Bharat Forge Limited — Q1 FY26

Bharat Forge Ltd Q1 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=-YcysefPj4U Published: 9 months ago

0:01 1 second Ladies and gentlemen, welcome to the Q1 FY26 earnings conference call hosted by 0:09 9 seconds Bharat Forge Limited. As a reminder, all participant lines will be in the listenon mode and there will be an 0:16 16 seconds opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an 0:24 24 seconds operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now 0:33 33 seconds hand the conference over to Mr. Amit Kalyani, vice chairman and joint managing director Bharat Forge Limited. 0:40 40 seconds Thank you and over to you sir. 0:43 43 seconds Good evening ladies and gentlemen and thank you for joining our quarter one uh analyst investor call. 0:52 52 seconds We are definitely in very interesting times. Uh given the undercurrens I would uh take you through first the numbers 1:00 1 minute and then our team will take your Q&A. I have with me our finance and uh investor relations teams. 1:09 1 minute, 9 seconds uh Q1 revenue for uh Bhat on a standalone was 2,15 crores which is about down by 2.7%. 1:20 1 minute, 20 seconds Uh the uncertainties around the whole um tariffs have created a lot of disruption 1:27 1 minute, 27 seconds in the global outlook for automotive uh global in the US and worldwide. The 1:35 1 minute, 35 seconds pause in the emission norms have pushed out the um pre-b effect which was anticipated. 1:43 1 minute, 43 seconds Um and some amount of seasonality in the aerospace business is also contributed to topline weakness. Uh standalone IIDA 1:51 1 minute, 51 seconds in quarter 1 was 588 crores which is about 6 and a half% lower due to lower utilization and a different product mix. 1:59 1 minute, 59 seconds We have absorbed about 14 crores worth of tariff related expense in Q1. At the consolidated level, Q1 revenue of 3,99 2:07 2 minutes, 7 seconds crores which is 1.5% higher quarteron quarter. EIDA moved up to 682 crores 2:15 2 minutes, 15 seconds which is a margin of 17.4% and the consolidated performance showed an improvement on the back of better profitability in the overseas business 2:23 2 minutes, 23 seconds and reduction of losses in the Kalyani powertrain. During the quarter uh we have secured new business worth about 588 crores 2:32 2 minutes, 32 seconds sorry about 900 crores my sorry uh which is uh bat for 429 defense 269 and JSA 2:41 2 minutes, 41 seconds about 149 on the overseas subsidiaries are EU aluminum operations were stable utilization levels are at about 70% and 2:50 2 minutes, 50 seconds uh we had niba of about 383 cr the US aluminum business had a fairly decent quarter driven by operational efficiencies and battery utilization 2:59 2 minutes, 59 seconds with second consecutive quarter of positive emida margins of 6.1% in quarter 1 and current utilization levels 3:07 3 minutes, 7 seconds for the aluminum business is also about 70% of phase one volumes we will continue to evaluate uh the 3:14 3 minutes, 14 seconds restructuring option for the European steel business and we'll update you on the progress in due course 3:22 3 minutes, 22 seconds I think we put up a fairly decent show uh given the current circumstances which continue to evolve as we speak. 3:29 3 minutes, 29 seconds Tariff related uncertainty is definitely something that nobody has ever experienced before and uh is something 3:37 3 minutes, 37 seconds that we are engaged with our customers in finding a resolution. I just want to highlight to you that only about 3:45 3 minutes, 45 seconds onethird of our exports from our Indian manufacturing that is bar for that is India manufacturing which is BFL plus 3:52 3 minutes, 52 seconds industrial plus defense etc were to the United States in Q1 our overseas aluminum operations have turned a corner driven by high utilization rates and 4:01 4 minutes, 1 second better operating metrics in India wide portfolio across steel forging ferrris and aluminum casting is helping us 4:08 4 minutes, 8 seconds increase our content per customer across sectors and geographies In the medium to longer term, you will see the center of gravity shift back to our India 4:15 4 minutes, 15 seconds operations as manufacturing India becomes larger and more lucrative. And we are already seeing opportunities emerge for uh machine tools for supply 4:25 4 minutes, 25 seconds to uh emerging sectors in domestic market as well. Our acquisition of the American axles India CV assets is 4:33 4 minutes, 33 seconds another step to build upon our India bet and to add more value added product uh in our lineup. This gives us access to 4:42 4 minutes, 42 seconds the thriving light commercial vehicle and SUV segments as well. In addition to manufacturing facilities, these assets provide us with vital engineering 4:50 4 minutes, 50 seconds knowhow to design axles and approved axle designs. 4:55 4 minutes, 55 seconds With a good RFQ pipeline in the defense business, we expect to see some orders getting finalized traditionally in this fiscal. Q2 looks a little weaker driven 5:04 5 minutes, 4 seconds by US exports and hopefully marks a low for this cycle. Second half should be better than the first half. 5:11 5 minutes, 11 seconds Uh talking about the rest of the year, uh we expect that aerospace should continue its 20 plus% growth annually. 5:21 5 minutes, 21 seconds Uh y uh this business has limited exposure to the US market. U American Axel should add about a,000 crores to the consolidated topline for the year. 5:31 5 minutes, 31 seconds We will see it consolidate from quarter to FY26. 5:35 5 minutes, 35 seconds A steel Europe as I mentioned in six months we will have a road map in place which will outline the entire uh process 5:42 5 minutes, 42 seconds that we will undertake for this. Q1 in JSA is a seasonally weak quarter aggravated by tariff uncertainty and 5:50 5 minutes, 50 seconds some amount of slowdown in the renewable energy sector due to the pullback on renewables in the United States. I think 5:57 5 minutes, 57 seconds to sum it up from where we are today, we should see positive momentum in news flows and performance especially in second half and you know like the past 6:05 6 minutes, 5 seconds we will use this period to pivot and come out stronger than before. Thank you very much. I will now have my team answer uh your questions. 6:19 6 minutes, 19 seconds Thank you sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press char and one on their touchstone telephone. 6:30 6 minutes, 30 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use 6:37 6 minutes, 37 seconds handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question assembles. 6:47 6 minutes, 47 seconds The first question is from the line of Mr. Kapil Singh from Namura. Please go ahead sir. 6:55 6 minutes, 55 seconds Yeah, good evening sir. U indeed a tough quarter but uh I would say a good performance considering the circumstances. Um just wanted to ask you 7:04 7 minutes, 4 seconds regarding the tariffs. You know firstly a more fundamental question who bears the tariffs is it uh you know 7:12 7 minutes, 12 seconds distributed across the entire chain of customer OEM and suppliers does bat codes need to bear more uh just you know your perspective on this thing. 7:26 7 minutes, 26 seconds So you're you're asking essentially how is the tariff compensated? Who's paying? 7:32 7 minutes, 32 seconds Yes. Yes. So how like so right now you know the irrespective of who pays the tariff whether it's a 7:40 7 minutes, 40 seconds customer pay you know the whether we pay the tariff or the customer pay the tariff at the end of the day it is compensated in price and uh usually what 7:48 7 minutes, 48 seconds happens is uh you know customers work with us to find such solutions because obviously these are extraordinary circumstances and given the fact that we 7:56 7 minutes, 56 seconds provide critical products all customers are working with us to find suitable solutions because uh you know that is the need right now. 8:06 8 minutes, 6 seconds Okay. And uh so this 14 cr impact that we b that was that for the full uh quarter or was that for part period? 8:16 8 minutes, 16 seconds No, that was for full quarter. 8:19 8 minutes, 19 seconds Okay. So tariffs were applicable for full quarter. Yes. 8:25 8 minutes, 25 seconds Okay. The second question is you know currencies you know with the tariffs currently at 25%. How is the you know 8:35 8 minutes, 35 seconds competitiveness of Indian exports? Uh and which are the geographies from which we are facing uh competition for uh 8:44 8 minutes, 44 seconds products like rank shafts and front axle. 8:46 8 minutes, 46 seconds So let me just I'll answer this in a very simple way. All the countries that produce these parts have the same tariffs. I I mean either we are the 8:55 8 minutes, 55 seconds lowest or we are equal to what uh anybody else is. Nobody is lower than 9:02 9 minutes, 2 seconds India. The other two geographies are uh China plus another one both of which are at higher levels. 9:11 9 minutes, 11 seconds Okay. And is is uh is there a case that we need to think about setting up manufacturing for some of these products 9:19 9 minutes, 19 seconds in US or uh and is the tariff uncertaintity is affecting any order inflow from the customers as well. That would be the last question for me. 9:28 9 minutes, 28 seconds So we are not looking at setting up any other facilities right now anywhere 9:34 9 minutes, 34 seconds outside India. Uh on order inflows I think I'll let answer that. At this 9:41 9 minutes, 41 seconds point there is no impact on order inflows because typically uh you know for the products that we are engaged with it takes anywhere between two to 9:49 9 minutes, 49 seconds four 3 years to you know complete the whole approval and validation cycle even if we have to move it anywhere yeah ourselves. So it's a it's a very complex 9:58 9 minutes, 58 seconds process. Uh so currently there is no impact on the autoflow uh because of this reason. 10:06 10 minutes, 6 seconds Okay. Thank you sir. Thank you. 10:11 10 minutes, 11 seconds Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in this conference, please limit your questions 10:20 10 minutes, 20 seconds to two per participant. Should you have any follow-up questions, we would request you to rejoin the queue. The 10:27 10 minutes, 27 seconds next question is from the line of Kungjan from Bank of America. Please go ahead. 10:34 10 minutes, 34 seconds Yeah. Hi, thanks for taking my questions. Um just one quick follow up on tariff and then then get to the rest of the business. uh you mentioned uh in 10:42 10 minutes, 42 seconds the prior call that the t the tariff was different for industrial and um autos right is there any change to that with 10:50 10 minutes, 50 seconds with the with the recent 25% imposition does the industrial also get you know get you know has the same tariff now 10:58 10 minutes, 58 seconds that that that CV part of the business also gets impacted and you see 25% implication on that 11:05 11 minutes, 5 seconds currently that is the scenario uh and that is under evaluation by the US government as well. 11:12 11 minutes, 12 seconds Uh and this 14 cr again you know what couple was asking u you know the tariff is applicable only when the uh shipment 11:19 11 minutes, 19 seconds reaches us in which case you know the tariff would have been applicable only maybe you know towards June or something. So is it fair to assume that 11:28 11 minutes, 28 seconds we will see more impact of tariff going into the second quarter? 11:32 11 minutes, 32 seconds Even for this tariff that is applicable now the the effective date of implementation will be 7th of October or something like that. So, so we will have 11:40 11 minutes, 40 seconds some time for uh whatever is being shipped 7th of October actually. August 7th of August implementation. 11:51 11 minutes, 51 seconds Okay. Okay. Got it. Uh let me move on to some other parts. I think maybe uh you know will be good to hear from you on the defense bit. Uh you do mention that 12:00 12 minutes there is a pipeline um you know you referred to some pipeline and strong visibility on that. Can you talk a little bit around it? you know what is 12:07 12 minutes, 7 seconds it we what what is it we're seeing is it on exports and is it still you know look as you know as you know that we 12:14 12 minutes, 14 seconds have announced that we had a pipeline of 9,000 crores after which we have one uh one more tender which has to get 12:22 12 minutes, 22 seconds converted into a signed order once that happens that will add another 1 1400 or to our uh order book 12:32 12 minutes, 32 seconds and that's domestic that's a combination this Last order that I'm talking about is domestic. 12:40 12 minutes, 40 seconds Okay, got it. And um you know lastly just on the uh you join the Sorry, we are going Yeah. 12:47 12 minutes, 47 seconds Okay. All right. Thank you. Thank you. 12:52 12 minutes, 52 seconds The next question is from the line of Mr. Pam Kumar from UBS. Please go ahead sir. Yeah. Thanks a lot for the opportunity. 13:00 13 minutes Amit I just wanted to understand uh you said every country which is exporting into US is either paying uh car as low 13:07 13 minutes, 7 seconds as India or higher but is there no countries which are producing the same parts? 13:14 13 minutes, 14 seconds Yeah. So but is there no onshore US man US plant for forging by group or anyone uh which there are there are foring plants but 13:23 13 minutes, 23 seconds not for machining not machining. So on the foring side there could be some competition or cannibalization with the sorry not really I don't think there's any capacity. 13:33 13 minutes, 33 seconds Oh they don't have capacity additional capacity as far as we understand. 13:38 13 minutes, 38 seconds Fair enough. Fair enough sir. And yeah and and you did talk about second half being better than first half. Uh 13:45 13 minutes, 45 seconds just trying to understand the reasoning behind that and also in in within the first half how should then one look at 2Q versus 1 Q. Sir if you can just help 13:53 13 minutes, 53 seconds us. um um it will help us navigate this uncertainty in a much better way. 13:57 13 minutes, 57 seconds You know, honestly, look, the tariffs were announced three days ago. Okay. So, I think we have to wait to understand 14:05 14 minutes, 5 seconds the overall situation and then come back to you. 14:10 14 minutes, 10 seconds This is based what we are hearing from our customers. 14:13 14 minutes, 13 seconds Okay. Okay. Second of assessment is based on what you're picking up from customers basically. Yeah. 14:19 14 minutes, 19 seconds Yeah. Fair enough. And on the different side, last one. uh we've seen that uh recent orders the entire the the the the 14:26 14 minutes, 26 seconds situations what we had in India even the Israel Iran uh that increasing the war theater action is moving towards uh air 14:33 14 minutes, 33 seconds uh air air base system drones missiles anti- drones so what what is the group strategy because you have very deep roots on the land side 14:42 14 minutes, 42 seconds we have we have a presence in every sector as you are aware we signed a agreement with a company called Gallard for uh male drones. 14:53 14 minutes, 53 seconds Yes, we have a solution right from male to super light drones. So we have a entire 14:59 14 minutes, 59 seconds range of airborne uh unmanned uh aircraft. We have for uh landbased 15:06 15 minutes, 6 seconds unmanned products and for uh water-based unmanned products and and if you can just help us understand uh out of the defense order 15:15 15 minutes, 15 seconds backlog including the 1400 what we're talking about how much will be the component of non-land systems because ATAX is normally what everyone associate 15:24 15 minutes, 24 seconds ports with and even the carbines. So if you can just help us understand that uh see see land when you say it includes 15:31 15 minutes, 31 seconds specialty vehicles, it includes uh you know artillery systems, it includes lot 15:37 15 minutes, 37 seconds of things. So artillery itself is about uh 15:45 15 minutes, 45 seconds about uh about 4,000 million. 15:52 15 minutes, 52 seconds Yeah. So it's less than half and and carbines uh and and other stuff. 15:58 15 minutes, 58 seconds I mean carbines is a recent order, right? It's not yet included in that. 16:03 16 minutes, 3 seconds Oh, it's not included in that because if I'm not wrong, media report suggests that you are L1 already on that. 16:07 16 minutes, 7 seconds Yes, we are L1 but the contract is not yet signed. 16:10 16 minutes, 10 seconds And how big that could that opportunity be sir? Because that's a large one. 16:14 16 minutes, 14 seconds We already discussed that that it's 1400 crores. 16:17 16 minutes, 17 seconds Okay, that's 1400 crores. and and uh and is the market much larger for such carbines because I I believe there are 16:24 16 minutes, 24 seconds procurement at the huge state government level that's only 200,000. 16:29 16 minutes, 29 seconds Yeah, sounds good. Thanks a lot. I wish you all the best. Thank you. Thank you. 16:34 16 minutes, 34 seconds Thank you. Participants, you're requested to limit your questions to two per participant. Should you have any follow-up questions, we request you to 16:42 16 minutes, 42 seconds rejoin the queue. The next question is from the line of Amin Pirani from JP Morgan. Please go ahead sir. 16:51 16 minutes, 51 seconds Yes. Hi, thanks for the opportunity. Uh am I honorable? Yes. Yes sir. 16:57 16 minutes, 57 seconds Yes. Hi. Two question. Uh first of all um on the um US aluminium uh profitability 17:05 17 minutes, 5 seconds um does this business get any benefit because uh you know the US has imposed tariffs on a lot of so that 17:15 17 minutes, 15 seconds from the profitability side or if you can highlight what is causing the staff improvement in profitability here. 17:24 17 minutes, 24 seconds Well, one factor is that our operating metrics in terms of volume, capacity, utilization have improved. 17:33 17 minutes, 33 seconds So, that's really fueling this uh improvement and uh you know, I'm hoping that having 17:41 17 minutes, 41 seconds a comparative source make in the US will help other US OEMs uh maintain their uh 17:50 17 minutes, 50 seconds MCA requirements. So managing MCA requirements is an important factor. So that should help us with securing new business. 18:02 18 minutes, 2 seconds And I think till last call also mentioning that there were increases from the sorry 18:10 18 minutes, 10 seconds so there's a static disturbance at your end. Is this better now? Yeah. Please go ahead. 18:16 18 minutes, 16 seconds Yeah. Now I'm just saying that I think the last quarter you were also mentioning that uh there was some delay in getting the price increases from the customers on the aluminium buildings. Is 18:25 18 minutes, 25 seconds is now that that behind us now? 18:32 18 minutes, 32 seconds No, it's not yet done. That's uh still uh Hello. Yes. Yes, I can hear you. That's not yet done. 18:39 18 minutes, 39 seconds Okay. Okay. Okay. Thanks. I'll come back in the queue. Yeah. Thanks. Thank you. 18:45 18 minutes, 45 seconds The next question is from the line of Mr. Promote Am from Incred Capital. Please go ahead. 18:52 18 minutes, 52 seconds Yeah, thanks for the opportunity. Uh so Amit, uh considering that this kind of overhang has been there for some time in 18:59 18 minutes, 59 seconds the system. Uh is there any pre-bind by the clients which has happened in the last couple of months? 19:06 19 minutes, 6 seconds No, nothing of that sort. No. 19:12 19 minutes, 12 seconds Okay, thanks. And uh second with regard to the US arena of 4G uh what is the plan now with regard to the second line 19:20 19 minutes, 20 seconds of capacity are you advancing that looking at the con already under that's already under implementation 19:29 19 minutes, 29 seconds okay so it's on time and trial I mean it's under installation okay and there also capacities have been 19:37 19 minutes, 37 seconds booked or scenario little bit not all of it we have some empty capacity We have deliberately kept some capacity empty because we thought 19:46 19 minutes, 46 seconds that uh you know if there is some positive uh development on the demand in 19:53 19 minutes, 53 seconds the US and made in the US that will give us some you know leverage in the future. 20:00 20 minutes Sure. And the last one is with regard to defense. Uh considering the recent conflict uh how are you looking at 20:07 20 minutes, 7 seconds addressing or adding up more uh addressable segments to your defense target for the next three to five years? 20:15 20 minutes, 15 seconds So we are working on we are working on multiple areas uh you know we are working on right from 20:25 20 minutes, 25 seconds uh you know as I mentioned earlier drones right from air land and sea to 20:31 20 minutes, 31 seconds air defense to naval guns to uh lots of other uh advanced systems and within all 20:39 20 minutes, 39 seconds these systems we will have high domestic content. So that's our uh you know that's our goal to have a broad-based uh business. 20:49 20 minutes, 49 seconds Sure. Thanks a lot. Thank you. 20:53 20 minutes, 53 seconds Thank you. The next question is from the line of Mr. Kapil Singh from Nura. Please go ahead sir. 21:00 21 minutes Yes sir. Uh thanks. Uh just one follow up on KSFL revenues. You know they have come off uh over the last four quarters. 21:09 21 minutes, 9 seconds uh give some uh you know understanding as to what is happening over there 21:16 21 minutes, 16 seconds you know KSSL's revenue don't look at it on a quarterly basis look at it on an annual basis because there are a lot of 21:24 21 minutes, 24 seconds uh let's say you know let's say lumpiness in this business so I would look at it on an annualized 21:32 21 minutes, 32 seconds basis yeah you see a recovery in Q3 and Q4 okay So on an annual basis there should be growth in the revenues. 21:41 21 minutes, 41 seconds That is what we that is what we are projecting. 21:44 21 minutes, 44 seconds Okay. And uh what percentage of these revenues uh you know or what percentage of the suppliers go from domestic uh for 21:53 21 minutes, 53 seconds this from the standalone? 21:58 21 minutes, 58 seconds So from the standalone operations like what is the overlap between the revenues? 22:05 22 minutes, 5 seconds So the so the forging component see the thing is that old orders that have been taken in B code will continue 22:12 22 minutes, 12 seconds to be uh let's say completed from B new orders will all come will be from KSL 22:22 22 minutes, 22 seconds it doesn't make a difference 100% subsidy of BFL as well 22:28 22 minutes, 28 seconds okay and what about the junk where will that be accounted 22:35 22 minutes, 35 seconds BS but as M has also mentioned we should look at on a consolidated basis because it's 100% subsidiary of of of the company. 22:45 22 minutes, 45 seconds Yeah I understand that thank you that's it. Thank you. 22:51 22 minutes, 51 seconds The next question is from the line of Mr. Balasra Manan from Aryan Capital. Please go ahead sir. 22:59 22 minutes, 59 seconds Good evening sir. Thank you so much for the opportunities. Sir, servers and SMT lines are new ventures and uh what kind 23:06 23 minutes, 6 seconds of business opportunities we are uh having uh in coming years. How does how does this align with uh government 23:13 23 minutes, 13 seconds government incentives on SMT? we have uh you know RC see we 23:22 23 minutes, 22 seconds have uh electronics as a part of uh you know our business in defense and in uh 23:31 23 minutes, 31 seconds EV and other electronics businesses. So uh we see an opportunity to make uh 23:38 23 minutes, 38 seconds electronics components systems and uh also some end products uh as an 23:45 23 minutes, 45 seconds opportunity for the Indian markets and also as a backward integration for uh defense and EV business. So that is why 23:53 23 minutes, 53 seconds we have set that up and we are already generating revenue from this and we will also get PLI for for this from uh we 24:01 24 minutes, 1 second have applied for the PLI for this and hopefully that should come through. 24:06 24 minutes, 6 seconds Okay sir. Sir uh especially uh in construction mining uh and aerospace uh those areas are witnessed weak 24:14 24 minutes, 14 seconds performance with this demand site issue or exhibition related and when we can expect a recovery and secondly if this 24:23 24 minutes, 23 seconds KPTL e-mobility subsidiary when we can expect a break even whether it is in H2 or beyond that 24:31 24 minutes, 31 seconds uh so first of all yeah so first of all aeros space we will have strong growth in the year. Again 24:40 24 minutes, 40 seconds you have to look at it on a Y basis we should see upwards of 20% growth maybe even higher than that construction and mining there has been a dip but 24:49 24 minutes, 49 seconds hopefully that will also improve in the second half what we are seeing is a growth in construction and mining in India as the whole infrastructure 24:57 24 minutes, 57 seconds development in India is taking off other questions 25:04 25 minutes, 4 seconds you know we have working on a few so first of all we have reduced our cost and we have reduced our losses this but for the profit I think you know it 25:12 25 minutes, 12 seconds depends on getting a couple of big contracts going which we're working on let's say right now there are challenges 25:19 25 minutes, 19 seconds in EV for everyone because of the whole uh you know no uh magnets available and 25:27 25 minutes, 27 seconds things like that so let's see thank you thank you 25:35 25 minutes, 35 seconds the next question is from the line of Mr. V from simple please go ahead. 25:44 25 minutes, 44 seconds Uh just two specific question is it better now? Yes. Please go ahead. 25:52 25 minutes, 52 seconds Yeah. Uh most of my questions are answered just few questions on AM. I think we will start consolidating from Q2. So what is you know if you look at 26:00 26 minutes the past performance last three years we have seen a very good healthy growth in that uh target company uh so what is 26:08 26 minutes, 8 seconds driving that uh and what is our play going forward where I think we also co-own uh uh stake in automotive excel 26:17 26 minutes, 17 seconds so is there any no compete or you know any color you can give how are we approaching this going forward uh in our 26:25 26 minutes, 25 seconds plans we see a large opportunity in India in a variety of sectors not only on highway but also off Highway and in new 26:34 26 minutes, 34 seconds sectors to get into. So we will continue to pursue growth opportunities in India and grow our business and grow our 26:41 26 minutes, 41 seconds profitability. That is our uh let's say that that's what we are after and is there any more compete uh with 26:49 26 minutes, 49 seconds automotive XL? I mean eventually can we also participate in MCV or we will be restricted to LCV and TV. 26:59 26 minutes, 59 seconds So we are a manufacturer so we will make axles. 27:06 27 minutes, 6 seconds Okay. Thank you. Thank you. 27:12 27 minutes, 12 seconds The last question for this session is from Mr. Mitun Aswat from Ka Advisers. Please go ahead. 27:20 27 minutes, 20 seconds Yeah. Um there was some uh partnership that would compile electronics to manufacture servers in India. Could you 27:27 27 minutes, 27 seconds highlight in terms of how large these opportunities that you're getting into could be in the next few years? 27:34 27 minutes, 34 seconds Yeah. So you know there are three sectors of servers that we are targeting in India. Uh there are there is one 27:41 27 minutes, 41 seconds sector where servers have to be made in India. There is a second sector where you have AI based servers and the third is just data servers. So we're targeting 27:50 27 minutes, 50 seconds all three and uh you know I believe that there is a large market for servers 27:57 27 minutes, 57 seconds something in the order of 20,000 a year going up to 75,000 a year and these are large servers these are not just small 28:04 28 minutes, 4 seconds servers. So this is a big market and uh you know we want to see how we can be a competitive player in this market and a 28:12 28 minutes, 12 seconds local player. So uh right now we're starting small but uh we will build the capability to do much more development 28:20 28 minutes, 20 seconds and much more value addition in our servers uh for our customer base over here especially the niche and specialy customer base. 28:32 28 minutes, 32 seconds Thank you. Thank you. 28:37 28 minutes, 37 seconds I would now like to hand the conference over to Mr. Amit Kalyani for closing comments. Please go ahead sir. Yeah. So, thank you very much ladies and gentlemen 28:45 28 minutes, 45 seconds for your comments and questions. Uh, as you know, we are facing unprecedented times. Uh, but uh, you know, this 28:53 28 minutes, 53 seconds company has weathered a lot of downturns and a lot of uncertainty in the past and we've come out stronger because we've 29:01 29 minutes, 1 second always looked at our capabilities and expanded into new areas and we've worked internally to make ourselves more 29:08 29 minutes, 8 seconds competitive and that's the same thing that we will do this time around also. 29:12 29 minutes, 12 seconds and I'm quite confident that we will come out stronger and better at the end of this. So, thank you very much for your time and interest and I wish you 29:19 29 minutes, 19 seconds all a very happy evening. Thank you and good evening. 29:23 29 minutes, 23 seconds Thank you on behalf of Barat Forge. That concludes this conference. Thank you for joining us.