Black Box Limited — Q1 FY26

Black Box Ltd Q1 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=wBFqUySjRoc Published: 9 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Q1 FY26 earnings conference call of Blackbox Limited. 0:09 9 seconds This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions and expectation of the 0:16 16 seconds companies as on date of this call. These statements are not the guarantees of future performance and involve risk and 0:24 24 seconds uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listenonly mode and 0:31 31 seconds there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please 0:40 40 seconds signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being 0:47 47 seconds recorded. I now hand the conference over to Mr. Sanji Varma, wholetime director and CEO of Blackbox Limited. Thank you and over to you sir. 1:01 1 minute, 1 second Good morning everyone. I hope you're all doing well. On behalf of Blackbox Limited, I would like to welcome you to 1:09 1 minute, 9 seconds our Q1 FY26 earnings call. I'll start with an overview of our business performance and 1:18 1 minute, 18 seconds then our CFO Deepak Bunel will walk you through the financials. 1:24 1 minute, 24 seconds We have already uploaded the results presentation and I hope you had a chance to review it. It's great to connect with all of you again. 1:33 1 minute, 33 seconds Over the past five years, we have transformed Black Boss from a lossmaking entity into a profitable cash generating business with a strong balance sheet. 1:42 1 minute, 42 seconds With the turnaround complete, FY26 and onwards is about accelerating growth, scaling revenues, and capturing market leadership. 1:52 1 minute, 52 seconds While the year began at a slower pace, we are seeing solid traction in key accounts and are actively engaged in 1:58 1 minute, 58 seconds multiple high value opportunities. This quarter, we we retained the order booking momentum similar to Q4 FY25 2:07 2 minutes, 7 seconds and booked orders worth $11 176 million with most of the deals nearly 2/3 being high value deals. 2:17 2 minutes, 17 seconds Some of the notable order win during the quarter included a very large project in the US from a leading financial services 2:24 2 minutes, 24 seconds giant as well as a workplace solution engagement from one of the world's largest OTT player for their operations 2:31 2 minutes, 31 seconds in Latin America. The company also secured two significant data center orders in the US. One from global 2:39 2 minutes, 39 seconds hyperscaler and another from a top 10 global colllocation provider. Other key wins included a workplace solution 2:47 2 minutes, 47 seconds project in the US from a top tier city transfer authority, a combined connectivity infrastructure and networking order from a prominent public 2:55 2 minutes, 55 seconds service organization and a large networking deal from a reputed 200-year-old research university in the 3:02 3 minutes, 2 seconds US. Our backlog at the end of Q1 FI26 was at $518 million, up from 54 million at the end of FY25. 3:13 3 minutes, 13 seconds We are confident of reaching $100 million of backlog by end of the fiscal year. We're also targeting to book orders worth $1 billion in FY26. 3:25 3 minutes, 25 seconds As mentioned by us in the previous quarter, our order book will continue to grow as we implement our new GTM with 3:33 3 minutes, 33 seconds experienced leadership and business teams now in place across verticals and horizontal solutions. And this will set 3:40 3 minutes, 40 seconds the stage for FY29 target to reach 2 billion in revenues with an expanding order book. Strategically, we continue 3:47 3 minutes, 47 seconds to reduce our longtail value accounts which has reduced to less than 1,000 at the end of Q1 FI26. 3:55 3 minutes, 55 seconds We expect demand for our services to remain strong with a sufficient headroom at the back of AI overall growth which 4:03 4 minutes, 3 seconds will require fresh new deployment and retrofit of technology infrastructure backed by our solid market positioning 4:11 4 minutes, 11 seconds and proven capabilities. We're confident in achieving our growth targets for FI26. 4:17 4 minutes, 17 seconds With that I now hand over to Deepak, our CFO for the financial updates. 4:24 4 minutes, 24 seconds Thank you Sanjep. Hello and good morning everyone. 4:27 4 minutes, 27 seconds As you would have seen revenue for the quarter stood at INR 1387 KES down 3% 4:34 4 minutes, 34 seconds yearon year impacted on account of clientdriven delays in equipment procurement due to the ongoing tariff 4:43 4 minutes, 43 seconds situation which pushed out revenue recognition and affected operating margins as well. Uh given the focus on 4:50 4 minutes, 50 seconds getting large size of orders and our focus on high value customers, the average lead time from order receipt to 4:58 4 minutes, 58 seconds first revenue recognition is now uh extended to around 4 to 6 months. Uh hence you will see revenue increase from 5:06 5 minutes, 6 seconds our robust order bookings only post Q2 of FY26. 5:12 5 minutes, 12 seconds There is also a small impact from the reduction of the longtail low value accounts. IBITA for the quarter grew 1% 5:20 5 minutes, 20 seconds to INR 116 cr compared to Q1 of last year essentially remaining flat while 5:27 5 minutes, 27 seconds IITA margin improved by 30 basis points year oneononear to 8.4% 4% they were lower compared to Q4 of FY25 due to 5:37 5 minutes, 37 seconds lower fixed cost absorption in quarter 1. Fixed cost generally would range around 310 to 320 crores per quarter. 5:45 5 minutes, 45 seconds Fixed cost absorption will be better in the coming quarters as revenue increases. Our guidance of 9 to 9.2% IIITA margin in FY26 remains intact. 5:58 5 minutes, 58 seconds Profit after tax rose 28% yearonear to INR 47 cr from 37 crores in quarter 1 6:06 6 minutes, 6 seconds FY25 with margins increasing by 80 basis point to 3.4% yearonear primarily driven 6:14 6 minutes, 14 seconds by reduction in exceptional expenses and lower taxes. In summary, we delivered year-on-year growth in both AITA and 6:23 6 minutes, 23 seconds profit after tax, highlighting our operational efficiency and margin resilience. With a strong order book, 6:31 6 minutes, 31 seconds healthy cash reserves and a reinforced go-to market strategy, we are confident of delivering on our growth ambitions 6:38 6 minutes, 38 seconds for fiscal year. I would now request the moderator to open the floor for questions. 6:46 6 minutes, 46 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 6:53 6 minutes, 53 seconds star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 7:02 7 minutes, 2 seconds requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 7:11 7 minutes, 11 seconds The first question is from the line of Deep Sha from BNK Securities. Please go ahead. 7:18 7 minutes, 18 seconds Yeah. Hi, good morning. Uh, thanks for the opportunity. Uh, so first question is is of is on the commentary that you 7:25 7 minutes, 25 seconds gave that revenue growth was impacted due to dering um clients equipment ordering. Now this is unlikely to change 7:34 7 minutes, 34 seconds in the near term. Um, right. So what deserve gives us the confidence to uh stick with our guidance because the the 7:42 7 minutes, 42 seconds revenue guidance effectively implies that an 18 19% kind of growth is needed in the balance 9 months of the year uh 7:50 7 minutes, 50 seconds to achieve our 26 guidance. So if you would just uh give some more context that would be useful. 7:59 7 minutes, 59 seconds Yeah, I I'll take that. So yes in the short term I think uh with uh some of the alternate certainties still 8:07 8 minutes, 7 seconds remaining on tariffs we expect uh there will be uh some delays some of them are dead because if from a backlog 8:15 8 minutes, 15 seconds perspective uh cyclical in nature since it's was 2 months it's not 3 months or four months time uh we expected to ease 8:23 8 minutes, 23 seconds post October hopefully but we're not sure having said that I think currently we're looking at where we stand in terms of order backlog books and our burn 8:31 8 minutes, 31 seconds rate. We expect that the burn rate would be better because we baked in last 3 four months of uh order books that has come through that has not gone into 8:39 8 minutes, 39 seconds revenues. Our also our pipeline currently as we stand today getting into the middle of quarter two is much 8:46 8 minutes, 46 seconds robust. We expect our order book to continue to rise uh as we get into quarter two if impacting our revenues 8:54 8 minutes, 54 seconds positively for quarter three and quarter four. So it's a kind of a cyclical coming at the back. To answer your second question, we expect our revenue 9:01 9 minutes, 1 second and outwork momentum to track between 15 to 20%, in fact, audible will track more than that going forward each quarter 9:08 9 minutes, 8 seconds from here. So, we have still remained uh positive with respect to our guidance with respect to also PAT and also from 9:17 9 minutes, 17 seconds our order book perspective of exiting the year closer to 700. We are currently at 520 odd. So, we remained robust. the 9:24 9 minutes, 24 seconds work that has gone through the last five six months uh starting our order backlog this quarter heading into next quarter 9:32 9 minutes, 32 seconds we understand we need to track the 15 20 odd percent and we've been positive that we'll be able to deliver that 9:40 9 minutes, 40 seconds right right sir uh this this is useful uh second question is for deeper uh so deeper in our press release we mentioned 9:47 9 minutes, 47 seconds the bitid of 116 crores but uh if my understanding is correct this includes 11 tr of uh Forex DN is is that understanding correct? 9:58 9 minutes, 58 seconds Yeah. Yeah. So, so this so so there are there are three type of forex normally in the business. Uh one is one is that 10:06 10 minutes, 6 seconds which is on a translation side of it that passes through the OCI which which doesn't hit the P&L as such. The second 10:14 10 minutes, 14 seconds type of thing is a cash flow hedge which is when you hedge your when you hedge your uh currency for different moments 10:24 10 minutes, 24 seconds on that it it comes under the line below the IITA. The third type basically is is is when we have the inventory because we 10:33 10 minutes, 33 seconds deal in multiurrencies we deal in almost like uh 19 currencies in our operations overall. So on that when when we have 10:41 10 minutes, 41 seconds the inventory accounts receivable and accounts payable and the consumption pattern and the revenue pattern uh on the on on that happens and primarily 10:50 10 minutes, 50 seconds that happens in our product product business and all those thing every quarter every quarter when you book it on a transaction level uh there is a 10:59 10 minutes, 59 seconds there is a currency difference every every day which happens depending on that and that is if you see consistent every year it can be positive it can be 11:08 11 minutes, 8 seconds negative every quarter every month and all those thing that is part of the IITA only because that is a operational related thing because of the accounting 11:16 11 minutes, 16 seconds gap requirement we show it as a different line item but otherwise it's related to the operational thing which impacts our inventory valuation and our 11:25 11 minutes, 25 seconds accounts receivable and payable when the customer pays the money or we pay to the vendor or when we consume the inventory when we sell the inventory 11:34 11 minutes, 34 seconds right uh right but so it's it's really difficult to forge Is this number right? 11:39 11 minutes, 39 seconds So when you give your estimates for or guidance for 26 or or for any year so should we think that this guidance that 11:48 11 minutes, 48 seconds we've given of 9.2% margins is exclusive of all of these impacts because as you as you said right that it would be 11:55 11 minutes, 55 seconds positive in some negative in in some year and it's it's not really in your control. 12:00 12 minutes No. So, so it's you are right technically the currency is not in our control the planning of the inventory and the planning of the the receivable 12:09 12 minutes, 9 seconds and payable is in our control and that's how we plan. So so this quarter when the when we saw that the currency is going in a right direction. Uh we planned our 12:17 12 minutes, 17 seconds inventory to consume in a way that we take benefit of that. So it is it is in our control to plan that how we are consuming from which country and which 12:26 12 minutes, 26 seconds currency we are passing on that inventory to uh consume and that is why that is why it becomes it becomes more 12:33 12 minutes, 33 seconds like uh more like because that is a real money which is coming. It is not like that that that is that is just a accounting thing. Uh it is it is a real 12:40 12 minutes, 40 seconds money which flows us with respect to the collection or with respect to the inventory consumption in terms of the margin. 12:48 12 minutes, 48 seconds So, so when we when we forecast when we forecast this 9.9% that includes some of these some of these strategies because because in in the business you need you 12:56 12 minutes, 56 seconds you apply all these strategies when you uh when you are when you are delivering the material to the customer or anything where you will try to do all these 13:04 13 minutes, 4 seconds things uh when the currency is going down or something like that then also you will do a different type of thing. 13:09 13 minutes, 9 seconds you will consume the currencies if it is if it is a if I have a material sitting in Switzerland warehouse so I will sell 13:16 13 minutes, 16 seconds that if the if if the Swiss Frank is doing better than the euro right understood understood uh and just 13:23 13 minutes, 23 seconds one more followup this quarter we saw some 40% increase in purchase of stock so so anything to call out here or it is 13:32 13 minutes, 32 seconds just uh time timing difference it's a timing difference it's a timing difference that because because we have 13:39 13 minutes, 39 seconds We have we continue to purchase the inventory and sell. So because of the tariff things on our TPS side of thing, 13:46 13 minutes, 46 seconds we little bit purchased more uh for to to basically store the inventory in US to reduce the impact of the tariff 13:55 13 minutes, 55 seconds because on the on the on the China goods uh whatever we have purchased and Taiwan also because Taiwan when they they put the higher duty initially we ordered the 14:04 14 minutes, 4 seconds material to come in advance to consume in the next quarter and all those thing but now Taiwanese duty has again come back to the lower levels now. So, so as 14:12 14 minutes, 12 seconds such there's nothing uh not much impact on that but you know we are planning basis what is happening right now on uncertainty type of thing. 14:20 14 minutes, 20 seconds Understood. Uh this is super useful. All the best. Thank you. Yeah. Thank you. 14:25 14 minutes, 25 seconds Thank you. Our next question is from the line of Abhishek Kumar from GM Financial Limited. Please go ahead. 14:33 14 minutes, 33 seconds Yeah. Hi, good morning uh and thanks uh for the opportunity. Uh I have a couple of questions on your outlook only. First 14:42 14 minutes, 42 seconds I just wanted to uh understand when you say that you expect $1 billion of order booking 14:50 14 minutes, 50 seconds uh in FI26 uh is it corresponding to the $176 million inflow that we did in Q1 that 14:58 14 minutes, 58 seconds cumulatively you expect F uh to reach $1 billion in FI26? That is correct. 15:07 15 minutes, 7 seconds So basically as a cumulative order booking for the year starting at 176 when you track 200 250 200 we'll do a cumulative of $1 billion for the year. 15:17 15 minutes, 17 seconds You're correct I'm saying. 15:19 15 minutes, 19 seconds Okay. Okay. So that's that's very encouraging and we have uh I mean you have mentioned $2 billion plus uh 15:27 15 minutes, 27 seconds pipeline. So that means uh you know very strong win ratio for us to do that. So we have the visibility the position 15:35 15 minutes, 35 seconds positioning that we have in terms of you know where we stand uh in those deals uh today to uh hit that billion. What is 15:43 15 minutes, 43 seconds giving us the confidence that out of $2 billion pipeline we can billion a $2 billion is a point in time. So if 15:50 15 minutes, 50 seconds you consume or you burn or you pick up orders for $200 million you have to replace it by pipeline. So the pipeline 15:57 15 minutes, 57 seconds should actually grow from 2 to 2.1 2.2 2.5. It's a point in time. It it is taking into account that what will burn 16:05 16 minutes, 5 seconds which is what will win. Uh that doesn't mean that you have two billion static pipeline until you get $250 million worth of orders. Uh it's it should 16:14 16 minutes, 14 seconds replace that through a pipeline. So it's a it's a absolute number that should remain constant or move up basically 16:22 16 minutes, 22 seconds adding. So if you look at uh you you know from a percentage win ratio uh I think we have a significant pipeline at 16:29 16 minutes, 29 seconds a given point of time corresponding to a quarter. So if you're looking at $250 million you're looking at 12%. So it's a 16:36 16 minutes, 36 seconds very healthy pipeline. Of course all of them will not uh close in this next 9 months. Some are longer lead times but uh a robust pipeline the current 16:44 16 minutes, 44 seconds engagements on larger deals uh combined and our ability to continuously improve the pipeline uh through the go to market 16:52 16 minutes, 52 seconds transformation that we are doing. We're seeing these engagement. So all put together we believe uh we're confident of an absolute booking of a billion dollar exiting 700 million of backlog. 17:04 17 minutes, 4 seconds We think we need to move the backlog from the current 520 range as we move forward uh to open a better backlog so that we start the fiscal 27 would be a better note. 17:15 17 minutes, 15 seconds Okay. Okay. And second I think it's mentioned that now because we are we are chasing larger contracts. Uh the lead 17:23 17 minutes, 23 seconds time has increased uh to four to 6 months. Uh I think this is uh this is the first time we have mentioned this. 17:31 17 minutes, 31 seconds So does that mean now that uh you know the orders that we have won recently uh you know the conversion uh or the 17:39 17 minutes, 39 seconds revenue recognition will only happen in the second half. So therefore we we might have a soft Q2 as well. 17:48 17 minutes, 48 seconds So we expect that Q2 to be uh much better than Q1 and you know so uh so we 17:55 17 minutes, 55 seconds already have a backlog which is delayed bird so which you know we didn't impact all of that in Q1 although it could have 18:02 18 minutes, 2 seconds been better we expect the Q2 to be uh impacting and the others that we booking as we speak uh will impact partly Q2 18:10 18 minutes, 10 seconds going back to Q3 so it will just continue to push forward uh but no we expect Q2 to be uh much 18:18 18 minutes, 18 seconds Understood. Uh, understood. Uh, I have, um, uh, 18:25 18 minutes, 25 seconds okay, I'll come back in the queue. I had another question. I I just slipped my mind. I'll come back in the queue. Thank you so much and all the best. No problem. 18:33 18 minutes, 33 seconds Thank you. A reminder to all participants. Anyone who wishes to ask a question may press star and one on their 18:40 18 minutes, 40 seconds touchdown telephone. Our next question is from the line of CA Garvit Goyel from Nvest Analytics Advisory LLP. Please go ahead. 18:51 18 minutes, 51 seconds Uh hi, good morning. Uh I'm audible. Yes sir, you audible. Please go ahead. 18:55 18 minutes, 55 seconds Uh sir uh uh my question is on the tariff front only. Uh I remember in last quarter we spoke on this uh topic and uh 19:03 19 minutes, 3 seconds you mentioned that uh uh you will be having a limited impact uh as far as the tariffs are concerned. uh and you cited 19:11 19 minutes, 11 seconds uh that most of our uh revenue model is based on some uh onground services and secondly our OEM products uh that two uh 19:18 19 minutes, 18 seconds will not be uh affected much because these are getting purchased locally. So uh like what is the scenario now why we are seeing key uh in this quarter our 19:27 19 minutes, 27 seconds revenue is getting affected because the customers are delaying the purchase on account of the tariff environment. So I'm not able to understand this thing. 19:32 19 minutes, 32 seconds So can you please put some color on that? So I'll take it and maybe allude that. 19:39 19 minutes, 39 seconds So when we said the tariff wouldn't impact us from a perspective of a margin and profitability as such because it's a pass through for us from product side 19:47 19 minutes, 47 seconds right so I think so it's not going to impact or uh if it costs us more I think we need we need to pass that so that's a 19:54 19 minutes, 54 seconds uh take on that impact of tariffs but from a customer perspective his cost of purchase is is going to go up right and 20:02 20 minutes, 2 seconds I think uh so there is a delay for larger projects which includes some products of course we are largely 20:08 20 minutes, 8 seconds servicesled led to make a decision on a certain things. They're expecting the tariff for some countries to become better. So that's on the customer side 20:17 20 minutes, 17 seconds because some of them we are a small part of the customer overall capex right. So if they are having a delay in their overall capex if they're building a data 20:24 20 minutes, 24 seconds center they're building a large infrastructure like airports there. So we are part and parcel of the larger capex program. So if they're delaying 20:33 20 minutes, 33 seconds some decision making, it's not because they're delaying only for us. They're doing a larger capex. They're taking time to see uh you know whether they want to uh spend that money or they're impacting some of the other purchases. 20:43 20 minutes, 43 seconds So there's a general delay not because of just u our products our tariffs. So two parts to this. tariff is not only 20:51 20 minutes, 51 seconds impact us from a PNN perspective as much since it's a pass through the customers considering a bit of uncertainty with 20:58 20 minutes, 58 seconds somebody at 25% somebody at 50% somebody at 19% uh it just kept on happening over the month of July and August generally 21:07 21 minutes, 7 seconds the environment with respect to customer decision making was largely impacted for overall capex spend perspective is 21:15 21 minutes, 15 seconds anything else yeah yeah so well you rightly told it's a macroeconomic uh type of situation there in US right 21:23 21 minutes, 23 seconds now. So, so let's say I have a order from a customer to execute a project but that is dependent on two things. One the 21:31 21 minutes, 31 seconds readiness of the site and the second is the availability of the equipment which is required to be deployed where where 21:38 21 minutes, 38 seconds our role will be there and that equipment may be a server or maybe a networking equipment or maybe a cables or whatever it is where our technicians 21:47 21 minutes, 47 seconds will be deployed to to install manage and all those stuff. Now if now now if the customer is not getting from their 21:55 21 minutes, 55 seconds supplier or from OEM or delayed the decision because of the tariff uncertainty and all those thing because there was a huge uncertainty on the 22:02 22 minutes, 2 seconds copper tariff in between and because of that the pe the people imported the copper flaps but not the copper wires and cables and because of that there was 22:10 22 minutes, 10 seconds a there was generally a shortage of the cables in US uh which now has started coming up once the administration has coming with the clarity on that because 22:19 22 minutes, 19 seconds of all that uh the the customers told us that because because if there is no material to install then our our technicians obviously cannot work uh 22:28 22 minutes, 28 seconds there and all those thing and because of that we cannot recognize the revenue and that's what I think is the project delayed and that's where the revenue recognition delayed it is it is it is 22:36 22 minutes, 36 seconds not it is not like that that we lost that it is just the delayed uh because because then we will execute it now when the products availability is there and 22:45 22 minutes, 45 seconds all those things so we got uh we we are we are engaging we have a regular engagement with our customers we are working with them in terms of the 22:52 22 minutes, 52 seconds revised timelines on the project and all those thing and can we do some change orders with them basis that and all those stuff on the background all those 23:00 23 minutes things are going on understood and when we say uh like Q2 uh 23:07 23 minutes, 7 seconds is going to be better uh than Q1 and we are also maintaining our guidance but uh at the other hand tariff situation is 23:16 23 minutes, 16 seconds getting worse uh day by day right uh So no I will say I will say tariff situation is generally generally 23:23 23 minutes, 23 seconds resolved uh other than other than India and because China is now extended for 3 months other than India, Brazil and few 23:32 23 minutes, 32 seconds countries the tariff situation is generally resolved. The China is all stabilized now that China will continue to be at the current duty and all those 23:40 23 minutes, 40 seconds thing. So, so I think I will say that the tariff situation is now far better uh as compared to the earlier people have people have now the uh almost like 23:49 23 minutes, 49 seconds I will say 90% clarity uh in terms of what is happening there is not much dependency in our line of business from 23:57 23 minutes, 57 seconds or IT capex and all those thing from India. So from that perspective uh I think there is a more certainty now as compared to in the past. 24:07 24 minutes, 7 seconds So if India is uh going to face a tariff which is incrementally greater as compared to the other countries so uh 24:15 24 minutes, 15 seconds don't you think uh people will be uh shifting uh to some other countries at least for the product part so in US see 24:23 24 minutes, 23 seconds the the import in the US of the of the technology products uh which which we are dependent on uh whether whether it 24:31 24 minutes, 31 seconds is whether it is the all the OEMs networking equipments and all those stuff uh I don't think that India plays 24:37 24 minutes, 37 seconds a very contributed role in terms of going to US. We don't work obviously on the cell phone devices and cell phone 24:45 24 minutes, 45 seconds devices from India. In US by the way the duty is zero. Uh so from that perspective all the dependency is on is 24:52 24 minutes, 52 seconds on Europe, China, Taiwan uh is is a major major dependency in US for our products what we deal upon. So from that 25:01 25 minutes, 1 second perspective those all things are sorted out. India duty will probably doesn't will will not impact us. As Sanjiv, do you think India duty will impact us from the networking equipment perspective? 25:12 25 minutes, 12 seconds No, we don't source. I think the the Americans don't source from India is not a network equipment exporter, 25:18 25 minutes, 18 seconds right? So, uh I don't think that so uh as of today uh uh we are saying uh 25:27 25 minutes, 27 seconds we are uh pretty much confident uh about achieving the guidance that we are speaking about, right? Yes. Yes. Yes. 25:35 25 minutes, 35 seconds And any any kind of risk like do you see like after the quarter uh you make uh mentioned like this kind of risk occurred. So any kind of risk are you 25:43 25 minutes, 43 seconds seeing right now uh which can uh stop us uh from uh from achieving this guidance. 25:49 25 minutes, 49 seconds So any all of the known risks from the past are baked in the future risk which we can't see we can't see right. So what 25:58 25 minutes, 58 seconds whatever we have at this time we tariff with some delays uh you know are baked in our our pipeline our current order 26:07 26 minutes, 7 seconds book um our current go to market motion is again where we are if it gets in some other direction which uh we don't know 26:16 26 minutes, 16 seconds or all of us don't know then we don't know that but uh leaving that aside considering there's no other event uh 26:23 26 minutes, 23 seconds that we couldn't answer uh you know we as guided by intact based on that. 26:30 26 minutes, 30 seconds Understood. And you mentioned about the newer orders uh uh that that we are targeting uh in 26. Uh can you put some more color like uh how much uh 26:39 26 minutes, 39 seconds percentage of these orders are going to be uh from data center and uh uh uh uh what kind uh of uh timelines uh for these orders to be executed. 26:50 26 minutes, 50 seconds So our ballpark range our datent orders should in the range of 20 25%. And as a little track to that we are slightly 26:59 26 minutes, 59 seconds lower over the last couple of quarters on that. So that would be in that range. 27:02 27 minutes, 2 seconds Uh so if you look from a perspective of overall a billion dollar we expect over $200 million and somewhere in that range to be in that range right. uh with 27:10 27 minutes, 10 seconds respect to our project timelines in general depending when we book the projects our average project timelines are between 6 to 9 months time. So we 27:19 27 minutes, 19 seconds will carry forward when we said we want to book that a significant amount of uptick with respect to our backlogs going forward right 80% of our business 27:29 27 minutes, 29 seconds uh is outside of the data center which includes networking includes infrastructure modern workplace also includes our technology products that's 27:38 27 minutes, 38 seconds a blackbook product business and what is the size of orders you mentioned as an incremental order the the size of orders I think we have 27:46 27 minutes, 46 seconds focused as you told before for the last two Three quarters we have been saying that we have been pivoting from blackbox from a very long list of customers which 27:55 27 minutes, 55 seconds is over couple of thousand to focus customer focused on larger deals. Uh because we believe that uh you know 28:02 28 minutes, 2 seconds that's where our focus should be. uh we are seeing that uh the contribution uh in our quarterly order booking 28:10 28 minutes, 10 seconds pertaining to larger deals uh over 1 million over 5 million uh is much more and as we move forward we expect that to 28:19 28 minutes, 19 seconds uh even go better the deals were 10 million or more 20 million or more so that's where the focus has been over the last several quarters and we are at the 28:27 28 minutes, 27 seconds right spot at this time to make a win across data center across infrastructure across airports healthcare in all the 28:36 28 minutes, 36 seconds verticals that we operate. Uh that's where we have been focused on long-term uh larger deal multi-year annuity. So 28:44 28 minutes, 44 seconds those are the focus areas and that's where we see our company heading towards. 28:49 28 minutes, 49 seconds Got it. Uh thank you very much. Thank you. 28:53 28 minutes, 53 seconds Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on their 29:00 29 minutes touchstone telephone. Our next question is from the line of Jatan Desh Pande from PKday Advisor. Please go ahead. 29:09 29 minutes, 9 seconds Uh hi sir, good morning. Can you hear me? Yes sir, your please go ahead. 29:14 29 minutes, 14 seconds Yeah, so my first question was that uh the data center industry is going through a boom in the US numbers aren't 29:21 29 minutes, 21 seconds rising as fast and so what is the reason for that? And also last call you mentioned that the marginal decrease in 29:28 29 minutes, 28 seconds revenue uh was one of the reason was that due to the asalization of your client base. So is there any specific reason why you need to remove the 29:37 29 minutes, 37 seconds longtail clients before you add new uh larger clients to ensure that the revenue doesn't drop and also I'm assuming that tariffs has uh only come recently so that is not the reason. 29:51 29 minutes, 51 seconds So yeah, I'll answer the the first part and try to answer the second part and go deeper. So I think yeah so I think so so the data center of course you see a lot 29:59 29 minutes, 59 seconds of announcements in the data center between the announcements of data center and the time it goes uh online with project there's a huge lag right so I 30:07 30 minutes, 7 seconds think if you see an announcement of data center for 2 gaw from the announcement to the removal of the dirt by the time 30:15 30 minutes, 15 seconds we have to we get to do our work there's a there's a lag out there uh in the last 6 months or so or maybe six nine months 30:23 30 minutes, 23 seconds or so we have reorganized our focus on the data center. We had one large hyperscaler client uh which we which we we did not produce enough in the last 6 30:32 30 minutes, 32 seconds n months. Currently we are sitting at a very large pipeline and win rate coming forward from that client. But more importantly uh we are now uh have one 30:41 30 minutes, 41 seconds and gotten into other large global multilocation solo provider. We're also in active engagement. So the pipeline 30:50 30 minutes, 50 seconds from a win ratio perspective the relationship from that perspective uh with other hyperscalers and collision 30:58 30 minutes, 58 seconds providers are much better. Uh the closing of a deal for a hyperscaler for the work that we do is a long lead time. 31:06 31 minutes, 6 seconds Uh and once you get it you stay for a long period of time as a partner. 31:10 31 minutes, 10 seconds There's also a dynamics with respect to large hyperscaler as working in collaboration with large general contractors and customer in this case 31:18 31 minutes, 18 seconds hyperscaler and multi- vendor approach right so we can make it little complex so there is a lead time and lag time from when we start off engaging for 31:26 31 minutes, 26 seconds larger projects by the time we get to to contracting and the time we start delivering that new of uh you know from 31:33 31 minutes, 33 seconds that order book so that's a time lag so where we stand today uh from our ability to see pipeline in conversion the the 31:41 31 minutes, 41 seconds line of sight is much better and therefore I said we expect 15 20% continuous movement both in order book and revenue going forwards so that's one 31:51 31 minutes, 51 seconds the second question uh I'll refer to people you talk about margin I didn't get the question exactly but maybe 31:58 31 minutes, 58 seconds yeah yeah so so I can I can take that so uh on the on the longtail customers uh we have already informed everybody that 32:07 32 minutes, 7 seconds our we deal primarily with the large fortune 500 clients and in every vertical what we have announced we want 32:14 32 minutes, 14 seconds to deal with the top let's say 100 200 customers and and and that's where I think the biggest penetration is uh we 32:23 32 minutes, 23 seconds used to have more than 2,000 customers two years back on a longtail side of it where the where the value of the deal 32:31 32 minutes, 31 seconds the engagement with the customer is a one-time engagement in the year or two times or the value of the deal is between $10,000 to $50,000 and all those 32:39 32 minutes, 39 seconds things the the the cost to deliver that customer was extremely high in terms of the overheads while the while the gross 32:47 32 minutes, 47 seconds margin may look okay but then the but then the SGNA will be higher to deliver that and that is why we took a conscious 32:54 32 minutes, 54 seconds call to reduce our longtail customers so that exercise is going on you would have you uh we will continue to see that now 33:02 33 minutes, 2 seconds we have less than thousand customers in fact uh on that on that long tail thing because you cannot suddenly reduce everything but we are doing a consistent 33:11 33 minutes, 11 seconds effort to do that and that's where I think uh the there because last year total impact was between 16 to 17 33:19 33 minutes, 19 seconds million of that on the revenue uh this year we are not expecting that that much of impact this year the total impact we 33:26 33 minutes, 26 seconds are expecting in the range of primarily 6 to7 which is already built in in what the what the uh guidance we have given that is already built in in that uh with 33:35 33 minutes, 35 seconds that I think our our streamlining on the longtail orders will be will be over uh let's say on a consistent basis in the current fiscal year. 33:45 33 minutes, 45 seconds Got it. Got it. That was helpful. And sir uh can you help me understand your customer on the data center side? So do you directly deal with uh let's say for 33:52 33 minutes, 52 seconds example meta or are you dealing with their vendors like do do you have any preferred vendor position in with any of them? 34:00 34 minutes We are a prefer yeah that's a good question. So we are we deal directly with Meta both from a contracting perspective uh and uh from exhibition 34:10 34 minutes, 10 seconds perspective. We also deal with meta's large uh vendors most more mostly master 34:17 34 minutes, 17 seconds contractors in in some cases. So Meta or any other hyperscala for that matter utilizes both channels. There are many 34:24 34 minutes, 24 seconds sites they contact directly the many work that they contact directly. is they're putting up a uh dash network divide contract directly. in some site 34:33 34 minutes, 33 seconds considering the nature of the site the way they have contracted with the master contractor could be a vector or a turner could be a lock and barrel pretty much 34:40 34 minutes, 40 seconds the way you build like an airport or a railway system right I mean you might give it to seamans or somebody else and they become the master contractor so 34:49 34 minutes, 49 seconds they utilize both so we have relationship with their master contractors that we work with so the 34:56 34 minutes, 56 seconds these are multi-billion dollar large master contractors we also have to work directly irrespective whether we contract sometimes with the master 35:04 35 minutes, 4 seconds contractor because that's what they prefer but the design element the discussion element is more like a typatri to sit in the room with all 35:11 35 minutes, 11 seconds because uh each is interconnected so to answer to your question we have both kinds of contracts directly delivering 35:18 35 minutes, 18 seconds to meta in certain sides in certain geographies for example we do a large work for them in Europe uh we contract 35:25 35 minutes, 25 seconds directly in some sites in America we contact directly we also contract indirectly if that is what their preference is 35:33 35 minutes, 33 seconds got it. Got it. Thank you. And sir, uh you have guided for a significant inorganic growth uh through FI29. So uh 35:40 35 minutes, 40 seconds do you have any plan on how how are you going to fund this like are your internal approvals enough or do you plan to raise any debt or so I will give it a deep. 35:51 35 minutes, 51 seconds Yeah. So, so you know for the organic growth uh as such because for the organic growth we require just a working 35:58 35 minutes, 58 seconds capital that that working capital we have the off balance sheet facilities and I think we should be able to fund it through our internal approvals and all 36:06 36 minutes, 6 seconds those thing for the inorganic uh activities we may we may have to raise the debt depending on the situation and 36:13 36 minutes, 13 seconds all those thing because normally our philosophy on the inorganic acquisition is that that we continue to look for 36:20 36 minutes, 20 seconds suboptimal uh or subpar performance type of companies which we can get at the lower price where where we where we put 36:28 36 minutes, 28 seconds our capability to transform those businesses and and then we do some type of structure in terms of deferred consideration and pay up front something 36:36 36 minutes, 36 seconds and all those thing. So right now we are not envisaging that that that we will be enhancing the debt uh a basis that but 36:43 36 minutes, 43 seconds if we find some good asset which is a large size or something and if we need to take that in terms of achieving our achieving our targets and we feel that 36:52 36 minutes, 52 seconds that asset is a transformable and we can transform it quickly and all those thing uh probably it all depends on the situation on the on the inorganic growth how that evolves and everything. 37:03 37 minutes, 3 seconds Got it. Got it. Thank you sir. All the best. 37:07 37 minutes, 7 seconds Thank you. May I remind all participants, anyone who wishes to ask a question may press star and one on their touchdown telephone. 37:17 37 minutes, 17 seconds Our next question is from the line of Sukrit Deep Partal from Eyesight Finate Private Limited. Please go ahead. 37:25 37 minutes, 25 seconds Good morning to the entire Blackbox team and uh my question is to Mr. Sanji WHMA. 37:31 37 minutes, 31 seconds uh in the last corn call I believe you had emphasized a shift from uh stabilization to growth uh targeting 37:38 37 minutes, 38 seconds approx 2 billion revenue by FI 29. So just a extension to that question. Uh as 37:45 37 minutes, 45 seconds blackbox transitions from stabilization to growth, how are you thinking about evolving your engagement model from a 37:53 37 minutes, 53 seconds with hyperscalers and large enterprises from being a systems integrator to a 38:00 38 minutes strategic co-inovator in areas like AI infra edge computing or sovereign cloud 38:06 38 minutes, 6 seconds and are there plans to co-develop IP or enter joint GTM partnerships that could deepen wallet share and uh create 38:16 38 minutes, 16 seconds annuality like revenue streams for the company. Yeah. Thank you. 38:22 38 minutes, 22 seconds Yeah. So the first part of the question is for we are focused on moving from stability uh to hyperrowth going forward 38:31 38 minutes, 31 seconds and uh we are on the right path to be able to do that. As I called out earlier we expect our coming quarters to gain 38:37 38 minutes, 37 seconds velocity and momentum both in order book and revenues going forward. Specifically coming to U hyperscalers 38:46 38 minutes, 46 seconds uh or so the world of hyperscala is broken into two distinctive parts. 38:52 38 minutes, 52 seconds One of course hyperscaler that built their own projects largely at the core largely they built uh large mega infrastructures 39:01 39 minutes, 1 second and then of course there are various uh multi-tenant colo providers u which also 39:08 39 minutes, 8 seconds build and support these hyperscalers largely at the edge right which means they build in the in the cities they 39:16 39 minutes, 16 seconds build they build various sites for them and the likes of QTS or Cyrus one or others in that space are also partner. 39:26 39 minutes, 26 seconds Uh in fact if you look at India many of the cola providers now are actually a wholesale provider to Google and AWS. 39:35 39 minutes, 35 seconds The model that they started earlier was different right. So uh so the now the consumption happens. So coming back to your question from a a transactional 39:43 39 minutes, 43 seconds provider to a strategic one that's exactly what we are doing at this time engaging with these hyperscalers that we 39:51 39 minutes, 51 seconds have uh starting from building their core infrastructure we do connectivity and networking we also doing some other 39:59 39 minutes, 59 seconds work pertaining to dash infrastructure and wireless infrastructure uh the larger hyperscalers they buy differently 40:08 40 minutes, 8 seconds we don't expect to be selling compute to them. They actually don't buy comput anybody. They're starting to build their own compute. So we So that's one side. 40:16 40 minutes, 16 seconds From a long-term partnership perspective, we do provide what we call day-to-day support which is NVT in nature. So once the work is done, the 40:25 40 minutes, 25 seconds work is never finished. So you need to support the work that you do. There's always some movement going on. So once we 10% of our workforce somewhere around 40:33 40 minutes, 33 seconds 10 15% will continue to remain to support the day to support uh and our endeavor is to be able to do that longer 40:41 40 minutes, 41 seconds term. When we come down to some of their partners which is the collocation providers multi-tenant the ability to do 40:49 40 minutes, 49 seconds with them is a little bit more because they do a small format. So we when we work with QTS and we work with real realy are we could do go up the value 40:58 40 minutes, 58 seconds chain from their zero layer 1 layer two and we are also forming partnership with them over the last several quarters with the investment that we have made in the 41:07 41 minutes, 7 seconds talent that we have brought in quality safety budget controls uh high level leadership our engagement now both with 41:15 41 minutes, 15 seconds uh hyperscalers outside of our single largest client that we have uh you know is increasing and our current engagements is across 41:24 41 minutes, 24 seconds various multi- team and various hyperscalers uh both from a pipeline perspective and we expect to be able to become their 41:32 41 minutes, 32 seconds core strategic partner. We'll do a project that lasts for 1 2 3 years time you cannot be a transactional vendor. 41:39 41 minutes, 39 seconds Blackbox is also working with many of these providers in more than one country and we intend to expand. For example, 41:47 41 minutes, 47 seconds the focus now in Europe in some markets specifically Spain, uh, UK and other areas. Is it the back of our relationship? In summary, uh, we are 41:56 41 minutes, 56 seconds looking forward to long-term relationship. That's the reason why we have we have focused on larger sim similarly are engaging with larger enterprises as well in similar nature. 42:06 42 minutes, 6 seconds So therefore, we've decided not to be everything to everybody and that's the reason why we're moving out of the long tail and most of our engagements are now 42:14 42 minutes, 14 seconds focused on long-term contracts either projects or long-term multi-year annuity contracts that we do for several critical infrastructure like airports. 42:24 42 minutes, 24 seconds We support some of the largest airports in the US. Uh so that's the initiative. 42:30 42 minutes, 30 seconds Great that that was good insight. Just on a uh ending note uh I just want to understand from you as a as a as a CEO of a company how do you decide where to 42:38 42 minutes, 38 seconds focus between uh US hyperscalers and India's digital infra what is the framework behind those choices from your 42:48 42 minutes, 48 seconds point of view so yes from a size perspective I I told 42:55 42 minutes, 55 seconds before we have uh no we focus on where we believe uh we we'll get better yield from the effort that we put. The size of 43:03 43 minutes, 3 seconds the market for the US is much larger. Of course, India is a growth country. So, we've also pivoted to look at India as a 43:12 43 minutes, 12 seconds growth market for us at this time, but still remains a small portion of the overall business. So, we're looking at um putting our resources where we 43:21 43 minutes, 21 seconds believe that we can get volume and we can also get value. So, America can provide value and volume both. India of 43:28 43 minutes, 28 seconds course has volume coming in. So we are currently engaged with India uh for larger projects. We recently uh 43:36 43 minutes, 36 seconds received and partly delivered very large cyber security project. Uh India is going to build a lot of uh data center 43:44 43 minutes, 44 seconds as well. Many of them are currently in the conceptualization stage. They're announcing the project like Google announced this is billion dollar between 43:51 43 minutes, 51 seconds announcing and the project coming through is long lead time but India has superintendent of value right it's a cost plus country. So with the main cost 43:59 43 minutes, 59 seconds how to make our cash work better, how to make our capital allocation work better, right? And what yield can we get from 44:07 44 minutes, 7 seconds that perspective? So as a CEO of a company as I said we are looking to drive uh hyper growth but we're looking to drive hyper growth that has bahin as 44:15 44 minutes, 15 seconds well and uh India of course remains very core to our business both from a growth perspective but also from our delivery perspective as you know we're using 44:24 44 minutes, 24 seconds India for our global capability center in Bangalore. So it will remain a key key aspect of our overall success both 44:31 44 minutes, 31 seconds from a local business uh which we are cautious about because we do not want to deplete our margins uh but also from a 44:39 44 minutes, 39 seconds delivery and uh skills standpoint that we utilize in India. We have 500 people supporting uh our global operations. We expect that to grow as we grow our business. 44:55 44 minutes, 55 seconds Sukrit sir. 44:58 44 minutes, 58 seconds Okay. As the current participant is not responding, we have the next next participant Vive Chararia an individual investor. Please go ahead. 45:07 45 minutes, 7 seconds Hi. Hi Sanjit. Thank you for the opportunity. So Sanjiv our Q4 order booking uh our Q4 order booking was in 45:14 45 minutes, 14 seconds the range of $200 million if I'm not in incorrectly for FI25 and Q1 that that has actually gone down from 200 to $176 45:22 45 minutes, 22 seconds million. So, so can you just please explain uh why are we still confident of putting orders to the tune of $1 billion 45:30 45 minutes, 30 seconds in the I mean 12 months training. I mean our order putting has in fact gone down so I'm not able to square the two and 45:38 45 minutes, 38 seconds the second part of my question is we are almost uh through the first half of the second quarter. How has order booking been? Because I think growth is what is 45:47 45 minutes, 47 seconds a company. I mean we've done tremendously well on the margin front. 45:51 45 minutes, 51 seconds It's the growth part which I need a bit more uh color on. Thank you. 45:56 45 minutes, 56 seconds Yes. So I think uh I think uh I'll first accept your statement with respect to growth and that's where the that's where 46:03 46 minutes, 3 seconds the focus is and uh with respect to our uh confidence with this forecasting 46:10 46 minutes, 10 seconds awareness looking at closing an absolute number of billion dollar starting at 175 or 176 that we were this quarter. We are 46:19 46 minutes, 19 seconds staring at uh large bookings uh coming up uh that we expect to close in Q2, Q3 and Q4. Uh many of the engagements 46:28 46 minutes, 28 seconds currently from a large ticket perspective which is over 10 million 20 million some going to $50 million is in the works and that constitute today are 46:37 46 minutes, 37 seconds pipeline. Now this pipeline if you go back 12 months time of course we didn't report as a break of a pipeline. It's it still remain $1.6 $6 billion or 46:45 46 minutes, 45 seconds something in that range was but made up of lots of smaller deals as well. We have cleaned that up uh with respect to what we believe it should be focused on. 46:54 46 minutes, 54 seconds In summary to answer where we stand today, uh our expectation is to have at least 15 20% of growth in revenue sequencially 47:03 47 minutes, 3 seconds going forward. We expect some of the quarters to be even larger from a perspective it will fall and within a large hyperscaler deal that we expect to 47:12 47 minutes, 12 seconds win going forward. uh considering a size of 175 $250 million deal for projects that last for 9 months 12 months or 24 47:20 47 minutes, 20 seconds months can skew the win rate much larger from a percentage perspective. So when I look at absolute volume perspective as 47:28 47 minutes, 28 seconds to where we are and take the view of the next 9 months considering uh we are one and a half months down in this quarter. 47:35 47 minutes, 35 seconds Uh we are confident of where we will be in bookings this quarter and therefore the revenue coming at the back and going forward. also what I'll be seeing in Q3 47:44 47 minutes, 44 seconds and Q4 with respect to the work that is happening of how many engagements are on the table uh uh discussion is going on 47:51 47 minutes, 51 seconds with respect to our contracting uh that gives us a positive outlook that we would be able to deliver on or about a 47:58 47 minutes, 58 seconds billion dollar worth of absolute booking and if we do that we expect that we should be able to open the backlog which is now at 520 range uh the expectation 48:07 48 minutes, 7 seconds is of that we should open a backlog in the range of 700 odd million going forward to set the tone for fiscal 278. 48:17 48 minutes, 17 seconds I have a second question. Uh since we've reorganized the GPM team and with Jeff Venture coming as the chief revenue 48:23 48 minutes, 23 seconds offic you've seen on Ron. I mean we've talked about margin and stuff but I just want you to speak to uh I mean as a company 48:33 48 minutes, 33 seconds you've been the CEO for a long time. Can you speak qualitatively as to what difference you've seen on on on the round as far as our deal engagement and 48:41 48 minutes, 41 seconds the win rate distance and are you seeing a considerable difference uh if we were bidden for 100 million worth of orders is the win rate doubling in I mean can 48:50 48 minutes, 50 seconds because everything now hinges on us delivering growth yeah a very good question so I'll just add up so we do have the chief revenue 48:59 48 minutes, 59 seconds officer for North America we also added I don't know if you go with respect to a gentleman called Shawn Maguire came over 2 months back to lead data 49:07 49 minutes, 7 seconds center which is a adjacent business which is outside of uh their uh span of control. So it's very focused data 49:15 49 minutes, 15 seconds center. So we have two. So coming back to your question the answer is yes uh with venut with x inforce experience and 49:22 49 minutes, 22 seconds it team members which also have come from which is our vertical heads. Uh there's a dramatic shift with respect to our engagements quality of engagements. 49:31 49 minutes, 31 seconds Uh let me call out for example we are if you look at our consumer and public sector which is run by a lady called 49:39 49 minutes, 39 seconds Janna. I think we are currently engaged uh with very many airports. We had Miami airport if you remember as one of our largest customers which is we are 49:47 49 minutes, 47 seconds currently uh contracting revenue for several years but we have uh solidifications going on with some other 49:54 49 minutes, 54 seconds large airport infrastructure. Many airport infrastructures are getting refreshed as you know in America. Most of them are creaking infrastructure not 50:02 50 minutes, 2 seconds because they don't want to spend because they were possibly made 30 40 years ago. 50:06 50 minutes, 6 seconds Uh so we are engaged with them from quality of engagement perspective of volume also from our existing customers. 50:13 50 minutes, 13 seconds We are single threaded we are selling networking in one customer uh personally workplace in some other work customer. 50:21 50 minutes, 21 seconds So multi-threaded uh horizontal approach that we have taken connectivity, networking, workplace, cyber uh we are 50:28 50 minutes, 28 seconds seeing multi horizontal therefore including the shar wallet in some of the existing customers and several new 50:34 50 minutes, 34 seconds customers. Many of these vertical heads including the CRO and others come with uh deep experience relationship and creating newer solutions that we can do. 50:45 50 minutes, 45 seconds So we are now engaged with very many managed services long-term contracts that we've never had before. Now this takes time. It has to uh come to a certain tenure when they that started. 50:57 50 minutes, 57 seconds So qualitatively and quantitatively the engagement quality as we speak we are hosting uh in rale uh very many CIOS 51:05 51 minutes, 5 seconds from a healthcare. We recently concluded a customer advisory council in Florida that attended Deepak also with me where we came out with very good engagements 51:14 51 minutes, 14 seconds leading to over $100 million worth of active customer pipeline. I'm not saying we will win all of 100 million but we'll surely make for 2030 million quart of 51:23 51 minutes, 23 seconds engagement from top customers including large pharma large uh life sciences we intend to do very many more customer 51:30 51 minutes, 30 seconds advisory councils that we are doing now where we invite uh customers as we speak uh so is heading to the west coast with 51:38 51 minutes, 38 seconds respect to our data centers similar format so the engagement quality the conversation with our customers using 51:45 51 minutes, 45 seconds multih horizontals over the last 6 9 12 months time has has dramatically improved. Now this take time to build. 51:53 51 minutes, 53 seconds We as we speaking and looking forward in the next 7 and 1/2 months that we have uh and that's where we seeing okay what 52:00 52 minutes do we expect in quarter two as I called out earlier to be better significantly and also some of these engagements to turn in October November December going 52:09 52 minutes, 9 seconds forward. So yes uh whip change in uh conversations quality of engagements 52:17 52 minutes, 17 seconds uh multi-country global engagements uh re imagining the blackbox paradigm 52:25 52 minutes, 25 seconds inside our existing customers. They had a recall of a certain kind. We had a very good tenure customers as you know but they had a recall of a certain kind 52:33 52 minutes, 33 seconds that we do network or we do connectivity infrastructure the total story taking with our go to market verticalized 52:40 52 minutes, 40 seconds horizontal solutions getting making a grid to that I think we are much better place than what I would say we were 52:47 52 minutes, 47 seconds about 2 3/4 just one last question Sanji for FI26 B in his initial remarks had sort of 52:56 52 minutes, 56 seconds alluded to the margin guidance our lower end of the topline guidance will ask will need us to deliver almost 53:02 53 minutes, 2 seconds 1,700 quarters 1700 course per quarter should we start to see at least 10 to 15% growth from Q2 onwards and then that 53:10 53 minutes, 10 seconds accelerating as we move move into Q3 and Q4 I mean so far we've I mean I'm I'm I'm 53:19 53 minutes, 19 seconds sure you concede that we need to start watering the talk so should we start to expect quarteronquarter growth on the top line from Q2 and then that 53:27 53 minutes, 27 seconds accelerating as you move to Q3 and Q4 because we are at 1400 cores our ask for the next three quarters is close to 1,700 cores if you are to meet the lower end of the topline guidance. Thank you. 53:38 53 minutes, 38 seconds Yeah. So I think as I said before the statements we expect uh to move forward in a quarter with a minimum of 15% going 53:46 53 minutes, 46 seconds to 20 or beyond to hit that number. uh we expect that we need to start moving in that direction uh starting quarter 53:55 53 minutes, 55 seconds two and as you rightly said to take it from there and keep the momentum at 5 odd% or more to be able to catch up the year and I think we are currently uh 54:04 54 minutes, 4 seconds intending and cover track starting from quarter two weeks best of luck thank you 54:12 54 minutes, 12 seconds thank you our next question is from the line of nandan majal from JM M Financial Limited. Please go ahead. 54:24 54 minutes, 24 seconds Hello. Am I audible? Yes. Yes sir. You audible? 54:28 54 minutes, 28 seconds Yeah. Thanks for the opportunity. Uh so I was just uh I just want to get some clarity on the exceptional items that have been uh reported in this quarter. 54:36 54 minutes, 36 seconds Uh what will be the trajectory of these exceptional items going forward? 54:42 54 minutes, 42 seconds So, so on the exceptional items uh because because we are doing some some restructuring continue to do some 54:49 54 minutes, 49 seconds restructuring and all those thing uh we we are expecting uh exceptional items in the range of around 40 to 50 ks for the 54:57 54 minutes, 57 seconds whole year that's what we have given the earlier guidance also last time uh on our on our earnings call. 55:06 55 minutes, 6 seconds Okay. on a sustainable basis what do you expect uh this when would they stop? Uh I think this year this year it should be 55:15 55 minutes, 15 seconds it should be the it should be the last unless otherwise something more comes up depending on the depending on the economic situation or the macroeconomic 55:23 55 minutes, 23 seconds situation something else comes up but otherwise this year should be the last for these broader thing and I don't expect that this should go to FY27 or something in a larger way. 55:36 55 minutes, 36 seconds Okay. Thanks. 55:41 55 minutes, 41 seconds Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to the management for closing comments. Over to you sir. 55:50 55 minutes, 50 seconds Over to you. 55:53 55 minutes, 53 seconds I would like to thank everyone for joining the call. I hope we have been able to address uh all your queries on this call. For any further information 56:02 56 minutes, 2 seconds uh kindly get in touch with Gurves Parik our head of investor relations or strategic growth advisers our investor listen advisers. Thank you so much. 56:14 56 minutes, 14 seconds Thank you on behalf of Blackbox Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines.