Blue Cloud Softech Solutions Ltd — Q3 FY26

Blue Cloud Softech Solutions Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=rjIoUxR1VnA Published: 2 months ago

0:01 1 second Ladies and gentlemen, good afternoon. I am Steve, moderator for this conference call. Welcome to the conference call of 0:08 8 seconds Blue Cloud Soft Tech Solutions Limited arranged by Concept Investor relations to discuss its Q3 and 9 months FI26 results. 0:18 18 seconds We have with us today Mr. Vinard Babu, Chief Executive Officer, Mr. Shu Varda, Chief Financial Officer. At this time, 0:26 26 seconds all participant lines are in the listen only mode. Later we'll conduct a question and answer session. At that time if you have any question please press star and one on your telephone. 0:39 39 seconds Please note that this conference is being recorded. I would now like to hand over the floor to Mr. Vinod Babu. Thank you and over to you sir. 0:49 49 seconds Hi. Hi Steve. Thanks for the introduction and um good afternoon all. So thanks for attending the call today. 0:57 57 seconds Myself Venod Babu Boland CEO of Cloud Soft Solutions along with me my colleague Mr. Chandra Shakra 1:05 1 minute, 5 seconds Mudraam who is the chief executive of company and also Sichu Vada who is uh the CFO of company with me. So we are 1:15 1 minute, 15 seconds here to discuss uh details on the link and also the specific pointers which are 1:23 1 minute, 23 seconds required to be uh you know given a detailed information. 1:29 1 minute, 29 seconds So uh over to you Ash. So any any specific questions start with the discussion. Thank you. 1:45 1 minute, 45 seconds Yes sir. Should we begin with the question and answer session? 1:48 1 minute, 48 seconds Yeah, we good to go. If you unless you have anything specific you want me to explain or take this up as a moderator wrote to you so you can take a break. 1:58 1 minute, 58 seconds Okay, sir. [clears throat] [snorts] All right, thank you very much. We will now begin the question and answer session. Anyone 2:05 2 minutes, 5 seconds who wishes to ask a question may press star and one on their touchstone telephone. 2:11 2 minutes, 11 seconds If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. 2:21 2 minutes, 21 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 2:36 2 minutes, 36 seconds The first question comes from the line of Nishi Vas from Phenoptical. Please go ahead. 2:52 2 minutes, 52 seconds Your line has been unmuted. Yeah. Thank you. 2:55 2 minutes, 55 seconds Yeah. So what is the current consolidated order book value and what will be the revenue visibility for FI26 and FI27? 3:08 3 minutes, 8 seconds Yeah. Uh this is Sue the CFO and uh we our order book value and uh estimated uh 3:17 3 minutes, 17 seconds projected revenue for FI27 would be around 3,000 crores approximately for 2027. 3:26 3 minutes, 26 seconds Yes. So this comprises of by and large cyber security ongoing contracts that we have and also the AI healthcare 3:35 3 minutes, 35 seconds initiatives that we have inated know especially the products and platforms that we have developed is going to uh give a significant uh know chunk of 3:44 3 minutes, 44 seconds revenue contribution. So the first place you know by and large would be the safety security and the surveillance 3:50 3 minutes, 50 seconds platform based business that we have and the second most of the on the source of AI healthcare 3:58 3 minutes, 58 seconds especially from blue health bio and other areas of it and third place would be when the telecom so 4:07 4 minutes, 7 seconds which basically is going to be uh a CNPN network that we have signed with the service providers providing the CNN 4:14 4 minutes, 14 seconds providers or could these are private mobile networks or industrial automation or the you know long-term projects that 4:21 4 minutes, 21 seconds we have so would be contributing to the size okay and what IR and payback period has 4:29 4 minutes, 29 seconds been targeted for the AI data center Here 4:45 4 minutes, 45 seconds the AI data center business would be close to about 18 to 20% would be the 4:51 4 minutes, 51 seconds error that is faced once it takes know the initial phase one and the phase two roll out takes place like so close to 5:00 5 minutes about it takes six to say 8 years of time uh 6.8 years of time to uh pay back 5:08 5 minutes, 8 seconds and that's an average IR expected with a edge AI data between 10 to 25. 5:16 5 minutes, 16 seconds Okay. My last question would be what occupancy level and aida margin assumption underpinning the financial viability of data center projections. 5:26 5 minutes, 26 seconds Right. Yes. So by FI32 the stabilized level of occupancy would be around 85%. 5:33 5 minutes, 33 seconds Starting from 40% from FI28 and rose to 85% of occupancy by FI32. Uh they where 5:43 5 minutes, 43 seconds by FI32 it will be stabilized and an EIA margin from 16% to 50% of AITA margin 5:52 5 minutes, 52 seconds and an average it should be around 43 to 48%. consistent with the model. Yeah, just to add a line on top of it, it's 6:00 6 minutes basically a staggered model deployment which starts with you know 40 megawatt 6:06 6 minutes, 6 seconds 28 and and 29 it's rolled out roll out is expected around 80 megawatt and and 6:13 6 minutes, 13 seconds what about the payback that we we are talking about at an 85% is what close to about 100 megawatt deployment is by and large planned to be achieved by 530. 6:24 6 minutes, 24 seconds Okay, Nishi. Does that answer your question? 6:40 6 minutes, 40 seconds Yes. Yes. 6:42 6 minutes, 42 seconds Okay. Thank you. The next question comes in the line of Maitrica with Safire Capital. Please go ahead. 6:49 6 minutes, 49 seconds Yeah. Hello. Good afternoon. Am I audible? Yeah, please go ahead. Hello. 6:55 6 minutes, 55 seconds Yeah, hello. Uh, so I'm a bit new to the company. So, if you could uh take a few minutes to explain how the business works, what the verticals are and what 7:04 7 minutes, 4 seconds each of the verticals we are supplying to the clients and what sort of services are we doing in each of the verticals since you mentioned we are into security 7:12 7 minutes, 12 seconds contracts, healthcare and also telecom and also uh discussions on AI data centers is going on. If you could just bifocate the company into these 7:20 7 minutes, 20 seconds verticles and uh what sort of revenue we are getting from each of them uh just a over overview of this company if that's possible. 7:29 7 minutes, 29 seconds Yeah. Hi this is Chandra Shakar the CEO of the company. So, BlueCloud today operates uh primarily in five four 7:38 7 minutes, 38 seconds verticals uh that is uh uh security, healthcare, 7:46 7 minutes, 46 seconds education and support services and that also includes uh the telecom uh division. 7:54 7 minutes, 54 seconds Mhm. And uh uh for uh each one is a separate like we are operating as a separate 8:03 8 minutes, 3 seconds business unit. The company having its own uh uh development uh and delivery 8:09 8 minutes, 9 seconds teams and we are catering to uh customers pan India and uh also 8:17 8 minutes, 17 seconds overseas. We are also looking at large overseas contracts. 8:21 8 minutes, 21 seconds And um um coming to uh the revenue of uh each 8:28 8 minutes, 28 seconds of these uh uh business units uh in up to uh 8:36 8 minutes, 36 seconds uh uh up till this is quarter 3 of uh 256 8:44 8 minutes, 44 seconds um we had 75% of the contribution from the security uh BU 8:51 8 minutes, 51 seconds 10% from the healthcare BU 5% from the education BU and 10% from the other BU that is support and telecom. Yes. 9:00 9 minutes Okay. 9:01 9 minutes, 1 second So just add on bit of insight more about it. So in the cyber security by and large we provide 9:10 9 minutes, 10 seconds you know we have developed first of its kind technologies like dark web monitoring system and uh anti-money laundering platform as well as now 9:19 9 minutes, 19 seconds couple of our uh house threat intelligence platform. So which is the core contribution which has been 9:26 9 minutes, 26 seconds now earning long standing contracts for the company for quite some time. In AI healthcare it is by and large the remote 9:35 9 minutes, 35 seconds healthare management, population health management, community health management uh platform. So which is right now being 9:42 9 minutes, 42 seconds used by various clients across the world. So in India also we have done this recently with you know PC with GMR 9:51 9 minutes, 51 seconds as well as other management. Uh your voice your voice is 9:58 9 minutes, 58 seconds a bit inaudible if uh I can't hear you clearly. Uh is it clear now? Yeah. Yes. 10:07 10 minutes, 7 seconds Yeah. So I was know emphasizing on what uh exactly are we doing in terms of uh know healthcare area. So in a blue 10:14 10 minutes, 14 seconds health we're working both in a government and as well as enterprise sector and then uh the blue bio is one 10:21 10 minutes, 21 seconds more you know AI enabled edge diagnostic centers especially for an enco 10:27 10 minutes, 27 seconds pathology pathology is you know cancer specialized diagnostic centers with AI instrument technology that's being used 10:36 10 minutes, 36 seconds in AI healthcare [clears throat] so that's one of the promising revenue source for us as we move forward from u you know uh if I 26 to 27 28 29 so it's 10:46 10 minutes, 46 seconds it's going to be a by and large big country and also the 5G telecom where 5G 10:54 10 minutes, 54 seconds and also subsequently running this CNN would be one of the areas so this is what know majorly that we focus on apart 11:01 11 minutes, 1 second from uh you know the new business that we are entering into the data center 11:10 11 minutes, 10 seconds so uh sorry if this question sounds a bit redundant Then but the new business that we are entering the data center business are we in the management side 11:18 11 minutes, 18 seconds or in the more on the hardware side of the business. Are we constructing the data center? Are we operating and 11:25 11 minutes, 25 seconds managing it? Uh what sort of business role are we going to play on this side? 11:32 11 minutes, 32 seconds By and large we are taking a unique approach especially in the data center right. So the whole idea of building data center itself is u you know to come 11:41 11 minutes, 41 seconds up with it's time for India to have you know uh its own sovereign data center. 11:46 11 minutes, 46 seconds So this program and blue cloud we call it as an uh prek. So which is what uh birth edge cloud infrastructure is earth 11:54 11 minutes, 54 seconds cloud infrastructure uh edge uh cloud infrastructure uh data centers. So here uh the model would be of it's it's a 12:02 12 minutes, 2 seconds hybrid model. So one is that at some places specific know requirement points we would be know building uh the edge 12:10 12 minutes, 10 seconds data center especially related to uh you know uh specific enterprise requirement 12:17 12 minutes, 17 seconds or requirement where we'd be know relying upon the existing whether it is a dark fiber networks no we'll be also signing up with this know because we 12:25 12 minutes, 25 seconds already signed up KRC we are looking forward to sign up at couple of you know organizations which are having their own 12:33 12 minutes, 33 seconds So which can be connected back to the data centers provides an integrated sovereign data center infrastructure. So here answering to the questions right 12:42 12 minutes, 42 seconds point it's not about the hardware it's more about the management also uh uh solution integration know to end it 12:49 12 minutes, 49 seconds that's where the you know and involvement of it's not uh the whole investment will be going into the capital expenditure also in terms of 12:57 12 minutes, 57 seconds securing the resources and uh related solutions. 13:03 13 minutes, 3 seconds H okay and we did mention that we're going to start with a 40 megawatt capacity in FI28 moving and growing it 13:11 13 minutes, 11 seconds to 100 megawatt by FID in D32. Did I add that correct? Is that what we are planning? 13:19 13 minutes, 19 seconds Yes. uh that's what know by and large the plan to start with know initially with 13:27 13 minutes, 27 seconds 25 to 30 MHz to the 40 and then subsequently roll out megawatt and from there we rolled out to 80 megawatt and 13:36 13 minutes, 36 seconds there it will be rolled out to 100 megawatt. So staggered and stepwise phase wise roll 13:44 13 minutes, 44 seconds out that we have and we have the technology partners who are joined with us. 13:50 13 minutes, 50 seconds Mhm. So for this uh uh the capacity that we are mentioning here is it the capacity that we are going to just 13:58 13 minutes, 58 seconds manage or is this the capacity we're going to build out infrastructure wise as well or it's both includes 14:07 14 minutes, 7 seconds both includes both okay like building and managing so there are certain cases where let's say there are the sovereign data centers which have 14:16 14 minutes, 16 seconds been built and let's say the upgradation needs to be you need to be there know in terms of 14:23 14 minutes, 23 seconds technology upgradation or also the edge connectivity and bringing in you know the specific AI related uh technology on 14:31 14 minutes, 31 seconds on boarding with the so data center so that's where capex or would be coming in so at some point in time it could be just on the opex and it could be just 14:39 14 minutes, 39 seconds the management that will be playing uh what sort of capex are we putting in for these data centers um any number 14:46 14 minutes, 46 seconds that you've mentioned uh You will say that uh the overall data centers 14:55 14 minutes, 55 seconds phase one no would be approximately uh the for 100 to 120 megawatt. So this is 15:03 15 minutes, 3 seconds estimated cost to about 10 million which would be the overall cap cost it would be incurred estimated cost of 10 to 15 million. 15:16 15 minutes, 16 seconds Sorry come again please. the estimated cost of I couldn't hear the trigger. 350 350 350 $350 million. 15:25 15 minutes, 25 seconds $350 million. Okay. Yeah, that's right. That's right. 15:28 15 minutes, 28 seconds And we'll be funding this through debt equity. What what how are we going to fund this project going ahead? 15:35 15 minutes, 35 seconds Yeah. 15:39 15 minutes, 39 seconds So it'll be by and large um composition of different types. Now uh one is that it'll be an external investor and family 15:46 15 minutes, 46 seconds offices who has given a soft commitment before actually when we designed this plan. So basically what we have done is 15:53 15 minutes, 53 seconds so uh our plan is to now roll this as as initially as an internal process but subsequently roll this as an separate 16:01 16 minutes, 1 second SPD so that the investors can um join into this particular business model. So it could be the external investors who 16:08 16 minutes, 8 seconds would be who has given a commitment close to about 60% of quite a time. So uh what about the large size project 16:17 16 minutes, 17 seconds that we have projected so for this uh uh investment would be coming uh close to about 60% of the uh from the external 16:24 16 minutes, 24 seconds investors uh out of this uh we are talking about this $50 million especially in the phase and 16:32 16 minutes, 32 seconds blue cloud will be contributing from from its internal approvals or maybe the FCCB proceeds that we'll be getting so 16:38 16 minutes, 38 seconds close to about 20% of the uh one has been budget for that and uh the senior at SPV level where could be the 16:46 16 minutes, 46 seconds individuals could be know from various sources be close to all people and also part of you know equity uh equity 16:55 16 minutes, 55 seconds dilution that might [clears throat] come up especially in the SPV not in the parent company or in the listed company 17:02 17 minutes, 2 seconds so there will be an equity dilution that will happen in the SPV so that's where basically the fund houses have given the commitment for to infl on. 17:13 17 minutes, 13 seconds Um yeah secondly uh you mentioned that 3,000 cr figure was done the audit command or is that what we quoting for 17:22 17 minutes, 22 seconds next year in terms of revenue for FI27 that is the revenue for FI27 17:30 17 minutes, 30 seconds that's correct okay and uh so since you've divided the verticals into four sections security being the highest contributor um how do 17:39 17 minutes, 39 seconds you see healthcare and this telecom division kind of growth growing and taking on a much rather contribution share because I expect the healthcare 17:47 17 minutes, 47 seconds division to have a much higher margins than the security side. That's correct. Yeah. Go ahead. 17:54 17 minutes, 54 seconds Yeah. So, we are expecting uh because we have already done several uh proof of concepts with government and large 18:02 18 minutes, 2 seconds private hospital chains and all across the country. So we are moving into the stage of actually uh like large 18:11 18 minutes, 11 seconds projects. So significantly uh the healthcare uh division will definitely contribute uh more uh in the coming uh uh months and quarters. 18:22 18 minutes, 22 seconds Mhm. And we are seeing a lot of traction coming up. 18:27 18 minutes, 27 seconds Sure. any sort of bifurcation you can give on the margin side like what uh which vertical contributes what amount of aa margins and is there a metric that you can specify for that. 18:41 18 minutes, 41 seconds So by and large um the security uh tools and solutions that we are providing 18:49 18 minutes, 49 seconds and which we have taken the AI flavor and advancements that we bring in right now the latest version with that uh now 18:58 18 minutes, 58 seconds that's that's going to be one of the biggest contributor of market it would come up with and uh and then healthcare 19:07 19 minutes, 7 seconds would be the second equivalent almost equivalent to security that we have. 19:12 19 minutes, 12 seconds Whereas uh you know IT support services or telecom would be you know the 19:18 19 minutes, 18 seconds medium level margin expecting for the future business. 19:27 19 minutes, 27 seconds Okay. And this uh new data center business uh you've mentioned that we are increasing occupancy level from 40% 19:34 19 minutes, 34 seconds [clears throat] 19:34 19 minutes, 34 seconds to 85%. any sort of uh margin expectations we have on here. How do you see the margins scaling up over the years? 19:44 19 minutes, 44 seconds You mean to say the how exactly the margins would be in the data is is yeah with increase in because with decrease in occupancy we'll have an 19:52 19 minutes, 52 seconds operational leverage kicking in. So what do you see the margins going on from maybe FI 28 to the FI 3032 year? 20:01 20 minutes, 1 second By and large, yeah, go ahead. 20:04 20 minutes, 4 seconds By and large from FI28, if we take a 40% occupancy ratio and we are estimating an AITA margin of 16%. uh approximately so 20:14 20 minutes, 14 seconds the and if we increase the same see being the costs are constant and there is no going to be increase in other cost 20:22 20 minutes, 22 seconds though the occupancy increased from 55 40% to 55% the AITA margin will grow 20:29 20 minutes, 29 seconds definitely they will grow because yeah one rider one rider would be you know we have seen in last 6 to 8 months what's 20:36 20 minutes, 36 seconds happening with the chipset market across the globally right so there's a lot kind surge that has created so uh where the 20:45 20 minutes, 45 seconds availability because of the non-availability of sets and the you know IT hardware infrastructure has taken a hit off because of that if the 20:53 20 minutes, 53 seconds cost increases probably the margin might be but it is subjected to the uh you know the influential factor but by and 21:01 21 minutes, 1 second large whatever the margin this ratio has presented now as you know as as of the current date situation whatever the 21:09 21 minutes, 9 seconds calculation that we have made what the the current projections are based on the current market situation but the 21:16 21 minutes, 16 seconds volatility has not been taken care into this projections perfectly and as we know said if the chipset market or any 21:24 21 minutes, 24 seconds other market volatility happens this may undergo the way or that way in either way there may be impact from plus 10% to 21:32 21 minutes, 32 seconds minus 10% whatever it is so at 55% occupancy we have projected at 40 to 42% 21:40 21 minutes, 40 seconds of EIA and at 70% it should be 46% and at 80% 49 and 50% EITA range provided if 21:51 21 minutes, 51 seconds we implement that 80 megawatt and 100 megawatt as we planned in 21:58 21 minutes, 58 seconds okay that is great um yeah that is it from my side if I'll have any more questions I'll join you back thank you right thank you thank you 22:08 22 minutes, 8 seconds thank you the next Question comes from the line of Abhishit Periwal from HBSC securities. Please go ahead. 22:16 22 minutes, 16 seconds [clears throat] 22:16 22 minutes, 16 seconds Hello. Uh first of all very congratulations on the good sort of numbers and also on the doing call for 22:23 22 minutes, 23 seconds first time. Uh my question would be on the margin side only. Uh so if you look uh if you look at the uh profit margins 22:32 22 minutes, 32 seconds uh this year we have seen a significant jump this year also in 9. uh but uh also to we have to consider that the AI in 22:41 22 minutes, 41 seconds cyber security is getting much more crowded and more competitive and we also moving into clean energy. So how do you 22:48 22 minutes, 48 seconds plan to keep this high margins going further a high growth in this margins and also uh can you throw some light on 22:55 22 minutes, 55 seconds the margins for next two to three uh years. 23:00 23 minutes see multiple ways that we have taken this approach that's the reason why by large the you know the model that we have chosen is instead of you know more 23:09 23 minutes, 9 seconds focusing the business on the tier one so that's where know when we wanted to have spread across to tier two and tier three 23:18 23 minutes, 18 seconds cities especially with the data actually cost costly in terms of and they go for a tier one data centers like 23:25 23 minutes, 25 seconds AWS or GCP or any other so the affordable wise we wanted to bring that to the volumes in our tier 20th. 23:36 23 minutes, 36 seconds So that's where now one area where now we are going to have the early bird advantage uh when we roll out this edge 23:42 23 minutes, 42 seconds data the container uh one of the area where we can actually secure the customer and the margins 23:52 23 minutes, 52 seconds would stable and second would be the kind of the SAS models that we are going to come up especially with the AI 24:00 24 minutes platforms where we are bundling the solution along with the storage and you know multiple So this is be given across 24:06 24 minutes, 6 seconds you know it's not just a storage right now you we wanted to have an cloud solution either you go for a compute or 24:14 24 minutes, 14 seconds go for a specific storage requirement or specific application requirement but we are going to come up with a solution where we going to bundle this entire 24:23 24 minutes, 23 seconds together so that what happens is the cost remains it becomes one capex which would be shared across multiple tenants and that's where the cost advantage that 24:31 24 minutes, 31 seconds we could take and uh we could maintain the profitability Now as as projected plus minus we can be a percentage of 10 24:39 24 minutes, 39 seconds to 15% with the change of but we can maintain that 24:46 24 minutes, 46 seconds uh okay so uh like uh what are the which are clients that we recently onboarded 24:53 24 minutes, 53 seconds uh can you share some uh like data about it? 24:58 24 minutes, 58 seconds So there's specific clients you know we have signed up with you mean to say pertaining to a specific business sector 25:06 25 minutes, 6 seconds or asking about the data center now data center is still haven't 25:13 25 minutes, 13 seconds grounded yet right so is just a starting stage so what we have done initially we are taking an approach as I told earlier 25:20 25 minutes, 20 seconds to initially uh answering to our questions so we are looking at three models where the existing data set might 25:27 25 minutes, 27 seconds be PSU based data centers maybe maybe I know a small scale data centers wanted to scale this we are right now at a 25:35 25 minutes, 35 seconds verge of signing this so that their existing customer base can be rolled out and where in fact we can add the edge AI 25:43 25 minutes, 43 seconds or AI related hardware and upgrade the technology with the 5G uh network solutions so that the speed could be 25:50 25 minutes, 50 seconds improved uh within that so that is where basically the existing clients of the the current data centers which providers 25:59 25 minutes, 59 seconds would be added into the system. That's a model that we adapted especially in the data center instead of building something right from the scratch. So we 26:07 26 minutes, 7 seconds wanted to actually identify the small and mediumsiz players identified the small and medium size players and uh we started working with them and which by 26:15 26 minutes, 15 seconds and large we would have more clarity on the data center side of it and uh next part. 26:22 26 minutes, 22 seconds Uh can you share me like maybe a timeline in terms of year in this data center? So so we can uh like the look 26:31 26 minutes, 31 seconds when the major capacities required and all. 26:36 26 minutes, 36 seconds So data center uh unless the first phase would start 20 26:45 26 minutes, 45 seconds it was fi 28 the first data center of 50 megawatt is expected to be out. So by and large the cap the question 26:54 26 minutes, 54 seconds pertaining to the question that you asked. No when is fund requirement would be right from the 27:02 27 minutes, 2 seconds next quarter onwards. So it starts from next quarter onwards because we are starting from know uh it's not just 27:09 27 minutes, 9 seconds building the data center right from scratch. If it is the building the data center right from the scratch because in this uh particular business what we have 27:16 27 minutes, 16 seconds done is if you observe recently we have made an announcement about recently we made an announcement related 27:24 27 minutes, 24 seconds an acquisition of a company uh called global index. Yeah right. 27:28 27 minutes, 28 seconds So right so this company is is already having established uh in India as well 27:35 27 minutes, 35 seconds as US. So this particular company uh is um is into automo and clean energy and 27:42 27 minutes, 42 seconds renewable energy sector and this company is also having uh close to about 100 acres plus land at a prime 27:51 27 minutes, 51 seconds location where there is an proposed you know uh uh couple of landing sites are also expected that 28:00 28 minutes you know gateway points are there. So that's where we have hundreds of acres of the sand. 28:06 28 minutes, 6 seconds So this is how basically our journey of data center. 28:10 28 minutes, 10 seconds So it's it's this this acquisition going to be a table in terms of starting the data center. So typically as we are 28:19 28 minutes, 19 seconds doing a share swap and with which basically we are acquiring this company. 28:24 28 minutes, 24 seconds So that's an investment which already being started by from the end in fact. 28:28 28 minutes, 28 seconds So shares and second is that once we have the construction uh is expected to be uh started uh FI27 offer that's where 28:38 28 minutes, 38 seconds the uh real uh requirement in terms of capex will be required. 28:46 28 minutes, 46 seconds Okay. So on the global implex acquisition on the on that one the press release uh is light on the number then 28:54 28 minutes, 54 seconds so so can can you give me some uh colors on the valuation of this company like uh and also I want to understand what are 29:02 29 minutes, 2 seconds the aspects of that you expect and what are kind of margins and revenue contribution uh you expect going further. 29:10 29 minutes, 10 seconds Okay, you're asking about the numbers at which basically uh can can you be can you be a little more clear on the question please uh if you don't mind. Uh 29:18 29 minutes, 18 seconds so I had just uh two questions. The first was on the valution side. Second what are the asset turnovers expect? 29:26 29 minutes, 26 seconds Yeah this two uh would be shortly announced uh uh uh the valuation processes are going 29:33 29 minutes, 33 seconds basically you know a board meeting was commenced and clearance uh to go ahead with this acquisition. So post of that 29:41 29 minutes, 41 seconds board meetings we initiated the valuation process. Right now it is undergoing the valuation process and shortly within know very very short time 29:48 29 minutes, 48 seconds you'll be finding an announcement and the schedule of the dates and uh uh what exactly going to the valuation and other details about this particular company's 29:56 29 minutes, 56 seconds top line and model of the acquisition. Yeah. 29:59 29 minutes, 59 seconds Oh all right. So uh sir last last question uh is there any uh any pressures on the working capital uh especially in terms of uh receivables or 30:07 30 minutes, 7 seconds payment in payments payments from customers that we have seen in FI25 our working capital significantly increase 30:14 30 minutes, 14 seconds like so uh this quarter is any uh any uh pressures on that working capital or something. So this quarter would give us 30:24 30 minutes, 24 seconds yes last quarter we had a little bit of pressure in terms of working capital and this quarter uh significantly it'll 30:31 30 minutes, 31 seconds reduce from the last quarter because uh there are multiple things because of the you know uh the various 30:39 30 minutes, 39 seconds geopolitical situations also now uh you know the there were payment delays that have happened because most of the 30:45 30 minutes, 45 seconds clients know from sources to which this basically business is happening is uh um uh government or uh and various 30:54 30 minutes, 54 seconds countries depended upon now uh US as well as so that was something you know where the payment delays have 31:03 31 minutes, 3 seconds terms of the government payments and all so the realization took time but yeah it haven't created an impactfulness but yes 31:12 31 minutes, 12 seconds there pressure of India but this quarter it is it'll be much better than quarter and as we move forward uh we expect 31:20 31 minutes, 20 seconds things to be much stabilized. Subsequent to closure of the quarter most received majority of the renewables and the 31:29 31 minutes, 29 seconds working capital pressure is now eased as if we see as on date we are in a comfortable position and the renewables 31:36 31 minutes, 36 seconds have started getting back but now again this March because of this uh new 31:43 31 minutes, 43 seconds geopolitical situations we need to see but we are hoping for a better cycle this quarter because they are all interdependent because we are serving to an exclient. 31:52 31 minutes, 52 seconds That exclient is again serving to you know be a white client who lettered to one of the government agency where the 32:00 32 minutes payments might be from my side. Thank you. Thank you. 32:08 32 minutes, 8 seconds Yep. Yes sir. 32:10 32 minutes, 10 seconds Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. 32:18 32 minutes, 18 seconds The next question comes from the line of hers from my temple capital. Please go ahead. 32:25 32 minutes, 25 seconds Uh hello sir am I audible? Yeah. Um yes sir. 32:31 32 minutes, 31 seconds Thank you. Thank you for this opportunity. So my question is regarding the exclusive India license for kelabs technology. So how long are these 32:40 32 minutes, 40 seconds agreement valid and should we be modeling in any ongoing royalty back to connect 32:50 32 minutes, 50 seconds uh harsh uh which technology you suggested uh I think there was a voice we miss your contact 32:59 32 minutes, 59 seconds okay so regarding the exclusive uh India license for ke labs technology so how long are this agreement valid 33:09 33 minutes, 9 seconds clean energy, clean technology. 33:15 33 minutes, 15 seconds So you have this exclusive India license for clean labs technology, right? 33:22 33 minutes, 22 seconds theme no okay we'll come back to you in this question let me just we need to check the context of the question that what 33:30 33 minutes, 30 seconds you have asked we will reply to um subsequent to closure of this part yeah okay and I have one more question so 33:39 33 minutes, 39 seconds like it's interesting that to see you moving into blue energy so how does [clears throat] a clean energy platform actually synh synergize 33:48 33 minutes, 48 seconds with your existing digital health and AI diagnostic business. 33:53 33 minutes, 53 seconds Okay. So, how exactly the clean energy model is going to uh know align synergize with is is what the question right? 34:03 34 minutes, 3 seconds Sure. Yeah. Right. 34:04 34 minutes, 4 seconds A very good question H I I appreciate that. So, right. 34:10 34 minutes, 10 seconds Yeah. By and large see the clean energy why uh if if you look at that when when we actually started this initially uh we 34:20 34 minutes, 20 seconds focused on see we have developed the AI related platforms initially so we had been an early bird in terms of 34:26 34 minutes, 26 seconds understanding the technology know the AI come up so that's where in 2020 onwards 34:34 34 minutes, 34 seconds uh you know started actually working which got su subsequently merged into blue cloud IT op so where we started at 34:41 34 minutes, 41 seconds early days the AI development for our debt. So that's where our journey of AI started especially in the margin. So 34:48 34 minutes, 48 seconds then we also understood over a period of time it's very important to have your own sovereign you know hardware uh 34:56 34 minutes, 56 seconds support and ability also over here. So that's where now we thought of getting into uh semiconductor especially the 35:04 35 minutes, 4 seconds edji we're not getting into every part of that. So then we got into the semiconductor 35:12 35 minutes, 12 seconds where we wanted to have indigenously developed edge AI chip that could be used for the edge purpose especially 35:19 35 minutes, 19 seconds from IoT you know could be on a serance side or would be on a security side and then we we wanted to actually focus on 35:27 35 minutes, 27 seconds along with that so to enter the to offer our solutions at an air direto so we entered into a telecom space that's 35:35 35 minutes, 35 seconds where we have signed up with the telecom providers in terms of extending their spectrum and running the 5G FWN 35:43 35 minutes, 43 seconds services. So that the idea whole idea is uh our solutions and products can be brought and should be made reach. 35:52 35 minutes, 52 seconds So that's the by and large the plastic behind that and as we move forward uh we also see 36:01 36 minutes, 1 second that especially the whole idea to build you know micro status status especially in India which we need 36:10 36 minutes, 10 seconds to the biggest requirement so energy is a is a vital going to be 36:20 36 minutes, 20 seconds so that's where u you know do energy as form as a part of it and which will be uh dealing with cleaner and renewables. 36:31 36 minutes, 31 seconds So that's where uh uh connect's position also. 36:38 36 minutes, 38 seconds I hope you understand the connectivity now. Yes. Yes. My given the indep. 36:49 36 minutes, 49 seconds Thank you. 36:51 36 minutes, 51 seconds The next question comes from the line of Rakkesh Chen with Soul Capital. Please go ahead. 36:58 36 minutes, 58 seconds Hi, good evening sir. Thank you for the good set of numbers and the opportunity accorded to us. Uh my question is uh 37:07 37 minutes, 7 seconds could you please elaborate on the timeline and the flow of the data center business what you expect from here onwards till FY32. 37:18 37 minutes, 18 seconds So is it possible to give you give us on an annualized basis the megawatt expansion expected and the top line for each particular year? 37:31 37 minutes, 31 seconds Uh majes we have already explained this question at the cost of repetition. If you want me to explain once again okay 37:38 37 minutes, 38 seconds I'm prepared to do but it is already recorded the same question and answer is already recorded. But yeah, you can 37:45 37 minutes, 45 seconds but yeah I can give you the uh nitty-g details. FI28 we are going to roll out 40 megawatt with 40% occupancy. 37:55 37 minutes, 55 seconds FI 29 we are going to roll out 80 megawatt with 55% occupancy and FI 30 full 100 megawatt going to be deployed 38:04 38 minutes, 4 seconds with 70% occupancy and the same would be rise to 80% by FI 31 and 85% where the 38:11 38 minutes, 11 seconds occupancy will be stabilized by FI32 with uh an assumption of 80 to 85% of 38:19 38 minutes, 19 seconds range a stabilization there after full deployment of 100 megawatt power by FI32. This is the stage wise deployment 38:28 38 minutes, 28 seconds and occupancy ratios issued to implement the data center project. 38:38 38 minutes, 38 seconds Okay. Uh sir may I uh again I know you have answered this earlier but maybe I was not clear. Uh could you elaborate 38:46 38 minutes, 46 seconds the capex required for this particular uh expansion? What would be required for the next four years? 38:53 38 minutes, 53 seconds The capex required the capex required here about 3.5 million per megawatt 39:02 39 minutes, 2 seconds and for 100 megawatt we are looking about 350 million phase this is phase one 39:11 39 minutes, 11 seconds okay $50 million US $350 million US okay so [clears throat] that is till 39:19 39 minutes, 19 seconds FY32 phase one uh max 100 about $350 million expansion fund. 39:25 39 minutes, 25 seconds Yes. Yes. Yes. 39:36 39 minutes, 36 seconds Okay. Okay sir. Thank you so much. 39:40 39 minutes, 40 seconds Thank you. So thank you participants. If you wish to ask a question to the management, you may press star and one. 40:04 40 minutes, 4 seconds The next question comes from the line of Rakkesh Chan with Soul Capital. Please go ahead. 40:10 40 minutes, 10 seconds Yes sir. Uh thank you once again. May I know the year-wise revenue projection 40:15 40 minutes, 15 seconds for 28, 29, 30,32? This is this uh the 40:26 40 minutes, 26 seconds uh [clears throat] see FI27 projections would be around 3,000 crores FI 27 and 40:35 40 minutes, 35 seconds uh we have uh from there onwards it would be around 25 to 30% yearon year 40:43 40 minutes, 43 seconds so consolidated at a consolidated level. 40:46 40 minutes, 46 seconds Yeah. Uh so there's a growth of uh 30% year on year from 27 onwards. So 40:55 40 minutes, 55 seconds okay on a consolidated level correct with the implementation of data centers and full roll out of IGFWA this 41:04 41 minutes, 4 seconds will take uh place and further on on the projects on hand which we are already implementing and going 41:12 41 minutes, 12 seconds including all the vertical part of it part of it this is at a consolidated 41:21 41 minutes, 21 seconds consolidated [clears throat] Thank you sir. Ladies and gentlemen, that was the last question for today. I now hand the conference over to Mr. 41:31 41 minutes, 31 seconds Venode Babu for closing comments. 41:34 41 minutes, 34 seconds Thank you very much um team um for scheduling this earning call u and we are uh very much delighted 41:43 41 minutes, 43 seconds back with you all of the CFO. So uh I hope you know 41:52 41 minutes, 52 seconds questions have been answered queries that have been right and by and large we look forward you know bright 42:01 42 minutes, 1 second future and business that we have forward this point especially you know looking 42:07 42 minutes, 7 seconds at the uh recent you know initiatives by government of India as well as uh you know especially for the data center side 42:16 42 minutes, 16 seconds and AI side. So we look forward for the same kind of a support from all the investors and shareholders. Thank you 42:24 42 minutes, 24 seconds for trusting and believing in us and uh we uh strive to improve and make it much better as Thank you. 42:38 42 minutes, 38 seconds Thank you on behalf of concept investor relations. That concludes this conference. If you have any further questions, please send an email to koro.gateconceptpr.com. 42:51 42 minutes, 51 seconds Thank you for joining us. You may now disconnect your lines. Thank you. Thank you. Thank you.