Black Box Limited — Q3 FY26

Black Box Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=pt6O1OVtovY Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Q3 and 9 months FI26 earnings conference call of Blackbox Limited. This conference call may 0:10 10 seconds contain forward-looking statements about the company which are based on the beliefs, opinion and expectations of the company as on the date of this call. The 0:19 19 seconds statements are not the guarantee of future performance and involve risk and assertities that are difficult to predict. As a reminder, all participants 0:27 27 seconds line will be in listenon mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance 0:35 35 seconds during this conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being 0:43 43 seconds recorded. I now hand over the call to Mr. Sanjepa, wholetime director and CEO of Blackbox Limited. Thank you and over to you sir. 0:55 55 seconds Good morning everyone and thank you for joining us. On behalf of Blackbox Limited, I extend a warm welcome to our Q3 and 9 month FY26 earnings call. 1:07 1 minute, 7 seconds I'll begin by sharing an overview of our business performance after which our CFO Mr. Deepak Bansil will take you through 1:15 1 minute, 15 seconds the financial highlights. Starting with our Q3 performance, we are pleased to report revenues of 1,660 1:24 1 minute, 24 seconds cr for Q3 FY26, representing growth of 11% year on year and 5% quarteron quarter. For 9 month 1:33 1 minute, 33 seconds FYI26, our revenue stood at rupees 4,631 cringing a growth of 5% Y. The growth 1:42 1 minute, 42 seconds was primarily driven by higher order execution during 9 month FYI26 compared to the corresponding period last year. 1:50 1 minute, 50 seconds From a forward-looking perspective, the business momentum continues to remain encouraging and this confidence is 1:57 1 minute, 57 seconds driven by a healthy and expanding order improving pipeline visibility which together positions us well for sustained 2:05 2 minutes, 5 seconds growth in the coming quarters. For 9 month FY26, the company booked orders 2:11 2 minutes, 11 seconds worth $626 million. The company continues to maintain strong order momentum and remains confident of 2:19 2 minutes, 19 seconds achieving its FY26 order booking guidance of approximately $1 billion, thereby entering FY27 with a strong traction. 2:30 2 minutes, 30 seconds supported by sustained order winds. The order backlog is now expected to exceed our early estimate and reach around $800 2:39 2 minutes, 39 seconds million by the end of March 2026, which is approximately $100 million higher than the earlier estimate backlog of 2:46 2 minutes, 46 seconds $700 million, reflecting a growth of 60% yearonear compared to the earlier estimated growth of 40% yearonear. This 2:56 2 minutes, 56 seconds increase reflects continued customer demand validation of our investment in go to market talent providing strong revenue visibility for the upcoming period. 3:06 3 minutes, 6 seconds The incremental $und00 million addition to the 526 closing order backlog is expected to be driven by two key 3:13 3 minutes, 13 seconds factors. Approximately 40 to 45 million relates to revenue that was initially expected to be recognized in FI26 3:22 3 minutes, 22 seconds but has shifted due to temporary customer level delays and supply chain constraints. As this challenges gradually normalized and execution 3:30 3 minutes, 30 seconds progresses, this revenue is expected to flow in FY27. 3:35 3 minutes, 35 seconds The remaining $5560 million is expected to be driven by incremental order within Q4 supported by improving traction 3:44 3 minutes, 44 seconds across key verticals and strengthening customer pipeline. 3:50 3 minutes, 50 seconds The project order book witness the ladies and gentlemen the line for the 4:00 4 minutes management has gone disconnected. Please stay connected. Meanwhile, I connect the line. available. 4:08 4 minutes, 8 seconds [music] 4:13 4 minutes, 13 seconds [music] 4:19 4 minutes, 19 seconds [music] 4:28 4 minutes, 28 seconds Ladies and gentlemen, the line for the management has been reconnected. Thank you for your patience. 4:35 4 minutes, 35 seconds Sanji sir please proceed. Thanks Sanjit please. 4:52 4 minutes, 52 seconds Am I audible? Yes sir you audible please proceed. 4:57 4 minutes, 57 seconds Okay sorry for the uh disconnection [clears throat] here. The project order book witnessed a robust growth reflecting an upside of $37 million at 5:06 5 minutes, 6 seconds $195 million in Q3 FI26 compared to $158 million in Q2 of FI26. The performance 5:14 5 minutes, 14 seconds is driven by the company's continued focus on securing large high value contracts particularly in data center segment which remains a key growth driver. 5:25 5 minutes, 25 seconds Over the quarter gone by, we have seen extended project execution timeline due to industrywide shortage of fibers and related accessories. While investment in 5:34 5 minutes, 34 seconds data center segment have begun to show encouraging traction and order info momentum remain strong, revenue from these projects has shifted to subsequent 5:42 5 minutes, 42 seconds periods due to supply chain and infrastructure related constraints. The data center ecosystem is currently witnessing heightened industry gravity 5:51 5 minutes, 51 seconds uh which has resulted in shortages across several critical inputs including optical fibers, cables, GPUs, racks etc 6:00 6 minutes infrastructure and funding access. This is not only impacting the data center industry but the entire digital infrastructure industry where these 6:06 6 minutes, 6 seconds materials are used. These constraints have delayed project commencement as well as execution timelines. Such strong demand and hyperactivity in the industry 6:15 6 minutes, 15 seconds has led to temporary supply chain challenges leading to extended execution timelines. However, this temporary in nature and once the supply chain 6:24 6 minutes, 24 seconds constraint normalizes the backlog which is current extended due to this will be executed and flow into revenues. Owing 6:32 6 minutes, 32 seconds to such delays in execution timeline, our orders which is supposed to be executed in this quarter has flown to subsequent quarters. Therefore, we have 6:40 6 minutes, 40 seconds revised revenue guidance from the expected range of INR 6750 6:45 6 minutes, 45 seconds to 7,000 crores to now INR 63 325 to INR 6:52 6 minutes, 52 seconds 6375 crores. The revision revenue reflects IITA of INR 555 to 575 crores 7:01 7 minutes, 1 second and a PAT of 220 to 230 crores in FY26. 7:06 7 minutes, 6 seconds During the quarter, the company secured notable order wins including multiple large data center orders. The company 7:13 7 minutes, 13 seconds also secured multiple orders from US public sector further strengthening its presence in institutional infrastructure 7:20 7 minutes, 20 seconds projects. Additionally, the company won a significant order from a leading Indian internet company and secured a large order from a prominent bank in 7:29 7 minutes, 29 seconds Australia. These orders highlights companies expanding global footprint, deep client trust and growing momentum 7:36 7 minutes, 36 seconds across priority markets. Overall, the near-term revenue realization has been impacted by industrywide supply and 7:43 7 minutes, 43 seconds execution constraints. Our strong order book and deal winds healthy pipeline and sustained demand environment reinforces 7:51 7 minutes, 51 seconds our confidence in growth through FY27 and beyond. 7:56 7 minutes, 56 seconds Further, ladies and gentlemen, the line for the 8:07 8 minutes, 7 seconds management has been disconnected. Please stay connected. Meanwhile, we connect the management. Thank you. 8:16 8 minutes, 16 seconds [music] 8:23 8 minutes, 23 seconds [music] 8:27 8 minutes, 27 seconds We know [music] that you 8:36 8 minutes, 36 seconds [music] 8:44 8 minutes, 44 seconds [music] 8:49 8 minutes, 49 seconds [music] 8:55 8 minutes, 55 seconds [music] 9:01 9 minutes, 1 second [music] 9:09 9 minutes, 9 seconds [music] 9:18 9 minutes, 18 seconds [music] 9:22 9 minutes, 22 seconds [music] 9:29 9 minutes, 29 seconds [music] 9:35 9 minutes, 35 seconds [music] 9:40 9 minutes, 40 seconds [music] 9:45 9 minutes, 45 seconds [music] 9:52 9 minutes, 52 seconds [music] 9:56 9 minutes, 56 seconds [music] 9:59 9 minutes, 59 seconds Ladies and gentlemen, we have connected the management to the conference call. Thank you for your patience. 10:06 10 minutes, 6 seconds I apologize for this for this again. 10:10 10 minutes, 10 seconds Further on the strategic front, we are pleased to announce that Blackbox has signed a definitive agreement to acquire 10:18 10 minutes, 18 seconds 2x technology class, a leading Brazilian IT infrastructure and cyber security integrator and a Cisco partner subject 10:26 10 minutes, 26 seconds to certain consents and approvals. With over 30 years of experience, US serves 650 odd customers across 10:36 10 minutes, 36 seconds enterprise networking, cloud, cyber security and manage services backed by advanced networking and data center and 10:43 10 minutes, 43 seconds collaborative technology certifications blackbox presence in Brazil, largest growing market in Latin America and is 10:51 10 minutes, 51 seconds expected to add I know 500 cr of revenues in FI27. The transaction is expected to close by end of current 10:59 10 minutes, 59 seconds fiscal year. This aligns with the strategy to grow the business to 2 billion the fiscal 29. With that, I 11:07 11 minutes, 7 seconds would now like to hand over the call to our CFO Mr. Deep Bunson who will take you through the financial performance. 11:17 11 minutes, 17 seconds Great. Thank you Sanjie for the detailed business overview and good morning everyone. 11:23 11 minutes, 23 seconds I will now take you through our financial performance for quarter 3 and the first nine months of FY26. 11:32 11 minutes, 32 seconds Starting with revenue performance. 11:34 11 minutes, 34 seconds Revenue for quarter 3 FY26 stood at INR660 crores registering growth of 11% yearon 11:43 11 minutes, 43 seconds year and 5% quarteron quarter. For the first 9 months of FY26, total revenue is 11:50 11 minutes, 50 seconds stood at INR4,631 cr which is a growth of 5% yearonear. 11:57 11 minutes, 57 seconds Looking forward, growing order book, enhanced pipeline visibility, strengthened execution momentum and 12:04 12 minutes, 4 seconds regional expansion are expected to drive sustained growth in the quarters ahead. 12:09 12 minutes, 9 seconds Moving to profitability, IITA for quarter 3 FY26 stood at INR 147 cr representing growth 12:18 12 minutes, 18 seconds of 10% yearon-year and 3% quarteron quarter. Ibita margins remained stable 12:25 12 minutes, 25 seconds at 8.9% during the quarter despite higher employee related cost on account on account of investment in go to market 12:34 12 minutes, 34 seconds talent better fix six cost absorption and a balanced business mix help sustaining the margins for the first 9 12:43 12 minutes, 43 seconds months of FY20 13:10 13 minutes, 10 seconds Ladies and gentlemen, the line for Deepak sir has been disconnected. Please stay connected. Meanwhile, I connected 13:21 13 minutes, 21 seconds [music] 13:28 13 minutes, 28 seconds [music] 13:33 13 minutes, 33 seconds [music] 13:40 13 minutes, 40 seconds [music] 13:45 13 minutes, 45 seconds [music] 13:49 13 minutes, 49 seconds [music] 14:03 14 minutes, 3 seconds Ladies and gentlemen, the line for the management is being reconnected. Deepak sir, please proceed. Thank you. 14:10 14 minutes, 10 seconds Yeah, apologies for this. Uh first the for the first 9 months of FI26, IATA 14:17 14 minutes, 17 seconds stood at INR 406 crores reflecting yearon-year growth of 6% with margins at 8.8%. 14:25 14 minutes, 25 seconds Looking ahead, we will continue focus on disciplined cost management, pricing discipline and continuously optimizing 14:33 14 minutes, 33 seconds our product mix with ongoing operational efficiency and cost optimization initiatives. There remains further 14:41 14 minutes, 41 seconds potential for incremental margin expansion as strategic priorities continue to execute in the quarters 14:48 14 minutes, 48 seconds ahead. uh profit after tax for quarter 3 FY26 is stood at INR50 crores uh while PAT for 9 months is stood at 153 crores. 14:59 14 minutes, 59 seconds Pat during the prep period was primarily impacted by a one-time exceptional charge of approximately INR6 cr relating 15:08 15 minutes, 8 seconds to changes in employee benefit provisions arising from the implementation of the new labor code. 15:14 15 minutes, 14 seconds Excluding this impact, underlying profitability trends remain stable. As revenue growth accelerates, pack 15:20 15 minutes, 20 seconds expansion is expected to outpace topline growth driven by margin normalization, improved revenue quality, and greater 15:28 15 minutes, 28 seconds contribution from high value opportunities. As highlighted by Sanjiv earlier, the company continued to witness strong order momentum during Q3 15:37 15 minutes, 37 seconds with order bookings of 232 million. The total order backlog stands at 601 million as of December 2025. 15:48 15 minutes, 48 seconds Based on the current order flow trajectory, we expect to significantly exceed our earlier backlog target of 700 15:56 15 minutes, 56 seconds million and cross 800 million by end of March 2026. Supported by this strong momentum, we remain well positioned to 16:05 16 minutes, 5 seconds deliver our fullear FY26 order booking target of 1 billion. To conclude, strong 16:12 16 minutes, 12 seconds order once and expanding backlog, proven execution capabilities, deepening client relationships, and a healthy pipeline 16:20 16 minutes, 20 seconds continue to reinforce our growth outlook. As temporary customer level delays normalize and project execution 16:28 16 minutes, 28 seconds progresses, the revenue is expected to flow into FY27, strengthening our confidence in 16:36 16 minutes, 36 seconds delivering an even stronger performance in the coming year. The proposed acquisition of 2S in Brazil represents 16:43 16 minutes, 43 seconds disciplined and strategically aligned capital allocation that enhances both our growth and profitability profile. We 16:51 16 minutes, 51 seconds are expecting to add around 500 crores of revenue in FY27 and expect to complete integration and synergy within 17:00 17 minutes 90 days of closing. This acquisition strengthens our long-term shareholder value while our balance sheet remains 17:07 17 minutes, 7 seconds well positioned to support disciplined organic and inorganic growth. With that, we would now like to open the floor for questions. 17:17 17 minutes, 17 seconds Thank you very much, sir. Within now begin the question and answer session. 17:22 17 minutes, 22 seconds Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you 17:30 17 minutes, 30 seconds may press star and two. Participants are requested to use hands while asking a question. Ladies and gentlemen, we will wait for a moment while the question assembles. 17:52 17 minutes, 52 seconds The first question is from the line of CA Garvid Goyel from screen alpha please proceed. 17:58 17 minutes, 58 seconds Uh hi I'm audible. Yes you're audible please proceed. 18:04 18 minutes, 4 seconds Uh good morning sir. Uh first question is on the order book. uh we are having uh around 5,400 cr order book as of today and we are guiding for INRA 7200 18:13 18 minutes, 13 seconds CR order book as on FY26 and uh this is a huge gap sir uh because a part of this order book uh which we are having right 18:20 18 minutes, 20 seconds now will get executed in Q4 also. So what is giving you the confidence of getting these big orders sir because uh almost one and a half months are already 18:28 18 minutes, 28 seconds gone and you have not made any uh order receipt file as well. So is it like we are adding the order book of newly 18:34 18 minutes, 34 seconds acquired company in our projection hello 18:48 18 minutes, 48 seconds okay so I think I think Sanjie looks like is not audible but uh 18:54 18 minutes, 54 seconds I'm here I'm here take I'm sorry I think this was okay so I'll just answer the actual first of No, we are 19:02 19 minutes, 2 seconds not taking the audio book from video acquired company. Point number one second. This call is now being recorded. 19:10 19 minutes, 10 seconds Am I audible? Yes. 19:13 19 minutes, 13 seconds Can you repeat sir? Can you repeat? I think I missed that. 19:17 19 minutes, 17 seconds Okay, I'll just repeat that. I said first uh first answer to the first question is are we taking the order book for newly acquired business? Answer is 19:25 19 minutes, 25 seconds no. The second is we report order book backlogs booking and backlogs only at the end of the quarter. So, so you have 19:32 19 minutes, 32 seconds a current backlog. Uh what we can derive from that is we're expecting a very large order booking in quarter 4 which 19:40 19 minutes, 40 seconds is currently in progress. The order books up until now or ones that will be booked are not reported in general. It 19:47 19 minutes, 47 seconds will be reported uh when we close the quarter. So our confidence for being able to meet our uh $1 billion uh order 19:56 19 minutes, 56 seconds booking is very high. So therefore the quarter the order booking for quarter 4 is going to be uh significant to be able 20:03 20 minutes, 3 seconds to give us the backlog that we're expecting now to move from an earlier estimated of 700 million to 800 million. 20:11 20 minutes, 11 seconds So clearly we are in the fray to win very some very large contracts in a four. 20:19 20 minutes, 19 seconds Can you put some more color on that like what are those areas and how much uh maybe we have not booked yet but how much uh in first uh one and a half 20:27 20 minutes, 27 seconds months uh we are uh at advanced stage four. 20:33 20 minutes, 33 seconds So we are in a very advanced stage. A large part of the order of infrastructure including a very large data center project from hyperscala 20:41 20 minutes, 41 seconds including are looking for very large infrastructure airport projects. So fairly large uh both from a long-term annuity perspective and also large 20:49 20 minutes, 49 seconds projects uh upward of $350 million is the expectation to book to be able to get to what we're asking from a backlog perspective and we're well on track. 21:01 21 minutes, 1 second So if if these orders are very large orders, so are you seeing any like is it is it possible that uh there can be some delays maybe on account of any 21:10 21 minutes, 10 seconds procedural delays or are you seeing any kind of difficulties in closing these order books by April 26 end? 21:18 21 minutes, 18 seconds No, we we as I said as we repeated earlier we expect to close the FI26 with order booking of 1 billion. So we will 21:27 21 minutes, 27 seconds be having uh uh a robot quarter 4 to deliver that number and opening that lock. 21:34 21 minutes, 34 seconds That's good sir. And uh regarding the new position uh while you mentioned about the top line uh what are the operating margins of that company sir and what are the debt levels do we have? 21:47 21 minutes, 47 seconds You guys want to take that? 21:49 21 minutes, 49 seconds Yeah. Yeah. Yeah. So uh so the company which we are acquiring in Brazil which is 2S innovation technologies uh that 21:56 21 minutes, 56 seconds company uh we will be adding close to around 500 crores of the of the revenues out of it in FI27 22:04 22 minutes, 4 seconds and and we are expecting we are expecting to generate with a run rate of around 50 crores post integration and 22:12 22 minutes, 12 seconds synergies and we are expecting integration and synergies to be done in the 90 days of closing. Uh so uh what the second part of your question? 22:21 22 minutes, 21 seconds Uh current debt levels in the company sir. 22:25 22 minutes, 25 seconds So there is no there is no debt in the company. We are acquiring company at the at the at the zero dad zero cash levels. 22:33 22 minutes, 33 seconds And what are the net margins? Net profit they made on 500 top line roughly around they make they make close 22:40 22 minutes, 40 seconds to around 45 crores right now but with the synergies and all we are looking to make 50 criter next year on that. No, I'm asking about the net profit sir. 22:52 22 minutes, 52 seconds Net profit because because there is no because there is no there is no debt and all those things because because they would have made earlier some net profit 22:59 22 minutes, 59 seconds but from our perspective uh uh the we we look at the IITA when we are acquiring the company because we are not acquiring anything else uh below the IITA because 23:08 23 minutes, 8 seconds there is no there is no depreciation and uh and and the tax is also they have some carry forward losses and all those things. So to start with they will not 23:17 23 minutes, 17 seconds have any loss. Uh so uh so we have to calculate obviously based on the opening balance sheet when we acquire them fully that what's going to be the tax carry 23:25 23 minutes, 25 seconds forward and all those thing. Uh but right now right now we are acquiring it basis and the acquisition will take obviously 90 will will take end of this 23:34 23 minutes, 34 seconds quarter uh to get closed. So understood and one last question uh regarding the delays in the supply chain 23:42 23 minutes, 42 seconds that you highlighted in the PPD. Uh can you put some more color on it exactly? 23:47 23 minutes, 47 seconds What is the issue? How is it uh impacting blackbox exactly? And uh were we not aware of this issue in the last quarter because in last quarter we were 23:55 23 minutes, 55 seconds very much confident uh regarding execution and and and reporting the profitability growth from Q3 onwards and then suddenly this happened. So uh so so 24:04 24 minutes, 4 seconds you also mentioned that we will be uh executing the orders uh that that we are currently built up in uh in the book uh the sorry uh that we are currently 24:13 24 minutes, 13 seconds having the orders in FY27. So are you seeing these supply chain issues getting resolved now and do you believe that uh 24:20 24 minutes, 20 seconds or or do you believe that this will continue for few quarters from here? 24:26 24 minutes, 26 seconds I'll take that. Okay. So I think uh yeah so some of the the activity specifically in infrastructure projects uh AI 24:33 24 minutes, 33 seconds projects more specifically data center has extremely heightened up right as we speak uh we support some of the mag 24:41 24 minutes, 41 seconds seven the magnificent seven customers in the US with large order pipeline already one and in the process of winning they 24:48 24 minutes, 48 seconds already answered if you are uh following the recent trend specifically for connectivity and infrastructure more 24:56 24 minutes, 56 seconds specifically for fiber. There has been a tremendous demand for fiber and there is a cue to get that uh be able to do that. 25:04 25 minutes, 4 seconds More recently, one of the hyperscalers announced a very large investment interestingly in a fiber company close 25:11 25 minutes, 11 seconds to$6 billion to secure their fiber needs to build data centers. We support such customers. So some of these things are 25:20 25 minutes, 20 seconds unpredictable uh and not really timed because the surge of demand has been extremely extremely high. We expect that 25:27 25 minutes, 27 seconds we've already passed through that. But will this continue if the demand continues to rise the way it is? There is a constraint specifically for 25:35 25 minutes, 35 seconds connectivity infrastructure, network infrastructure, most specifically fiber and cables which is required. We are a services company. We require to be on a 25:43 25 minutes, 43 seconds site to provide our technical services and deployment. If there are repeaters on site so there has been a shortage of that and if you look at the public 25:52 25 minutes, 52 seconds domain more recently it is in the domain that there has been all of a sudden humongous surge uh you know so that's 26:00 26 minutes the reason we expect this to gradually ease out we've already lost quarter as I 26:07 26 minutes, 7 seconds said 4050 million of backlogs would have been burnt but we expect if we get into fiscal 27 a project business is not a 26:16 26 minutes, 16 seconds quarter and quarter business but we are turning it into an annuity mode business with our pipeline. So expect with our pipeline and our order is being strong 26:24 26 minutes, 24 seconds we should catch it up over the course of the next fiscal year and therefore our guidance and our confidence for the next fiscal year starting with a very good 26:33 26 minutes, 33 seconds order backlog gives us confidence that we continue to grow organically in a significant manner. 26:41 26 minutes, 41 seconds So when you say uh cases are getting normalized uh is it like Q4 will also be 26:48 26 minutes, 48 seconds getting impacted because of this? Is is that understanding correct? 26:53 26 minutes, 53 seconds So Q4 the Q4 already we have debated it in the guidance at this time right and what about Q1 next year means 27:01 27 minutes, 1 second uh when you say gradually this will result will get resolved. Uh what is the correct interpretation of this? We'll be giving a guidance uh we'll be giving a 27:10 27 minutes, 10 seconds guidance for the full year after the quarter ends. We'll have a a better view when we give our guidance for the next 15 years. 27:18 27 minutes, 18 seconds Okay. But as of now opening up a very strong order book uh is a positive sign for us to be entering into. 27:29 27 minutes, 29 seconds I'll join back with you sir. Thank you very much. Thank you. Thank you. 27:35 27 minutes, 35 seconds The next question is from the line of Joti Singh from Aryan Capital Markets Limited. Please proceed. 27:42 27 minutes, 42 seconds Yeah, thank you for the opportunity. 27:45 27 minutes, 45 seconds Uh so I just wanted to understand uh like because of the delay of order we have revised our guidance. So similarly 27:52 27 minutes, 52 seconds few of our peers are also facing same kind of uh issues. So is there a industry issues that is going on or what 28:02 28 minutes, 2 seconds is the uh main issue and when we will be seeing this order will be coming back and uh and after this we also have 28:11 28 minutes, 11 seconds revised our margin guidance on a slightly lower side. So when we are 28:19 28 minutes, 19 seconds seeing those coming back and apart from this we have discussed on the acquisition side. So what is the acquisition multiple that we are seeing 28:28 28 minutes, 28 seconds on our EV by beta or EV by sales and also like you talked about on the debt 28:35 28 minutes, 35 seconds side. So is this a deal debt funded or internal approval funded. 28:42 28 minutes, 42 seconds Okay. So I will take the first part and I'll give it to take the second part of your uh for funding and for the 28:51 28 minutes, 51 seconds activation part. So I think in general as I said uh there has been a positive sign with respect to hyperactivity 29:00 29 minutes for projects which are AI data center infrastructure also AIE infrastructure in other large uh manufacturing plants 29:09 29 minutes, 9 seconds or airport infrastructure which is uh where blackbox focuses on. We are a digital infrastructure company. We believe this is the era for that and I 29:17 29 minutes, 17 seconds think the the anticipated hyperactivity is has been more than what we had thought. So there has been a uh lag 29:25 29 minutes, 25 seconds pertaining to supplying those uh materials or products required to build the infrastructure and this is a trend 29:34 29 minutes, 34 seconds across uh the industry specifically in North America because most of the activity for that is currently happening in actually happening in North America. 29:42 29 minutes, 42 seconds Other markets of course are picking up and are announcing projects but they're still in the conceptual stage. Our current focus was first to build our 29:51 29 minutes, 51 seconds order book pipeline ability to win large contracts ability to build the relationship and I think we have put up a dedicated team over the last one year 30:00 30 minutes to do that and that result is flowing in our order book. We expect as we move forward that we should be able to burn and build this order book in a 30:08 30 minutes, 8 seconds significant manner providing us growth as we go forward. So this is the industry-wide phenomenon of hyperactivity. 30:15 30 minutes, 15 seconds Uh we are first capturing our space in that getting more momentum. Uh more sites more complex is a full complex 30:24 30 minutes, 24 seconds large project. So our right to win has improved. Therefore we're winning. We'll uh focus on execution at this time and 30:31 30 minutes, 31 seconds we should be able to uh navigate that with our customers as we move forward in the in the quarters ahead. 30:40 30 minutes, 40 seconds on the acquisition. 30:41 30 minutes, 41 seconds Yeah. And on the Yeah. And on the acquisition side uh uh I think you you asked about uh that that what is the 30:50 30 minutes, 50 seconds value we are paying uh uh and all those things. So we will be paying close to around 275 crores at closing and this is 30:59 30 minutes, 59 seconds subject to some working capital adjustments. Uh and then there is additional deferred payments including earnouts linked to the performance which 31:07 31 minutes, 7 seconds will pay over the next two years. So roughly let's say uh we will be making around 50 kes of the IITA from this. So 31:16 31 minutes, 16 seconds from that perspective we will be paying at closing close to around five five and a half times uh on the uh at at closing 31:24 31 minutes, 24 seconds and then on the earnouts and the performance and all those thing at the peak level uh if everything let's say goes well and all the earnouts and 31:33 31 minutes, 33 seconds everything gets acred including all the deferred payments then we will be paying another 100 crores uh for that but but that is subject to obviously the 31:40 31 minutes, 40 seconds performance and that will be payable in the next two years timeline not at the closing and and then this acquisition of 31:47 31 minutes, 47 seconds 275 crores what we have to pay we will be funding it through uh through internal acrals mix of internal acrals and debt that and we have already told 31:55 31 minutes, 55 seconds earlier also that that we we believe in putting our capital prudently uh our roe 32:02 32 minutes, 2 seconds and ROC we want to be 25 to 30% type of range so we don't want to put capital 32:10 32 minutes, 10 seconds where where we don't generate those those type of roe uh and that is the internal acroals and the debt mix 32:17 32 minutes, 17 seconds will be accordingly we will use it prudently to pay this 275 crores. 32:24 32 minutes, 24 seconds Okay. Thank you so much sir. And so just wanted to understand this time our trade receivable has increased uh 674 K. So 32:32 32 minutes, 32 seconds what kind of uh DSO we are seeing going forward and currently compared to FI25. 32:40 32 minutes, 40 seconds So you are saying you are saying September financials that's what you're looking at? Yes. Yes. 32:48 32 minutes, 48 seconds So uh you are saying on September the receivables are at 674 crores because see because because what has also happened is that that between the March 32:56 32 minutes, 56 seconds quarter and the September quarter we had the growth and and and you know we have some of the invoicing uh the skewess 33:04 33 minutes, 4 seconds which happens in our business uh in the last month of the quarter which has happened which has happened in the month 33:11 33 minutes, 11 seconds of September. uh because of because of the some of the orders execution happened in terms in uh and and the 33:18 33 minutes, 18 seconds invoicing happens depending on the OEM uh supplies and all those things and because of that uh this thing has come 33:25 33 minutes, 25 seconds but all these receivables are now come into the same level as soon as because we realize our DSO normal DSO is close 33:32 33 minutes, 32 seconds to around 55 to 60 days that's our DSO so so that will that will come to the normal level when we look at let's say 33:39 33 minutes, 39 seconds now or or or at any other period Okay. Sure. Thank you so much. 33:49 33 minutes, 49 seconds Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. I repeat, 33:57 33 minutes, 57 seconds participants who wish to ask a question may press star and one now. Thank you. 34:03 34 minutes, 3 seconds The next question is from the line of Vive, an individual investor. Please proceed. 34:10 34 minutes, 10 seconds Hi Sanjiv, thank you for the opportunity. Sanjiv, we've constantly missed on our topline guidance and even 34:17 34 minutes, 17 seconds in this quarter we've only bought order book uh to the extent of about $230 million. So what gives us the confidence 34:23 34 minutes, 23 seconds that we'll hit a $350 million run rate and either we're not seeing things clearly on the ground or not or we are not being candid in our communication 34:31 34 minutes, 31 seconds with the street. I'm just confused as to which one is which one of it is it. And my second question um on your long-term 34:39 34 minutes, 39 seconds guidance of $2 billion I that's a tall ask even if I consider FYI 30 which you've moved from FI 29 to FI 30 in 16 34:47 34 minutes, 47 seconds quarters you'll have to triple your revenue from about 1,700 cr now to 4 and a half thousand crores I mean I I can't 34:54 34 minutes, 54 seconds the math can you just help me with that okay so I think the first thing uh thanks for the question is I think we 35:02 35 minutes, 2 seconds had guided a booking of a billion dollar for the year and we are holding on to that puts us in quarter four within quarter. So clearly uh we are halfway 35:11 35 minutes, 11 seconds through the quarter and another half to go. So we are uh the fact that we're saying we put a billion dollar but we 35:17 35 minutes, 17 seconds are uh orders in the bag significantly one specifically for data center $700 35:25 35 minutes, 25 seconds million and more to come right and uh we order books uh you know take time. So gradually if you see for data center 35:33 35 minutes, 33 seconds infrastructure uh we had earlier in the first quarter we revamping the theme we brought in a new leader S Maguire an 35:41 35 minutes, 41 seconds entire team and progressively each quarter we have been moving up that project which runs several hundred 35:49 35 minutes, 49 seconds million for hyperscalers and max 7 are very complex and there only few players 35:56 35 minutes, 56 seconds and we are at more sites than before and more companies them before earlier as you know we had met with our customer we 36:04 36 minutes, 4 seconds can never have that so those are in the bag at this time uh if the the way the order book happens is from a a letter of 36:10 36 minutes, 10 seconds intent to low-level design to limited authorization to proceed to finally a contract these are open projects green 36:19 36 minutes, 19 seconds field massive big billions of dollar so first you are identified allocated 36:26 36 minutes, 26 seconds then you engage then contracted so that's how it happens so it takes a little bit of a time there. So I think we are almost to the fragments before uh 36:34 36 minutes, 34 seconds we are certain for a billion dollar. Now unfortunately uh the expectation were to burn a little bit more for the $50 36:42 36 minutes, 42 seconds million more that didn't happen flexibly in the infrastructure projects of data center that is backended and therefore 36:49 36 minutes, 49 seconds the opening backlog is going to increase and that's fundamentally as I told earlier on the call uh if you uh look 36:56 36 minutes, 56 seconds around and in the public domain one of the largest cyber skillers actually invested in a fiber company to get the fibers on demand because they can't get 37:04 37 minutes, 4 seconds enough you know we we do this fiber project to connect a large scale at data center. So we are at the other end waiting to be able for the owner or 37:13 37 minutes, 13 seconds customer to supply the material because we don't supply the material. We do the design implementation. So we are confident to your question of meeting a 37:20 37 minutes, 20 seconds billion dollar goal an opening backlog which was supposed to be closer to 700 and you would have possibly hit our goal 37:27 37 minutes, 27 seconds for revenues slipped by $50 million and and that's what I quoted earlier. So now from a perspective of two billion there 37:35 37 minutes, 35 seconds are very clear path of going there one of course from organic perspective we expect from if your backlog is going to 37:43 37 minutes, 43 seconds open up uh $700 million more getting into fiscal 27 uh we should be able to drive a double digit growth double digit 37:51 37 minutes, 51 seconds 10 15% surely over the next year or so because the backlog is going up significantly and we take half of that 37:59 37 minutes, 59 seconds as backlog to world that gives us anyway at 10 15% growth from organic perspective and we expect this momentum we just started in the data center 38:07 38 minutes, 7 seconds infrastructure projects and other large scale projects we will continue to add significant large value projects as we move forward into the next year that's 38:15 38 minutes, 15 seconds an organic side so therefore a run of three $400 million gives you an average of 10% growth anyway for the next seven years time and that's the focus on large 38:24 38 minutes, 24 seconds projects it's complex very few players we also expect this to flip our investments we're looking at projects now in Europe as well at the for the 38:32 38 minutes, 32 seconds winning. So those will inflate. So we expect the order books that we're opening up at 800 are booking a billion now to book much more later in 27 and 38:40 38 minutes, 40 seconds beyond. So that's the organic side and then again if you look at that that should take us to close to 1.2 1.3 billion and we've stated we have an 38:48 38 minutes, 48 seconds inorganic theme. We just started with that with a small acquisition of 500 crores as you heard today that we drive that the pipeline in a systemic systemic manner. 38:59 38 minutes, 59 seconds called out being prudent because we don't want to be uh you know kind of emotional about economics and lose the roe and the ROC we'll focus on that so 39:08 39 minutes, 8 seconds it takes time but we have a significant pipeline as well on that to drive that momentum because we believe at scale our 39:16 39 minutes, 16 seconds fat conversion is going to improve significantly so it'll start to add up into our pack as we go in 2728 and beyond so we have a team focus in that 39:25 39 minutes, 25 seconds as well so we just had one of them uh announced and being communic organic 12 39:32 39 minutes, 32 seconds 15% through a very strong pipeline order book infrastructure being done America's possibly getting into UK and Europe now we just put up a 39:41 39 minutes, 41 seconds leader in Europe we said we announced India and APAC we just announced a leader the submit website on the public domain who joined us so I think we have 39:49 39 minutes, 49 seconds clear path from organic perspective in organic also we will drive through reasonably through our prudent capital 39:56 39 minutes, 56 seconds deployment We expect as we move forward we will to have we will not increase our 40:04 40 minutes, 4 seconds leverage the more than we need to do right so should we start to pump into 2728 so it will be accreditive for us so 40:11 40 minutes, 11 seconds we should be able to drive significant momentum in acquisition as well a combination of both uh organic to our 40:18 40 minutes, 18 seconds pipeline large infrastructure project wins uh and our inorganic that we are also driving now we believe we have a 40:26 40 minutes, 26 seconds clear path to move forward towards our SPT goal of 2 billion. 40:31 40 minutes, 31 seconds Sanjie just to labor on that point again uh we guided for about 15% growth starting this year and even now on just 40:38 40 minutes, 38 seconds just in your commentary you've mentioned a 10 to 15% growth I mean if we've missed orders this year ideally next year we should be growing much higher 40:46 40 minutes, 46 seconds right I mean if if we are to just if that order has just been deferred to the next year we shouldn't shouldn't we be growing about 20% next year and on the 40:55 40 minutes, 55 seconds back of the acquisition your overall revenue ideally should be in the range of 20 to 25% % uh I mean just 10 to 12% I don't think gets us to $1.2 billion. 41:06 41 minutes, 6 seconds We are at a $700 million run rate. I mean if we end the year at 6,300 crores that's a $700 million for us to move 41:13 41 minutes, 13 seconds from 700 to 1.2 in 4 years time that will take a lot higher than just a 10 to 15% cure. So at some point the maths has 41:22 41 minutes, 22 seconds to catch up. So your growth rates can't just stagnate at 10 to 12%. while previously you've not delivered any revenue growth. 41:32 41 minutes, 32 seconds Yeah. So I think I think you're right. I think uh so whether we're a little more than 15% or 16% I think the first 41:39 41 minutes, 39 seconds fundamental goal uh for us has been to have enough backlog to be able to burn that. I agree. I think uh we possibly 41:46 41 minutes, 46 seconds will do more uh the science. But I think what I'm alluding to is our clear path of driving organics through large scale 41:55 41 minutes, 55 seconds projects and order books. So if you look at the order book growth of 60% compared to opening the office of last year, we taking the currently at the back of the 42:04 42 minutes, 4 seconds environment that will burn at whatever rate we expecting. Could we burn more of the three $400 million that is lying 42:12 42 minutes, 12 seconds extra in our order book than when we opened up last year? It is a possibility, right? But considering we just quoted about some concerns and $450 42:20 42 minutes, 20 seconds million worth of revenues we took that point but will that improve and a backlog of three $400 million should 42:27 42 minutes, 27 seconds drive 50 20% zero more I agree but we taking a view we'll guide it at the beginning of the quart uh sorry 42:35 42 minutes, 35 seconds beginning fiscal year and that's what we said in the earlier uh caller we'll guide as we get a view of how we're looking closing the year first a billion 42:43 42 minutes, 43 seconds opening a million dollar and then guide as to what we believe we can burn in possibility are that we could possibly be doing organic more than 15 uh you 42:51 42 minutes, 51 seconds know from that perspective je and just for us to $2 billion we can't just rely on the data center but that is a project business it's a 42:59 42 minutes, 59 seconds onetime business and then we have to replenish the order completely what is happening on the managed services and the maintenance contract side is is that 43:07 43 minutes, 7 seconds part going for us to get to 2 billion we can't just rely because then that will require us to replenish a couple of 43:14 43 minutes, 14 seconds hundred million every year which which might get tough And on the data center part, we've been calling out massive activity, but we barely scratched the 43:22 43 minutes, 22 seconds surface. I mean, these companies have spent couple of trillion dollars already and we're still not we've barely acquired the orders and we're still not 43:29 43 minutes, 29 seconds executed. So, I mean, I'm just trying to piece the I mean, can you just give me a broad macro view on on how the sales 43:37 43 minutes, 37 seconds teams are performing, not just on the data center side, but also on the other side. This order put in of about $230 million every quarter will not lead us 43:45 43 minutes, 45 seconds to $2 billion. you'll have to get to possibly a 350 350 to $400 million run every quarter. U can you just speak to that please? 43:57 43 minutes, 57 seconds Yeah. So first of all the 2 billion I think as I said $700 million is is supposed to be in organic even if you look at 1.3 44:05 44 minutes, 5 seconds billion right I think from the current backlog perspective we are we are covered well past about 60 odd% as we 44:14 44 minutes, 14 seconds start the quarter start the year that's what we are to answer your earlier question I think although we are seeing 44:20 44 minutes, 20 seconds more bump coming in in the project side which gives us some annuity business as well so it's will be a project they're 44:28 44 minutes, 28 seconds doing a and for a hyperscaler in data centers in Europe for several years running into several million dollar a 44:36 44 minutes, 36 seconds project for 20 $30 million. So it also gives us anity not high 10 to 15% if you do $100 million project we do get 10 $15 44:44 44 minutes, 44 seconds million unwity at a much better margin going forwards having said that we still have good over 50 60% of our business to 44:53 44 minutes, 53 seconds your point as you rightly said from our non-data center business which includes our bank business which includes very 45:00 45 minutes large business in our airports which is multi-year managed services for airports like Miami which runs into tens of millions of 45:07 45 minutes, 7 seconds on New York airport. So we expecting large projects and managed services. 45:13 45 minutes, 13 seconds We're looking for a very large healthcare to $20 million worth of managed services. We have multi like that. So the answer is yes, we'll have both. So although if you look at our 45:21 45 minutes, 21 seconds table, the project look bumps up more in a certain quarter because it's not really a quarter business. You can get a 45:28 45 minutes, 28 seconds very large order which will burn over a period of time. So we are also focused the large part of the theme is 45:36 45 minutes, 36 seconds enterprise focused on non-data center similar business connectivity networking workplace modernization and so on so 45:42 45 minutes, 42 seconds forth uh for predictable large scale we expecting large scale reference in wireless infrastructure network infrastructure so that will continue to 45:51 45 minutes, 51 seconds happen run by their encrypt that runs it through a large team data center of course we require a smaller team we 45:59 45 minutes, 59 seconds don't require 50 people 100 people from a sales endpoint there are only five hyperscalers and maybe 10 miant guys. So 46:06 46 minutes, 6 seconds we have a smaller team but high performance team that was put in place in fiscal 26 as I told earlier with s maguire uh leading that in third year 46:15 46 minutes, 15 seconds experience with that perspective so we not leaving away and only focusing on data center we're just saying data center is hyperactive there are very uh 46:23 46 minutes, 23 seconds few large scale complex projects in execution it's time taking but a pipeline and order book of large nature 46:31 46 minutes, 31 seconds will burn over period of time for next two three four years time right and when you do a project of $200 billion dollar it takes two and a half years to burn. 46:37 46 minutes, 37 seconds Of course we expected to win another 200 and 400 but the road map for that at least for the foreseeable future is 46:45 46 minutes, 45 seconds there right and I think you know so we are focused on working on that moving to Europe we have not even come to India at 46:54 46 minutes, 54 seconds this time and possibly at some point we will look at what we want to participate in some of these things in India when India actually starts to build or deliver those those projects currently 47:02 47 minutes, 2 seconds it's that conceptual kind of a stage so both the tracks non-data centers and data center where 47:10 47 minutes, 10 seconds we want to turn a data center pipeline into a project into a more annuality per business with large pipeline some portion of that will turn into manage 47:19 47 minutes, 19 seconds services for what we call day2 operations so we are looking at both and we are driving both from that perspective 47:27 47 minutes, 27 seconds you just one last question since we brought the new head of gsi into the company I mean the order booking for the last three quarters has basically been 47:35 47 minutes, 35 seconds around the 200 200 the $30 million range. I appreciate that once you've set the team in place and with the uh new 47:42 47 minutes, 42 seconds go-to market strategy, I mean at some point the sales team has to fire I mean so what ideally next year onwards what 47:50 47 minutes, 50 seconds should be the quarterly order bookain uh and will that be lumpy nature? Should we move in should we be moving to a different orbit from about a $250 47:59 47 minutes, 59 seconds million to to a much higher because that that I mean that math doesn't change right? It can't be at a 250 $230 million 48:07 48 minutes, 7 seconds run and expect to hit a $1.2 billion target in the next 3 to four years. 48:13 48 minutes, 13 seconds I I agree. I I think this Yeah. Yeah. So I think you're right. So we we will see normal growth in the enterprise sector 48:22 48 minutes, 22 seconds which is where business and so on which is more 15 to 20%. We saw hyper growth. 48:29 48 minutes, 29 seconds So if you booked we we had $und00 million uh booking a $200 million booking in data center the previous year 48:36 48 minutes, 36 seconds we expecting 400 or 600 which is multi-time jump because it will not go the same way a combination of both our 48:44 48 minutes, 44 seconds goal next year moving into should be upward of 300 350 every quarter going forward we are currently at 230 250 48:52 48 minutes, 52 seconds quarter 4 of course will be much larger and we'll report when we get there and we we have an ability now to be able to 48:58 48 minutes, 58 seconds see that funnel culminating. Having said that, then the price kind of business supporting our bank. First of all, you have to keep those customers going and 49:07 49 minutes, 7 seconds then we new customers. We still expect 12, 15, 20 depending which quarter we land up. But I think uh we're expecting 49:15 49 minutes, 15 seconds a significant bump uh quarter quarter going forward. So the similar types several hundred million in the data 49:23 49 minutes, 23 seconds center infrastructure. We still have half the business 40% of the business. 49:26 49 minutes, 26 seconds But that didn't exist earlier. So we were doing 230, 180, 200, 250, whatever the number was. I mean I was expecting it to turn. 49:35 49 minutes, 35 seconds I appreciate you just want have we bitten more than we can chew as far as a $2 billion target is concerned. I mean I appreciate that even on the inorganic 49:44 49 minutes, 44 seconds part with a $50 million acquisition we still got to cover. 49:48 49 minutes, 48 seconds Sorry to interrupt sir. Uh sir, can we request? I will join that. No. Thank you. Thank you. 49:57 49 minutes, 57 seconds Before we take the next participle, anyone who wishes to ask a question may press star and one on their touchstone 50:04 50 minutes, 4 seconds telephone. I repeat, to ask a question, please press star and one. Now the next 50:11 50 minutes, 11 seconds question is from the line of Disha from Sapphire Capital. Please proceed. Yeah. Hello sir, am I able? 50:20 50 minutes, 20 seconds Yes sir, you able? Please proceed. 50:22 50 minutes, 22 seconds Yes. Okay. So firstly on this current order that we have what sort of execution timeline do we see here 50:31 50 minutes, 31 seconds if you can repeat the question please I think why is this correct the execution timeline for the order book 50:40 50 minutes, 40 seconds okay so I think we have several kind of order books the order books includes and order books that are uh recognized 50:49 50 minutes, 49 seconds relatively over a period of time if you look at investor presentation you'll see That project backlog run between 9 50:56 50 minutes, 56 seconds months to 24 months. For enterprise projects, they usually close within a year. For large scale infrastructure 51:03 51 minutes, 3 seconds projects for data centers depending on the size that might last several years, maybe two years or more. An average if 51:11 51 minutes, 11 seconds you look at I think you look at an average of one year from last 3 months, 6 months, 9 months and three years time. 51:17 51 minutes, 17 seconds Large hypers scale projects run over several years. Enterprise projects usually run within three months to six months time 51:26 51 minutes, 26 seconds and Spanish services are ratedly recognized every month every quarter that's for the county. 51:35 51 minutes, 35 seconds Yeah. So just uh following up on what the previous participant ra if you targeting a $2 billion by 2030 and if we 51:43 51 minutes, 43 seconds close this year by around say the upper end of our guidance around 6375 K that would mean that we need a target of 51:51 51 minutes, 51 seconds around 25 to 50%. But we only just targeting I think you mentioned 12 to 15% growth. So what's what is the sort 51:59 51 minutes, 59 seconds of glide path that you see targeting? 52:03 52 minutes, 3 seconds No, so we're targeting a ker of 30 35% including or uh in organic to get to our 52:10 52 minutes, 10 seconds goal of two billion dollar. Right. So that's what we're looking at. We're looking at 700 750 and wherever the number lies up to our in organic goal. 52:19 52 minutes, 19 seconds We just started that process as we have called in a in a smaller way. But we have larger ambitions on that as well. 52:27 52 minutes, 27 seconds Having said that a larger part of the company's focus is organic growth which includes our you know enterprise business and which is also includes our 52:34 52 minutes, 34 seconds data center infrastructure business and we feel confident first thing first to be able to close the year with respect to what we have guided for order booking 52:43 52 minutes, 43 seconds uh open up a strong backlog continue to push and drive that organic growth as we pull for in organic opportunities a 52:52 52 minutes, 52 seconds combination of those keer of 30% or more in the northward of that uh should lead 52:59 52 minutes, 59 seconds us to where we want to go to to billion dollar is what our goal is. 53:04 53 minutes, 4 seconds Yeah. So yeah a ker of 30% will lead to that. So just for the acquisition that we've done what sort of re growth do we see with this company? 53:17 53 minutes, 17 seconds Take that. 53:19 53 minutes, 19 seconds Yeah. Yeah. Yeah. So, so, so this company has grown at a CAGGR of close to around uh 20%, from last year to this 53:28 53 minutes, 28 seconds year also uh uh uh in 2025 uh tentative numbers. So we are expecting at least 12 to 15% growth because Brazil is a very 53:37 53 minutes, 37 seconds high growth market. Uh and and and we are expecting that uh FY27 we should add 53:44 53 minutes, 44 seconds 500 and then from FI28 onward we should grow at least at minimum bare minimum at 20% levels uh for this company. 53:56 53 minutes, 56 seconds Okay. Okay. and uh just the what what is this rationale for this acquisition and what sort of synergies do we see here? 54:09 54 minutes, 9 seconds I'll take that. So, so the our footprint in our footprint currently 54:17 54 minutes, 17 seconds is fairly small. We do $450 million. The company is a fairly large enterprise 54:24 54 minutes, 24 seconds focused uh network integrator large Cisco partner very multi clients 54:31 54 minutes, 31 seconds adjacent to what we do we largely did connectivity and a infrastructure so we can process we expect sales uh momentum 54:40 54 minutes, 40 seconds in that region to improve collectively as we move forward. The second clock said the second of course the company 54:49 54 minutes, 49 seconds was only present in uh Latam largely Brazil uh but has mari customers good 54:56 54 minutes, 56 seconds relationship with no ability to serve them overseas and they are serving it through some 55:03 55 minutes, 3 seconds partners and otherwise so with blackbox presence in Americas or Europe or otherwise we expect some flow of 55:12 55 minutes, 12 seconds business coming to other markets as well at the back of the of this acquisition. Third, the seat at the table with us with respect to 55:20 55 minutes, 20 seconds networking conversation more specifically from a fiscal standpoint is much better uh to have the relationship 55:28 55 minutes, 28 seconds which could be a critic for our margin going forward. So in combination I think the rattle to get to scale because if you're not having scale if you're doing 55:36 55 minutes, 36 seconds 125 million in a market you don't have a seat on the table to large stock. So we get a seat on the table. We also get an 55:43 55 minutes, 43 seconds ability to cross leverage each other in that geography and also get a leverage to you know to able to serve uh some of 55:52 55 minutes, 52 seconds the 2S customers in other geographies that they were not serving. Uh you know so we see a multitude of synergies as we 56:00 56 minutes move forward with integration over the 90 days. The first thing is to you know get into our run rate uh and then look 56:08 56 minutes, 8 seconds at combined strength of oneplus 1 to see how we can make it more than two. 56:14 56 minutes, 14 seconds Okay. Okay. And just last question on the margins I think this time so obviously because the revenue deferred and the supply chain issues introduced the guidance but going ahead with this 56:23 56 minutes, 23 seconds acquisition as well. Uh do we see uh the margin trajectory? 56:30 56 minutes, 30 seconds we continue to hold up to a margin guidance our goal is to move to 10% we are at 9.99%. 56:37 56 minutes, 37 seconds So I think uh this acquisition or otherwise as well at scale we believe will be margin accative both from a IITA 56:45 56 minutes, 45 seconds perspective and of course uh much better from a pack perspective. We expect our pat to be significantly higher as we move towards uh uh growth of revenue. 56:55 56 minutes, 55 seconds Our data to be also be significantly higher to pat conversion would significantly 57:01 57 minutes, 1 second improve at scale because we don't expect uh you know that to be linear. So therefore a critic from that perspective as we get in 27 28 and beyond. 57:13 57 minutes, 13 seconds So 10% sort of a margins can we target? That's what we're targeting. Yes. 57:22 57 minutes, 22 seconds Thank you. That's it from my Thank you. Thank you. 57:37 57 minutes, 37 seconds The next question is from the line of Rohan Nagpar from Helios Capital Management. Please proceed. 57:44 57 minutes, 44 seconds Thanks. Take my question. Um so first question I had is uh so this is the seventh quarter uh in which we've been 57:52 57 minutes, 52 seconds recording uh exceptional expenses on uh provision for rents and foreclosure leases. Um how much longer do we expect to record these exceptional items? 58:06 58 minutes, 6 seconds So, so you know uh uh Rohan we are we are let's say because we are operating multi- geographies we thought that 58:13 58 minutes, 13 seconds technically the FY26 should be the last one uh but right now I think from a visibility perspective I think that at 58:22 58 minutes, 22 seconds least another two quarters in FY27 uh we should have these exceptional items uh but the exceptional expenses 58:29 58 minutes, 29 seconds should little bit go down because because we continue to pivot and let's say let's say identify the opportunities 58:36 58 minutes, 36 seconds to severe uh the people wherever we think that it is not required or whatever uh uh and and that's what it 58:43 58 minutes, 43 seconds comes into it and with respect to the rent and all those thing it is more like uh so let's say let's [clears throat] 58:50 58 minutes, 50 seconds say what we are also doing now is that we are not recognizing the overall rent restructuring into uh one quarter 58:58 58 minutes, 58 seconds because as per the gap uh if if if I have done a rent restructuring and some consolidation or whatever I need to recognize is during the period of the 59:06 59 minutes, 6 seconds term of the contract as per the lease accounting. So that is why that is why it is it is coming like that. Uh so so the but restructuring is a lower amount 59:15 59 minutes, 15 seconds as compared to the severance. I am expecting severance amount to come down uh drastically in going going three 59:23 59 minutes, 23 seconds quarters but I am expecting that next two or three quarters is still the exceptional items will be there. 59:30 59 minutes, 30 seconds Okay. Uh thanks for that. Um and then my second question is on demand. 59:35 59 minutes, 35 seconds [clears throat] So I mean we already have we already have a long-standing relationship with one of the large hyperscalers that is committed to a significant amount of capital 59:43 59 minutes, 43 seconds expenditure this year. So we have um we have a a path to uh benefiting from some of that capex. But uh from some of the 59:52 59 minutes, 52 seconds other uh hyperscalers that have announced even larger amounts of capex um what exact how exactly does the sales 59:59 59 minutes, 59 seconds cycle work um in this situation? Um if someone's announced $200 million of capex this year and we uh is there any 1:00:08 1 hour, 8 seconds uh is there any way in which uh we have an opportunity to participate or service some of that spend or is it uh or will 1:00:16 1 hour, 16 seconds it take a long a significant part of this of fiscal 27 for us and then we have to effectively um we get to service 1:00:25 1 hour, 25 seconds some of that spend in the next year if uh the business development efforts are successful. I just want to get a sense of the dynamics at play over here. 1:00:43 1 hour, 43 seconds Oh, I think I think Sanjiv was dropped. 1:00:45 1 hour, 45 seconds Uh so I can uh I can uh take this. So basically you know uh like we are dealing with let's say one large 1:00:52 1 hour, 52 seconds customer on a hyperscaler but then we have the other hyperscalers like we are speaking with two more large hyperscalers who have announced the 1:00:59 1 hour, 59 seconds large project and also also one of the joint venture between the hyperscaler and the and the large let's say the GPT 1:01:07 1 hour, 1 minute, 7 seconds company we are dealing with them uh and uh and and the sales cycle typically 1:01:15 1 hour, 1 minute, 15 seconds uh sales cycle typically on this whole data center thing is is more like is more like uh I will say 3 to 9 months 1:01:23 1 hour, 1 minute, 23 seconds type of period from a sales cycle and and the and the decision making is happening most of the most of the 1:01:30 1 hour, 1 minute, 30 seconds hyperscalers it is between hyperskllers and also the uh and also the general contractors who are getting involved the decision- making happens between them. 1:01:40 1 hour, 1 minute, 40 seconds So there are like lot of roundoff interviews and then there are safety practices and then there is a prior experience and all those things and most 1:01:48 1 hour, 1 minute, 48 seconds of the hyperscalers uh it is not on the it is more like a technical discussion in all these rounds. The financial 1:01:56 1 hour, 1 minute, 56 seconds discussion is not let's say let's say not much we have to obviously give the financial models and all those thing and in terms of margin and all but it is 1:02:04 1 hour, 2 minutes, 4 seconds more like a discussion type of thing and then accordingly they allocate. So the so so let's say the selection or let's 1:02:11 1 hour, 2 minutes, 11 seconds say the allotment of the project is more happening on the technical parameters the financial parameters for everybody 1:02:18 1 hour, 2 minutes, 18 seconds remains almost in the same ballpark ballpark numbers understood. So u so on the significant 1:02:28 1 hour, 2 minutes, 28 seconds surge in capex x of the hyperscaler that's already a customer um we would not have as much we won't be able to service or participate in as much of 1:02:37 1 hour, 2 minutes, 37 seconds that this year. It would primarily be a 2027 story. Is that a fair understanding? 1:02:44 1 hour, 2 minutes, 44 seconds No I believe I'll take that. So I think uh so we have to be prudent as to where we want to deploy our capital and our and our resources. So we are focused on 1:02:53 1 hour, 2 minutes, 53 seconds six specific markets in America where we focus with this sector. US has 50 states. Data center is getting built in 1:03:01 1 hour, 3 minutes, 1 second 50 states. This is a localized work. So obviously you cannot have hundreds of resources parked in every places. It's just not physically possible. So 1:03:09 1 hour, 3 minutes, 9 seconds therefore you choose what you can deliver best because if you do these are very complex large scale of a mighty scale projects. If you don't do well uh 1:03:17 1 hour, 3 minutes, 17 seconds the chances of getting a repeat becomes low. You can also have a cost over done. 1:03:21 1 hour, 3 minutes, 21 seconds You can have a you can have delays. So you choose your battle accordingly. We have over the last several quarters reorganized ourselves as to where we 1:03:30 1 hour, 3 minutes, 30 seconds will focus on. Therefore and those conversation in my meetings with senior management of this hyperscalers or other multi-enant we clear as to where we are 1:03:39 1 hour, 3 minutes, 39 seconds and we have the strength. So we we do not want to be just spraying and praying right. I think that's one way to do it is too much opportunity means nothing 1:03:47 1 hour, 3 minutes, 47 seconds because you'll be bidding for too many things and winning peanuts. You'd rather be focused on as Deepa called out where 1:03:54 1 hour, 3 minutes, 54 seconds we are allocated more on technical strength, resources, capability, safety and so on and so forth. And the 1:04:01 1 hour, 4 minutes, 1 second commercial discuss and negotiations are fairly fairly understood fairly well now. It's marketdriven labor rates, your 1:04:08 1 hour, 4 minutes, 8 seconds your overheads, your margins fairly transparently because it's not a fixed cost, fixed scope project. The project 1:04:15 1 hour, 4 minutes, 15 seconds changes on the fly because it's a barren land build built for 2 gawatt, right? So I think it's a different kind of project. U so it is there's an entry 1:04:24 1 hour, 4 minutes, 24 seconds barrier. Anybody can't come and bid for those projects. It is it's a long lead times and if you come out a winner, I think you would be here for long term. 1:04:32 1 hour, 4 minutes, 32 seconds So that's what we're trying to build. 1:04:36 1 hour, 4 minutes, 36 seconds Okay, understood. Um and just last question from my end. Uh so we discussed supply chain bottlenecks. Um there seem 1:04:43 1 hour, 4 minutes, 43 seconds to be a certain amount of uh social and political um resistance to the development of data centers in certain 1:04:52 1 hour, 4 minutes, 52 seconds states. Um your certain bill looking at uh restricting the buildout. um is that 1:04:58 1 hour, 4 minutes, 58 seconds is that impacting us in any way or even at a business development standpoint at this point? 1:05:08 1 hour, 5 minutes, 8 seconds No, I believe I think uh so uh of course there are certain specific states where 1:05:15 1 hour, 5 minutes, 15 seconds uh there's more hyperactivity and so on and so forth but I think I don't think we are affected by that as as I told earlier we are focused around where our 1:05:23 1 hour, 5 minutes, 23 seconds vability is higher focused on our win rate and stuff like that. So, so we're not affected by that. 1:05:30 1 hour, 5 minutes, 30 seconds That's it from mine. Thank you very much. 1:05:36 1 hour, 5 minutes, 36 seconds Thank you ladies and gentlemen. Due to time constraints, that was the last question for today. I now hand over the 1:05:44 1 hour, 5 minutes, 44 seconds conference to management for closing comments. Over to you, sir. 1:05:50 1 hour, 5 minutes, 50 seconds So, thank you everybody uh for joining the call. I hope we have been able to address uh all your queries. For any further information, kindly get in touch 1:05:59 1 hour, 5 minutes, 59 seconds with Purves Parik, our head of investor relations or strategy growth advisers, our investor relation advisers. Thank you so much. 1:06:08 1 hour, 6 minutes, 8 seconds Thank you on behalf of on behalf of Blackbox Limited that concludes this conference. Thank you for 1:06:16 1 hour, 6 minutes, 16 seconds joining us and you may now disconnect your lines. Thank you.