Creative Newtech Limited — Q4 FY26

Creative Newtech Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=J0qZt_Yy8IQ Published: 1d ago

0:01 1 second Good afternoon ladies and gentlemen. On behalf of Creative New Techch Limited, we extend a warm welcome to all participants joining us for the Q4 yearended FI26 earnings conference call. 0:14 14 seconds We sincerely appreciate your presence as we discuss this quarter and year's performance, highlight significant achievements, and share our vision for 0:22 22 seconds the future. This conference call may include forward-looking statements that are based on the company's beliefs, 0:29 29 seconds assumptions, and expectations as of the date of this call. These statements are not asurances of future results and are 0:37 37 seconds subject to risks and uncertainties that remain difficult to foresee. As a general reminder, all participant lines 0:44 44 seconds will be in the listenonly mode until we open the floor for the Q&A session. 0:50 50 seconds Please note that this conference is being recorded. If you need assistance during this conference, please press star followed by zero to signal the operator. 0:59 59 seconds With that, it's my privilege to hand the call over to Mr. Kathan Patel, chairman and managing director of Creative New Tech Limited. Thank you and over to you, sir. 1:11 1 minute, 11 seconds Good afternoon, everyone. Welcome to Creative New Tech Limited earning conference call for the fourth quarter and year ended March 31st, 2026. 1:22 1 minute, 22 seconds I would like to begin by thanking all of you for joining us today. Every year bring its own milestones, learning and 1:30 1 minute, 30 seconds opportunity and this call gives us a chance to share that journey with all of you. Joining me on the call are Mr. Ajit 1:39 1 minute, 39 seconds Takur our CFO, Mr. Vijay Adwani our whole time director, Mr. Vijik Khan and 1:47 1 minute, 47 seconds Star Consultants our investors relations team. This year I believe we make choices that will matter for the long 1:54 1 minute, 54 seconds term. We enter stronger categories, build deeper partnerships and move CML closer to the future of connected technology. 2:04 2 minutes, 4 seconds The world of technology is entering a more intelligence and connected field. 2:10 2 minutes, 10 seconds Surveillance is moving beyond cameras into visibility, analytics and action. 2:16 2 minutes, 16 seconds AI is improving decision making. IoT is connecting devices, infrastructure and people with purpose. And this is 2:25 2 minutes, 25 seconds exactly where CNL is building its next step. During the year, we strengthen our presence across surveillance, AI, IoT, 2:35 2 minutes, 35 seconds cyber security, drones, data center solutions, high performance computing and connected infrastructure. Each 2:43 2 minutes, 43 seconds development during FY26 was aligned with this larger direction. Our BSE mainboard listing was another proud milestone 2:52 2 minutes, 52 seconds strengthening our visibility among a wider investor community. 2:57 2 minutes, 57 seconds We have already built a strong base in surveillance and FY26 helped us deepen that position through partnerships with 3:05 3 minutes, 5 seconds spur metrics and za AI and IoT are now emerging as the next layer for this 3:13 3 minutes, 13 seconds ecosystem and we are moving in that direction with clarity. Along this our partnership with EO as a spatial life 3:22 3 minutes, 22 seconds layer to our portfolio taking us into mission critical professional display solutions for healthcare industrial and 3:28 3 minutes, 28 seconds enterprise environments. Our B2G entry is another improve important movement for CNL opening doors in public 3:37 3 minutes, 37 seconds infrastructure and respon uh response technology. Our partnership with Casper 3:44 3 minutes, 44 seconds key and PDRL strengthen CLS presence in cyber security and drone technology. On the computing side, we strengthen our 3:53 3 minutes, 53 seconds presence across memory storage, high performance computing and data center categories. We also expanded our brand 4:01 4 minutes, 1 second portfolio and widened our reach across emerging markets such as Vanasi, Derun, Chandigal and J. Honeywell continued to 4:09 4 minutes, 9 seconds show the strength of our brand dealing capability. We expanded its reach over 38 countries in Nepac, Middle East and 4:16 4 minutes, 16 seconds Africa. Signed air purifier licensing across 10 countries. Added home audio products. Enter new markets including 4:23 4 minutes, 23 seconds Indonesia, Singapore and the Philippines. Recorded over a 100% growth in ecommerce across India, UAE, and 4:32 4 minutes, 32 seconds Saudi Arabia. and sold one product every 60 seconds online in FY 2526. 4:40 4 minutes, 40 seconds As I look back at FY26, I can see that Sienna has moved with intent, built new depth, and earned a 4:48 4 minutes, 48 seconds stronger position in the technology lens. As we step in FY27, our focus is to keep 4:57 4 minutes, 57 seconds raising the bar by converting our momentum into stronger execution and deeper market presence. We know the 5:04 5 minutes, 4 seconds direction we have the momentum and now our focus is to execute the best. 5:09 5 minutes, 9 seconds Looking ahead, our ambition is to make creative new tech stronger in every step. Stronger in the categories we 5:17 5 minutes, 17 seconds choose, stronger in the brands we build, stronger in the partnerships we create, and stronger in the value we use. We are 5:26 5 minutes, 26 seconds building a business that is aligned with the next phase of technology demand from surveillance and AI to IoT, cyber 5:33 5 minutes, 33 seconds security, drones, connectivity and infrastructure solution. At the same time we are building 5:41 5 minutes, 41 seconds more value through our own brand license brand and strategic brand partnerships. 5:46 5 minutes, 46 seconds We are building to what we are building today is not only for the next quart or the next year. We are building an institution with depth trust and global 5:55 5 minutes, 55 seconds ambition. I want to thank our teams, partners, customer and stakeholders for 6:02 6 minutes, 2 seconds their continued belief in CN. We move forward with discipline, clarity, and a strong commitment to a long-term value. 6:12 6 minutes, 12 seconds Now, I will hand over to Mr. Ajit Takur who will take you through the financial highlights for the quarter and the full year. 6:21 6 minutes, 21 seconds Thank you. Thank and good afternoon everyone. 6:26 6 minutes, 26 seconds At Mutate has concluded FY26 with a strong financial performance and a broader operating base. The year 6:34 6 minutes, 34 seconds reflects the company's ability to scale meaningfully while continuing to build a strength across technology categories 6:41 6 minutes, 41 seconds that are becoming more relevant for enterprises, institutions and consumers. 6:46 6 minutes, 46 seconds What stands out for us is the quality of progress across the year. The business has moved to a higher revenue base. A 6:54 6 minutes, 54 seconds beta has crossed an important threshold and profitability has continued to expand in absolute terms. 7:01 7 minutes, 1 second This gives us a strong platform as we move into the next phase of growth. The fourth quarter was a strong closing 7:08 7 minutes, 8 seconds quarter for the year. It reflected healthy business activity across our portfolio supported by wider market participation, 7:17 7 minutes, 17 seconds category expansion and continued momentum across area such as surveillance, cyber security, data center solutions, high performance 7:26 7 minutes, 26 seconds computing and connected technology infrastructure. 7:30 7 minutes, 30 seconds I will now take you through the key highlights of our consolidated financial performance. You'll note that our financials are prepared in accordance 7:38 7 minutes, 38 seconds with industy 26 years. The company reported revenue 7:46 7 minutes, 46 seconds from operations rupees 740.01 crores and total income of rupees 740.44 7:53 7 minutes, 53 seconds 44 crores reflecting a yearon-year growth of 81.16% in total income. The quarterly AITA is 8:02 8 minutes, 2 seconds stood at rupees 29.39 crores registering a yearon-year growth of 52.15%. 8:09 8 minutes, 9 seconds AITA margin for the quarter is stood at 3.97%. 8:14 8 minutes, 14 seconds Profit before tax for the quarter is stood at rupees 21.72 crores. PA for the quarter came in at rupees 17.79 crores 8:24 8 minutes, 24 seconds reflecting a yearon-year growth of 29.57%. 8:29 8 minutes, 29 seconds Pat margin for the quarter is stood at 2.4%. 8:33 8 minutes, 33 seconds Now looking at consolidated full year FY 26 years the company reported revenue from 8:40 8 minutes, 40 seconds operations of rupees 269.77 crores and total income of rupees 2717.51 8:47 8 minutes, 47 seconds crores reflecting a yearon-year growth of 50.85%. 8:54 8 minutes, 54 seconds The AITA for FY 26 stood at rupees 104 crores resisting a yearon-year growth of 41.73%. 9:03 9 minutes, 3 seconds AITA margin for the year stood at 3.83%. 9:09 9 minutes, 9 seconds Profit before tax for FY26 stood at rupees 81.76 crores. Spear year came in 9:16 9 minutes, 16 seconds at rupees 70.29 29 crores reflecting a year-on-year growth of 32.35%. 9:23 9 minutes, 23 seconds Pad margin for FY 26 is stood at 2.59%. 9:28 9 minutes, 28 seconds For creative new test crossing rupees 2,700 crores in total income, rupees 100 crores in AITA and 70 crores in PT marks an important financial milestone. 9:41 9 minutes, 41 seconds These numbers reflect the scale we are building, the consistency of execution across the business and the strength of our existing portfolio. 9:51 9 minutes, 51 seconds As we move ahead, our financial priorities remain focused on efficient operations, disciplined capital allocation, working 9:59 9 minutes, 59 seconds capital management and HTD value creation for all stakeholders. 10:04 10 minutes, 4 seconds That concludes the financial overview for the quarter and full year. Thank you. 10:16 10 minutes, 16 seconds Should we open for Q&A? You can take questions now. 10:26 10 minutes, 26 seconds Sure. Thank you. We are now now opening the floor for the question and answer session. To ask a question, please press 10:34 10 minutes, 34 seconds star and one on your touchstone telephone. To exit the queue at any time, you may press star and two. We encourage participants to please use only handsets for optimal audio clarity. 10:47 10 minutes, 47 seconds We will take a short moment while the question queue assembles. 10:52 10 minutes, 52 seconds The first question is from the line of Ahmed from Robo Capital. Please go ahead. Thank you. Thanks for the opportunity. 10:59 10 minutes, 59 seconds So my first question uh is on the honey business. uh you know that business if you see the growth margins ro everything 11:07 11 minutes, 7 seconds is much better than a legit business. uh so have you considered emerging that business to unlock value? 11:15 11 minutes, 15 seconds Uh Amit thank you very much for always being on our conference call from packet level. uh what I understood from you you 11:24 11 minutes, 24 seconds are saying is uh since annual business is better can we uh merge it here in this that's what you're saying 11:33 11 minutes, 33 seconds no see that business has a much better roe much better growth profile you know everything is better than a legacy business which has lower margins low 11:42 11 minutes, 42 seconds uh lower growth etc and typically if you see the branded businesses trade at you know maybe 30 40 times P multiple 11:52 11 minutes, 52 seconds uh so if you de merge that with that business you know which has a fairly good a bit pat uh you know so that will 11:59 11 minutes, 59 seconds unlock value for shareholders so Amit the long-term plan is that in a next two to three years we will be on 12:08 12 minutes, 8 seconds that path where uh we'll have the brand business separate and the market entry business separate that's the plan 12:18 12 minutes, 18 seconds because this business while we were leads the brand business of Anita. It was very dependent on the uh market 12:26 12 minutes, 26 seconds entry business because the cash flows the uh infrastructure everything was used of this business. As 12:34 12 minutes, 34 seconds this business is now reached a significant milestone, our idea is that 12:40 12 minutes, 40 seconds we should at least have in the near-term future 3 to four brands 12:48 12 minutes, 48 seconds and in the uh long-term future uh six to seven grands which becomes the 12:57 12 minutes, 57 seconds part of this business and that uh business can operate at a scale. So uh 13:05 13 minutes, 5 seconds for the next 15 months there is no plan but then probably after that we could initiate uh this because that's also 13:14 13 minutes, 14 seconds another I think uh 12 to 15 months process to demer us that so we are thinking that once that business also 13:24 13 minutes, 24 seconds so for us a brand is something which is at least a thousand cr business. So once we start reaching there then when we 13:31 13 minutes, 31 seconds will finally great thanks makes sense. So my qu next question is on the you know just wanted to understand impact of middle east war 13:40 13 minutes, 40 seconds and how do you see growth going forward and we're also looking to expand in middle east. So are those plans uh still in place how do you see you know on the ground what do you expect going forward? 13:52 13 minutes, 52 seconds Yeah. 13:54 13 minutes, 54 seconds So short answer to your question is that the Middle East were yes it is uh 14:01 14 minutes, 1 second impacting the business currently because our material moves from China to Middle East by ships and uh now you can only 14:10 14 minutes, 10 seconds move the material through the Red Sea where the initial say the freight cost 14:16 14 minutes, 16 seconds was between $1,500 to $1,700 which has now gone to $75,000 to $8,000. 14:26 14 minutes, 26 seconds plus the availability of containers and ship plus the congestion at the port. That's the case. 14:32 14 minutes, 32 seconds So uh if the war stops say in the next week time uh there would be not be much disruption because we had the material 14:41 14 minutes, 41 seconds there usually the partner stocks 45 to 60 days material. Usually you have in your warehouse of the depot 45 to 60 days material. So that was uh very well. 14:54 14 minutes, 54 seconds Uh coming to our plans uh we think that if this continues it will be the new normal then right and we have our people 15:03 15 minutes, 3 seconds there, we have our men were there, we have our offices there. So then I think 15:09 15 minutes, 9 seconds uh uh the growth or I think uh the pricing of the products may get 15:16 15 minutes, 16 seconds affected. Uh a little bit of uh consumer sentiments and hence 15:24 15 minutes, 24 seconds consumerism can get affected but otherwise in the current scenario we will keep continuing what we want to 15:32 15 minutes, 32 seconds continue. Plus also we have to understand that Middle East also becomes your uh main supply chain hub for 15:39 15 minutes, 39 seconds Africa. So it is very important for us to be in Middle East. Uh currently Saudi 15:46 15 minutes, 46 seconds keeps buying uh we are represented all uh large format retailers, speedcommerce 15:53 15 minutes, 53 seconds uh uh on uh e-commerce uh their uh free of material is stocked out but otherwise 16:03 16 minutes, 3 seconds uh still material is there. Same is the case with uh uh Dubai, Abu Dhabi and 16:10 16 minutes, 10 seconds other places. But if this continues, it will have some material impact for sure. 16:17 16 minutes, 17 seconds Right sir and my last question was on the revenue growth uh you know how do you see revenue growth going forward? 16:25 16 minutes, 25 seconds So revenue growth uh for us uh our internal thing is that we want to grow by at least uh in a year by 25 30% for 16:35 16 minutes, 35 seconds sure uh and the profit also we want to in absolute term for the next five six 16:42 16 minutes, 42 seconds years growth by 30% for sure. So and uh in India uh the demographic for the 16:50 16 minutes, 50 seconds consumer business is uh really in our favor and uh the government post on AI 16:59 16 minutes, 59 seconds digital infrastructure making India on the enterprise business also that is 17:05 17 minutes, 5 seconds being so I think uh we may have uh some price escalation 17:12 17 minutes, 12 seconds uh but I don't think uh demand will go less for the next 3 to four years and looking at our base right we are not at 17:21 17 minutes, 21 seconds a signification a significant base we are still not say not a 10,000 company also so for us 17:29 17 minutes, 29 seconds because of our uh small footprint I think uh for another 3 to four years growing at this rate would not be a 17:38 17 minutes, 38 seconds problem right sir and my last question thanks for that and my last question was on the margins uh you know as we scale a 17:46 17 minutes, 46 seconds business uh you know say uh how do you think it will impact margins can we scale it to say 900,000 cr topline on 17:55 17 minutes, 55 seconds honey and still maintain these type of margins or we'll have to the margins will dilute as we scale 18:02 18 minutes, 2 seconds so over a long-term period if you uh look at uh so if we uh take averages the margin 18:13 18 minutes, 13 seconds will kick keep going higher. Uh you will have a year like this where your margins get impacted because of logistics cost. 18:20 18 minutes, 20 seconds Two things have happened. The logistics uh costs have gone higher. The uh raw material cost has also grown higher. So 18:28 18 minutes, 28 seconds the customer can't digest a price increase above a certain percent immediately. So in that year your margin 18:37 18 minutes, 37 seconds could be lower. But in our case since our uh operational efficiency will start 18:44 18 minutes, 44 seconds kicking a close 450 500 crores our margin will become better in a business like anyway. So for example if we are 18:53 18 minutes, 53 seconds operating at say 12 to 13% e bit now once we cross the th00and cr we should operate at at 18 19%. 19:03 19 minutes, 3 seconds That's why the brand business is so important for us because that's the thumb rule almost all brands operate on right sir. 19:13 19 minutes, 13 seconds Great. Thank you. Thank you so much for details. Thank you so much. Thank you. 19:17 19 minutes, 17 seconds Thank you participants. If you have any questions at this time you may enter star followed by one on your handset. 19:24 19 minutes, 24 seconds The next question is from the line of myria from Sapphire Capital. Please go ahead. 19:30 19 minutes, 30 seconds Yeah. Hello sir. Good morning. Am I audible? Good morning. Yes, you are audible. 19:35 19 minutes, 35 seconds Yeah. Uh great results. We had a great growth and also in 4Q we had quite high cross and a beta margins. Um any sort of 19:43 19 minutes, 43 seconds reason or one of this happened because of Yes M sir. So 19:50 19 minutes, 50 seconds uh last uh two quarters uh we have started focusing on making India 19:56 19 minutes, 56 seconds companies and this making India companies are mainly into surveillance and AI and uh the end customer at some 20:06 20 minutes, 6 seconds point is either a PSU or government or somebody and in this cases because the 20:14 20 minutes, 14 seconds uh uh suppliers or the vendors whom we are dealing their size is much smaller and that's 20:21 20 minutes, 21 seconds why you get a higher percentage margin and here uh in the making India products because you get a chance to also 20:30 20 minutes, 30 seconds participate in the supply chain scenario uh the margin uh is higher while the 20:38 20 minutes, 38 seconds margin is higher uh your expenses are also a bit higher because uh these are smaller customers so they can't uh 20:46 20 minutes, 46 seconds really uh have a lot of uh money for larger orders cash flow. So I think uh 20:55 20 minutes, 55 seconds over a period of time uh when this also becomes a significant impact because of the government's uh push on AI, IoT, 21:04 21 minutes, 4 seconds operational efficiency, digital infrastructure, data centers, uh this margin, higher margin will also start uh showing in the bottom line. 21:16 21 minutes, 16 seconds That is great. Uh secondly, you mentioned we'll have 25 30% growth annually. Um this year we grew more than 21:24 21 minutes, 24 seconds 50%. So is this on the conservative sides you're guiding or uh do you see this Middle East crisis kind of lowering the consumption going ahead? 21:35 21 minutes, 35 seconds Uh so uh 50% by any uh uh criteria is a ambitious target. 21:47 21 minutes, 47 seconds uh what is in our favor is that our base is small. So uh crisis like Middle East may impact 21:55 21 minutes, 55 seconds uh little bit on the bottom line in terms of uh percentage not absolute margin. uh that impact would be there 22:04 22 minutes, 4 seconds but otherwise the demographics of India is in our favor and the digital push is also 22:12 22 minutes, 12 seconds my three uh it also if you see our businesses because it's a market entry business uh 22:21 22 minutes, 21 seconds like you add a surveillance tomorrow you add servers which goes into data center immediately 22:27 22 minutes, 27 seconds you get a 10 15% uh push for your top line because of a new category what you added into that. 22:36 22 minutes, 36 seconds So that will help. The biggest threat for us is right now supply chain disruption and the cost of raw money 22:43 22 minutes, 43 seconds because uh the cost used to go up uh in it used to go down but right now the cost has gone up by 30 40% in especially 22:52 22 minutes, 52 seconds memory and in storage and CPUs that's where the cost is 23:01 23 minutes, 1 second so are we able to pass on these costs or it's happening with the lag and also are we like planning to increase our 23:07 23 minutes, 7 seconds inventory to kind of uh help with these uh kind of price increase that are happening from month. 23:16 23 minutes, 16 seconds So whether we are able to pass the cost, yes, we are able to pass the cost to the customer. Whether the customer is able 23:25 23 minutes, 25 seconds to absorb the cost, now it's the time when the customer is starting to feel the heat of it because 23:32 23 minutes, 32 seconds the cost has moved higher a lot. So the consumption may decrease that. 23:38 23 minutes, 38 seconds Second question to you is whether we have to have higher inventory. So when the material is in short, you keep buying whatever material is available 23:47 23 minutes, 47 seconds and also you pass it with you for say a period of 30 to 40 days so that your commitment with various customers can be 23:56 23 minutes, 56 seconds met what you have done there. So yes the inventory level uh also goes higher because then you don't have a BP plus 24:05 24 minutes, 5 seconds passing the inventory also helps that the future escalation on the price we are able to manage that's 24:13 24 minutes, 13 seconds correct that is great okay and uh secondly now we have these two businesses we have one the market entry 24:20 24 minutes, 20 seconds one is the brand business uh you said we are in near term going to have three to four brands any acquisition on the line 24:27 24 minutes, 27 seconds that is going to happen in uh FI27 also how do you see this brand business growth coming in because you said 25 30% 24:35 24 minutes, 35 seconds on a console basis if maybe you can mention the number on the just the brand business for FI27 24:42 24 minutes, 42 seconds yeah uh so a couple of things uh number one we are in active lookout of looking 24:51 24 minutes, 51 seconds at any brand which we can look in the surveillance uh drone AI space. Uh so 24:59 24 minutes, 59 seconds the brand which has some legacy which has a good team so we can then uh just get operational efficiencies built in 25:07 25 minutes, 7 seconds and use our balance sheet to grow. So we are looking at that kind of brand. 25:12 25 minutes, 12 seconds Second with our Honeywell brand uh this uh uh month you will hear that uh we 25:19 25 minutes, 19 seconds launch our own brand also uh in this space. Uh this brand categorically we have launched uh uh we are planning to 25:28 25 minutes, 28 seconds launch it in UA and uh in India. 25:34 25 minutes, 34 seconds Uh same categories of products what we do in Honeywell. Uh but different models 25:40 25 minutes, 40 seconds uh and uh slightly similar specification. 25:46 25 minutes, 46 seconds Uh Honeywell business is not available in US for us as a licensing. So it would be good for us to try that business in 25:54 25 minutes, 54 seconds the US. We will move uh uh in the US first online and then we will go 26:03 26 minutes, 3 seconds into uh large format retail there because there is uh no channels there. 26:10 26 minutes, 10 seconds So material is already in the US in the warehouses of Amazon already. material 26:18 26 minutes, 18 seconds is already in India in this free loss is happening in another two to three days and the material will be available for 26:27 26 minutes, 27 seconds uh the markets from the 22nd or 23rd of May. So that will also help us in two 26:35 26 minutes, 35 seconds ways. One is to have our own brand. So we have freedom of communicating in a way we want to communicate because 26:43 26 minutes, 43 seconds Honeywell has his own uh design language system in which we have to communicate that one. Second, it also helped us to 26:52 26 minutes, 52 seconds grow into the biggest market that is UAP. 26:56 26 minutes, 56 seconds And uh just for your uh just to give you an idea the Indian air purifier market is close to 3,000 Ks. 27:08 27 minutes, 8 seconds US last year air purify market was 28,000 kors and out of the 28,000 kores 8,000 27:16 27 minutes, 16 seconds uh ks of material or a billion dollar of material was sold just on Amazon. So 27:25 27 minutes, 25 seconds uh this year at least in our portfolio uh we have right now two brands uh cyber 27:32 27 minutes, 32 seconds power and honey well cyber power is a TV and cyber power is also started giving result because of government's push on 27:41 27 minutes, 41 seconds the orange economy and the AVGC the new term which the government coined AVGC 27:46 27 minutes, 46 seconds community that's the uh audio visual games and comics community where the government thinks they can at least 27:55 27 minutes, 55 seconds create 2 million jobs in the future. So these two brands are there plus if we are lucky to acquire a brand and then 28:03 28 minutes, 3 seconds plus the launch of OS then we will at least have four brands in the brand. 28:08 28 minutes, 8 seconds Yeah, that is great. And uh again on the like you've explained the how you're going to drive the growth of the brand 28:15 28 minutes, 15 seconds business this 1,000 cr target that you mentioned uh when do you expect to kind of reach that maybe 2 3 years down the 28:23 28 minutes, 23 seconds line and also what sort of I would say split would you have proportionately from the brand side and from the uh 28:30 28 minutes, 30 seconds market market entry side because again we have quite high margins on the brand side. So just to see how the advertise also scaling up with that. 28:41 28 minutes, 41 seconds So if you talk our vision by 2030 we want to be a 50% market entry and a 50% 28:49 28 minutes, 49 seconds brand business company whatever is the turnover right and you are smart enough to exfoliate at what we are today and if 28:59 28 minutes, 59 seconds you grow it say 25% also what would be the business that's the first thing we want to do. 29:05 29 minutes, 5 seconds Second as I told for us any brand which is not doing thousand K is not a brand so we in that space would at least 29:14 29 minutes, 14 seconds require two to three brands which are above,000 K in that right 29:20 29 minutes, 20 seconds uh in the market and specialist business also we want to have more and more 29:28 29 minutes, 28 seconds technology products where AI is a component or whether IoT is one component or whether 29:38 29 minutes, 38 seconds uh uh we are trying to uh go to data centers the digital push is there so we 29:46 29 minutes, 46 seconds should be there. So surveillance is again one category where we think uh uh 29:53 29 minutes, 53 seconds the government will never allow a foreign company to come in drones is another factor. So there also as we start working with more and more beacon 30:01 30 minutes, 1 second India companies and we start working with more and more AI technology company this I think there also the margins will 30:09 30 minutes, 9 seconds start improving plus it would also give a competitive advantage because you are not selling a product then you're 30:16 30 minutes, 16 seconds selling an appliance a product with some amount of software hardware that's so 30:24 30 minutes, 24 seconds I think uh we planned this with the team this year and similar kind of uh skill sets we 30:33 30 minutes, 33 seconds also got into the company. People who understand servers, people who understand surveillance, people who 30:40 30 minutes, 40 seconds understand AI and uh now with the operating leverage what we have and the 30:47 30 minutes, 47 seconds scale we have uh all the metrices also will start falling into place. So like your man power cost will not be about 2 30:55 30 minutes, 55 seconds 2 and a half% your purchases cost will be around 1 1.1%. 31:01 31 minutes, 1 second Your editing cost will be less than your finance cost will be less than so that will also give us a lot of cost lever. 31:11 31 minutes, 11 seconds So uh what we could do in honey say in 7 years time for our own brand we would be able to or we aspire to able to do it in 10 after four years that's the plan. 31:23 31 minutes, 23 seconds That's that is quite good and just a clarification you mentioned 12 to 13% margins in the brand is the ITA margin or the IBIT margin. 31:34 31 minutes, 34 seconds I'll ask uh Ajit to answer that because Ajit is our new CFO. She's thinking that 31:41 31 minutes, 41 seconds uh I'm taking all the questions over to you. 31:45 31 minutes, 45 seconds Yeah. So in the in the brand business we are expected to have the 13%. 31:51 31 minutes, 51 seconds Okay. And because we are in Hong Kong there is no tax. So that 13% comes the 32:00 32 minutes Okay. And uh we can scale it up to 17 to 18% once we have a,000 cr business on this side 32:08 32 minutes, 8 seconds because then what happens is your manpower cost which is 6 7% drops to say 4% 5% you get a couple of percentage 32:17 32 minutes, 17 seconds from there your marketing cost and your Amazon online cost which is close to say 16% over a period starts falling to 12 13%. 32:29 32 minutes, 29 seconds So that also gets you an advantage. Last is your supplier starts costing you a lot. So he gives you an extended credit. 32:36 32 minutes, 36 seconds So I think at thousand cr, thousand from 500 600 cr we will start any. So for example the new brand is also a part of 32:45 32 minutes, 45 seconds secured connection. We're having a business right. So uh some capital will go in building the brand but uh because 32:54 32 minutes, 54 seconds the same team is doing everything uh and uh uh you're not uh really spending a lot of money for new manpower, new 33:02 33 minutes, 2 seconds logistics and all that. You'll start seeing that in the coming days. 33:08 33 minutes, 8 seconds Okay. Thank you so much for explaining all the math. Thank you. Thank you so much. 33:13 33 minutes, 13 seconds Thank you. Participants with questions may enter star and one on your handset. 33:19 33 minutes, 19 seconds The next question is from the line of sarang and investor. Please go ahead. 33:25 33 minutes, 25 seconds Hi uh by congratulations for great set of numbers. Thank you so much. 33:32 33 minutes, 32 seconds Uh my question is around uh if you can share some of the if you can share the numbers for Honeyal uh I mean overall 33:40 33 minutes, 40 seconds brand business and within that what's Honeywell India and Honeywell uh overseas 33:47 33 minutes, 47 seconds Ajit would take that uh so yeah 33:54 33 minutes, 54 seconds brand business in uh India was 231.98 cr 34:02 34 minutes, 2 seconds and outside India was 137.63 crores total brand business we achieved 69.61 34:10 34 minutes, 10 seconds 61 crores almost 370 crores. Brand business is currently 14% uh 86% is still uh 34:19 34 minutes, 19 seconds so total brand share of brand business is 14.1% in our total quarter side of 34:26 34 minutes, 26 seconds the business and 809% market entry especially business. 34:35 34 minutes, 35 seconds Got it. Got it. No thank I think that that was our guidance was somewhere around 350 to 360. So it's good to see that numbers are kind of aligning. 34:42 34 minutes, 42 seconds Uh S your voice is not clear. S your voice was not clear. Sorry. What did you say? Is this is this better? 34:50 34 minutes, 50 seconds Yes. It's like now better. Hello. Is this better? Yes. Yes, it is better. 34:58 34 minutes, 58 seconds Okay. Yeah. No, I was saying that our guidance was around 350 to 360. So it's good to see the number. Yes. Our guidance was uh 359. So 360 K. 35:08 35 minutes, 8 seconds We did 370. 35:11 35 minutes, 11 seconds So in a certain categories we did very well on the audio category we did. 35:18 35 minutes, 18 seconds Got it. Yeah. Yeah. Uh uh also you know uh can can you talk a little bit about the receivables? I think this this quarter we had a little higher receivables. 35:28 35 minutes, 28 seconds Yeah. So the receivables has gone up from 237.76 crores to 565 crores. So if you if you 35:38 35 minutes, 38 seconds understand from the turnover point of view so that was 13.41% of turnover in the last year and now currently that is 35:45 35 minutes, 45 seconds coming around 20%. So mainly because of in the last quarter our turnover has got doubled against the same same quarter of 35:53 35 minutes, 53 seconds the last year that is 721 crores from the 393 crores and we are also getting 36:00 36 minutes into the new area of businesses like AI surveillance and data center product line where to get into the new area we 36:09 36 minutes, 9 seconds have to extend the extended credit. So this is the reason you can see our datas are little bit on the higher side 36:16 36 minutes, 16 seconds because we are settling settling down in the new businesses and that is going to get uh normalized in the in the coming days. 36:26 36 minutes, 26 seconds Got it. Got it. Okay. Uh one last question is is on that Honeywell. I know I think uh uh we we got into this 36:33 36 minutes, 33 seconds Honeywell licensing around mid of 21 and that was for five years. So that is it is coming up for renewal. 36:42 36 minutes, 42 seconds Yeah, it will come for renewal in March 2027. Okay. Okay. Got it. 36:51 36 minutes, 51 seconds Yeah. Uh that's that's all my thank you. Thank you so much. Thank you. Thank you. 36:56 36 minutes, 56 seconds Thank you. The next question is from the line of Sonia Queswani from Coherent Wealth. Please go ahead. 37:04 37 minutes, 4 seconds Hello sir. Am I audible? Yes ma'am. Please go ahead. Yes or no? Go ahead. Yeah. 37:10 37 minutes, 10 seconds Uh so congratulations on a really good set of numbers. Um I had a question on 37:17 37 minutes, 17 seconds the uh intangibles. They have increased quite a bit. Uh what what has been the reason behind it? 37:26 37 minutes, 26 seconds So to take that question. 37:34 37 minutes, 34 seconds So intangible has gone up to 4006. So that is a large expansion in terms of 37:41 37 minutes, 41 seconds the network office and everything. We have all the all the systems and all the software licenses and everything what we 37:48 37 minutes, 48 seconds have purchased. So this is the reason you are you are seeing this growth in the intangibles. 37:54 37 minutes, 54 seconds So last year what we did was we moved to a new ERP. So Microsoft uh we moved from 38:02 38 minutes, 2 seconds business uh uh we moved to Microsoft business center uh plus uh we also wanted to incorporate 38:10 38 minutes, 10 seconds uh CRM and supply chain into that. So that is one extent we also had to change 38:16 38 minutes, 16 seconds the servers and the uh license we had to increase for this. So that's the cost. 38:26 38 minutes, 26 seconds Got it. Okay. And uh I think we also opened Sonia we also opened one distribution 38:33 38 minutes, 33 seconds center in Noa and uh uh we made uh because of the honey air purifiers uh in 38:42 38 minutes, 42 seconds the season we can make uh so I think that was also yeah so the the way we explained you because we are into the new area of 38:50 38 minutes, 50 seconds businesses we are opening the new offices we have our new setup team and in in development in Delhi offices and 38:57 38 minutes, 57 seconds another say you have to spend on the intangible and new kind of software and everything. So that is that's why this expenses you are you are seeing that 39:05 39 minutes, 5 seconds this kind of understood understood. Okay, that 39:11 39 minutes, 11 seconds explains and uh on the finance cost bit if I see the debt has short-term debt 39:18 39 minutes, 18 seconds has increased to 300 crores uh in the last quarter but then if I see the finance cost has not increased as much I 39:28 39 minutes, 28 seconds mean how are we able to uh get such low interest cost on such a high amount of debt if you could just explain that. 39:37 39 minutes, 37 seconds Yeah. So if you if you see the debt so debt has increased from 69.53 cr to 83.72 39:46 39 minutes, 46 seconds cr rest of the thing 171 cr is the supply chain vendor financing for the msme payment. So that is getting 39:54 39 minutes, 54 seconds reflected in the balance sheet under the short-term debt liabilities. 40:01 40 minutes, 1 second So uh the government has introduced a platform called the threads platform where uhmemes 40:08 40 minutes, 8 seconds can be paid in 45 days uh through that platform. So that amount is close to 171 40:15 40 minutes, 15 seconds kores which get reflected as uh debt into the balance sheet. That's what a GP 40:23 40 minutes, 23 seconds this is all at uh around an interest cost of 8 8 and a half 9%. So that's why you don't see any increase in the finance. 40:34 40 minutes, 34 seconds And to answer uh your other question is you know the activity we had was in the 40:43 40 minutes, 43 seconds last quarter and the second quarter. So basically you you are seeing a 40:50 40 minutes, 50 seconds impact for around 8 months of of interest. Uh not very much. 40:58 40 minutes, 58 seconds Okay. 41:02 41 minutes, 2 seconds Okay. Uh and if you could also help me with the um revenue to break up within honey well 41:09 41 minutes, 9 seconds uh how much was IP accessibility structural cables air purifiers and audio? 41:18 41 minutes, 18 seconds Uh so Sonia from uh because we want to overall protect investors everything 41:24 41 minutes, 24 seconds from the competitive data. We said that uh we will not uh disclose numbers in 41:31 41 minutes, 31 seconds Honeywell in the four categories of accessories air purifier home audio and Honeywell networking cable. uh but we 41:39 41 minutes, 39 seconds can definitely say that uh in the air purifier and in the accessory space uh we plan to be number two and number one 41:48 41 minutes, 48 seconds in India and abroad and uh currently we are a closer number two in the research space. 42:01 42 minutes, 1 second Okay sir. Um yeah that that was my question. Thank you so much and all the best. 42:08 42 minutes, 8 seconds Thank you. 42:10 42 minutes, 10 seconds The next question is from the line of Kupa and individual investor. Please go ahead. 42:16 42 minutes, 16 seconds Um hello sir. Uh I joined late so I don't know if I'm repeating but uh I 42:24 42 minutes, 24 seconds wanted to know your uh thought process behind starting your own brand. Why now? 42:30 42 minutes, 30 seconds And like if you could give some insights on it. All right. 42:36 42 minutes, 36 seconds uh long-term your brand will always get you 42:43 42 minutes, 43 seconds uh flexibility uh get you higher uh profitability 42:50 42 minutes, 50 seconds and long-term also it will help you to grow go to countries or territories 42:58 42 minutes, 58 seconds where uh you want to go to because sometimes it happens then when it's a licensed brand you can't get to all the 43:05 43 minutes, 5 seconds charities. That's all. Uh so in the but to launch your own brand you should have 43:12 43 minutes, 12 seconds the right skill set the right uh resources and infrastructure and the right connection with the Honeywell 43:21 43 minutes, 21 seconds business and being in the market for the last 7 years we have now absolutely the right knowledge of how to build a brand. 43:32 43 minutes, 32 seconds We also have the right distributor connects across various territories. We have the right supplier connect also. 43:41 43 minutes, 41 seconds When we uh we're looking at the markets where we are present in Manila, one of the most important market in the world 43:49 43 minutes, 49 seconds is US. And in the space of consumer electronics, if you are say number one, number two in the US, then you are 43:56 43 minutes, 56 seconds number one, number two in the whole world. And if you are also a number say 12th or 14th in the US peri will be the 44:04 44 minutes, 4 seconds number one in Asia because of that. So in Honeywell's case we can't do certain 44:11 44 minutes, 11 seconds categories in the US because it is already been given to a US company. So 44:18 44 minutes, 18 seconds we said that this is the right time and brand building again we know that it's a 3 four years process. Now first one was 44:26 44 minutes, 26 seconds seven but now we think that we'll be able to do in a three and a half and four years. So launching it now and while Honeywell is scaling up we can 44:35 44 minutes, 35 seconds slowly scale this up also and it becomes better. Second it also helps us to protect our own brand. For example, 44:43 44 minutes, 43 seconds today air purifier is a buzz word category today. Uh data center is a buzz word. So a lot of brands from abroad 44:52 44 minutes, 52 seconds want to enter India and into the territories where we are right. So if you have your two brands then obviously 44:59 44 minutes, 59 seconds you can defend the two brands uh on the marketplace uh better than having just one brand. So that's uh one part of it. 45:09 45 minutes, 9 seconds Second uh uh your messaging right. So uh we want uh 45:17 45 minutes, 17 seconds the messaging to have flexibility on a messaging flexibility on the kind of influencers we can use for video because 45:26 45 minutes, 26 seconds now brands are being first built by influencers and online and then they come to the uh real world. So 45:35 45 minutes, 35 seconds uh that flexibility we get with the world. Third is for example we have been 45:42 45 minutes, 42 seconds spending so last year we would have spent close to 32 to 33 crores on 45:49 45 minutes, 49 seconds marketing and uh of the Honeywell brand right which finally uh in terms of profitability you still 45:58 45 minutes, 58 seconds can uh get advantage because Honeywell gets you that premium but you will never uh be able to 46:06 46 minutes, 6 seconds use their marketing because that's not for your own brand. So as we will spend marketing money to build this brand, we 46:14 46 minutes, 14 seconds have that advantage. Lastly, air purifier is a newer category. Still there are not leaders in that market. So 46:22 46 minutes, 22 seconds before a category gets associated with the brand, if our brand can take that space into the consumer mindset, it 46:30 46 minutes, 30 seconds would be better. So that's the space. Uh so that's why we internally talked about it and we categorically uh 46:40 46 minutes, 40 seconds created our brand in a way that it will not eat anyway into the honey well share but it will help us to take market share 46:48 46 minutes, 48 seconds and also it will help us to grow the market. I hope I have answered your question well. 46:54 46 minutes, 54 seconds Yes sir. Thank you so much. And the other thing was the kind of capital that will be needed to build your own brand. 47:03 47 minutes, 3 seconds Yes. So except the inventory we will not require any other because the same team is uh building that and I think uh over 47:12 47 minutes, 12 seconds a period of time u we'll get an advantage because we'll become a strategic company for a lot of uh 47:20 47 minutes, 20 seconds contract manufacturer because two brands are coming out of them. So except the working capital uh we don't think we'll 47:28 47 minutes, 28 seconds require any money. Yes, we'll require at least 10 to 12 crores in uh marketing initially but I think the balance sheet 47:36 47 minutes, 36 seconds can easily support that in the next 12 to 14 months period. This is also one of our learning that you go aggressive on 47:45 47 minutes, 45 seconds marketing initially because you build a pace on on that base you can grow faster than wait for a period of time. 47:54 47 minutes, 54 seconds Okay. Okay. So, thank you so much. Thank you. Thank you. 47:59 47 minutes, 59 seconds Participants if you have any questions at this time you may enter star and one on your handset. 48:05 48 minutes, 5 seconds The next question is from the line of Chandra and individual investor. Please go ahead. Yeah I'm audible. 48:13 48 minutes, 13 seconds Yes sir. Mr. Chandra you are audible. 48:16 48 minutes, 16 seconds Sir Mr. How much do you see the brand business going next two years for 27 and 28? 48:25 48 minutes, 25 seconds All right. So our aspiration is that uh the brand business should at least grow 48:32 48 minutes, 32 seconds uh between 50 to 60% uh every year and the new brand should also add a little bit what we are doing there because the 48:41 48 minutes, 41 seconds base is smaller in the categories what we are if you see the market say for just audio is close 48:48 48 minutes, 48 seconds to 25,000 in India and abroad is separate audio the market for air purify is 3,000 in Kodi in India and abroad is 48:57 48 minutes, 57 seconds suffering audio for the market for V or data center cables is close to 4,000 K 49:05 49 minutes, 5 seconds in India uh one of our uh another networking company which is also listed there 49:12 49 minutes, 12 seconds almost 1200 K of cables only so there is a huge market only uh which we can 49:19 49 minutes, 19 seconds address in this case uh only the wisest time is required is to build that brand 49:25 49 minutes, 25 seconds confidence uh into the people that so uh we have uh aggressive plans uh to at 49:34 49 minutes, 34 seconds least uh uh grow in the brand space also by 50%. Yes. 49:40 49 minutes, 40 seconds Yeah. This question was by M you are guided for 50 to 60% but due to this Middle East war so can we you are 49:50 49 minutes, 50 seconds confident that it will be growing at 50% still on 49:57 49 minutes, 57 seconds middle east war can definitely affect uh the brand business because lot of our business is is in middle east for honey. 50:07 50 minutes, 7 seconds So if the supply chain does not get restored faster, it can get uh affected 50:15 50 minutes, 15 seconds in that space. But uh because we are launching our own brand also and that's not Middle East, that's US and India. 50:25 50 minutes, 25 seconds So I think that will help. So for us uh Chandra what happens is usually uh you have a plan A that you want to grow this 50:33 50 minutes, 33 seconds brand you have plan B that you want to uh grow your uh uh own brand and plan C is to acquire a 50:42 50 minutes, 42 seconds brand. So any one plan uh hits the nail you will exactly get where 50:49 50 minutes, 49 seconds you want to be. So there is a lot of margin built in I think. Uh but territory wise Middle East can become a 50:58 50 minutes, 58 seconds problem because of the war. Raw material cost can become the biggest problem because of the war. And third is the 51:06 51 minutes, 6 seconds logistics cost also can become so you may grow but your margins will lower for that year for sure because a consumer 51:14 51 minutes, 14 seconds cannot digest 30 40% price right. 51:18 51 minutes, 18 seconds Yeah. And uh can you help me out regarding the huge increase in trade receivable can how can it will be reduced going forward? 51:29 51 minutes, 29 seconds Yeah. 51:32 51 minutes, 32 seconds So I had explained you the datas has gone up from 237.76 cr to 565.11 cr. 51:42 51 minutes, 42 seconds That is coming 13.4% 4% last year of turnover to 21% current year of turnover. Our turnover has gone up by 50%. 51:51 51 minutes, 51 seconds In the last quarter we did the 100% growth in our revenue as compared to last quarter. So that is getting 51:58 51 minutes, 58 seconds converted into receivables and another area is the new create new kind of businesses what we are getting into in the AI data center and surveillance 52:07 52 minutes, 7 seconds product where little bit of extended credit we have to extend to the to the customer. So that is the new territory 52:15 52 minutes, 15 seconds we are getting into new set of businesses we have started. So extended that is going to get settled on in the going forward. So we are very confident 52:24 52 minutes, 24 seconds that later days and later is going to reduce in coming days. 52:28 52 minutes, 28 seconds Yeah in the coming days going forward will be get reduced. 52:35 52 minutes, 35 seconds So yeah thank you. 52:41 52 minutes, 41 seconds The next question is from the line of Tanme from Shine Star Build Cap. Please go ahead. Hello. Am I audible? 52:50 52 minutes, 50 seconds Yes sir. Please go ahead. 52:51 52 minutes, 51 seconds So first of all congratulations on a very healthy set of numbers for the full year. uh so while going through your investor presentation I'm seeing you 52:59 52 minutes, 59 seconds know a lot of uh traction given on the surveillance part and also there have been few hints given that we're looking to you know sort of work with different 53:07 53 minutes, 7 seconds brands or you know uh increase our portfolio more in the surveillance part. 53:11 53 minutes, 11 seconds So any sorts of of strategies do we have to acquire any kind of a brand or a company or what kind of a strategy we 53:19 53 minutes, 19 seconds are looking to increase that as a share of our whole portfolio. 53:23 53 minutes, 23 seconds So I'll just elaborately answer so everyone can also get benefit. 53:29 53 minutes, 29 seconds Our prime minister Mantri Sri Narendra Modi when we had this make in India initiative right I 53:37 53 minutes, 37 seconds mean in making India we started with electronics it was TV mobile consumer goods right and then it went to 53:44 53 minutes, 44 seconds surveillance and other products. We as a company feel that there are three or four categories 53:51 53 minutes, 51 seconds where we will never have any company from abroad coming to India or any player from outside will get an 54:00 54 minutes opportunity. One is surveillance because it's uh uh case of national security. 54:07 54 minutes, 7 seconds Second is drone also. Similarly it goes in defense. It also is a case of national security. The government is 54:15 54 minutes, 15 seconds really pushing very much on digital. So with the help of AI data centers, we will be able to do 54:23 54 minutes, 23 seconds that. That's the way. So we decided that if we want to really work with Indian companies on making India and we want to 54:31 54 minutes, 31 seconds have our own brand, we should target the surveillance. 54:36 54 minutes, 36 seconds Now we also have that because of AI cameras are no longer just uh video capturing device. They are actually data 54:45 54 minutes, 45 seconds collection device and the normal camera after having uh say AI GPU on its back 54:54 54 minutes, 54 seconds end can actually do a lot of health and safety monitoring. It can do audit. It can do a lot of other stuff. So as a 55:02 55 minutes, 2 seconds company we said that because we have a lot of AI partners who buy uh our cyber power PCs we get access to their 55:11 55 minutes, 11 seconds solution and we have a lot of camera companies whom we are partners matrix first uh we get inquiry from customer 55:20 55 minutes, 20 seconds for camera and then we understand their solution and pitch our partner solution. 55:25 55 minutes, 25 seconds So that's the space we think uh is a very protected space from outside from different companies. So surveillance 55:33 55 minutes, 33 seconds makes a course. Now when you are when you want to enter any new business uh 55:40 55 minutes, 40 seconds you require a right skill set to run that business. We are looking at if in 55:46 55 minutes, 46 seconds the surveillance space and in the surveillance AI space if we can acquire a company which has a brand and which 55:54 55 minutes, 54 seconds has certain amount of SI and certain amount of sales that it produces. So we 56:00 56 minutes are uh actively looking at uh that space and in that space over a period of time 56:08 56 minutes, 8 seconds uh we think will lot of growth will come. That's what we thank you sir for answering that and my 56:17 56 minutes, 17 seconds second question would be as we are seeing you know lot of issues towards the middle east concerns and also we anticipate some kind of an inventory 56:24 56 minutes, 24 seconds going uh spiking up and also lot of marketing initiatives and distribution initiatives coming up. So are we uh in 56:32 56 minutes, 32 seconds talks for any sort of a fund raise because I believe uh the cash on the balance sheet and the debt enablement would not let us go beyond the limit. So 56:40 56 minutes, 40 seconds any sorts of plans on raising any sorts of funds? 56:45 56 minutes, 45 seconds So currently we think uh uh through debt and internal appurials we will be able to look at uh the working capital for 56:55 56 minutes, 55 seconds the next 15 months for sure. If there's a large opportunity which comes in 57:00 57 minutes exhibition or company it is uh at least uh 57:08 57 minutes, 8 seconds 30% of our size and if you look at that kind of acquisition then only we'll require money otherwise uh banks and uh 57:18 57 minutes, 18 seconds NBFCs are quite supportive on your working capital. So if the capital expenditure has to be done say in 57:25 57 minutes, 25 seconds acquisition of a brand or something then only we will look for a fun but for the working capital cycle I think uh we'll be able to manage it through the bank. 57:39 57 minutes, 39 seconds Got it sir. Thank you for answering the questions. Thank you so much. 57:42 57 minutes, 42 seconds Thank you. The next question is from the line of Shans Jen from Swan Investments. Please go ahead. 57:50 57 minutes, 50 seconds Hello. Congratulations uh on a good set of numbers sir. Uh my uh question is uh when you're guiding for 50 60% of growth 57:58 57 minutes, 58 seconds in the branded business. Uh what kind of growth uh are we kind of building in the Honeywell piece because uh you'll also 58:05 58 minutes, 5 seconds add your own uh uh own brand also we have the uh the camera business that will come in this piece as well. So 58:14 58 minutes, 14 seconds ideally what kind of growth rates are we working with for Honeywell piece of business? 58:20 58 minutes, 20 seconds So friends, thank you so much for being on this call. uh in the honey space uh 58:27 58 minutes, 27 seconds we are also looking to grow the business at least by 40 50% because there's a 58:33 58 minutes, 33 seconds large opportunity in that space and uh that uh category can be really driven by 58:41 58 minutes, 41 seconds accessories that is our electronic expenses category uh air purifier and the Honeywell data 58:49 58 minutes, 49 seconds center solution. So these three we will definitely uh look at that too. When we 58:55 58 minutes, 55 seconds come to our own brand business uh it's a new launch so we understand it will take another 8 months or 9 months for the brand to get it and into that category. 59:07 59 minutes, 7 seconds But that will help us to uh US definitely will be a newer business. So it can definitely add to whatever we are 59:16 59 minutes, 16 seconds doing in India space. uh that business uh whatever uh we will add as a turnover 59:24 59 minutes, 24 seconds will become the brand turnover because there is no base into that. So to answer your question, Honeywell will keep 59:31 59 minutes, 31 seconds looking at uh growing at 50% because that brand resonance and the brand acceptance among the consumers is uh 59:39 59 minutes, 39 seconds very very well. So that we will uh try to grow at least by 50% this year also. 59:48 59 minutes, 48 seconds Got it. And uh just last question on this piece again. Uh so your own uh surveillance as well as your own brand 59:55 59 minutes, 55 seconds should ideally do 100 uh 120 odd crores going forward uh in FI27. 1:00:04 1 hour, 4 seconds I cannot say FY27 but I can say that if we get full 14 months or 12 months for 1:00:11 1 hour, 11 seconds after we get a brand uh yes uh between 80 to 100 K is definitely is possible 1:00:19 1 hour, 19 seconds and I'll break it up for you because if you look at as a surveillance business we think that if we get a business which 1:00:26 1 hour, 26 seconds is already running then we could uh with our cash flows and with our team which 1:00:33 1 hour, 33 seconds is already selling uh metric which is already selling dawa which is already selling spur in the which is already 1:00:42 1 hour, 42 seconds selling honey well data cables honey surveillance cables honey signal cables into the same category so the same team 1:00:50 1 hour, 50 seconds will be able to go there so for example I'm just saying if that company is doing say 5 cr we think we will be easily able 1:00:57 1 hour, 57 seconds to take it to say 10 crores in a year the same company if we get it that's In our brand space our only thought is 1:01:06 1 hour, 1 minute, 6 seconds that whatever we did in honey well say in air if we can do 25 30% of that also 1:01:13 1 hour, 1 minute, 13 seconds it will be significant uh uh business say it will be at least 25 30 cr for 1:01:19 1 hour, 1 minute, 19 seconds sure so if we get the full 12 months so if we say talk from this May to next May 1:01:27 1 hour, 1 minute, 27 seconds uh and we get the surveillance also then the it is easily possible ble to get 1,800 crores. And this time also the 1:01:35 1 hour, 1 minute, 35 seconds advantage will be that we don't have to really invest a lot of money because the same teams are doing the same 1:01:43 1 hour, 1 minute, 43 seconds surveillance team is trying to do uh we do the new brand of surveillance we get 1:01:50 1 hour, 1 minute, 50 seconds and the same Honeywell team will do the new brand business we get. That's okay. 1:01:55 1 hour, 1 minute, 55 seconds only the product uh guys for both the team part. 1:02:05 1 hour, 2 minutes, 5 seconds Got it sir. Thanks and all the best. Thank you so much. 1:02:11 1 hour, 2 minutes, 11 seconds The next question is from the line of Bhat Agarwal an individual investor. Please go ahead. 1:02:17 1 hour, 2 minutes, 17 seconds Uh thank you for the opportunity. Uh my question is regarding receivable days. 1:02:22 1 hour, 2 minutes, 22 seconds uh so as a percentage of turnover we have just 20%. Which is quite high from the previous year which I think it was 1:02:28 1 hour, 2 minutes, 28 seconds 13% previous year. So going forward in FI27 so will this number remain as high as 20% or like what is the expectation of the company to bring this number down? 1:02:41 1 hour, 2 minutes, 41 seconds No no it should fall back to the original number. This is two things. one is because it's also a part of March 1:02:48 1 hour, 2 minutes, 48 seconds where we did 700 uh crores in sales plus our average uh receivables is close to 1:02:56 1 hour, 2 minutes, 56 seconds 48 to 50 days. So you get the February which is 28 days and uh then the March uh turnover which gets there. So in May 1:03:05 1 hour, 3 minutes, 5 seconds it has come down. Uh I will also agree that uh we have to do a better job in 1:03:11 1 hour, 3 minutes, 11 seconds the data receivable debt and uh uh uh with our CFO we will really work to get it back to the normal 13 14%. 1:03:22 1 hour, 3 minutes, 22 seconds And so uh your debt level will not like the debt level currently has increased a lot uh including the treads debt. So that will also reduce because the receivable days will reduce. 1:03:33 1 hour, 3 minutes, 33 seconds Two things is there. One is the trad has become a very important platform for the MSME and the government norm says that 1:03:42 1 hour, 3 minutes, 42 seconds all MSMES have to be paid in 45 days. Uh if you see at our business we used to deal with all MNC companies only for a 1:03:51 1 hour, 3 minutes, 51 seconds large period of time. Now when surveillance has come and only surveillance make in India companies can be there in drone tech also make in 1:03:59 1 hour, 3 minutes, 59 seconds India companies can be there that's why the treasure is coming. So if you think uh the uh so the uh 1:04:08 1 hour, 4 minutes, 8 seconds supply credit is almost up to 171 uh if you could in the 1:04:16 1 hour, 4 minutes, 16 seconds and uh this uh by threads if we remove that then we are doing a better job I'll 1:04:24 1 hour, 4 minutes, 24 seconds just so if you see the debt level other than the uh trade supply chain finance that 1:04:30 1 hour, 4 minutes, 30 seconds has gone up from 69.53 share to 83.72 shares. So that only increased by 14 crores. Again the increase of turnover of 50 crores 50%. 1:04:42 1 hour, 4 minutes, 42 seconds So this is 171 cr is the supply chain finances that is in the short-term loans. So that is going to get normalized once our receivables are also 1:04:50 1 hour, 4 minutes, 50 seconds going to get normalized in the coming days. 1:04:54 1 hour, 4 minutes, 54 seconds And sir uh my next question is regarding the license renewal of honey. So uh how confident are you to get this renewal? 1:05:05 1 hour, 5 minutes, 5 seconds So Honeywell over a period of time their average licenses are all 20 to 23 years 1:05:12 1 hour, 5 minutes, 12 seconds plus. Honeywell has a very small team of four people who do the licensing business but they get a large revenue 1:05:20 1 hour, 5 minutes, 20 seconds into that. So we are very sure that the Honeywell license will get renewed after March 27. 1:05:28 1 hour, 5 minutes, 28 seconds Anal themselves are also now splitting into five companies of their own. So the 1:05:36 1 hour, 5 minutes, 36 seconds aerodyin is separating the building materials uh building division uh animal 1:05:42 1 hour, 5 minutes, 42 seconds building solutions is separating the uh productivity division is separating and the materials division is 1:05:50 1 hour, 5 minutes, 50 seconds separating. uh two companies have separated two will separate by this uh July August. Once that clarity is there 1:05:59 1 hour, 5 minutes, 59 seconds then uh in whichever the trademark licensing business will follow they will start initiating the uh renewal for the 1:06:08 1 hour, 6 minutes, 8 seconds next five years. So currently we are very confident that it will one last question from my side. So uh 1:06:15 1 hour, 6 minutes, 15 seconds currently in Q4 FI26 the brand business has seen a decline. 1:06:19 1 hour, 6 minutes, 19 seconds I think you mentioned earlier that it was due to middle uh situation. So uh uh uh what would be the possible impact of this middle east situation if you can quantify? 1:06:30 1 hour, 6 minutes, 30 seconds Okay. So for example uh India business is 231 crores and uh outside uh India 1:06:39 1 hour, 6 minutes, 39 seconds business is 137 crores. outside India business is again divided 5050% between 1:06:46 1 hour, 6 minutes, 46 seconds Southeast Asia and Middle East. Uh in Middle East uh because ships are not 1:06:54 1 hour, 6 minutes, 54 seconds moving and with air we cannot send anything plus there is a 1:07:02 1 hour, 7 minutes, 2 seconds problem so we have to send material through Red Sea. The freight is much higher. So if the material does not 1:07:10 1 hour, 7 minutes, 10 seconds start moving there then we will definitely have a problem in this quarter. If people start accepting the 1:07:17 1 hour, 7 minutes, 17 seconds higher rate also from red sea then but to give you a fall figure it's a chance 1:07:24 1 hour, 7 minutes, 24 seconds that we could do only 50% of our business what we are doing currently. So roughly I think as a company we have sat 1:07:32 1 hour, 7 minutes, 32 seconds in measures that we will start improving the we focus on the Southeast Asia business more this year so we can really 1:07:40 1 hour, 7 minutes, 40 seconds grow that business. Understood sir unders. Thank you. That's it from my sir. 1:07:47 1 hour, 7 minutes, 47 seconds Thank you ladies and gentlemen. With that we'll take that as the last and final question. I now request Mr. Kaitan Patel, chairman and managing director of 1:07:56 1 hour, 7 minutes, 56 seconds Creative New Techch Limited to address us with the closing thoughts. 1:08:05 1 hour, 8 minutes, 5 seconds Thank you once again to everyone who joined us today. Creative New Tech closes FY26 with stronger momentum, 1:08:13 1 hour, 8 minutes, 13 seconds wider markets and a clearer path for the future. Our focus is now built on this progress 1:08:21 1 hour, 8 minutes, 21 seconds with discipline, speed and responsibility. We value the confidence placed in us by our shareholders, our 1:08:29 1 hour, 8 minutes, 29 seconds partners, customers and teams. For any further queries, please contact star consultant or reach out to us directly. 1:08:39 1 hour, 8 minutes, 39 seconds Thank you so much. 1:08:41 1 hour, 8 minutes, 41 seconds Thank you very much, sir. On behalf of the entire team at Creative New Techch Limited, thank you for being with us today. We truly value your time and 1:08:50 1 hour, 8 minutes, 50 seconds engagement. The conference has now concluded and you may now disconnect your lines. Thank you. Thank you. and cure.