:11 25 minutes, 11 seconds or visualize agile engineering towards a journey of 1800 cr to 2,000 cr company by 2030 given our order book and the 25:18 25 minutes, 18 seconds growth trajectory which we guided in the pass in the current quarter. Um uh the growth trajectory achievable without any 25:26 25 minutes, 26 seconds equity dilution that is a question and the financial leverage can increase that is a question sir in the investor minds and when we interact with the investor 25:33 25 minutes, 33 seconds that the question is when the aad businessman will move from capital consuming growth model to self-sustaining growth model and I want 25:41 25 minutes, 41 seconds your uh comment on the management commitment on that trajectory how we should think how we should build our 25:48 25 minutes, 48 seconds expectation for that journey for a thank Yep. Thank you. Uh thank you for your 25:55 25 minutes, 55 seconds question. So uh so let me start by saying uh see we had raised 240 crores in IPO but out of that 180 crores were 26:05 26 minutes, 5 seconds towards debt reduction and hardly any capital from IPO proceeds was used towards building capex. Right? So we 26:14 26 minutes, 14 seconds started deploying capital uh in the newer facility only with the proceeds of uh largely through QIP where we had 26:22 26 minutes, 22 seconds raised about 700 crores. Our guidance to the market has always been that we are investing roughly about 200 odd crores 26:30 26 minutes, 30 seconds in infrastructure. 200 to 250 crores in infrastructure and the balance 450 odd crores to 500 crores will be deployed 26:38 26 minutes, 38 seconds towards actual plant and machinery right which will be leading towards an output from 26:45 26 minutes, 45 seconds an asset turn perspective blended across our business. We believe that we should 26:51 26 minutes, 51 seconds be able to do the journey of so we were already doing about 450 crores which we delivered last year through our existing 27:00 27 minutes facility and through this incremental deployment of 500 450 to 500 crores in machines we should be able to generate 27:07 27 minutes, 7 seconds anywhere around you know anywhere around uh 1.722 27:13 27 minutes, 13 seconds asset turn of 500 crores. So if you look at that so that gives us another you know easily between 800 to about 1,000 27:22 27 minutes, 22 seconds floor sort of a visibility incremental to the 450 that we delivered last year. 27:26 27 minutes, 26 seconds Now if you add that it gives you it gives you uh you know the entire road map from 400 crores to say 1,500600 27:35 27 minutes, 35 seconds crores and beyond right yeah yes yes the second thing sir I just looking the 27:44 27 minutes, 44 seconds QIP proceedings uh no accounts of our filing where you mentioned that uh uh there's a use of general corporate 27:52 27 minutes, 52 seconds expenses of 156 cr which is almost 34% of our revenue No. So can you just brief about the the nature of this expenditure 27:59 27 minutes, 59 seconds where we uh spend that money and how the company will benefit out of that? Can you just highlight for us? 28:05 28 minutes, 5 seconds Yeah, sure. Sure. So where I wish to mention that we are deploying around 450 500 cr in plant and machinery that 28:14 28 minutes, 14 seconds required around 15 10 to 15% has to be deployed towards the ancillary which required your install installation cost 28:22 28 minutes, 22 seconds and all those things which amount to around 150 K out of 250 K 150 K has gone toward the deck to stabilization deck 28:30 28 minutes, 30 seconds and balance has gone toward the long-term working capital and few of the machines which are not part of the QIP we have funded debt. 28:40 28 minutes, 40 seconds All right. And what is the capex in 9 month and the capex guidance for next couple of years for our business? For 9 28:47 28 minutes, 47 seconds months we have capitalized plant and machinery as we have mentioned that we have capitalized MHI G and CNS plant 28:55 28 minutes, 55 seconds during the last 9 months which amount to around 250 crores on the plant and machinery side and going forward as 29:02 29 minutes, 2 seconds Vishnu mentioned that balance PYP money has to be deployed over the next one to two years going forward from here in between FI 27 and 28. 29:13 29 minutes, 13 seconds All right sir thank you very much for answering my question. All the very best for the future exhibition. Thank you. 29:19 29 minutes, 19 seconds Thank you sir. The next question is from the line of Mles Savla from Sha and Sava. Please go ahead. 29:27 29 minutes, 27 seconds Thanks for taking my question. uh and heartiest congratulations to team for the excellent numbers especially when we 29:35 29 minutes, 35 seconds are ramping up the production facilities plant and machineries are being installed employees and uh people are 29:43 29 minutes, 43 seconds being hired and there are lot of other expenses uh sir we have this my first question is 29:51 29 minutes, 51 seconds to Mr. Chopdat. We have uh uh excellent product uh profile. We have longstanding 30:00 30 minutes uh customer relations and our manufacturing additional manufacturing facilities are being ranked up. We have 30:09 30 minutes, 9 seconds already grown at about 30% plus in the past recent past. Still what is 30:17 30 minutes, 17 seconds restricting you to guide us for the 25% plus growth uh on the top line and not uh 30% plus that is my first question. 30:30 30 minutes, 30 seconds So good good question thank you for the question. Uh as I mentioned know that that stable with the stabilization is 30:37 30 minutes, 37 seconds very important right. So FI26 I want to stabilize we want to stabilize the FI2 FI FI27 is where we start the 30:47 30 minutes, 47 seconds operating levels you know as as we mentioned in the earlier statement also that qualifications audits product qualifications that that's going to take 30:55 30 minutes, 55 seconds time along with the execution and the ramp up and when it comes to maximum utilization of FI28 I'll change my statement of the growth you know that 31:03 31 minutes, 3 seconds that time it will be nice to to keep that this statement at that time what do you Okay. 31:08 31 minutes, 8 seconds Right right. I I I appreciate your conservative uh guidance and over delivering but 31:17 31 minutes, 17 seconds still I feel that I feel that we are too much conservative because all in 31:23 31 minutes, 23 seconds during all these years we have been facing this challenges of expanding capacities and all and still we have 31:31 31 minutes, 31 seconds delivered 30%. And with these specific dedicated facilities and other facilities coming up, I'm sure we should be able to cross 30% plus guidance. 31:44 31 minutes, 44 seconds This is what we expect. This is what we expect because we we are we are struggling. You know what we are struggling building this massive facility. It's not a small 31:53 31 minutes, 53 seconds facility making a worldass factory having these world-class customers having the worldass product 32:00 32 minutes and uh such such thing I should I'm hats off and I'm lucky to have a team you know what what are everyone is handling 32:07 32 minutes, 7 seconds so beautifully we have a great coordination going on so all this we still giving us we we are still you know on the growth of what we are delivering 32:16 32 minutes, 16 seconds now which is commandable at this stage is I would I would say that and as it settles down then There's there's nothing that there is nothing that we can we can be stopped. Right. 32:26 32 minutes, 26 seconds Great. Great. Great. And sir, my second question again to you is that uh you said that our gas turbine engine is 32:34 32 minutes, 34 seconds likely to be ready within another couple of months. So I believe it should be before the end of this financial year. 32:42 32 minutes, 42 seconds So uh can you throw some light on kind of uh uh potential that can throw up uh 32:50 32 minutes, 50 seconds uh for our company in Yeah. See I'll tell you this this this will be the first 32:57 32 minutes, 57 seconds uh jet engine of India correct 100% indigenous right and this is the 33:04 33 minutes, 4 seconds first and the 100% engine is manufactured in azad so when we say it's first and when we are when we try to we 33:11 33 minutes, 11 seconds anticipated that we'll finish off the deliveries in Q4 and Q3 Q4 however there are certain things which are jointly 33:18 33 minutes, 18 seconds done by Azad and GTRE correct so there are certain challenges which comes in back and forth being the first first in 33:26 33 minutes, 26 seconds right so we we we anticipate some kind of challenges but we don't anticipate the timelines so these timelines are just uh we are hopeful that we should we 33:34 33 minutes, 34 seconds are in the last leg right of the design phase what GD is doing and we are in the last phase of manufacturing so I don't see any more delays in this but however 33:43 33 minutes, 43 seconds couple of months we never know if we see some more surprises as this as this is the first engine so we all should be very happy that we are very near to get the first India's first jet engine out. 33:54 33 minutes, 54 seconds Correct. So that will be our Nessan's pride. But uh if you can just give rough 34:01 34 minutes, 1 second numbers to what kind of uh business that it can throw up to Azad. 34:08 34 minutes, 8 seconds See now right now we are not looking at business. Right now we're looking at to get this engine successful. That's that's my main focus. Now I'm not I'm 34:17 34 minutes, 17 seconds not concerned but this is the need of our country and we all should be proud of it. 34:21 34 minutes, 21 seconds Great, great sir. I wish you all the very best. That's all from my side. If I have any question, I'll join back that you. Thank you so much. Thanks. Thanks. 34:30 34 minutes, 30 seconds Thank you, sir. The next question is from the line of Gorav from Aendas. Please go ahead. 34:38 34 minutes, 38 seconds Yeah. Uh uh thanks for the opportunity. 34:40 34 minutes, 40 seconds Uh first question is on uh the aerof opportunity that we have. So given that gas turbines are in very high demand 34:48 34 minutes, 48 seconds currently because of from the data centers we have seen globally gas turbine price have gone up considerably in last one year. So the question is 34:56 34 minutes, 56 seconds that have you have you have also seen any benefit of that gas turbine price increase has OM passed on that benefit 35:03 35 minutes, 3 seconds to you as well uh which which you have seen in in a good margins currently that's question number one and second question is that where are we in the 35:11 35 minutes, 11 seconds qualification cycle especially for uh the engine aeropos and how much time uh you think it will take for you to get the qualifications. 35:22 35 minutes, 22 seconds Fine. So uh so thank you for the question. Let me answer it in two uh you know uh two parts. The first question I 35:30 35 minutes, 30 seconds think uh see we are definitely experiencing a lot of demand uh which is coming back to back from our customers directly and because we are the only 35:39 35 minutes, 39 seconds qualified partners in India. We are a direct beneficiary of this and we've been doing it and plus with you know uh 35:47 35 minutes, 47 seconds with the global situation we are seeing extremely high demands coming to us. Now it's our only it's own it's only our ability to be able to build up 35:54 35 minutes, 54 seconds infrastructure and execute which will keep growing our wallet share. In terms of the price we are not seeing any so 36:02 36 minutes, 2 seconds pricing decisions are not being done and for us our contracts are longer term where we maintain our 35 30 to 35% 36:11 36 minutes, 11 seconds margins and continue to grow on that front. Okay. 36:17 36 minutes, 17 seconds So we are not looking at short-term gains from this perspective. We are building a very very robust relationship, strategic relationship 36:25 36 minutes, 25 seconds with our customers which is not a supplier customer relationship but a partnership. So this is our intent to do. So we but we are experiencing heavy 36:33 36 minutes, 33 seconds demand so as to say. So that's part number one of your question. The second is we are aggressively progressing on our air foil qualification on the 36:42 36 minutes, 42 seconds aerospace side as well. In fact, if you see these developments that are happening with our customers on this side is a testament to the fact that 36:50 36 minutes, 50 seconds there is there is progress that's happening and customers are recognizing it. That's why we are becoming a part of not just uh legacy platforms but also a 36:59 36 minutes, 59 seconds lot of new engine platforms that will be driving the aviation for the future right and across all of our engine manufacturers. So we've recently done 37:08 37 minutes, 8 seconds you know a contract and finalization with Brighton Whitney which we notified you know there's been progress that Mr. 37:13 37 minutes, 13 seconds Chundar spoke about on Saffron Rolls-Royce we started working in 2024 we should be starting to supply something in FI27. So all of these 37:21 37 minutes, 21 seconds things are a mixed bag but let me you know bring about one point which which is important to understand and I think uh our chairman also touched upon it. 37:31 37 minutes, 31 seconds See today what journey we are with Rolls-Royce, Prattton, Whitney, Saffron and all of these engine manufacturers is what we were with G, Mitsubishi and 37:40 37 minutes, 40 seconds Semens a few years ago, right? So we while we are ramping those up because we finished qualifications. This will be a 37:48 37 minutes, 48 seconds journey of qualifications. We will build qualifications to a point and slowly this will be the next leg of growth for us in the future. But qualifications are 37:56 37 minutes, 56 seconds progressing really well and you should be able to see you know some revenues coming out of uh the aero engine department in the coming year. 38:04 38 minutes, 4 seconds All right. Uh I have two more questions on the accounting side for Ronak. Uh Ron. Number one is uh uh in this quarter 38:11 38 minutes, 11 seconds have you seen the sales of services uh going up considerably compared to last quarter which has benefited the gross margins and a better margins? That's 38:19 38 minutes, 19 seconds number one. Number two, what are the inventory days and working capital days in this quarter? 38:25 38 minutes, 25 seconds Yeah, coming to the first question, the business is quite stable and more or less it's in the same line in the 38:32 38 minutes, 32 seconds historical numbers and as I mentioned you last time also we don't track business on that particular front like that on the working capital side H1 as I 38:41 38 minutes, 41 seconds mentioned that we are targeting around 190 to 200 days we have working started working on that directions and the 38:48 38 minutes, 48 seconds results are coming but uh it will take some time to stabilize and it will take time to have 38:56 38 minutes, 56 seconds and for H2 we are targeting around 140 to 150 days because once we completed all the things 39:04 39 minutes, 4 seconds on the distribution supply chain and discounting part we are quite confident it will come to 140 to 150 days time. 39:13 39 minutes, 13 seconds No, but my question is have we seen inventory is going up in this quarter given the growth? 39:20 39 minutes, 20 seconds Yeah, WIP this is into the WIP and you start reflecting this in H1 and H2 as I mentioned but right now it's on the 39:29 39 minutes, 29 seconds sustainable basis what we have seen in the historical periods. See this is this is progressive change right all of these 39:36 39 minutes, 36 seconds things that uh we're doing will start reflecting over time our you know our endeavor was to finish this by the end 39:45 39 minutes, 45 seconds of this current financial year but I think this is while the complexity in our business that we spoke about we are in the ramp up phase transition phase 39:53 39 minutes, 53 seconds all of this should so probably in the next about two quarters you will see the first milestone being hit and then it will start reflecting for in H2 for the 40:02 40 minutes, 2 seconds second milestone and we should be we should be able to do this in our H1 commentary for next year. All right. 40:08 40 minutes, 8 seconds Okay. Thanks. Thanks a lot and best wishes for the future. Thank you. Thank you sir. 40:15 40 minutes, 15 seconds The next question is from the line of Vinaya Kari from Exponent Tribe. Please go ahead. 40:23 40 minutes, 23 seconds Uh hi thank you for the watch. Um I I just remember uh Mr. Wish party posting 40:30 40 minutes, 30 seconds about the hiring of uh at least thousand workers for a new plants uh in the next 3 months and on the same post I remember 40:38 40 minutes, 38 seconds someone commenting that they hired 100 workers and uh that took them 12 months to hire. So I just wanted to understand 40:46 40 minutes, 46 seconds how is the um uh uh uh aerospace and precision engineering um workforce situation in uh in the area we are we 40:55 40 minutes, 55 seconds are operating in and what is the pro progress on that I think uh 41:02 41 minutes, 2 seconds sure so I think uh uh very good question so first of all I think uh while you can while you can manage everything else 41:10 41 minutes, 10 seconds with capital I think capability or recruitment or and skill is something that will only be built over time. 41:18 41 minutes, 18 seconds Right? So, Azad Engineering recognizes that for us to be able to achieve these goals that we are setting for ourselves, 41:26 41 minutes, 26 seconds these aggressive goals, we will need a very very strong team to support this, right? And that's why we're onboarding 41:34 41 minutes, 34 seconds talent at every level, building the skill, training them to be future ready, right? So if you look at if you look at 41:41 41 minutes, 41 seconds uh I know I know you're referring to my post on LinkedIn where I said I want to recruit uh thousand people over the next. So the idea is that we do not want 41:50 41 minutes, 50 seconds the business to to be deprived of manpower because the cost of having employees versus the 41:59 41 minutes, 59 seconds cost of not having employees is disproportionately high in our business. 42:03 42 minutes, 3 seconds Right? So we've built an execution engine today that we are able to source about 150 to 200 people per month. We 42:12 42 minutes, 12 seconds have created a training center internally and a program where we are able to in about 50 days we're able to put a person on the training program and 42:20 42 minutes, 20 seconds deploy them on the shop floor. We are running several you know uh engagement uh programs in the company which are you 42:30 42 minutes, 30 seconds know which are interesting which are helping us train retain employees as well. So it's important and I think yeah it's it's not it's not an easy thing to 42:39 42 minutes, 39 seconds be cracked but then I think we've taken enough and more measures to solve the entire piece of human resource and we are well in control giving our uh given our targets for the next few years. 42:51 42 minutes, 51 seconds Sure. Sure. And so how how um on the on the margins part do you expect the margins to dip uh for the next FY uh 43:00 43 minutes considering the considering the fact that we are coming up with PD um and the utilization won't be uh uh uh 43:08 43 minutes, 8 seconds up to the mark which will only hit maximum utilization in FI28. So do you expect a margin dip for the next year? 43:15 43 minutes, 15 seconds So uh so I'll go back to you know uh like on every call we say you know we would want to maintain our guidance to 43:22 43 minutes, 22 seconds be in the range of 33 to 35% but even this year this quarter you can look at our AITA margin it's been at 38%. 43:31 43 minutes, 31 seconds Right. So I would want to still continue to guide 33 to 35% AETA margins in our business for the longer term but you 43:39 43 minutes, 39 seconds know there are always positive shoots that we would want to bring to the market uh you know like we did this 43:45 43 minutes, 45 seconds quarter. Fingers crossed. Answer last question on the um on the requirement 43:52 43 minutes, 52 seconds from uh the C uh gas turbine OEMs. uh uh the data center the data center compute 44:00 44 minutes uh the data center compute is expected to uh get CX every year for the next four five years and that is a similar requirement of 44:08 44 minutes, 8 seconds power uh that uh that the data center industry expect to be rammed up right and and the front and the front runners in 44:16 44 minutes, 16 seconds the in the in the uh power uh in the power on-site power uh generation are these three OEMs which you are the only 44:23 44 minutes, 23 seconds qualifier in the country uh qualified there in the country. How do you uh what are the conversations you are having with these OEMs uh in the kind of uh 44:32 44 minutes, 32 seconds ramp up they are expecting from you and uh uh uh what is the situation if you could give us a broad view. Um 44:41 44 minutes, 41 seconds so so I think you've you've very uh correctly summarized this that uh there's a lot of demand see the demand for electricity over the next about 15 44:49 44 minutes, 49 seconds years is going to double with what the world needs today. And the only way you can power the world's uh demand for electricity is by putting up is by 44:58 44 minutes, 58 seconds putting up these gas turbines, nuclear turbines, steam turbines and so on and so forth. Right? So so this demand is being experienced by all of our OEMs 45:06 45 minutes, 6 seconds aggressively. Right? So if you look at their order groups if there if you look at their order backlogs and how much how much orders are they taking quarter on 45:14 45 minutes, 14 seconds quarter there's a lot of pressure for them in delivery because data centers have presented this opportunity and this entire industry has changed structurally 45:22 45 minutes, 22 seconds right so our conversations are how quickly can we ramp up on the existing 45:29 45 minutes, 29 seconds product line how quickly can we move into you know adjacent product lines which are also critical and ramp up 45:37 45 minutes, 37 seconds right so our existing aad is today right holding with our existing 100% ramp up 45:45 45 minutes, 45 seconds etc we will still be doing a single digit wallet share with our customers right so if you look at this is this is going to grow right and giving you an 45:54 45 minutes, 54 seconds example right if you look at how aerospace even at $700 million worth of scale that they're doing they're still 46:01 46 minutes, 1 second growing at 25% yearonear right the year they've delivered a 25% growth So uh this is this is this is a brilliant uh 46:10 46 minutes, 10 seconds time to be in this industries and we are constantly just looking at newer demand coming to us, newer 46:18 46 minutes, 18 seconds capacity and even the existing business is is you know uh is to be done over the 46:26 46 minutes, 26 seconds next few years. Right. So the backlog is constantly increasing for our customers and so is and that is just channeled to us directly and like you said since we 46:34 46 minutes, 34 seconds are the only qualified partner in the country and the only qualified partner this demand we will be a direct 46:40 46 minutes, 40 seconds beneficiary of this. So it is in Azad's best interest to sort of keep scaling up and improving our wallet share existing 46:48 46 minutes, 48 seconds and then also enter into newer product portfolios which we are which we have the opportunity today. Right? So these are lowhanging fruits for Azad to get 46:55 46 minutes, 55 seconds into adjacent categories as well and we are also expanding right we are building cap why we don't talk about it uh you 47:03 47 minutes, 3 seconds know in our earnings call as much but there is a lot of capability development that we are doing that you know will only lead to you know revenues in the 47:11 47 minutes, 11 seconds coming years which is our long-term plan right we are entering into combustion you know for from compressor so every aspect of a turbine right right from a 47:20 47 minutes, 20 seconds compressor air falls to really complex combustion parts also for land, sea and air turbines. We are building 47:28 47 minutes, 28 seconds capabilities for gas, steam and nuclear turbines. We building capabil 47:43 47 minutes, 43 seconds So yeah these are some of the conversations. 47:47 47 minutes, 47 seconds So, so just just for clarification, so could we expect like more than like 40 50% growth once you stabilize these B 47:55 47 minutes, 55 seconds with the three turbine OEMs uh in the for the next four five years. uh demand is there right there is there is 48:03 48 minutes, 3 seconds obviously a lot of demand you see our customers are signing so if you look at just the contracts that we signed with Mitsubishi right so we signed roughly 48:11 48 minutes, 11 seconds 100 million contract 70 to 80 million contract in phase one and it was immediately in about one one and a half you know less than a year we were able 48:20 48 minutes, 20 seconds to sign a phase two of the same contract of a similar value right so the demand is obviously there but our ability to 48:28 48 minutes, 28 seconds execute these contracts depends on infrastructure stabilization all the things that Mr. Shar mentioned right so all the new plants that we 48:37 48 minutes, 37 seconds building up it's not just about building a factory putting machines and starting right this industry does not have a very 48:42 48 minutes, 42 seconds linear uh growth right it all the other industry this this needs a lot of time 48:49 48 minutes, 49 seconds and then you see in Azad's case also 2008 to 2020 we did 100 crores and 2020 to 2026 we're talking about a number 48:57 48 minutes, 57 seconds like this this year we've delivered five times of what we were and uh more than five times of what we So definitely the 49:05 49 minutes, 5 seconds opportunity to grow is there but it relies on Azad's ability to execute take contracts and execute at that scale 49:13 49 minutes, 13 seconds right while you were asking me questions on how are we also doing on manpower so this is a complex project management right so you will have to manage every 49:21 49 minutes, 21 seconds aspect of the business while you're managing customer expectations you're building infrastructure you're ensuring that your current deliveries are not impacted also hiring planning for the 49:30 49 minutes, 30 seconds next year quarter so it's it's a very complex method And that's why while we still grow at 25%, we we say that with 49:37 49 minutes, 37 seconds absolute confidence, right? And and that's why you know we we believe that there is a definitive opportunity in the future to see this demand. 49:50 49 minutes, 50 seconds Thanks. Thank you so much. That's Thank you, sir. 49:55 49 minutes, 55 seconds Ladies and gentlemen, to ask a question, please press star and run. Now the next question is from the line of 50:04 50 minutes, 4 seconds Koshik Moan from Ashika group. Please go ahead. 50:09 50 minutes, 9 seconds Hi sir, I just wanted to understand uh with the missile engines that what we are trying to do. Uh is those also 50:16 50 minutes, 16 seconds numbers been considered in the growth rates that we are talking about? 50:20 50 minutes, 20 seconds No sir, thank you for the question. But uh so see the number of projections that we've spoken about we've only spoken 50:28 50 minutes, 28 seconds about the customers what we have in hand today and not something that we haven't right which is in the future. So the 50:35 50 minutes, 35 seconds engine development that we're doing and is not a part of our revenue projections if you're asking us but this is a capability that we developing correct 50:45 50 minutes, 45 seconds and what can be the market size if it is possible to be uh told or anything what is the market size and what can we 50:52 50 minutes, 52 seconds capture over here the see so I think the market is huge you should be able to understand that this is these are strategic defense uh 51:01 51 minutes, 1 second drones uh this will be used in strategic defense UAV and drones etc. uh you know singleshot 51:08 51 minutes, 8 seconds device from that perspective it will be used in uh u anti-hship missiles etc and 51:15 51 minutes, 15 seconds this is the first strategic jet engine that will be made out of India so you should think about it and I will I will request Mr. Cha to sort of give us a little more insight on this. 51:25 51 minutes, 25 seconds Yeah. So uh your question is when we can know because in Azad what whatever we say or whatever we project way we project whatever is there in hand. Okay. 51:33 51 minutes, 33 seconds What is confirmed and what we can deliver maybe in Q1 Q1 we can give you more good news on the engines. We can give you some projections. We can give 51:41 51 minutes, 41 seconds you some revenues because uh as as we have a practice we we just whatever is confirmed whatever there is in hand we can we can definitely talk about it. 51:51 51 minutes, 51 seconds This is uh a great moment for sure. The volumes can be substantial as this uh engine is currently being imported by 51:58 51 minutes, 58 seconds government of India and this is an imposed substitute. So uh there is a there is a massive pressure from from the country to develop this engine and 52:07 52 minutes, 7 seconds we are with uh the same we are on the same page with them and we are we are putting all the efforts to develop this engine. Hopefully, fingers crossed we 52:15 52 minutes, 15 seconds very soon will give you good news in Cuban and we can talk more on the projections, we can talk on the revenues, we can talk on the numbers. 52:23 52 minutes, 23 seconds Got it. Got it. Uh sir and uh like uh I just wanted to understand another thing with the current order book that we have 52:30 52 minutes, 30 seconds uh the revenue growth rates that we're talking about will be substantially fulfilling its numbers. But I just wanted to understand what kind of growth rates that we can 52:39 52 minutes, 39 seconds see in the current existing products and with the current existing clients. uh on what is will be the market share that we can increase over next three four or five years down the line. 52:49 52 minutes, 49 seconds It's a long qu uh question is good short but the answer is very long to this. Uh can I invite you to Azad and I can show you uh you know because every customer 52:58 52 minutes, 58 seconds has its own product line. Uh every uh every customer has their own design and nothing is common within these 53:05 53 minutes, 5 seconds customers. So I have a very long answer for this. So I would request you to please visit Azad so I can show you uh more in detail. 53:14 53 minutes, 14 seconds Sure. Sure. Post this quarter uh we will definitely come this uh Yeah. Most welcome. Most welcome. Thanks for this. 53:22 53 minutes, 22 seconds Thank you sir. 53:26 53 minutes, 26 seconds Ladies and gentlemen, in the interest of time that was the last question for today. I would now like to hand the conference over to management for closing comments. 53:38 53 minutes, 38 seconds Uh so on behalf of Had Engineering uh board of directors in Sher, we would like to thank everyone for joining the 53:46 53 minutes, 46 seconds call and listening to the uh performance updates of quarter 3 FI26. We will we 53:54 53 minutes, 54 seconds are uh we're very happy to share that this was an excellent quarter and we we believe that we will be continuing the momentum and the guidance that we've shared with the market. Thank you. 54:05 54 minutes, 5 seconds Thank you sir. On behalf of Azat Engineering Limited, that concludes this conference call. Thank you for joining 54:13 54 minutes, 13 seconds us and you may now disconnect your lines. Thank you.