Concord Control Systems Ltd — Q4 FY26

Concord Control Systems Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=v8Mdr2zuh1g Published: 2 hours ago

0:01 1 second Ladies and gentlemen, on behalf of Captify Consulting Investor relations team, I welcome you all to the H2 and 0:09 9 seconds FI26 post earnings conference call of Concord Control Systems Limited. Today on the call from the management team, we 0:16 16 seconds have with us Mr. Goravla, joint managing director. As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements which 0:25 25 seconds may involve risk and uncertainties. Also a reminder that this call is being recorded. I would now request the management to briefly run us through the 0:33 33 seconds investor presentation with business and performance highlights for the period ended March 2026. The growth perspective and vision for the coming year post which we will open the floor for Q&A. 0:44 44 seconds Over to you Gav. 0:46 46 seconds Thank you so much uh Viney and uh the captify team and good afternoon everyone and thank you for joining Concord 0:55 55 seconds control systems investor call today I don't want to take you through only 1:04 1 minute, 4 seconds numbers numbers are very strong and I will come to them but more importantly I 1:11 1 minute, 11 seconds want to explain what Concord is becoming journey or 1:19 1 minute, 19 seconds Concord is no longer just a railway equipment manufacturer. 1:25 1 minute, 25 seconds SIF products supply company. We are building what we call internally the 1:33 1 minute, 33 seconds intelligence layer of modern railways covering propulsion, safety, control, communications, diagnostics and green mobility. 1:46 1 minute, 46 seconds FY26 has been a very important year for us because the business has now started 1:53 1 minute, 53 seconds reflecting the strategy we have been building for last few years. 2:01 2 minutes, 1 second Concord is a platform not a product company. This is the core message which I have for everyone today. The most 2:10 2 minutes, 10 seconds important point which I want to share and I want our investors to understand is that Concord is becoming a full stack 2:20 2 minutes, 20 seconds railway technology platform. Railways globally are moving from mechanical 2:26 2 minutes, 26 seconds systems to more intelligent, more connected, more softwareled and safety 2:33 2 minutes, 33 seconds critical systems or is transition Concord key positioning powerful. 2:41 2 minutes, 41 seconds We are integrating mission critical hardware with softwares, embedded 2:46 2 minutes, 46 seconds systems, IP safety approvals and life cycle services. This is where the margin 2:54 2 minutes, 54 seconds profile customer stickiness and the scalability of the company will further improve. Our journey is from a hardware 3:04 3 minutes, 4 seconds supplier to a railway electronics company to a control systems company and now moving towards a railway 3:12 3 minutes, 12 seconds intelligence platform. This is the shift which we want to focus on as a company. 3:20 3 minutes, 20 seconds Now uh our business today stands around four integrated pillars and this is the 3:28 3 minutes, 28 seconds most important slide of my presentation where I would want you to spend a little more time and understand these 3:35 3 minutes, 35 seconds integrated pillars. The first pillar is the green sustainable mobility which 3:42 3 minutes, 42 seconds includes battery, hydrogen, hybrid and zero emission propulsions. 3:51 3 minutes, 51 seconds advanced chemistry cell upgradations for railways. The second pillar is the smart 3:58 3 minutes, 58 seconds locomotive with intelligence. So when I say smart locomotive with intelligence, I basically mean that we will make 4:07 4 minutes, 7 seconds locomotives more connected, more monitored and more datadriven. 4:12 4 minutes, 12 seconds The third railway safety pillar is kavach multissection digital excel counter and other safety critical 4:21 4 minutes, 21 seconds technologies which we are developing and continuously working on. And the fourth 4:27 4 minutes, 27 seconds most interesting pillar is the AIdriven diagnostic and sensing. 4:34 4 minutes, 34 seconds We believe that more and more connected trains, more and more predictive maintenance 4:41 4 minutes, 41 seconds and more and more sensing will give us the real time data monitoring. We will 4:48 4 minutes, 48 seconds give us the asset intelligence and that is going to be the most critical component for decision making going forward in the railways industry. 5:01 5 minutes, 1 second Railway industry 5:11 5 minutes, 11 seconds But Concord's strength is that we are bringing these layers together. Our 5:18 5 minutes, 18 seconds platform does four things. It will sense, it will decide, it will act and 5:25 5 minutes, 25 seconds it will learn. And that is why we say Concord is becoming the brain of modern rolling stock. 5:38 5 minutes, 38 seconds The the first pillar of green mobility. 5:42 5 minutes, 42 seconds Railways are one of the largest transport ecosystems in India and globally. And the next wave is not only 5:50 5 minutes, 50 seconds electrification but it is about energy efficiency. It is about battery systems, 5:58 5 minutes, 58 seconds hybrid and hydrogen propulsion based technologies being adopted and overall 6:04 6 minutes, 4 seconds bringing down the lowering the the life cycle cost of the entire ecosystem. 6:11 6 minutes, 11 seconds Concord has already demonstrated India's first indigenous zero emission retrofit 6:18 6 minutes, 18 seconds by converting a diesel locomotive into a battery powered unit. 6:24 6 minutes, 24 seconds concept. This is a working proof of our engineering capabilities. And the bigger picture is that once you understand 6:34 6 minutes, 34 seconds propulsion, once you understand batteries, the control electronics behind it, the communication and the 6:41 6 minutes, 41 seconds safety integration, the cooling around it, you are not just selling a component. You are building a platform 6:49 6 minutes, 49 seconds which can be adapted across multiple railway use cases. 6:55 6 minutes, 55 seconds Advanced chemistry cell battery upgradation is also a very large opportunity going forward. Lead acid and 7:02 7 minutes, 2 seconds VRLA systems will gradually move towards advanced chemistry cells because railway needs reliability, compactness, low 7:12 7 minutes, 12 seconds maintenance and better life cycle economics. 7:17 7 minutes, 17 seconds The second pillar is smart locomotive intelligence. 7:22 7 minutes, 22 seconds A locomotive of the future will not only be a standalone machine. It will be a 7:29 7 minutes, 29 seconds connected monitor monitored and an intelligent asset. A very strong example 7:36 7 minutes, 36 seconds of this is our remote monitoring solutions and distributed power wireless control systems. These technologies 7:45 7 minutes, 45 seconds enable multiple locomotives in long freight train to communicate and operate in synchronization. 7:53 7 minutes, 53 seconds In simple terms, other Indian railways go longer freight trains, higher tonnage 8:00 8 minutes move, better braking control and fleet orchestration 8:07 8 minutes, 7 seconds overall freight throughput improve. So technologies like DPWCS and real-time monitoring and intelligent locomotive 8:15 8 minutes, 15 seconds becomes very very important and this directly aligns with Indian railways 8:22 8 minutes, 22 seconds freight growth ambitions and for Concord it validates our ability to build 8:29 8 minutes, 29 seconds missionritical wireless control systems for heavy hall operations. 8:41 8 minutes, 41 seconds In the third pillar we talk about the railway safety. Safety is not optional 8:47 8 minutes, 47 seconds in railways. Kavaj is one of the most important railway technologies program 8:53 8 minutes, 53 seconds and railways as a whole is deploying a lot of capital expenditure on this and 9:00 9 minutes Concord through prooota is participating in this opportunity. 9:05 9 minutes, 5 seconds focus order. Our focus is to build a credible, scalable, safety critical 9:12 9 minutes, 12 seconds railway technology business. The cover opportunity is large, long duration and 9:18 9 minutes, 18 seconds strategically important for us. And we feel that Kawatch and MSTAC put together 9:25 9 minutes, 25 seconds will lead us in the safety domain of railway electronics not only in India 9:33 9 minutes, 33 seconds but as well as for other markets as well. 9:42 9 minutes, 42 seconds Overall we are part of a very high entry uh entry area with approvaldriven railway electronics opportunities. 9:55 9 minutes, 55 seconds Now if I talk about the most important or the diagnostic sensors uh the fourth pillar which is all about 10:04 10 minutes, 4 seconds the predictive maintenance and diagnostics railway are now moving from a reactive maintenance to a predictive 10:12 10 minutes, 12 seconds maintenance failure repair 10:21 10 minutes, 21 seconds and future is about detecting ly predicting a failure and preventing a breakdown and we are proud to be a part of this ecosystem. 10:32 10 minutes, 32 seconds We are already working on few technologies like wild like overhead monitoring with AI based diagnostics as 10:40 10 minutes, 40 seconds part of this data layer. This is an important 10:46 10 minutes, 46 seconds control system and diagnostic tool which Concord will install on railway assets. 10:54 10 minutes, 54 seconds We can create long-term service. We can create monitoring, maintenance and analyticled revenue stream from this. So 11:04 11 minutes, 4 seconds this will not only bring a one-time sale but an annuality based revenue stream as 11:11 11 minutes, 11 seconds well for the company. This is where the business model gradually moves from a one-time product to a more scalable recurring high margin revenue business. 11:23 11 minutes, 23 seconds Now if I talk about fusion, it is one of a very strategic moves this year and 11:31 11 minutes, 31 seconds fusion positions Concord into the high value flex PCB and premium EMS sector 11:39 11 minutes, 39 seconds acquisition capacity addition backward integration box building capabilities add import 11:47 11 minutes, 47 seconds substitution add overall electronics open deeper control manufacturing 11:56 11 minutes, 56 seconds as railway systems become more electronics and software. This is a very important highquality manufacturing 12:06 12 minutes, 6 seconds asset which now adds to the overall strength and capability of Concord. 12:12 12 minutes, 12 seconds Fusion allows us to move up the value chain from just a railway product to 12:19 12 minutes, 19 seconds electronic subsystem from man manufacturing a very our own integrated 12:26 12 minutes, 26 seconds uh production with domestic supplies potential as well as a lot of global opportunities 12:35 12 minutes, 35 seconds and I think this is the most important part of our uh our story as a company our revenue 12:44 12 minutes, 44 seconds model is evolving historically we were more productled going forward we feel there will be a mix which will have an 12:53 12 minutes, 53 seconds increasing trend of products AMC's softwares IP licensing annot based 13:01 13 minutes, 1 second services and life cycle support this is why we say concord is not just building the railway products we are building the 13:10 13 minutes, 10 seconds engineering We are a company which is building the brain of modern rolling stock. Just like 13:17 13 minutes, 17 seconds a human brain controls movement, safety, communication and decision making, Concord's platform integrates 13:26 13 minutes, 26 seconds propulsion, coverage class safety, wireless controls, monitoring and 13:31 13 minutes, 31 seconds diagnostics. Going forward, I think uh individual products are important but 13:41 13 minutes, 41 seconds the real value is an integrated railway intelligence platform. Very few companies 13:49 13 minutes, 49 seconds uh will have this combination of domain knowledge of railways approvals, R&D, 13:58 13 minutes, 58 seconds electronics, safety systems and the understanding of this manufacturing as well as the execution capability. 14:10 14 minutes, 10 seconds The strategy is now very well visible. 14:13 14 minutes, 13 seconds If I come to the numbers now, FI26 has been a landmark year for Concord. We 14:20 14 minutes, 20 seconds delivered a revenue of from operations of 210.47 14:26 14 minutes, 26 seconds crores with a PAT of 42.7 crores and an 14:31 14 minutes, 31 seconds EPS of 42 crores with an IITA of 62.1 crores. More importantly, our executable 14:40 14 minutes, 40 seconds order book as of 31st March 2026 stands at approximately 697 14:48 14 minutes, 48 seconds crores. This order book is more than three times of our FI26 revenue giving 14:57 14 minutes, 57 seconds us a very strong visibility and confidence. So the story is not only about the future potential 15:05 15 minutes, 5 seconds numbers may be performance order book visibility and technology road map scale. 15:15 15 minutes, 15 seconds We have grown profitably. We have added strategic capabilities and we now have a 15:22 15 minutes, 22 seconds much stronger base to scale from. And now if I have to conclude the overall 15:31 15 minutes, 31 seconds journey so far, Concord today stands at a very interesting point. We are operating at the intersection of four 15:39 15 minutes, 39 seconds powerful themes. Indian railways modernization, safety, green mobility and an intelligent railway electronics. 15:51 15 minutes, 51 seconds Our ambition is clear. We want to build Concord as one of India's most complete 15:58 15 minutes, 58 seconds railway technology platforms. H focus simple here strong execution high 16:05 16 minutes, 5 seconds quality technology deeper railway relevance and sustainable profitable growth. 16:13 16 minutes, 13 seconds With that I would like to pause here and open the floor for questions. 16:20 16 minutes, 20 seconds Gorov all those who wish to ask a question may please use the option of raise hand once you raise your hand we'll be unmuting 16:29 16 minutes, 29 seconds you so you can ask your questions till you do not finish a question mute your line all those who wish to ask 16:35 16 minutes, 35 seconds a question may please raise hand 16:51 16 minutes, 51 seconds So there is a question in the Q&A line. 16:54 16 minutes, 54 seconds Uh if company will generate revenue from cover in this financial year other than the trial order which is under process 17:01 17 minutes, 1 second will the company we have already started working on the field trials and uh we hope that uh it 17:10 17 minutes, 10 seconds will be a very successful year in terms of coverage for us. 17:21 17 minutes, 21 seconds Participants who wish to ask a question please raise hand otherwise you can put the question in the chat box or in the Q&A box. We'll take the first question 17:29 17 minutes, 29 seconds from Ajit City. Ajit you can go ahead please. 17:34 17 minutes, 34 seconds Thank you for the opportunity. Uh so our trade receivables have increased significantly during the year. So could you help us understand the key reason 17:43 17 minutes, 43 seconds behind this increase and how should we think about receivables and working capital going forward? 17:48 17 minutes, 48 seconds Thank you Ajit. Thank you so much for asking this and I'm very happy to answer this as a first question. See in the railway industry the execution is 17:57 17 minutes, 57 seconds typically backended with a significant portion of deliveries and billings happening in Q4 especially towards the closing months of 18:06 18 minutes, 6 seconds the financial year. As a result, receivables on 31st of March balance sheet naturally appears elevated. 18:13 18 minutes, 13 seconds However, these are largely operational receivables linked to executed projects 18:19 18 minutes, 19 seconds and customer acceptance cycles and it is a railway as a customer. Though when you 18:27 18 minutes, 27 seconds talk about railway as a customer there is in fact uh if one were to look at our internal position as of June uh the 18:36 18 minutes, 36 seconds receivable cycles already improve meaningfully when we uh see our last financial year versus this financial year. 18:50 18 minutes, 50 seconds Yes. 18:52 18 minutes, 52 seconds Okay. So uh we should expect this type of working capital going forward also right? Absolutely. 18:58 18 minutes, 58 seconds Yeah. Okay. And so coming to our short-term debt this is also increased significantly. So while company is 19:06 19 minutes, 6 seconds guiding for a strong 40 to 50% growth gaga going forward. So how should we think about the debt levels and balance sheet strength over the next few years? 19:17 19 minutes, 17 seconds So Ajit uh as you can see the overall company growth is at a higher trajectory 19:24 19 minutes, 24 seconds and these uh Q4 numbers are always uh H2 is always heavier than H1 because of 19:31 19 minutes, 31 seconds that there's always uh a working capital requirement which arises in short term and that's why there will be always a 19:39 19 minutes, 39 seconds significant jump in our overall uh uh working capital requirements with an unprecedented order book of 697 crores 19:47 19 minutes, 47 seconds to be fulfilled going forward and eventually it will come down as a management I think till last year we 19:55 19 minutes, 55 seconds were more focused on ensuring deliverables and achieving what we need to achieve to prove this year we are 20:02 20 minutes, 2 seconds will be more disciplined and we'll be more focused on execution as a company 20:09 20 minutes, 9 seconds so uh so what kind of peak that we can expect of this year next two us if 20:16 20 minutes, 16 seconds possible can share uh peak in terms of uh debt 20:23 20 minutes, 23 seconds very difficult to comment today because uh uh in the Q1 we will always have higher receivables coming from our 20:31 20 minutes, 31 seconds clients and it then shapes ups to a more uh uh uh sustained order book execution 20:38 20 minutes, 38 seconds over the year rather than more stressed in the last quarter which has happened in our last financial here. 20:47 20 minutes, 47 seconds Okay. 20:48 20 minutes, 48 seconds And we are guiding for a 20 to 25% I teta margin and this quarter we had turn around 30%a margin. So we are being conservative on guiding right. 21:01 21 minutes, 1 second Uh it is it is difficult to say that we have been conservative in our guidance. 21:06 21 minutes, 6 seconds We try to be more and more realistic in our guidance but uh I think we are in a in a situation where the railways is 21:15 21 minutes, 15 seconds transforming the technologies are more and more uh required and the adoption of technology is happening faster than even 21:23 21 minutes, 23 seconds we imagined gojit next question. 21:32 21 minutes, 32 seconds Yeah. Can we switch off the uh uh the presentation slides so that we can keep talking? Yes, sure. Sure, sure. Thank you. Thank you so much. 21:40 21 minutes, 40 seconds We'll take the next question from Shoubam Agarwal. Please go ahead. 21:50 21 minutes, 50 seconds Congratulations uh on a great set of numbers. So uh I have a couple of questions. The first question was uh 21:59 21 minutes, 59 seconds your order book has been growing sizably uh as you mentioned it's 3.3 times the 526 revenue right now. So uh going 22:07 22 minutes, 7 seconds forward uh would you say the execution also perhaps will have to grow at a faster pace than what we are guiding of 22:13 22 minutes, 13 seconds around 40 to 50% revenue growth and just uh an understanding of uh whether there are any uh 22:23 22 minutes, 23 seconds likelihood of penalties for completing or not being able to complete the orders on time. 22:29 22 minutes, 29 seconds So Shubamji I think uh FI26 has been a very unprecedented year where we were on 22:37 22 minutes, 37 seconds one hand uh executing this growth and creating these numbers which are today 22:44 22 minutes, 44 seconds visible. But on the other hand, it was also fruifying to see such a large order 22:49 22 minutes, 49 seconds book uh being achieved by us. And I think that gives us more positioning 22:57 22 minutes, 57 seconds strength for this entire year. Our old our whole planning is now more structured because we have such a large 23:05 23 minutes, 5 seconds order book to fulfill going forward. So I think uh I'll be execute. 23:17 23 minutes, 17 seconds So hopefully we should keep doing our best in this. 23:23 23 minutes, 23 seconds Great. Uh just another question on the uh fusion electronics business. I uh had asked you last uh earnings quarter and 23:32 23 minutes, 32 seconds you had mentioned that perhaps you'll be able to give more guidance uh in the next uh earnings call because at that time I think you had just acquired the 23:39 23 minutes, 39 seconds uh electronics business. So like 6 months uh later now what how do you think we are placed uh with the fusion 23:46 23 minutes, 46 seconds electronics like uh any revenue we can uh think of achieving from that business this year this financial year. 23:54 23 minutes, 54 seconds Sure. Uh I think Fusion is one of the most uh interesting and a very strong uh 24:01 24 minutes, 1 second uh strategic uh acquisition which we did last year and business 24:08 24 minutes, 8 seconds acquire culture team set up to time. We generally give ourselves 300 days to run the entire cycle in 100 days phenomena. 24:20 24 minutes, 20 seconds So I hope uh uh this year will be a revenue contributing year as well. 24:27 24 minutes, 27 seconds Okay, great. And just uh one last question on uh Proota like is there any plans to increase your uh ownership stake of prooota this year like given 24:36 24 minutes, 36 seconds that you are now going to uh be executing uh multiple orders uh uh for the coverage uh 4.0 business also. So, 24:45 24 minutes, 45 seconds Shubam G, I think uh uh we have been very frugal in terms of our investments and as and when we see an opportunity 24:53 24 minutes, 53 seconds where uh our investments can significantly garner returns for the 24:59 24 minutes, 59 seconds company, we take that step. So hopefully uh whenever that need arises and that 25:06 25 minutes, 6 seconds step is required, we will not deter to take any such step. Okay, great. Uh thank you so much Gu. 25:16 25 minutes, 16 seconds I will take the next question from Utkash Gadora. Please go ahead. 25:25 25 minutes, 25 seconds Hi Gorav, how are you? Uh uh amazing uh congrats for the continued uh growth uh 25:32 25 minutes, 32 seconds which you're showing uh so structurally you're growing really well. So congrats to you for that. Uh my question was uh 25:40 25 minutes, 40 seconds that uh essentially I think a lot of things are proven in our business now where you are you are showing uh uh execution. 25:50 25 minutes, 50 seconds uh but uh uh one major thing which I had in mind is uh when will our operating 25:56 25 minutes, 56 seconds cash flow turn positive because uh uh from your experience in railways uh receivable is one issue and of course we 26:05 26 minutes, 5 seconds are moving into new businesses so inventory also becomes a different ballgame altogether now so how do you 26:12 26 minutes, 12 seconds see working capital shaping up and when will you turn positive here? 26:17 26 minutes, 17 seconds So Kash thank you so much uh uh for your patronage and keeping us uh always on toes and and asking the most relevant 26:25 26 minutes, 25 seconds questions. I think railway as an industry is always uh uh as I mentioned earlier is uh the execution is typically 26:34 26 minutes, 34 seconds backended. Railways has no issues of receivables. It's just the cycle. you you're completing a lot of deliveries in 26:41 26 minutes, 41 seconds the last quarter of H2O and your payment realization generally happens in the first quarter of the preceding year that 26:50 26 minutes, 50 seconds in turns uh uh makes the balance sheet look more heavier and uh the the 26:57 26 minutes, 57 seconds receivables appear naturally elevated but overall I think uh uh this is an 27:04 27 minutes, 4 seconds year where we can be more planned because there is a sizable order book to execute and in the past years also we 27:13 27 minutes, 13 seconds have been continuously uh uh improving our performance with our execution capabilities and 27:21 27 minutes, 21 seconds simultaneously developing multiple technologies as we move forward for not only the Indian market but from a global 27:29 27 minutes, 29 seconds standpoint. So I think uh uh there will be uh a continuous growthled fund requirement which will be there in the 27:38 27 minutes, 38 seconds company but at the same time uh uh we are overly cautious we are more disciplined and we have better execution 27:46 27 minutes, 46 seconds capabilities going forward. Gor my only worry was that you know um going ahead of course this um payments coming in is 27:55 27 minutes, 55 seconds has been the issue from railways but uh we've seen in some other companies also incarn and all so there have been 28:02 28 minutes, 2 seconds certain issues relating to order execution and then payment delays and stuff like that but u you know it 28:09 28 minutes, 9 seconds shouldn't be like um the orders uh you're not able to actually uh have the money to implement the orders coming in. 28:18 28 minutes, 18 seconds So that is one major concern, right? 28:20 28 minutes, 20 seconds With a negative cash flow, essentially the entire profit which you are currently showing is uh something which they haven't given you as yet. So you're 28:29 28 minutes, 29 seconds kind of funding the entire project right now. uh Utkash uh apparently from the 28:36 28 minutes, 36 seconds way you look at the balance sheet this may be appearing as a very elevated uh number but generally uh uh railway payments are very well streamlined. 28:49 28 minutes, 49 seconds There is absolutely no issue in railway payments. 28:52 28 minutes, 52 seconds It's just a cycle and a process and you are you're dealing with the sovereign. So there is no issue of any 29:00 29 minutes uh penalties or bad debts happening. It is just a process and a cycle and I think uh we are overly cautious in uh 29:10 29 minutes, 10 seconds saving each penny and maintaining our cash flows and I don't think cash flows would be uh a deterrent of growth for the company. 29:20 29 minutes, 20 seconds So there's no liquidity challenge uh at all. We are a healthy we are a healthy uh uh and a financially uh uh I would say uh disciplined organization. 29:32 29 minutes, 32 seconds Have you seen some improvements? 29:35 29 minutes, 35 seconds uh like uh in the from April onwards have you seen some that's exactly what I said right so that's what it means that money 29:43 29 minutes, 43 seconds started coming in well absolutely absolutely done it's the balance sheet impact it's just a cycle okay done thank you so much uh Gorov 29:52 29 minutes, 52 seconds thank you for your time and uh one one more question if I can ask you was on the uh retrofit diesel engine and the 30:00 30 minutes green hydrogen space uh I'm very excited about that space uh with the current scenario where uh government is looking 30:08 30 minutes, 8 seconds towards a more um um environment friendly options uh how do you see this space going forward? 30:17 30 minutes, 17 seconds So uh this is so you have to look at this. Thank you for asking that again Utkash. You have 30:25 30 minutes, 25 seconds to look at it from a bigger picture which I was also uh uh sharing when I was uh uh sharing the entire 30:32 30 minutes, 32 seconds presentation and the new story of Concord where we see ourselves growing. 30:36 30 minutes, 36 seconds The bigger picture is that once we understand this entire propulsion, battery, control, electronics, cooling, 30:44 30 minutes, 44 seconds communication system and the integration of this entire product, this is this is going to become not only 30:52 30 minutes, 52 seconds a component cell for us but we are building the entire platform stack for multiple railway use cases with this. So 31:00 31 minutes zero emission is a very strong pillar uh because the overall energies energy 31:09 31 minutes, 9 seconds efficiency is going to improve not only in India but all across the railway network globally. 31:18 31 minutes, 18 seconds M uh how did you see that last order turning out uh with NTPC and then I mean the further inquiries or 31:28 31 minutes, 28 seconds any traction on that space in that space it's been a very active space okay okay great thank you so much 31:37 31 minutes, 37 seconds thank you thank you utkash we'll take the next question from herseli please go ahead 31:45 31 minutes, 45 seconds hi good Hi Ashel, good afternoon. Please carry on. 31:52 31 minutes, 52 seconds Yeah, so I had questions on the coverage. So there is a tender for 4,500 local units which is active. So when do 32:00 32 minutes you expect the outcome because I think it closed on 14th April and we have passed one month. So any idea when the 32:09 32 minutes, 9 seconds order will be and how much do we expect to win from that $10? 32:14 32 minutes, 14 seconds So hersel I think we are positioned as a completely in-house indigenous kavage 32:21 32 minutes, 21 seconds R&D powerhouse with the entire technology being developed and designed by ourselves and we feel we will be one 32:28 32 minutes, 28 seconds of the most cost effective backward integrated cav player because of our advanced rail capabilities and with all 32:37 32 minutes, 37 seconds of that we have been aggressive in this uh space and uh tenders which are coming and in the past we have quoted few of 32:46 32 minutes, 46 seconds them as well but railway has a process of uh tender finalization and in due course we will all see the outcome. 32:56 32 minutes, 56 seconds Okay. 32:58 32 minutes, 58 seconds So the tender will still take time is that what you are trying to say or you there is a process. 33:04 33 minutes, 4 seconds Okay. And second thing is what are the number of local units if you can highlight in the Indian 33:12 33 minutes, 12 seconds railways because what I'm trying to understand is already 7 thou 17,000 local units have been tendered for coverage including the 4,500. 33:23 33 minutes, 23 seconds So does Concord have more scope uh to win loco orders or is the entire local 33:30 33 minutes, 30 seconds opportunity is done and we are we will only get to play the uh crack opportunity which is left is what I'm trying to understand from this. 33:40 33 minutes, 40 seconds So the total uh population of uh locomotives in the country would scale somewhere around from 13,000 to 16,000 including the train sets and the memos. 33:53 33 minutes, 53 seconds Okay. So roughly uh the Indian real has tendered all of the locos uh from I have 34:01 34 minutes, 1 second the number for 17,000 the tender which have been announced uh till now and ordered also. 34:10 34 minutes, 10 seconds So that's not the correct number. Okay. So what is the number for you? 34:17 34 minutes, 17 seconds We'll get back to you with the exact numbers. Okay. Oh, got it. Okay. Uh this was it. 34:23 34 minutes, 23 seconds Yeah. Thanks for that. Thank you so much Hash. 34:26 34 minutes, 26 seconds Thank you. We'll take the next question from Anorag Agraal. Please go ahead. 34:32 34 minutes, 32 seconds Hi, thank you for the opportunity. Uh sir I just wanted to ask we've mentioned that fusion electronics is one of the largest flex PCB manufacturers in 34:41 34 minutes, 41 seconds country and we you know dealing with a lot of OEMs uh including a lot of high-end names yet we have uh you know 34:49 34 minutes, 49 seconds failed to shown a meaningful revenue from this subsidiary. Uh could you throw some light on that? 34:56 34 minutes, 56 seconds So Anurraat thank you so much for asking that question. It's a turnaround story and uh it is uh one of the largest 35:04 35 minutes, 4 seconds installed capacities of flexible PCBs and box building capabilities in the country as we speak and any turnaround 35:12 35 minutes, 12 seconds takes a due course and we will see uh uh we are very bullish of uh short to 35:19 35 minutes, 19 seconds midterm uh targets and we will see the results. Could you give us some details about how it, you know, went into that 35:28 35 minutes, 28 seconds space where you acquired it? Maybe if you're saying it's a turnaround, it must have been probably bankrupt or in a very 35:34 35 minutes, 34 seconds dire financial need of funds. So, how it went into that space and what we're doing to get it out of that space also? 35:42 35 minutes, 42 seconds Uh, yeah, that's the first part. Yeah. 35:45 35 minutes, 45 seconds Okay. No. So I don't think there was a financial reason of uh any uh sort and there is there was no distress. It was 35:53 35 minutes, 53 seconds just an asset uh which could not uh uh do well and now we are just revamping it. 36:01 36 minutes, 1 second Okay. Um what is our strategy towards revamping it? like I'm I'm I'm trying to understand basically how are we trying 36:10 36 minutes, 10 seconds to turn around it as compared to the original promoters who have probably been in this industry if they had set up such a big capacity. 36:18 36 minutes, 18 seconds So, Anurra uh I think Concord today has uh done a few transactions in the past 36:26 36 minutes, 26 seconds where we have uh shown our execution capabilities and demonstrated it with uh 36:33 36 minutes, 33 seconds our skills as well as numbers in the past two or three financial years where we have uh partnered or acquired uh any 36:41 36 minutes, 41 seconds stake in any company and it has been uh a continuous uh uh recipe for us uh in 36:48 36 minutes, 48 seconds terms of acquiring capabilities, not just businesses, but more from a capability standpoint and a technology 36:56 36 minutes, 56 seconds standpoint. Fusion happens to be one of those strategic moves and I think we we have the right uh uh pieces of the 37:03 37 minutes, 3 seconds puzzle in place. So we'll we'll take it forward from there. Okay. Thank you. 37:09 37 minutes, 9 seconds Yura, all those who wish to ask a question, please use the option of raise hands. 37:15 37 minutes, 15 seconds There are a few questions uh in the Q&A box. Let me get it clear. Uh there are questions regarding the order book out 37:24 37 minutes, 24 seconds of the 700 cr order book. What do you think is executable and what is the timeline for execution of the existing order book and uh what kind of orders do 37:32 37 minutes, 32 seconds you expect in the current financial year? 37:37 37 minutes, 37 seconds So uh typically what we have seen is uh uh until now we have seen 37:44 37 minutes, 44 seconds uh an 18 to 24 month order execution cycle and uh we we are 37:52 37 minutes, 52 seconds better positioned we are more uh we are having more execution capabilities and I think we will keep maintaining the 38:01 38 minutes, 1 second similar uh uh uh growth trajectory going forward as well As uh business as usual 38:08 38 minutes, 8 seconds will keep happening in terms of more and more order winnings and growth uh uh pillars uh being more evaluated to add 38:16 38 minutes, 16 seconds further chunk of strategic revenues. 38:21 38 minutes, 21 seconds Then there are questions around fusion electronics. So Nalini Kant is asking what was the revenue in FI26 and what is the outlook for FI27? 38:31 38 minutes, 31 seconds So Rajni Rajni G I think I just mentioned that it's a turnaround story and we will uh at full scale uh fusion 38:40 38 minutes, 40 seconds can do about 200 crores of uh revenue based on the installed capacities with a provision of doubling the uh capacities going forward. 38:50 38 minutes, 50 seconds A related question from Bhat Gupta uh do you see fusion electronic synergies uh defined only to railways or we can work across other industries as well? 39:01 39 minutes, 1 second Uh see fusion products sit on the on a very unique and a niche hardware layer 39:09 39 minutes, 9 seconds which is not only used in railways in multiple other sectors as well. We as a company is more focused on railway 39:16 39 minutes, 16 seconds ecosystem as a whole because we understand that piece better than uh other sectors but we are not limited to only one sector. 39:28 39 minutes, 28 seconds Then there is uh a question around the current crisis. Considering the ongoing LNG crisis and the geopolitical 39:35 39 minutes, 35 seconds tensions, do you foresee any possibility of the government reducing, postponing or slowing down its spending on railway related orders and infra projects? 39:47 39 minutes, 47 seconds Uh see that's a very very important uh question and thank you for asking that. 39:54 39 minutes, 54 seconds I think we all are living in a world of uncertainties today. Every few month something or the other is happening in 40:02 40 minutes, 2 seconds the geopolitical scenarios and as a company as a business we all have to 40:08 40 minutes, 8 seconds work uh judiciously and diligently both to ensure that we are disciplined enough 40:17 40 minutes, 17 seconds to insulate our companies rather minimize the impact of these uncertaintities which keep happening. 40:23 40 minutes, 23 seconds across the world. So, uh I think uh day by day, Concord is building resilience 40:32 40 minutes, 32 seconds and discipline both to insulate ourselves as much as possible for such uncertaintities. 40:41 40 minutes, 41 seconds There is a question from one of the participants. When is the mainboard migration planned? 40:47 40 minutes, 47 seconds So, I think we are in the process. It's just a matter of uh very difficult to give a timeline to it but we have already uh uh been on the journey. 40:59 40 minutes, 59 seconds There's a question from Kumari Somia. 41:02 41 minutes, 2 seconds Can you give a flow of how does cover order work getting approval to test run to full-fledged execution and how much revenue lies on each stage? 41:13 41 minutes, 13 seconds So uh a very in-depth question uh Kumari G thank you so much for asking that and 41:19 41 minutes, 19 seconds uh see uh in any order of kawatch there are typically two to three phases. One 41:28 41 minutes, 28 seconds phase is the installation of uh rather the the production of the uh the actual 41:35 41 minutes, 35 seconds system and the and then the inspection happens and after that you basically go for uh installation of the product. If 41:43 41 minutes, 43 seconds it is a loco coverage then the installation is limited to the loco motive itself where uh we as a company 41:52 41 minutes, 52 seconds are better positioned because we already have a lot of uh infield engineers which are working on multiple locomotives. We 41:59 41 minutes, 59 seconds understand the locomotives uh uh space because of advanced rail capabilities. 42:05 42 minutes, 5 seconds So that gives us further efficiencies in uh the execution and installation of coverage when it comes to a locomotive. 42:13 42 minutes, 13 seconds But on the other side, if we talk about the station coverage or the entire product, then there are uh you you have to first produce then uh install on a 42:22 42 minutes, 22 seconds locomotive, then install on a station, install on the track side. The entire equipment has multiple layers of 42:29 42 minutes, 29 seconds installation and uh a certain percentage of revenue rather uh the invoice is paid 42:36 42 minutes, 36 seconds by the uh uh railways on supplying the product and the balance is paid after uh successfully installing the product. 42:49 42 minutes, 49 seconds There's a follow-up question from Kumari Somia. Last year we closed at 212 crores order book and we did 210 cr revenue. 42:56 42 minutes, 56 seconds This year we are at 697 crores. Should we be able to convert 70 75% of this in FI27? It's a forward-looking question. 43:04 43 minutes, 4 seconds So you can decide how to answer it. 43:06 43 minutes, 6 seconds Yeah, every management aspires to do more and more. We will also try to keep up to the pace as a company. We are 43:14 43 minutes, 14 seconds building more and more execution capabilities and I hope we will keep growing uh uh based on the guidance which we have given. 43:26 43 minutes, 26 seconds Uh there's a question from Sales Jen. Uh is the company expected to finish coverage trial order in this financial year with ISA approval? 43:38 43 minutes, 38 seconds We are certainly working towards achieving the trial completion as well as ISA approvals within this financial year. 43:48 43 minutes, 48 seconds Rest is up to a lot of uh geopolitical and uh uh factors which are beyond our 43:55 43 minutes, 55 seconds control but I think we are trying to insulate ourselves for it. And the second part of his question is uh what about other coverage orders already 44:03 44 minutes, 3 seconds received? Will company be able to complete in the timeline mentioned with the order? 44:09 44 minutes, 9 seconds We are working towards it and planning uh towards it both. Sure. 44:15 44 minutes, 15 seconds Thank you sir. We'll take the follow-up question from Utkashya. Please go ahead. 44:25 44 minutes, 25 seconds Yes. 44:27 44 minutes, 27 seconds Yeah. Gorov uh Gorov just wanted to understand um uh how are we currently 44:34 44 minutes, 34 seconds also um doing the what is the revenue bifocation currently what of the products which we are selling and how 44:43 44 minutes, 43 seconds was it earlier and how are we transitioning see utkash uh again a very important uh 44:52 44 minutes, 52 seconds uh piece of information which I wanted to bring on the table and thank you for asking that see uh earlier in my 44:59 44 minutes, 59 seconds presentation I was saying that many railway suppliers are limited to one or two domain of products and 45:08 45 minutes, 8 seconds if one of the products is not immediately required by railways there is a cyclic nature of business which impacts the business. 45:18 45 minutes, 18 seconds Got it. Concord I think is positioning itself to beat the cyclic nature of any 45:26 45 minutes, 26 seconds such requirements of clients. We are working in the traction side, coaching 45:33 45 minutes, 33 seconds side, way side, uh locomotive side in multiple domains 45:40 45 minutes, 40 seconds and something or the other will keep on happening in such a large railway ecosystem 45:47 45 minutes, 47 seconds to contribute to our top lines as well as uh to our bottom lines. So I see uh uh we have a great product mix as on 45:56 45 minutes, 56 seconds date I would say we have a larger product mix of locomotive uh uh solutions and that is where 46:04 46 minutes, 4 seconds the anaconda yeah one of the products is uh DPWCS and going forward it will keep on 46:12 46 minutes, 12 seconds evolving with time why I'm asking uh go it's an everchanging product mix yeah because we've earlier seen that you 46:20 46 minutes, 20 seconds typically Ally Concord was a electronic supplier and then we transitioned to different products um Anaconda cover we 46:29 46 minutes, 29 seconds added new things uh took over many companies. So um uh is the old model 46:35 46 minutes, 35 seconds still alive and how much uh is the question actually uh and and um sorry Ukash I could not understand your 46:44 46 minutes, 44 seconds question. Yeah, the the old mod. So earlier we used to be more like a electronic supplier to the railway, right? And so what what is up with that 46:52 46 minutes, 52 seconds business? I mean how much is that business also contributing? I understand there are new segments coming. What I'm actually trying to understand which is the largest segment currently 47:01 47 minutes, 1 second contributing. I guess it is DPWCS and I would not call it DPWCS. I would say to the the larger contributor of our 47:10 47 minutes, 10 seconds growth is the locomotives uh overall uh business. Okay. 47:16 47 minutes, 16 seconds But this is an everchanging and a very dynamic uh uh so it includes multiple uh uh locomotive products. We're not doing 47:24 47 minutes, 24 seconds one or two. We are doing multiple technologydriven and uh propulsion based subsystems. 47:33 47 minutes, 33 seconds Okay. Sure. Thank you. 47:39 47 minutes, 39 seconds Anybody who wishes to ask a question, please use the option of raise hand. 47:47 47 minutes, 47 seconds Sir, since there are no further questions, would you like to give any closing comments? 47:56 47 minutes, 56 seconds Yeah. So, uh again to conclude, I think Concord today stands at a very very interesting point. 48:07 48 minutes, 7 seconds We are operating at the intersection of four powerful themes. The overall modernization of 48:15 48 minutes, 15 seconds Indian railways, the more and more adoption of safety critical technologies, 48:23 48 minutes, 23 seconds uh newer initiatives like green mobility and a lot of intelligent railway electronics. With all of this, I think 48:32 48 minutes, 32 seconds Concord is building the overall intelligence layer of modern railways, integrating propulsion, safety and 48:41 48 minutes, 41 seconds multiple other solutions which are all scalable to create a large railway technology platform. 48:48 48 minutes, 48 seconds So I think we are we are positioned for a for a much larger growthdriven 48:56 48 minutes, 56 seconds railway technology company. Our goal is just not to chase the product 49:04 49 minutes, 4 seconds cycle. It is much more to build a multi-deadal railway intelligence and a control platform business from India for 49:13 49 minutes, 13 seconds India and eventually for the global markets. 49:22 49 minutes, 22 seconds Thank you sir. Yeah, thank you and thank you sir and thank you to all the participants for joining on this call. This brings us to the end of this conference call. Thank you. 49:33 49 minutes, 33 seconds Thank you Mosen and thank you Captify team for taking this. Thank you.