Centum Electronics Limited — Q4 FY26

Centum Electronics Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=YUgdBwWQLIY Published: 1d ago

0:01 1 second Ladies and gentlemen, good day and welcome to Centrum Electronics Limited Q4 FI26 earnings conference call hosted 0:10 10 seconds by Allar Securities India Private Limited. As a reminder, all participant lines will be in the listen only mode 0:17 17 seconds and there'll be an opportunity for you to ask questions after the presentation concludes. Should you assistance during the conference call, please signal an 0:25 25 seconds operator by pressing star then zero on a touchstone phone. Please note that this conference is being recorded. I now head 0:32 32 seconds conference over to Mr. Hashid Kaparia from ARA Securities. Thank you and over to you sir. 0:40 40 seconds Thank you Nitesh. Good afternoon everyone. On behalf of Securities, we welcome you all for the Q4 FI26 and FI26 0:47 47 seconds conference call of Sentm Electronics Limited. I take this opportunity to welcome the management of center of electronics represented by Nikl Malawapu 0:56 56 seconds joint managing director Sundar Rajan Parartasi chief financial officer. We will begin the call with a brief overview by the management followed by 1:04 1 minute, 4 seconds Q&A session. I'll now hand out the call to Nikl for his opening remarks. Over to you Nikl. 1:11 1 minute, 11 seconds Thank you Hershit and good afternoon everyone. Uh welcome to our earnings conference call to discuss the performance for the fourth quarter and full year of FI26. 1:22 1 minute, 22 seconds Let me also extend a special thanks to our hosts today at LR Capital. 1:29 1 minute, 29 seconds Now let me start by briefing you on the key performance highlights for the quarter and the year under review after which our CFO Mr. Sundar Rajan Papi will 1:38 1 minute, 38 seconds take you through the financial highlights. 1:42 1 minute, 42 seconds This year has been a defining chapter in the company's journey, one that's marked by decisive strategic 1:49 1 minute, 49 seconds measures, meaningful expansion, and strong operational execution at the standalone level. And that has further strengthened our long-term foundation. 2:01 2 minutes, 1 second We sharpened our focus on our standalone business while deepening our presence across high potential sectors uh which 2:08 2 minutes, 8 seconds are defense, aerospace, space, semiconductor equipment and industrial electronics. 2:14 2 minutes, 14 seconds Through disciplined execution and a clear strategic vision, we have reinforced our positioning in industries that are expected to shape the future of technology and manufacturing. 2:26 2 minutes, 26 seconds We ended FI26 on a strong note with continued execution momentum across our core standalone business and the continuing operations. 2:37 2 minutes, 37 seconds During Q4, the company delivered strong growth across both BTS and EMS businesses, supported by robust 2:44 2 minutes, 44 seconds execution, improving operating leverage, and continued traction across defense, aerospace, semiconductor, 2:52 2 minutes, 52 seconds industrial, and electrification segments. 2:56 2 minutes, 56 seconds For the full year, our standalone business delivered revenue growth of approximately 25% yearonear while 3:02 3 minutes, 2 seconds profitability also improved meaningfully reflecting a stronger execution, better program mix and operating discipline discipline. 3:12 3 minutes, 12 seconds At the same time, FY26 was also an important year from the strategic standpoint as we took decisive steps to sharpen our focus around the core India ESDM platform. 3:24 3 minutes, 24 seconds Let me now briefly address the developments relating to the overseas subsidies. 3:30 3 minutes, 30 seconds As discussed during the quarter, we had initi during last quarter, we had initiated decisive restructuring actions 3:38 3 minutes, 38 seconds with respect to the underperforming overseas operations with the objective of realigning management focus and capital allocation towards our core India business. 3:49 3 minutes, 49 seconds I'm pleased to share that the restructuring process is progressing broadly in line with our expectations. 3:55 3 minutes, 55 seconds In Canada, operations were discontinued during Q4 FI26 and the windup process is under progress. 4:04 4 minutes, 4 seconds In Europe, the French subsidiary entered the red addressment judiciary or the legal restructuring process during March 4:12 4 minutes, 12 seconds 2026 and we are currently progressing through a court supervised asset sale process. 4:20 4 minutes, 20 seconds We have already received multiple preliminary bids and with final bids expected very shortly. 4:28 4 minutes, 28 seconds Subject to the court approval process, we expect the divestment process to be sub substantially concluded by July 2026. 4:39 4 minutes, 39 seconds Importantly, beginning this quarter, the financials relating to this these subsidiaries have already been classified under discontinued 4:46 4 minutes, 46 seconds operations, thereby providing clearer visibility into the performance of the continuing core business. 4:54 4 minutes, 54 seconds Sundai will be providing more details on this during his remarks. 5:00 5 minutes Overall, these actions represent a continuation of the strategy we outlined last quarter and should allow the company to move forward with 5:08 5 minutes, 8 seconds significantly greater focus, operational clarity, and financial discipline. 5:14 5 minutes, 14 seconds Now, moving to the operational performance and business highlights. 5:20 5 minutes, 20 seconds During FI26, we continued to see strong execution across both our BTS and EMS 5:26 5 minutes, 26 seconds businesses, resulting in healthy growth in our core standalone operations and a significant strengthening of the overall order book. 5:36 5 minutes, 36 seconds We closed the year with a standalone order book of appro of approximately 1,645 5:43 5 minutes, 43 seconds crores representing a growth of around 23% yearonear and providing strong visibility for the coming years. 5:52 5 minutes, 52 seconds In our build to spec specification business, FYI26 was a particularly strong year with revenue growth of approximately 37% yearonear. 6:03 6 minutes, 3 seconds The growth was primarily driven by strong execution across space-based payload programs, radar subsystems, 6:11 6 minutes, 11 seconds subsystems for land and missile programs, and other strategic and defense and aerospace platforms. 6:20 6 minutes, 20 seconds Alongside execution, we also continue to strengthen our order pipeline and systems level participation. 6:28 6 minutes, 28 seconds One of the key milestones during the year was securing a marquee AESA radar program from HAL for the UHM platform 6:37 6 minutes, 37 seconds representing an important validation of Sentum's capabilities in advanced radar systems and indigenous defense electronics. 6:46 6 minutes, 46 seconds The overall opportunity size for this program exceeds 570 crores over the life cycle of the project. 6:54 6 minutes, 54 seconds We also secured our second complete radar system order for a satellite and space debris tracking application, 7:03 7 minutes, 3 seconds further strengthening our position in the strategic surveillance and space program. 7:10 7 minutes, 10 seconds In addition, we continue to see healthy traction across electronic warfare, aerospace test systems, and other high reliability defense electronics opportunities. 7:20 7 minutes, 20 seconds Moving to the EMS business, we continued to witness a strong momentum during the year driven by a successful ramp up with 7:29 7 minutes, 29 seconds leading semiconductor equipment OEM along with new business wins across industrial electronics, electrification, 7:36 7 minutes, 36 seconds grid automation, and defense export programs. 7:41 7 minutes, 41 seconds The EMS business delivered revenue growth of approximately 21% year-onear supported by strong customer rampups, 7:49 7 minutes, 49 seconds healthy order inflows, and continued diversification across strategic end markets. 7:55 7 minutes, 55 seconds We remain particularly encouraged by the momentum in the semiconductor equipment segment where customer engagements continue to deepen alongside increasing 8:04 8 minutes, 4 seconds global semiconductor investments and supply chain diversification towards India. 8:11 8 minutes, 11 seconds Capability enhancement and customer diversification continue to remain key focus areas for us and during the year we completed more than 80 new product 8:21 8 minutes, 21 seconds introductions supporting faster customer rampups and new business rings. 8:27 8 minutes, 27 seconds We also continued investments towards manufacturing capability expansion including additional manufacturing lines, process automation initiatives 8:36 8 minutes, 36 seconds and systems integration capabilities to support future growth. 8:41 8 minutes, 41 seconds Overall, we believe Sentum is entering the next phase of growth from a significantly stronger operational and strategic position. 8:49 8 minutes, 49 seconds With the overseas restructuring actions now substantially progressing towards closure, the company is increasing 8:56 8 minutes, 56 seconds increasing focus on scaling its core ESBM platform supported by strong execution, robust order book and 9:03 9 minutes, 3 seconds expanding customer engagements and healthy long-term opportunity pipeline across both BTS and EMS businesses. 9:12 9 minutes, 12 seconds We remain optimistic about the medium to long-term outlook across defense, aerospace, industrial and electrification, semiconductor segments 9:20 9 minutes, 20 seconds where we continue to see strong customer traction and increasing strategic relevance. 9:26 9 minutes, 26 seconds With that, I will now hand over the call to our CFO Mr. Sundar Rajan Pati to take you through the financial performance in greater detail. 9:36 9 minutes, 36 seconds Thank you, Mr. Nikil and good afternoon everyone. 9:40 9 minutes, 40 seconds Let me now brief uh on the financial highlights for the fourth quarter and full year of the SI 2026. 9:49 9 minutes, 49 seconds At the standalone level, uh revenue from operations for the quarter stood at uh rupees 344 crores reflecting a strong 9:57 9 minutes, 57 seconds growth of 26% yearonear. EITA for the quarter stood at INR 46 crores which is 10:04 10 minutes, 4 seconds higher by 5% year with an AITA margin of 13.2. 22%. 10:11 10 minutes, 11 seconds Rocket before exceptional items and tax for the quarter stood at 43 crores, registering a growth of 19% year on 10:18 10 minutes, 18 seconds year. For the whole year, standalone revenue stood at record 973 crores, 10:25 10 minutes, 25 seconds raising a strong growth of 25% yearonear. And EITA stood at rupees 121 crores, reflecting a growth of 28% 10:34 10 minutes, 34 seconds yearon year, translating into a margin of 12.42%. 10:39 10 minutes, 39 seconds Profit before exceptional items and tax for the period was at uh rupees 100 crores reflecting an exceptional growth 10:46 10 minutes, 46 seconds of 63% yearonear and during the financial year the profitability was impacted by one-time exceptional item 10:54 10 minutes, 54 seconds amounting to rupees 203 crores relating to provisions and impairments in OC subsidiaries as discussed earlier 11:01 11 minutes, 1 second before I explain the consolidated financial performance let me clarify the accounting positions and disclosures applied in Q4 for FI26 financial 11:09 11 minutes, 9 seconds statements. The net losses incurred by the OSHI subsidies that's in Canada and Europe have been reported under discontinued operations. 11:19 11 minutes, 19 seconds Canada results were moved under discontinued operations in Q3 FY 2076 itself and the results of European 11:26 11 minutes, 26 seconds subsidiaries are now reported under discontinued operations in Q4 consequent to the commencement of the court supervised restructuring process in 11:34 11 minutes, 34 seconds France. The numbers of the previously reported periods have been restated under this section in the financial research statement. The balance sheet 11:42 11 minutes, 42 seconds items have also been classified as assets held for sale and liabilities directly associated with assets held for sale. As far as the subsidies are 11:51 11 minutes, 51 seconds concerned, the goodwill and intangible assets including R&D capitalized that were impaired and reported under exceptional 11:58 11 minutes, 58 seconds items in Q3 FI26 in the consolidated statements have been reclassified under discontinued operations law. 12:06 12 minutes, 6 seconds Coming to the consolidated performance revenue from operations for the quarter stood at rupees 340 crores registering a 12:14 12 minutes, 14 seconds growth of 28% year on year with EITA for the quarter stood at 49 crores higher by 7% year on year with a margin of 14.31%. 12:25 12 minutes, 25 seconds profit before tax expense from continuing operations at INR46 crores which is up by 20% yearonear 12:35 12 minutes, 35 seconds for the whole year. FY26 consolidated revenue stood at 953 cr rupees up by 29% 12:42 12 minutes, 42 seconds yearonear and EIA for the period stood at 135 crores reflecting a strong growth of 37% yearon year translating to a margin of 14.22%. 12:53 12 minutes, 53 seconds Profit before tax from continuing operations at 115 crores reflecting an exceptional growth of 73% yearonear and 13:00 13 minutes profit after tax from continuing operations was at 101 crores doubling on a year-on-year basis. The overall 13:09 13 minutes, 9 seconds performance continues to be driven by both our our business segments particularly catering to domestic defense and space customers and our 13:17 13 minutes, 17 seconds balance sheet also remained healthy with total debt to equity maintained at a comfortable 0.28x 28x 13:25 13 minutes, 25 seconds and adjusted networking capital days improving to 142 days in FI26 from the previous year's 159 days driven by 13:32 13 minutes, 32 seconds better working capital management and the adjusted ROC also improved significantly to 21.16% 13:39 13 minutes, 39 seconds from 12.40% reflecting stronger profitability and improved capital efficiency. 13:46 13 minutes, 46 seconds Overall, our performance in FI26 reflects the strength of our core business, improving operation efficiency 13:53 13 minutes, 53 seconds and continued execution across high growth strategic segments, positioning us well for sustainable long-term 14:01 14 minutes, 1 second growth. With that, we can now open the floor for Q&A sessions. Thank you. 14:07 14 minutes, 7 seconds Thank you. Thank you very much. We will now begin the question answer session. 14:11 14 minutes, 11 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. 14:17 14 minutes, 17 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies 14:26 14 minutes, 26 seconds and gentlemen, we will wait for a moment while the question assembles. 14:32 14 minutes, 32 seconds We have first question from the line of Mr. Ankit Pal from Sukam Ventress. 14:39 14 minutes, 39 seconds Please go ahead. 14:41 14 minutes, 41 seconds Um yeah good afternoon sir and uh congrats for good set of numbers sir. Uh just one uh concern here the margins for 14:50 14 minutes, 50 seconds the full year have been below our guided range of uh 14 15% as standalone basis. 14:57 14 minutes, 57 seconds So it came at around 12%. Now the share of BTS has also increased. 15:03 15 minutes, 3 seconds So what's the reason for a uh uh margins in this 12 and a half% range? 15:12 15 minutes, 12 seconds Uh thanks Ankit uh for the question. Um yeah it was it was uh f first of all I 15:19 15 minutes, 19 seconds think you know just in terms of our broad guidance we we're targeting to be in the range of 13 13 to 15% uh at a at 15:28 15 minutes, 28 seconds a combined level. Um and uh we were slightly below that uh uh for the full 15:36 15 minutes, 36 seconds year basically because of the product mix in the EMS business. Uh we had initially anticipated a uh slightly 15:45 15 minutes, 45 seconds better product mix uh uh in in the in the last in the in the last year. Some of this uh will be executed in the in 15:53 15 minutes, 53 seconds the current financial year. uh and with that we should see a better uh better margin from the EMS business uh in in 16:01 16 minutes, 1 second the current year. So that's that's fundamentally the point. 16:06 16 minutes, 6 seconds So sir in FI27 what kind of uh uh topline growth and margins we can uh look at at standalone basis. 16:15 16 minutes, 15 seconds So, as we said, you know, we we at a we from a medium-term uh level, we we 16:21 16 minutes, 21 seconds continue to work towards a a 25 to 30% uh um uh growth rate. um and we feel we 16:31 16 minutes, 31 seconds are uh we are continuing along those lines and we should be uh you know in in line with those expectations and 16:38 16 minutes, 38 seconds similarly as I mentioned 13 to 15% uh Abida band is is what we are working towards and we maintain that uh we 16:46 16 minutes, 46 seconds maintain that that target okay and sir since you have already received bits from for your European 16:54 16 minutes, 54 seconds business so uh last time you mentioned that you don't expect anything to realize by selling those businesses. But is 17:02 17 minutes, 2 seconds there any change in that? Can we expect some something some realization once by selling our European businesses? 17:11 17 minutes, 11 seconds No. No. That uh that also remains unchanged. We don't expect to have any realization. the the as you will probably see in the in the balance sheet 17:20 17 minutes, 20 seconds today there there is a significant amount of liabilities uh uh that have been held uh for disposal that you know 17:28 17 minutes, 28 seconds as as they've been reported and uh we don't expect to uh receive anything as a result of the uh the this asset sale process. 17:40 17 minutes, 40 seconds Okay. On a net basis you don't expect anything uh to get released. That's right. 17:47 17 minutes, 47 seconds Okay. So sir, since this you know the 25 30% growth targets was there even when we were uh you know running both the 17:56 17 minutes, 56 seconds businesses the international one and the domestic one. Now since you are fully focused on the standalone part um I mean 18:04 18 minutes, 4 seconds um your bandwidth has al will also get released. So can't we see acceleration in that uh business going forward? 18:15 18 minutes, 15 seconds uh no I think you know the 25 30% was never at the consolidated level but we always maintained it was at the 18:22 18 minutes, 22 seconds standalone level whereas the the subsidiary was you know was was relatively flat in terms of performance 18:31 18 minutes, 31 seconds so so we we what we are continuing to to look at this this type of a 25 30% on a 18:40 18 minutes, 40 seconds on a medium-term basis uh is what I'm you know, we don't want to give year-on-year uh kind of guidance, but uh 18:49 18 minutes, 49 seconds you know, broadly considering the industry tailwinds uh on a on a multi-year uh basis, we we this is our 18:57 18 minutes, 57 seconds objective. I think we've been delivering quite well in terms of uh the standalone growth and we we I think on a 19:05 19 minutes, 5 seconds medium-term basis feel we can target that similar level of uh growth. So, 19:13 19 minutes, 13 seconds Okay sir, my last question is what was your order inflows uh at standalone basis in U FI26 and what kind of order 19:22 19 minutes, 22 seconds inflows you're looking at in FI27 and the capeex what capex you would be 19:28 19 minutes, 28 seconds doing this you want to take this 19:35 19 minutes, 35 seconds yeah so uh we think that the BTS business which is what we focus has 19:41 19 minutes, 41 seconds ordered uh every business. So there we uh we booked over 400 floors in the 19:49 19 minutes, 49 seconds current year and uh EMS of course it's the order come forecast but we report only the firm orders as you know and uh 19:57 19 minutes, 57 seconds in terms so that's on the order and while as far as the order book closure you'll see consistently we've been uh 20:06 20 minutes, 6 seconds growing in uh in terms of uh order book as we carry to the next fiscal it uh grew by over 2.3 times in the last 3 20:15 20 minutes, 15 seconds years with a k of 32% in BTS on the whole about 1.7 times with a k of 20% on 20:23 20 minutes, 23 seconds a three-year basis and that trajectory will continue especially with increased focus on the BTS segment and uh on the 20:31 20 minutes, 31 seconds kex question is around what kind of kex we looking for in the next fiscal year it will be in the order of uh I would 20:39 20 minutes, 39 seconds say about 40 crores um equally more or less 50% or could be slightly higher on the BTS segment in terms of R&D 20:47 20 minutes, 47 seconds capabilities but otherwise it will be 40 to 45 you can expect okay thank you so much s 20:56 20 minutes, 56 seconds I'm sorry uh for the permission just want to address the previous question that you raised in terms of uh can we not accelerate the growth that could be 21:04 21 minutes, 4 seconds a question well if you look at our uh business model uh we don't have very high volume of book 21:11 21 minutes, 11 seconds and bill business right both our DTS it's a fairly long longer cycle game 21:19 21 minutes, 19 seconds right from the RFP stage to closure to rec real realizing the revenue so the management bandwidth that could get 21:26 21 minutes, 26 seconds focused on the DPS will only yield more results in the near future in terms of order booking for the year or the next 21:34 21 minutes, 34 seconds year and the further growth on a long-term basis whereas in the EMS again we have fair amount of open uh sales 21:42 21 minutes, 42 seconds orders demand from the customers which are which should be executed during the year. So the direct impact and the 21:48 21 minutes, 48 seconds immediate impact on next year's revenue you would not see in terms of release of management back into just want to clarify considering the business model 21:57 21 minutes, 57 seconds that we but it can accelerate two three years down the line right absolutely absolutely yeah okay yeah thank you so much thank 22:06 22 minutes, 6 seconds you thank you thank you the next question from the line of Chira Jetia from alliance global investors please Go ahead. 22:18 22 minutes, 18 seconds Hi. Hello. Good afternoon sir and congratulations on the numbers. Uh my first question is related to so until 22:26 22 minutes, 26 seconds the court approves the sale of the fence subsidiary by July. Uh are there any broader range for any further 22:34 22 minutes, 34 seconds exceptional losses we should be expecting a modeling in the coming quarter or two related to this? And the second question was related to the 22:43 22 minutes, 43 seconds margin profile of the vertical. So especially how do defense and aerospace orders compared to the other sectors 22:51 22 minutes, 51 seconds such as transport, industrial health. 22:57 22 minutes, 57 seconds Yeah. So on the first question I'll address and probably second also I'll try and n you can please chime in. uh on 23:04 23 minutes, 4 seconds the as far as the European subsidies are concerned uh Shira the uh two major items that were booked in Q3 that 23:12 23 minutes, 12 seconds continued and uh as far as the whole process is concerned the code process will uh conclude by around June wherein 23:21 23 minutes, 21 seconds there could be some takers of some part of the businesses and the people and the remaining that is not uh getting acquired will eventually move into uh 23:30 23 minutes, 30 seconds the liquidation state but at that point also The as we explained the balance sheet carries much larger liabilities 23:38 23 minutes, 38 seconds over 100 crores excess of excess over assets. So we don't expect any uh write down coming in hitting the consolidated 23:46 23 minutes, 46 seconds goods. Moreover, we'll also be evaluating the point in time of uh session of control in terms of uh having 23:54 23 minutes, 54 seconds necessity to consolidate. So if that uh event gets triggered in Q1 then Q1 we would not be consolidating or in Q2 24:02 24 minutes, 2 seconds eventually but uh we don't expect any exceptional items or one-time losses coming in hitting in the next fiscal 24:09 24 minutes, 9 seconds year as far as your trends of studies are concerned in the consolidated financials. 24:15 24 minutes, 15 seconds Okay does that answer that question then I'll move to margin call. Yes I think the margin question. 24:24 24 minutes, 24 seconds Yes. Yes. So uh in general the BTS segment uh we carry margin profile of 24:30 24 minutes, 30 seconds around uh 20% or at level whereas ELS segment across industries I would say it 24:38 24 minutes, 38 seconds is fairly uh pegged at between 9 and 10% or in some cases if we get lucky briefly it'll be at around 11% then it will 24:47 24 minutes, 47 seconds again get reset due due to the price pressure because we operate on costless basis right largely it's a contract 24:53 24 minutes, 53 seconds manufacturing so on uh so there is no major differentiation I would say in the EMS between these segments it could be 25:02 25 minutes, 2 seconds there uh on a momentary basis or temporary basis if you are ramping up a particular customer in the industrial segment initial quarters could be a 25:10 25 minutes, 10 seconds tighter margin then we gradually scale better yield better process and better supply efficiency all that will kick in and again it will get normalized it will 25:19 25 minutes, 19 seconds not be a substantially exceeding in excess of 10% I would say this is broadly this is how the industry also 25:26 25 minutes, 26 seconds operates in the segments that we are yeah in the but yeah just to add to what 25:32 25 minutes, 32 seconds Sund is saying on the EMS side of the business that's that's absolutely true uh it hovers somewhere in the range of 25:39 25 minutes, 39 seconds 10% 10 10 11% uh but the BTS segment is a higher margin business 25:47 25 minutes, 47 seconds um and that can tend to be at 20% plus u so um you uh for us at at the at the 25:56 25 minutes, 56 seconds combined level the the mix is is one of the uh uh the drivers. Um but uh but 26:04 26 minutes, 4 seconds yeah so the the way to the way we look at uh margins at least is more divided by business model of btospec versus the 26:13 26 minutes, 13 seconds EMS uh which has a I would say bigger uh u you know difference in margin profile 26:22 26 minutes, 22 seconds as compared to the different segments within um EMS itself. 26:31 26 minutes, 31 seconds Okay. Okay. Thank you. And finally just my last question is for all the different segment orders and revenue 26:38 26 minutes, 38 seconds recognition are all of them booked under the BTS segment itself or if that is split into the EMS segment as well just my own clarity. 26:48 26 minutes, 48 seconds Yeah. So defense uh uh and aerospace is a segment that we address in both 26:55 26 minutes, 55 seconds business models. Um so now in our in our in our results um the standalone results 27:04 27 minutes, 4 seconds I would say almost all pretty much all of the BTS uh numbers are for defense 27:12 27 minutes, 12 seconds which is which is uh what we've been talking about but there is also a uh a 27:19 27 minutes, 19 seconds substantial amount of uh orders and revenues uh contribution from the defense segment in the uh EMS numbers 27:29 27 minutes, 29 seconds also. Um so the basically the the the defense and aerospace segment 27:37 27 minutes, 37 seconds contribution comes from both BTS and BMS but BTS is almost entirely defense defense and space. Yeah. 27:46 27 minutes, 46 seconds Okay. Okay. Okay. Thank you. Uh that's all my questions. Thank you. Thank you. 27:54 27 minutes, 54 seconds Next question from the line of V Khatri from Toro wealthy managers. Please go ahead. 28:03 28 minutes, 3 seconds Hello sir. Good afternoon. 28:08 28 minutes, 8 seconds My question is my question is with respect to the EMS segment of yours. I mean in the like globally the specialized CCL capacities are becoming 28:16 28 minutes, 16 seconds tight right and I mean from the industry position that you are in I would just 28:23 28 minutes, 23 seconds want to like see if you're seeing such supply constraints on the ground and do you believe that um this this can lead 28:31 28 minutes, 31 seconds to a bottleneck for the manufacturing that we do in the EMS segment? 28:39 28 minutes, 39 seconds Yeah. Could could you just repeat again the the big the what what constraints did you refer to? 28:45 28 minutes, 45 seconds Uh the CCL capacities the copper clad laminate. 28:49 28 minutes, 49 seconds Copper CL. Okay. Yeah. Yes. Um yes supply chain uh bottlenecks are clearly 28:57 28 minutes, 57 seconds an emerging theme uh in the EMS part of the business. Um I think it's not only 29:04 29 minutes, 4 seconds the the copper clad laminate which uh essentially affects the PCB uh lead 29:11 29 minutes, 11 seconds times. Um uh but beyond this I think some of the other impacts that we've 29:18 29 minutes, 18 seconds also seen is is on specific component categories uh like memories 29:25 29 minutes, 25 seconds uh where there is also a lot of demand and pull coming in because of the AI data center buildup that that we're 29:33 29 minutes, 33 seconds seeing. So we have seen an increase of lead time in some of these component categories. 29:41 29 minutes, 41 seconds Um there are certain proactive measures and actions that the supply chain team has taken and is taking to be able to 29:50 29 minutes, 50 seconds mitigate uh these uh uh these challenges that that that uh that uh we are seeing. 30:00 30 minutes um for for now uh you know we we are still uh you know working on on mitigating 30:09 30 minutes, 9 seconds these but I think we will it's it's something that we're monitoring very closely and and need to keep an eye on uh as this evolves over the course of 30:18 30 minutes, 18 seconds this year understood sir but s specifically for uh copper laminate I mean the severity has 30:25 30 minutes, 25 seconds increased in the past few months uh if you can give just an indication for that and like from where do you procure it? 30:33 30 minutes, 33 seconds If you can share. 30:36 30 minutes, 36 seconds Yeah. Um with regard to corporate cloud laminates, I mean we the the the as as I was mentioning this really goes 30:45 30 minutes, 45 seconds into the delivery of the PCB the bare boards uh and we procure these boards from 30:52 30 minutes, 52 seconds multiple different uh suppliers and in different geographies based on which segments we're catering to. It can be 30:58 30 minutes, 58 seconds from uh from China for certain industrial applications. It can be from Europe for military applications and in 31:08 31 minutes, 8 seconds certain cases from Indian suppliers also for uh some of our uh defense and space applications. So uh we procure from 31:16 31 minutes, 16 seconds different uh geographies. Um I would say in in in general we have seen an 31:22 31 minutes, 22 seconds increase of lead time but we continue to have uh supplies coming in um as per our 31:33 31 minutes, 33 seconds requirement. So we basically need to to place orders a little bit more in advance to be able to secure it. uh but it has it has over the last couple of 31:42 31 minutes, 42 seconds months uh we've seen these impacts over the last couple of months and as I mentioned we'll need to monitor how this uh how this pans out in in the coming in 31:51 31 minutes, 51 seconds the coming months thank you sir that was really helpful all the best for the future sir 31:58 31 minutes, 58 seconds thank you thank you next question is from the line of Rajal 32:04 32 minutes, 4 seconds from asset management please go ahead Uh hello sir. Uh it's great to see 32:13 32 minutes, 13 seconds business scaling. Uh I had few questions uh on the semiconductor side. Uh so are we online to doing uh $30 million annual 32:21 32 minutes, 21 seconds revenue in the next 2 three years and are you any uh in talks with any other semiconductor client who would require similar kind of equipment from us? 32:33 32 minutes, 33 seconds Uh yes, I think we have we we are progressing quite well. Um I would say broadly in line with our expectations uh 32:42 32 minutes, 42 seconds uh for for the growth from from this uh from this uh customer segment. Um yes 32:49 32 minutes, 49 seconds today it's largely driven by a key anchor customer in this in this uh 32:57 32 minutes, 57 seconds segment and we have begun uh discussions with a couple of other uh customers here but I would say it's still in 33:05 33 minutes, 5 seconds preliminary stages you know the the major the major growth is really coming from the anchor customer. So Got it. Got 33:14 33 minutes, 14 seconds it. So I wanted to understand two new projects if you if you can you know even even directionally um you know quantify 33:22 33 minutes, 22 seconds them. One is the Viru Paka order and the second one is I think in the PPT we have mentioned that we have won a second order for radar systems for satellite 33:30 33 minutes, 30 seconds and space debris. So how big are these contracts sir and you know how long will this order cycle execution last? 33:39 33 minutes, 39 seconds Yeah. So, uh, Viru Pakshia is still a development order and so is the space 33:45 33 minutes, 45 seconds degree tracking uh order. Um, Viru Paka just to clarify what we have. One is you 33:53 33 minutes, 53 seconds know there are broadly speaking four critical uh subsystems that get 34:00 34 minutes integrated into a full into a full radar. We have won two of the higher 34:06 34 minutes, 6 seconds value uh uh uh subsystems which is the antenna array and uh the exciter 34:15 34 minutes, 15 seconds receiver um and uh it's it's I would say relatively small development contract 34:22 34 minutes, 22 seconds less than 10 cores. The second one which is a space debris tracking uh uh radar 34:30 34 minutes, 30 seconds which is a long range radar. This is a this is the the this is about a 30 odd 34:36 34 minutes, 36 seconds uh cr uh uh order. Um and it's essentially for one system. Uh so this 34:45 34 minutes, 45 seconds is a pretty large uh uh I would say radar uh uh system and u you know the 34:54 34 minutes, 54 seconds the reason why we feel it's also a milestone is again it's it's a it's a 35:00 35 minutes it's a long range high power radar uh which is um little different from the 35:09 35 minutes, 9 seconds other uh UHM airborne radar system that we had uh uh been awarded. 35:15 35 minutes, 15 seconds um and and this which is more for airborne platform. So uh it's a it's a nice complimentality in terms of our 35:23 35 minutes, 23 seconds product portfolio uh in terms of uh radar solutions. 35:28 35 minutes, 28 seconds That's that that's great to hear. So and so one more question I had was when we move from system integration and up the value chain do you think you we would 35:38 35 minutes, 38 seconds have any kind of issues because we will be basically competing or bidding against our own customers current customers 35:47 35 minutes, 47 seconds um it's it's uh u it depends on the program I would say I mean in many cases 35:54 35 minutes, 54 seconds u our our customers I would say in many cases are basically H 36:02 36 minutes, 2 seconds uh DRDO and in certain cases with VA um so this is you know it's a it's 36:10 36 minutes, 10 seconds evolving uh scenario there are programs that we are collaborating there are certain programs where we compete um and 36:17 36 minutes, 17 seconds I think that's a natural process uh of evolution of the ecosystem in the country and it's not unique in India 36:24 36 minutes, 24 seconds it's something that is uh that is seen world over So got it fair enough. And so 36:31 36 minutes, 31 seconds just one last question. So we we basically had some losses on our book uh systemically. So will that basically uh 36:39 36 minutes, 39 seconds will we have tax benefit for few years going forward? Uh uh which one specifically are you 36:46 36 minutes, 46 seconds talking about? Sorry. No the losses on the on the subsidiary side. Uh okay. So 36:53 36 minutes, 53 seconds the uh losses incurred in subsidiary that uh tax benefit etc would acrewue if 37:00 37 minutes someone is acquiring the company that's holding the tax credits. I don't think that's uh going to uh that's not going 37:10 37 minutes, 10 seconds to be the reality. uh as far as the losses incurred in standalone business is concerned where we booked 200 crores 37:19 37 minutes, 19 seconds of exceptional items out of that the investment related impairment that 153 that will be that's a capital loss so 37:27 37 minutes, 27 seconds that will be available for us for the future any capital gain set off whereas the other items have been used to offset 37:35 37 minutes, 35 seconds against the profits made during the current year. 37:39 37 minutes, 39 seconds Got it. Got it. Thank you sir. And so we don't have any impact of this middle east war in terms of raw metal procurement, right? 37:47 37 minutes, 47 seconds No. Uh we don't see any uh you know short we had certain short-term uh impacts at the end of Q4 because of some 37:56 37 minutes, 56 seconds logistics delays uh you know as a as a result of the the war. uh but I would 38:03 38 minutes, 3 seconds say we are not seeing any uh major supply disruptions uh directly 38:10 38 minutes, 10 seconds as a result of of uh of the of the Middle East war right now. 38:15 38 minutes, 15 seconds Go sir. Thank you. Wishing you all the best. Thank you. Thank you. 38:20 38 minutes, 20 seconds Reminder to all the participants that you may press star and one to ask a question. 38:26 38 minutes, 26 seconds The next question from the line of Vijay Sari from Sup Ventures. Please go ahead. 38:32 38 minutes, 32 seconds Uh thank you gentlemen. uh just want to check uh the order inflow for the standalone BTS has been uh uh very low 38:41 38 minutes, 41 seconds growth say rather 4% if I'm right so close to around 466 cr of order inflow for this fiscal fi26 any particular 38:49 38 minutes, 49 seconds reason and how should we look at this uh for 27 that's first question 38:59 38 minutes, 59 seconds so right the orders that we could close and book on report uh was only about 470 crores roughly. 39:10 39 minutes, 10 seconds Whereas um because this is mainly driven by as you know some of these programs uh do take time to get concluded and then 39:19 39 minutes, 19 seconds uh the orders getting released. So there are a good number of orders that are in the pipeline. Some of them have moved to 39:26 39 minutes, 26 seconds the current circle. So at least uh majority of what got spilled over to the current year we hope to book in the 39:35 39 minutes, 35 seconds first or second quarter but as far as the current year order book I would say uh again because of the same reason we 39:42 39 minutes, 42 seconds can't point to a particular number but we do uh foresee a significant growth in terms of order that we can be booking 39:50 39 minutes, 50 seconds during this current fiscal. Uh Nicol may you want to add any specific color to it or yeah know yeah I think broadly speaking you know one point just to 39:59 39 minutes, 59 seconds clarify again is that uh the BTS uh uh uh piece of the business uh as 40:07 40 minutes, 7 seconds previously reported uh had some contribution also from the subsidiary 40:13 40 minutes, 13 seconds uh and uh with with the the that being eliminated I think the numbers have been recast essentially to focus fus only on 40:23 40 minutes, 23 seconds on the BTS business that is within the uh standalone business and uh with so 40:31 40 minutes, 31 seconds that's one point the second is uh I think you know even uh with what we we've seen as as Sundar said uh with we 40:41 40 minutes, 41 seconds did about 250 crores of revenue in the BTS business in the standalone business and booked uh about 400 crores so from a 40:51 40 minutes, 51 seconds book to ratio, we still maintain a pretty healthy rate and uh um I think that that continues to give us a pretty 40:59 40 minutes, 59 seconds strong visibility in terms of uh uh what what we are going into the new year with 41:05 41 minutes, 5 seconds you know close to um I would say eight 800 odd crores of of orders in in this in this segment. 41:15 41 minutes, 15 seconds And uh the the third frame point is I think what uh Cindar also said which is 41:21 41 minutes, 21 seconds that we we were also expecting another about 150 crores of orders to come in uh 41:29 41 minutes, 29 seconds which have been pushed to the current fiscal uh at the end of last year. Um and but but those I I would say are 41:37 41 minutes, 37 seconds fairly well secured and we expect to expect those to come in and I generally the outlook for the current uh uh fiscal 41:46 41 minutes, 46 seconds year also is is fairly strong in the in the BTS side of the business. 41:50 41 minutes, 50 seconds So should we all sorry yeah sorry please continue. Yeah. 41:55 41 minutes, 55 seconds So, so saying in general with with all of these we feel fairly uh confident that we can continue to grow the uh the 42:04 42 minutes, 4 seconds BTS business also at a pretty healthy rate. So fair to look fair to assume that there will be 30% revenue growth in 42:12 42 minutes, 12 seconds the BTS standalone this fiscal which means that if you whatever this pillar of order that comes through uh would mean that you will have an order inflow 42:20 42 minutes, 20 seconds growth of minimum of 15 20% and therefore taking your overall order book growth at the close to be in excess of 42:28 42 minutes, 28 seconds 30% for BTS is that the fair number to look at yeah I don't want to give specific uh 42:35 42 minutes, 35 seconds quarterly or annual guidance with regard to order booking uh and revenue. But uh 42:43 42 minutes, 43 seconds um as as we mentioned, you know, uh you know, medium-term uh outlook of of growing it at at this 42:51 42 minutes, 51 seconds rate is something that we feel pretty good about and uh we have we have 42:57 42 minutes, 57 seconds the the visibility on in pipeline to be able to achieve that. Yeah, sure. And this uh M platform 570 cr 43:06 43 minutes, 6 seconds order this 570 cr is the total order for us and when do we uh start this? Okay. 43:13 43 minutes, 13 seconds Can you give us the timeline and what is our uh what is our scope of work and all that? Yeah. 43:20 43 minutes, 20 seconds Yes. Yeah. So the 570 cr order is basically divided into two phases. 43:26 43 minutes, 26 seconds Um this is the the first phase is the development phase that accounts for about 66 cores uh 6 5 6 5 6 5 6 5 6 5 6 43:35 43 minutes, 35 seconds 5 6 5 6 5 6 5 6 5 6 5 6 5 6 5 6 5 6 5 6 5 6 5 6 5 6 5 6 5 6 crores or so and the second phase is the remainder about 500 plus crores um this is without tax or 43:44 43 minutes, 44 seconds anything. So um the uh the development phase of this is expected to be done in 43:52 43 minutes, 52 seconds basically you know uh in two years. So we've already two years from the from the date 43:59 43 minutes, 59 seconds of the order. So uh we that's that that is in progress uh right now and once 44:07 44 minutes, 7 seconds it's successfully demonstrated we expect to have uh the remaining part of it uh 44:13 44 minutes, 13 seconds uh coming in uh in a in a you know which is to be executed out till basically FY 3031. 44:24 44 minutes, 24 seconds Okay. And what is our scope of work in this? What is the sorry for interrupting Mr. 44:30 44 minutes, 30 seconds Vijay? Please join the queue for a follow-up question. Okay. Thank you. 44:38 44 minutes, 38 seconds I'll just maybe in a minute address that because it's an important development. 44:42 44 minutes, 42 seconds Our scope of work in in the UHM is again a full uh turnkey uh radar system. uh so 44:50 44 minutes, 50 seconds we deliver the the the the full radar to h uh and uh we'll be working very closely 44:58 44 minutes, 58 seconds with them to in terms of the integration on the platform and so on. So um this goes right from development 45:07 45 minutes, 7 seconds uh to qualification certification um and and uh the the 45:15 45 minutes, 15 seconds you know the requisite uh uh all the the requisite airborne uh certification requirements and 45:23 45 minutes, 23 seconds support that uh goes with a with a program like this. 45:29 45 minutes, 29 seconds We have next question from the line of Mahul Puani from 40 cents. Please go ahead. 45:37 45 minutes, 37 seconds Hello sir, thank you so much uh for the opportunity and congratulations on a good set of numbers. 45:43 45 minutes, 43 seconds Uh sir, my first question is how quickly uh can our BTS business scale and the margins can improve? I have joined the 45:52 45 minutes, 52 seconds call a bit late so I may miss earlier responses. 45:59 45 minutes, 59 seconds Uh yeah, Mr. Mr. May, please uh uh this noise coming from your uh from right. 46:06 46 minutes, 6 seconds Can you Yeah, I'll Yeah, I'll I'll go back in a better place. Is it audible now? 46:14 46 minutes, 14 seconds Yes. Yeah, it is audible. Sir, you can go ahead. 46:17 46 minutes, 17 seconds Okay, sir. My first question is how quickly can our BTS business scale and our improve margins improve out there? 46:27 46 minutes, 27 seconds Yeah. So, uh the the BTS part of the business as we mentioned uh we have a pretty healthy pipeline of of order book 46:36 46 minutes, 36 seconds first of all and then a pipeline of opportunities uh that we're seeing. So uh we don't uh we've been basically 46:43 46 minutes, 43 seconds saying uh that at at the combined level between EMS and BTS both which are growing pretty healthy uh rate and 46:52 46 minutes, 52 seconds probably fairly similar rates uh you know can be in the rate in the range of 25 to 30% CAGGR. You will have certain 47:02 47 minutes, 2 seconds years where we're able to grow a little faster in in one segment or the other. 47:08 47 minutes, 8 seconds Um and uh but but over a medium term that's a that's that's a reasonable target which uh we feel comfortable uh achieving. 47:19 47 minutes, 19 seconds Um and so that's I would say uh you know you know uh broad level point but there 47:26 47 minutes, 26 seconds is a significant amount of opportunities and pipelines which which we are uh actively working on um on on the on the BTS part of the business. 47:39 47 minutes, 39 seconds Sir, my second question is with regards to the West Asia crisis. Uh if this crisis were to extend further, uh would 47:46 47 minutes, 46 seconds we face challenges in procuring uh material which we require from our uh business? 47:55 47 minutes, 55 seconds Yeah, I think I I answered that just a couple of minutes ago. I think we we we the West Asia crisis basically had some short-term impact in terms of logistics. 48:06 48 minutes, 6 seconds uh but we're not seeing any uh major long-term uh impacts as a result of the 48:12 48 minutes, 12 seconds of uh this war was uh um in terms of uh supply chain uh we do have uh certain 48:21 48 minutes, 21 seconds customers and programs that we are engaged with uh uh in the region and u 48:28 48 minutes, 28 seconds um you know that so there there are some opportunities that we're seeing as a result of uh the the ongoing 48:36 48 minutes, 36 seconds uh war. Um and so we will we will continue to monitor these as as they evolve. 48:45 48 minutes, 45 seconds Okay sir. Thank you so much and wish you the very best. Thank you. Thank you. Thank you. 48:54 48 minutes, 54 seconds We have next question from the line of Vive Gautam from GS investment. Please go ahead. 49:00 49 minutes Yeah sir. Uh many congratulations for good numbers. So a few questions I had a is a very old listed company and uh what 49:10 49 minutes, 10 seconds have been the trigger behind the recent improvement in the performance and are they sustainable and uh how is the 49:18 49 minutes, 18 seconds opportunity size for us expected growth rate and the differentiators for our company. Thank you. 49:28 49 minutes, 28 seconds Okay. 49:30 49 minutes, 30 seconds Um I think to to speak about uh the performance of 49:37 49 minutes, 37 seconds the company I think fundamentally uh this is what we've been saying is is that we've had overseas subsidiaries 49:46 49 minutes, 46 seconds that have been masking the good story that we've been having at the standalone core India business which if you look at 49:55 49 minutes, 55 seconds the numbers over the past four years or so we have been growing doing at a pretty healthy rate uh you know once 50:04 50 minutes, 4 seconds again at the standalone level. So the the the both in terms of revenue 50:12 50 minutes, 12 seconds uh and in terms of margins, the overseas subsidiaries have been dragging us uh 50:19 50 minutes, 19 seconds down uh over these last years. And this is where taking this decisive uh step to to put this into a restructuring and and 50:28 50 minutes, 28 seconds basically get out of those uh businesses was was a decision that the board has taken. uh that allows us to really 50:37 50 minutes, 37 seconds capitalize and focus on uh the opportunities that we have with our India platform uh for the EFM business. 50:46 50 minutes, 46 seconds So, uh I think that's that's one at a higher level. Specifically with regard to markets and opportunities, I think defense and airspace clearly has been an 50:54 50 minutes, 54 seconds area that we've been focusing on u you know with both the push for uh making 51:00 51 minutes India uh as well as the uh global increased demand whether it's in Europe 51:07 51 minutes, 7 seconds or in the Middle East as a result of the increased budgets uh from the from the 51:15 51 minutes, 15 seconds ongoing wars or or even otherwise uh Those have all been very good tailwinds and we've been very well positioned to 51:23 51 minutes, 23 seconds capitalize on those. Um and beyond that uh I think on uh on the EMS side of the 51:31 51 minutes, 31 seconds business as well we have been uh you know one one I would say differentiating 51:38 51 minutes, 38 seconds point uh is that from uh a long time we have been you know an export oriented 51:46 51 minutes, 46 seconds business and so the the levels of quality, reliability, performance uh and and internal systems and 51:54 51 minutes, 54 seconds processes that that we uh maintain and run are are at a global standard. Uh and we've we've seen big global customers 52:02 52 minutes, 2 seconds that are now looking to indigenize production of their electronics which they were previously 52:09 52 minutes, 9 seconds uh importing from outside the country or um in in in certain cases even buying 52:16 52 minutes, 16 seconds for their global demands from from other parts of the world. uh choosing India as a key destination and uh seeing the the 52:26 52 minutes, 26 seconds global standard that we are able to run and operate uh has given us a strong edge in winning these opportunities with 52:34 52 minutes, 34 seconds with these customers. So I would say you know you know combination of our positioning 52:41 52 minutes, 41 seconds and I must uh on on the defense and the BTS side of the business I must also emphasize our strong and deep domain uh 52:50 52 minutes, 50 seconds knowledge in the design and IP creation of uh of technologies many of which are 52:58 52 minutes, 58 seconds created for the first time in the country. Uh we've I've talked about uh uh several uh you know of these uh 53:06 53 minutes, 6 seconds programs whether it's space-based uh electronic warfare payloads or uh 53:13 53 minutes, 13 seconds hyperspectral imaging payloads uh even as I mentioned most recently the the 53:21 53 minutes, 21 seconds major program for an airborne radar uh platform. All of these are I would say examples of uh you know uh IP that we're 53:30 53 minutes, 30 seconds creating and those I think are fairly uh differentiated from from know what many 53:36 53 minutes, 36 seconds other companies can can do. So Okay sir. Thank you. Keep up the good work. Thank you. 53:46 53 minutes, 46 seconds Thank you. 53:48 53 minutes, 48 seconds We have next question from the line of Raman Ki from Sukan Investment. Please go ahead. 53:56 53 minutes, 56 seconds Uh hi sir, can you hear me? Yes sir. 54:00 54 minutes Yes sir. Uh yes sir. Uh so I have from the uh from your presentation I have seen that your audio book is now uh uh 54:10 54 minutes, 10 seconds more than 50% of your order book is your BTS segment and currently uh around uh 54:17 54 minutes, 17 seconds uh BTS segment contributes to around 28%. So can we expect in the coming year as well as in by FI28 can we expect this 54:27 54 minutes, 27 seconds uh to move towards more uh 4060 split between BTS and EMS thereby improving some margin as BTS is a higher margin business. 54:40 54 minutes, 40 seconds Yeah. So maybe answer it in in two steps. The first is that there are uh fundamentally different order execution cycles in BTS versus EMS. 54:52 54 minutes, 52 seconds BTS uh orders or BTS inherently is an order book driven business and the 54:59 54 minutes, 59 seconds execution period of a of a typical order is somewhere between two to two and a half years. Whereas on the EMS side of 55:08 55 minutes, 8 seconds the business, it is uh uh short it is a a annuity business in most of the 55:16 55 minutes, 16 seconds products that we do. And so in what we do what we get from our customers is a firm purchase order for uh I would say 55:26 55 minutes, 26 seconds shorter period of time and maybe a forecast for a pretty or longer horizon. 55:32 55 minutes, 32 seconds What we report here is only firm purchase orders that we have but the visibility is is is is more considering 55:40 55 minutes, 40 seconds the forecast also but that's not reporting. Um so the the the the 55:48 55 minutes, 48 seconds split of order book between EMS and BTS I would say is not an indication by itself of uh of the split of revenues 55:56 55 minutes, 56 seconds going forward because EMS orders typically may be in the range of 9 months or so execution period. So uh six 56:05 56 minutes, 5 seconds to nine months depending on the product makes and customers and so on. So um this is where uh I would say we you know 56:13 56 minutes, 13 seconds we we we do have a pretty good and strong visibility in terms of uh uh 56:22 56 minutes, 22 seconds growth in the EMS side of the business as well. Um so you but you may see you 56:29 56 minutes, 29 seconds know one or two years where uh uh BTS can grow a little bit more than uh the 56:36 56 minutes, 36 seconds the the EMS part of the business like you saw in the FI26. 56:42 56 minutes, 42 seconds uh but uh I would say directionally both businesses are growing quite uh uh quite 56:50 56 minutes, 50 seconds well and over a medium-term I would say there would be you know a a moderately 56:59 56 minutes, 59 seconds uh in in in a similar direction but you know not significantly different uh from 57:06 57 minutes, 6 seconds you know the the the current mix maybe a little bit more uh towards the BTS The second part of your question with 57:14 57 minutes, 14 seconds regard to margins um that we do see opportunity for us to improve the margin as I said uh we we 57:22 57 minutes, 22 seconds are targeting to be at the 13 to 15% in in in the next uh you know one to two 57:28 57 minutes, 28 seconds years uh uh time horizon uh and that should be coming basically 57:35 57 minutes, 35 seconds from some operating leverage also as we see uh the growth kicking Uh but yeah over time uh depending on 57:45 57 minutes, 45 seconds the year depending on the mix you may see some um improvement uh beyond that on the 57:53 57 minutes, 53 seconds margins but you know directionally you know this this 13 to 15% for the next two three years is where we feel we 58:02 58 minutes, 2 seconds okay sir so my final question uh with respect to the disinvestment of your foreign uh of our uh foreign subsidy 58:11 58 minutes, 11 seconds uh how much uh how much are we expecting as a quarterly loss from Q1 FI27? 58:20 58 minutes, 20 seconds No. So um Q1 as you as you're speaking uh the process has kicked in already and 58:28 58 minutes, 28 seconds the current first 45 days already over in the quarter. So the losses could be in we don't have the precise forecast because 58:37 58 minutes, 37 seconds we are not even sure in terms of what happens in the month of June which business segment uh will move out and so 58:43 58 minutes, 43 seconds on. So but uh like I mentioned earlier there is high possibility that uh we might uh lose control because of the 58:53 58 minutes, 53 seconds process effects based on the court order we'll evaluate again and uh we might not even consolidate in Q1 if the triggering event takes place in the month of June 59:01 59 minutes, 1 second itself which we'll know uh sometime in June only because we we can't predict it until we see the court order. 59:10 59 minutes, 10 seconds So uh to tell you like it can be in a very similar range of what we've been uh 59:17 59 minutes, 17 seconds seeing plus probably some acceleration because of reduction slowdown. In general the May month is a slow month in France. So I would say it could be in 59:27 59 minutes, 27 seconds the order of uh yeah broadly speaking you know just to 59:36 59 minutes, 36 seconds add the main point here is that it is it is already a discontinued operation and 59:43 59 minutes, 43 seconds uh uh there is no cash uh that is that is going from the 59:52 59 minutes, 52 seconds standalone entity or parent company to subsidiaries uh and it hasn't there hasn't been any 59:59 59 minutes, 59 seconds over the last several quarters in fact uh so the this will be deconolidated very shortly and we are we are looking 1:00:08 1 hour, 8 seconds at whether this will happen at the end of Q1 or n or you know I would I would 1:00:14 1 hour, 14 seconds guess worst case in in uh in Q2 so we don't expect any uh uh uh 1:00:24 1 hour, 24 seconds you to basically to be re in a in a in in our optimized uh uh scenario we should this should be fully 1:00:32 1 hour, 32 seconds deconolidated uh uh hopefully by by Q1 if not by Q2. 1:00:40 1 hour, 40 seconds So uh just to put some numbers uh we had uh 33 crores of loss from discontinued operation in Q4. So we can expect 1:00:48 1 hour, 48 seconds somewhere in that range in for Q1 right? 1:00:55 1 hour, 55 seconds No. So no in Q4 there are u several other items also included right 1:01:01 1 hour, 1 minute, 1 second from Canada and so on reclass. So I think uh continuing operations is what we should ideally be 1:01:09 1 hour, 1 minute, 9 seconds looking at because Q1 it'll only uh eventually uh what do you say died down in terms of numbers because it's a third month of the quarter in full we don't 1:01:18 1 hour, 1 minute, 18 seconds know whether those uh business some of the segments will be part of us or not. 1:01:22 1 hour, 1 minute, 22 seconds So yeah so not more than what we reported during this quarter. 1:01:30 1 hour, 1 minute, 30 seconds No, it should yeah it should not be even even at that range like like what we're saying there's a lot of one times and so on that was happening in the in the 1:01:38 1 hour, 1 minute, 38 seconds current quarter. So we don't expect that to happen and in all in all likelihood we will like we will hopefully be 1:01:46 1 hour, 1 minute, 46 seconds consolidated completely. And the other point just to note is that if you look at the the balance sheet uh uh uh today 1:01:56 1 hour, 1 minute, 56 seconds there is if you look at the lines for items held for disposal the the the quantum of liabilities uh held for 1:02:05 1 hour, 2 minutes, 5 seconds disposal is significantly higher than the assets over there. So um I 1:02:13 1 hour, 2 minutes, 13 seconds think it's important to keep all of that in in the context and really consolidated numbers don't really mean 1:02:20 1 hour, 2 minutes, 20 seconds much uh from a P&L uh standpoint anymore. It should really be focused on standalone. 1:02:27 1 hour, 2 minutes, 27 seconds Understood sir. Sir uh if I if I can just squeeze a small question with respect to the HL order. Uh sir this is 1:02:34 1 hour, 2 minutes, 34 seconds a 570 crores order. So I just want to understand what will be the total addressable market. I mean once you're done with the development part and if 1:02:43 1 hour, 2 minutes, 43 seconds you uh and if it and it's successful and you go on to do the execution work for the HL. 1:02:50 1 hour, 2 minutes, 50 seconds Sorry when it's open. Mr. Please re rejoin the queue please. 1:02:57 1 hour, 2 minutes, 57 seconds Okay. 1:03:01 1 hour, 3 minutes, 1 second Uh ladies and gentlemen this was the last question. I now had conference over to Mr. Harshit Kaparia for closing comments. 1:03:10 1 hour, 3 minutes, 10 seconds Thank you Nitesh. Uh we would like to thank uh Nikil and Sundar Rajan sir for giving us an opportunity to host this call. We also would like to thank all 1:03:18 1 hour, 3 minutes, 18 seconds investors and analyst for joining this call. Uh any closing remarks Nikl or Sundrajan sir you want to share with investors and analyst? 1:03:27 1 hour, 3 minutes, 27 seconds Thank you all for participating in our earnings conference call. Uh hope you were able to answer all your questions. 1:03:34 1 hour, 3 minutes, 34 seconds satisfactoryy and at the same time offer insights into our business. Um as as I would say in in a in a short sentence uh 1:03:43 1 hour, 3 minutes, 43 seconds I think it's been an a landmark year for us. Uh we have taken that the tough 1:03:50 1 hour, 3 minutes, 50 seconds decisions of uh uh making the strategic calls with regard to underperforming overseas subsidiaries. Standalone 1:03:59 1 hour, 3 minutes, 59 seconds performance is strong. order book and visibility is strong and I think we're quite well positioned uh to maintain a a 1:04:06 1 hour, 4 minutes, 6 seconds very good plate of growth and uh and uh profitability as we move forward. Um and 1:04:16 1 hour, 4 minutes, 16 seconds if you have any other further questions would like to know more about the company, please do reach out to our investor relations managers at Valerin. 1:04:24 1 hour, 4 minutes, 24 seconds Uh thank you and look forward to further interaction. 1:04:30 1 hour, 4 minutes, 30 seconds Ladies and gentlemen, on behalf of AR Securities, let's conclude this conference. Thank you for joining us and you are different. Thank you.