Cyient Limited — Q2 FY26

Cyient Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=epDP4fQldII Published: 7 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Scient Limiteds Q2 FY26 earnings conference call. As a reminder, 0:10 10 seconds all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:18 18 seconds you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. 0:29 29 seconds I now hand the conference over to Mr. 0:31 31 seconds Krishna Bodhanapu, executive vice chairman and managing director. Thank you and over to you sir. 0:39 39 seconds Thank you very much and good evening ladies and gentlemen. Welcome to Scient Limited's earnings call for the second quarter of financial year 26. I'm 0:47 47 seconds Krishna Bodhanapu, executive vice chairman and managing director. And present with me on this call are Sukumal Banerjee, executive director and CEO and Prabakar Atla, president and CFO. 1:01 1 minute, 1 second I would like to mention that some of the statements made today in the discussions may be forward-looking in nature and may 1:08 1 minute, 8 seconds involve risks and uncertainties. A detailed statement in this regard is available on our investor website which 1:16 1 minute, 16 seconds has been emailed to you and is also posted on our corporate website. 1:21 1 minute, 21 seconds This call will be accompanied by an earnings call presentation the details of which have already been shared with you. 1:30 1 minute, 30 seconds As of beginning of this financial year, we are reporting group performance under four segments. D which now excludes our 1:38 1 minute, 38 seconds semiconductor business semiconductor and others. The focus of this call remains the D segment and to 1:46 1 minute, 46 seconds that extent all numbers for D segment are like for like for the previous period which means that these numbers are restated to exclude our 1:55 1 minute, 55 seconds semiconductor business and the group numbers will include performance of all four segments. 2:04 2 minutes, 4 seconds We have a slightly longer session today and thank you for accommodating our request for this session. We wanted to do this because we want to cover a few 2:13 2 minutes, 13 seconds important group updates in greater detail particularly as regards to semiconductor to provide you with a comprehensive overview of our strategy 2:22 2 minutes, 22 seconds performance and growth outlook for the sector. Also over the last two quarters Sukum has brought in a significant 2:30 2 minutes, 30 seconds positive momentum and sharpened our focus on key strategic priorities. 2:35 2 minutes, 35 seconds You will hear from him on some of these key initiatives that he has taken and his perspective on the growth 2:42 2 minutes, 42 seconds opportunities that lie ahead for D and how he is looking to restruct how he's looking to structure and grow the 2:50 2 minutes, 50 seconds business both on a revenue front margin front and also in terms of our capabilities. 2:57 2 minutes, 57 seconds Coming to the group's update in Q1 we carved out our semiconductor business science semiconductor with a mission to 3:06 3 minutes, 6 seconds design and deliver intelligent efficient and secure semiconductor solutions that power the world's next generations of 3:13 3 minutes, 13 seconds systems data centers humanoids industrial automation and electric mobility being some of the examples that 3:20 3 minutes, 20 seconds we're focused on. We offer turnkey i.e end to end concept of silicon service covering architecture design 3:28 3 minutes, 28 seconds verification prototyping and production enablement. We are supported by a robust supply chain which includes foundaries 3:36 3 minutes, 36 seconds i.e. the production houses OSA partners i.e the the um test and packaging partners and test houses in 3:45 3 minutes, 45 seconds India and abroad. The opportunity here is to create a DM DLM like story for science shareholders through science semiconductors. 3:55 3 minutes, 55 seconds Our growth momentum in this business looks very positive and I'm pleased to announce that we have delivered a strong rebound in Q2 with a 12% 4:04 4 minutes, 4 seconds quarteronquarter growth in revenue reflecting a renewed focus on execution and customer momentum. 4:12 4 minutes, 12 seconds This followed a challenge in Q1 where revenues declined 35% quarteron quarter owing to our strategic choices to exit 4:20 4 minutes, 20 seconds low value deals, non-strategic deals and also market factors like trade winds sorry trade tensions and tariffs. 4:29 4 minutes, 29 seconds With these headwinds behind us, we are now building the business back on a stronger, more sustainable foundation, 4:36 4 minutes, 36 seconds positioning science semiconductor for steady growth in the coming quarters. 4:41 4 minutes, 41 seconds We're also seeing order intake rebound to previous year levels with ASIC, that is the turnkey end-to-end solution, now 4:49 4 minutes, 49 seconds contributing to 66% of the business and a $100 million pipeline plus for the 4:56 4 minutes, 56 seconds year. Although we reported negative EBIT EBIT this quarter and this was primarily driven due to revenue absorption but 5:04 5 minutes, 4 seconds more importantly our ongoing investments both in sales and R&D i.e. creation of IP that can be reused and resold. We 5:13 5 minutes, 13 seconds expect the business to stabilize our burn by next quarter and we will become EBIT neutral sometime in FY27. 5:22 5 minutes, 22 seconds Our confidence is driven not only by the current performance but by strong underlying momentum and qualitative 5:29 5 minutes, 29 seconds gains that are not fully reflected in the numbers. We have significantly strengthened our semiconductor ecosystem 5:36 5 minutes, 36 seconds expanding strategic alliances and partnerships with companies such as global foundaries, Anora and myth, which 5:44 5 minutes, 44 seconds enhance our design to manufacturing capabilities and ensure supply chain resilience across technologies and geographies. 5:53 5 minutes, 53 seconds At the same time we have brought on board a number of seasoned industry leaders from companies like Navatas, 6:00 6 minutes Algro, Cadence, Amcor, Karim etc. whose expertise and strategic insight add depth and credibility to our vision of 6:10 6 minutes, 10 seconds building a worldclass semiconductor company from India. Complementing this, we continue to attract top tier talent 6:17 6 minutes, 17 seconds across design, operations, and supply chain, creating a highc caliber team fully aligned with our mission to establish a globally competitive, innovationdriven semiconductor business. 6:30 6 minutes, 30 seconds This sustained focus and strategic execution has been recognized through our selection among the top three of the 6:39 6 minutes, 39 seconds 28 winners for the government of India's semiconductor complex modernization program underscoring our technical depth 6:47 6 minutes, 47 seconds execution capability and national relevance. Looking ahead, the key markets to watch in the near term or the 6:54 6 minutes, 54 seconds key marketers to watch in the near term are consistent growth in revenue for the next four to five quarters, a revenue 7:02 7 minutes, 2 seconds run rate of $50 million and an AC pipeline of $und00 million by the end of FY27 7:10 7 minutes, 10 seconds apart from becoming a bit neutral in FY27. I want to reiterate given that this month we have invested quite 7:18 7 minutes, 18 seconds significantly in Q1 and Q2 in this business that we will pay EPIT neutral in FY27 7:25 7 minutes, 25 seconds and the maximum organic investment towards building this business will be $15 million and again that will that 7:32 7 minutes, 32 seconds will be consumed in FI26 and in some part of FI27 because net net for 27 we 7:39 7 minutes, 39 seconds will be a bit neutral as we continue to invest and scale the the AS6 solutions business. We expect 7:48 7 minutes, 48 seconds this growth trajectory to evolve substantially. Historically, turnkey ASC companies have commanded 7:55 7 minutes, 55 seconds valuation multiples nearly three times those of semiconductor services firms. 8:01 8 minutes, 1 second And as we gain ownership and control over IP, these multiples increase even further. This is a trend that's well 8:09 8 minutes, 9 seconds established in developed markets and one that I see shaping well here and therefore I want to reiterate that we 8:16 8 minutes, 16 seconds have the opportunity to create a DLM like situation here. I'm personally excited about the business prospect especially given that semiconductors are 8:26 8 minutes, 26 seconds at an evolving stage or a maturing stage in India with 20% of the world's design talent and no standalone semiconductor 8:34 8 minutes, 34 seconds companies from India. I look forward to your continued support in this very very important endeavor for science. 8:43 8 minutes, 43 seconds If I may take a moment on DM, as you know, scient owns 52 plus% of DM. Um, 8:50 8 minutes, 50 seconds I'm also pleased to announce that our business has demonstrated substantial increase and sustained positive momentum 8:57 8 minutes, 57 seconds across key performance indicators such as order intake, revenue, margin, and cash flow. We added two new logos, both 9:05 9 minutes, 5 seconds very significant, reported 130% year-on-year growth in order intake for H1 and a much stronger revenue mix, which resulted in double digits margins. 9:16 9 minutes, 16 seconds I'm confident that we will sustain these margins going forward. Our designled manufacturing proposition is resonating 9:24 9 minutes, 24 seconds well with customers and we've secured a large multi-year B2S deal with the Japanese EV tall company for design and 9:32 9 minutes, 32 seconds manufacturer of parts for flight control systems. We continue to expand into new market segments such as sustainable 9:41 9 minutes, 41 seconds mobility and in that regard have been awarded a multi-year manufacturing contract for electric charging systems. 9:49 9 minutes, 49 seconds These strategic wins reflect our commitment and focus on tapping into the growth potential of emerging sectors. 9:57 9 minutes, 57 seconds Also, this period of tariff uncertainty has given us a unique opportunity to maximize the impact of our US operations 10:05 10 minutes, 5 seconds for our clients. We are excited about the opportunities on the horizon and anticipate that the second half of the 10:12 10 minutes, 12 seconds year will see further acceleration in growth. 10:17 10 minutes, 17 seconds I also would like to take a moment to talk about science AI labs given that building a skills ready India for erd 10:25 10 minutes, 25 seconds and technology sectors has been a strategic priority for science in this spirit we launched AI STEM and robotics 10:32 10 minutes, 32 seconds labs in 50 government schools in Vishakapatnam and Pradesh empowering over 2500 students the initiative brings 10:40 10 minutes, 40 seconds cutting edge tools and hands-on learning experience to students fostering innovation future future readiness and 10:48 10 minutes, 48 seconds hopefully helping us build a robust workforce for the future. 10:53 10 minutes, 53 seconds I'm also pleased to report that the board has declared an interim dividend of rupees 16 which is higher than any 11:02 11 minutes, 2 seconds other interim dividend we have given in the past. The board deliberated quite a bit on this but was very confident on 11:09 11 minutes, 9 seconds the growth pro prospects and the cash flow generation for the D business. To signal this confidence and reiterate their support and commitment in the 11:18 11 minutes, 18 seconds management, the board also wanted to to declare the highest ever interim dividend to support the confidence that 11:26 11 minutes, 26 seconds the business has for growth going forward. 11:30 11 minutes, 30 seconds With this I will hand over to Sukumal who will take you through some of the key initiatives underway and the business performance for the quarter. 11:39 11 minutes, 39 seconds Sukum. 11:41 11 minutes, 41 seconds Thank you. Thank you Krishna. Uh good afternoon everyone and thank you again for joining our Q2 FI26 earnings call. 11:50 11 minutes, 50 seconds Uh today I will share my thoughts around personally the views and assessment of on science our focus and priorities and 11:59 11 minutes, 59 seconds some initiatives that we have launched and close with the business performance for Q2. 12:05 12 minutes, 5 seconds As I conclude two quarters at science, I thought it would be prudent for me to communicate to you my impressions of 12:13 12 minutes, 13 seconds science and our thoughts and how we are looking for a very exciting future ahead for all of us at science. 12:22 12 minutes, 22 seconds The last few months have been a revelation of our enviable strength at science and the sheer excellence we bring to the 12:31 12 minutes, 31 seconds table every day uh with a quiet resolve to help our customers do better. Despite 12:39 12 minutes, 39 seconds various macroeconomic and geopolitical uncertainties that continue to prevail, we have been focused with a strong sense of resilience and perseverance. 12:49 12 minutes, 49 seconds Like I mentioned in Q4 uh FI25 investor call, we need to enter a phase of stabilization. 12:57 12 minutes, 57 seconds I believe we are now over that phase. 13:01 13 minutes, 1 second The results have been strong moving from a revenue degrowth of 1.9% in Q4 of FI25 13:09 13 minutes, 9 seconds to a degrowth of 1.5% in Q1 of FI26 to a growth of.5% 13:17 13 minutes, 17 seconds in Q2 of this which is the previous quarter in constant currency terms. 13:23 13 minutes, 23 seconds We'll speak more about this later in in the call as I go more into more details of the Q2 reform 13:32 13 minutes, 32 seconds to talk about the six month uh perspectives and initiatives taken. Let me start by calling out some of science 13:39 13 minutes, 39 seconds clear strength. First the injuring DNA and the sole focus on injury. From day 13:46 13 minutes, 46 seconds one of my interactions, I have felt a deep pride in science engineering heritage. With over 30 years of solving 13:54 13 minutes, 54 seconds complex engineing challenges across the globe, our expertise across core domains is both rich and enduring. From my 14:03 14 minutes, 3 seconds experience and vantage point, I can say there is a clear differentiation here. 14:09 14 minutes, 9 seconds For example, the design and injuring of jet engines where sign contributes to more than half of the engineing outcome 14:17 14 minutes, 17 seconds which by the time we are done with this call will power 250 takeoffs and with nearly 50,000 passengers 14:26 14 minutes, 26 seconds um is a testament to the safety criticality work that we do. We've designed scores of full scope power 14:33 14 minutes, 33 seconds plants across fuel categories be fossil fuel, nuclear, hydrogen and increasingly looking at newer areas like 14:42 14 minutes, 42 seconds ammonia to cater to the everinccreasing energy demands across the globe especially driven now by AI data centers. 14:51 14 minutes, 51 seconds Over the last two decades, we have helped half of the world's population. 14:56 14 minutes, 56 seconds Yes, that's half of the world's population connect and communicate through our network solutions across spectrums and technologies. That is a 15:05 15 minutes, 5 seconds very enviable set of credentials to replicate which comes from decades of engineering activity. In short, a rich 15:13 15 minutes, 13 seconds and global expertise across the value chain of products, plants and networks. 15:20 15 minutes, 20 seconds If I touch on customer relationships, in my last two quarters, I met hundreds of signed customers. One common standout 15:29 15 minutes, 29 seconds theme is the praise for our customer centricity and our strategic commitment through their upcycles and down cycles. 15:37 15 minutes, 37 seconds Further, we are also recognized by many as a benchmark for excellence. In simple terms, scan enjoys a true partner status in our customers mind share. 15:49 15 minutes, 49 seconds From my 30 odd years of experience in the IT and engineing industry of having built large businesses across the globe, 15:57 15 minutes, 57 seconds I can vouch that this is a very powerful trust that science can harness to build for the future. 16:05 16 minutes, 5 seconds Delivering for the world. Scient is truly a global engineering and technology leader that has been focused 16:12 16 minutes, 12 seconds on creating value for our customers with localized proximity through global delivery centers. Over the years, 16:20 16 minutes, 20 seconds science has been carefully and consciously investing in capabilities and its presence across the globe 16:28 16 minutes, 28 seconds through our truly world-class engineing and technology solutions partner. More than 90% of our workforce across 16:35 16 minutes, 35 seconds geographies are local nationals, thus driving local agility and leadership, a cornerstone of how we are managing to 16:44 16 minutes, 44 seconds minimize execution and business risk in today's macro uncertainties. Finally, let me talk about values first. 16:52 16 minutes, 52 seconds Our foundational principles anchored in values first are not just statements. 16:57 16 minutes, 57 seconds They are lived experiences across the organization. This is demonstrated in our ability to attract senior talent from other organizations which today suffer from a deficit in this area. 17:09 17 minutes, 9 seconds Given our business is about people leadership and what they produce and what they do. I firmly believe that this 17:18 17 minutes, 18 seconds is a strength that we can harness and we can harness fully. 17:24 17 minutes, 24 seconds Of course, there are areas to work on to ensure we sustain the right to win in the market. We have to work on two 17:31 17 minutes, 31 seconds primary vectors. First, a performance culture to drive growth and predictability back into our business 17:38 17 minutes, 38 seconds and second the technology investments and adoption of the same in our business so that we can further strength our value proposition in high growth areas. 17:51 17 minutes, 51 seconds I'll talk broadly about how we are addressing the above improvement areas and our focus initiatives thereof. We 17:58 17 minutes, 58 seconds plan to host an investor day later in the QC of FI26 where I'll cover more details. But to give you a preview, let 18:06 18 minutes, 6 seconds me focus on some of the priorities of this transformation. 18:11 18 minutes, 11 seconds Our transformation agenda is anchored around three core pillars. We have launched many initiatives across these 18:18 18 minutes, 18 seconds pillars that are demonstrating good progress and results. First and foremost, marketplace impact. Second, 18:26 18 minutes, 26 seconds technology such as digital and AI, its adoption and acceleration. And third, organizational effectiveness. 18:34 18 minutes, 34 seconds From a marketplace p uh uh impact perspective, uh if I talk about go to market, we have launched a few key 18:41 18 minutes, 41 seconds initiatives. Firstly, sales and focus of sales on new business. We have streamlined sales head count and 18:48 18 minutes, 48 seconds restructured responsibilities to allow sales to focus on new business whether it's from existing customers or new 18:55 18 minutes, 55 seconds customers. While our probe and delivery engine manages our existing business and its renewals. These initiatives are 19:03 19 minutes, 3 seconds expected to yield concrete results and measurable outcomes over the next couple of quarters. But we already see early 19:11 19 minutes, 11 seconds signs and good directional indicators of sales effectiveness and its metrics. 19:17 19 minutes, 17 seconds Key account mining as I talked about our enviable portfolio of clients across the industry. 19:24 19 minutes, 24 seconds I firmly believe there remains a significant headroom for growth for us through deeper account mining cross-selling of our services from 19:33 19 minutes, 33 seconds across views and from both the core and the new offerings that we are defining under technology. We have taken specific 19:42 19 minutes, 42 seconds steps and we will continue to make some changes to bring the full impact for the fame large deals as a growth driver. This is 19:51 19 minutes, 51 seconds an area which we need to invest and ensure we can convert the trust we have earned from our customers over years and 19:59 19 minutes, 59 seconds decades into large long structured deals. We are putting together the necessary leadership in H2 of FI26 to 20:06 20 minutes, 6 seconds ensure we start seeing the results later half of FI27. Having said that, it's not that we are barren of large fields 20:14 20 minutes, 14 seconds today. Uh we will continue to enhance that and make it more structured as we go forward. 20:20 20 minutes, 20 seconds sales incentive something I touched upon in our Q1 call as well. We simplified our sales incentive policy to bring clarity and focus on parameters for 20:29 20 minutes, 29 seconds sales which should be focused on deal wins including large deals, new logo acquisitions, revenue growth and remove 20:38 20 minutes, 38 seconds several back office performance parameters from the incentive. 20:42 20 minutes, 42 seconds Performance monitoring. Our focused approach on measuring and monitoring key metrics is yielding results in the right 20:50 20 minutes, 50 seconds direction reflective in the momentum we have built over the last two quarters. 20:56 20 minutes, 56 seconds Importantly, we are seeing an increase in pipeline by about 10% quarter over quarter and a steady improvement in the 21:03 21 minutes, 3 seconds quality of our EN and NN release pipeline. We expect this to improve and stabilize by early FI27 to further build 21:12 21 minutes, 12 seconds our actions on. In fact, the EN and NN percentage of our overall order bookings 21:19 21 minutes, 19 seconds or order intake has gone up 50%. And the technology portion of our pipeline has doubled over one quarter. 21:29 21 minutes, 29 seconds The second aspect, if I may focus, technology adoption and acceleration. 21:34 21 minutes, 34 seconds Science reputation in engineering is well established. We have been managing and transforming engineering and operations data and data models for our 21:43 21 minutes, 43 seconds customers in various industries for decades now. Data quality, data maturity and most importantly the expertise to 21:51 21 minutes, 51 seconds look for appropriate data sets and parameters become extremely critical for any effective technology solution 21:58 21 minutes, 58 seconds especially AI. For this reason, customers trust science with solving their digital transformation challenges 22:06 22 minutes, 6 seconds as we understand what needs to be solved for. Many of these customers have a very complex technology debt. Again, 22:14 22 minutes, 14 seconds something we are very familiar with. I can cite a couple of recent examples. In Q1, a healthcare client selected science 22:22 22 minutes, 22 seconds to establish an AI center of excellence to test use cases across their product development, quality and regulatory 22:29 22 minutes, 29 seconds processes. This was possible because for intimate understanding of their processes, their products and data and 22:37 22 minutes, 37 seconds our innovative business model in addressing exploratory AI use cases. We are glad to say we delivered our first 22:45 22 minutes, 45 seconds set of use cases and the overall scope and hence increased to cover a potential of 200 plus use cases. Based on this 22:52 22 minutes, 52 seconds success in Q2, a major aircraft OEM chose science for digital transformation of their manufacturing plants. The 23:01 23 minutes, 1 second customers the customer was facing challenges due to multiple systems at the operations layer leading to siloed 23:09 23 minutes, 9 seconds information and no single source of truth. As a result, the ability of the support teams to make decisions was 23:17 23 minutes, 17 seconds severely hampered. Our comprehensive know of data and workflows across aircraft systems, engineing and 23:25 23 minutes, 25 seconds manufacturing workflows across the value chain positioned us to develop a more relevant and responsive datadriven intelligent solution for the customer. 23:36 23 minutes, 36 seconds This was a key reason on why they chose us over the competition which included several tier one IT players. We are also 23:44 23 minutes, 44 seconds proactively enhancing and expanding our capab across data AI and digital platforms deliberately strengthening on our domain advantage. 23:56 23 minutes, 56 seconds To scale this advantage further, we are investing further into our CTO organization to develop focused offerings, rationalize our portfolio, 24:05 24 minutes, 5 seconds build capabilities and forge strategic partnerships. 24:09 24 minutes, 9 seconds From a rationalization perspective, I had talked about the 3x3 approach uh in our earlier calls. Um we have seen good 24:17 24 minutes, 17 seconds success in both driving these three offerings enabled by three technologies and we will now start continue to build 24:25 24 minutes, 25 seconds on this um matrix to start creating new offerings and launch them to move to a 24:32 24 minutes, 32 seconds 4x3 5x3 as time comes. So sharp problem statement built on years and decades of 24:39 24 minutes, 39 seconds domain knowledge infused with modern technology. 24:43 24 minutes, 43 seconds All of this is obviously not possible without strong technology leaders. We are strengthening our techni technology capabilities to accelerate these 24:52 24 minutes, 52 seconds objectives. In Q2, we appointed a head of technology delivery to oversee all projects within our technology game 25:01 25 minutes, 1 second ensuring execution excellence. He comes with a 10-year-old engineing leadership experience from a global networking 25:09 25 minutes, 9 seconds turned hyperscaler giant and recently had work experience uh working with a global industrial player in platform 25:17 25 minutes, 17 seconds development uh across several process industries. 25:21 25 minutes, 21 seconds We are also building a team of AI architects to infuse the latest developments and expertise to power 25:28 25 minutes, 28 seconds offerings and solutions. Equally important is how we adopt technology internally. To improve this, we have 25:36 25 minutes, 36 seconds established an office of AI and transformation to ensure we do not miss out on this opportunity. 25:44 25 minutes, 44 seconds Therefore, rather than just jumping on the latest industry bandwagon of being AI first, we are clearly focused on 25:53 25 minutes, 53 seconds investing in intelligent engineering which is underpinned by a domain plus AI strategy. Our uniqueness hence is not 26:01 26 minutes, 1 second just being part of the AI bandwagon but being a domain first and AI infused company. Our priority is to leverage 26:09 26 minutes, 9 seconds technology to effectively solve our customers challenges through intelligent engineering solutions built on deep domain expertise and the appropriate infusion of digital and AI. 26:23 26 minutes, 23 seconds Finally, did we talk about organizational effectiveness? We launched a variety of initiatives over the last two quarters focused on margin 26:31 26 minutes, 31 seconds improvement, process simplification and leadership development to drive agility and empowerment and sustainably improve 26:40 26 minutes, 40 seconds and maintain our profitability. Firstly on margin improvement, we have initiated a margin and efficiency improvement 26:47 26 minutes, 47 seconds program in view of changing technology and customer requirement. It is focused on driving sustainable margin expansion 26:55 26 minutes, 55 seconds in streamlining operations and prudent management of discretionary spending. 26:59 26 minutes, 59 seconds The program is on track and majority of the actions have already been initiated with the value realization over the coming quarters. The program is one of 27:08 27 minutes, 8 seconds the key initiatives in our journey back towards 15% EIET by K4 FI27 which is a commitment we stand by. 27:18 27 minutes, 18 seconds Process simplification. The objective here is to simplify or eliminate processes to improve speed and 27:25 27 minutes, 25 seconds effectiveness and ensure alignment with the market and speed up decision making. 27:30 27 minutes, 30 seconds Ensure decisions are being taken at the right levels. 27:35 27 minutes, 35 seconds Leadership and uh leadership refresh and refresh and development. Over half of our business unit leaders have been in 27:43 27 minutes, 43 seconds their roles now for less than six months. This fresh leadership both internal and external brings renewed 27:50 27 minutes, 50 seconds energy and perspective to reboot some of our business and accelerate some of it. 27:55 27 minutes, 55 seconds Our chief people officer, our chief technology officer and our new CMO and I have all joined sign in the last six or 28:03 28 minutes, 3 seconds seven months. They bring experience in high growth organizations and what it takes to adopt and drive those. In 28:10 28 minutes, 10 seconds addition, we have also have a new head of corporate development and strategy to ensure we have alignment between 28:17 28 minutes, 17 seconds strategy and strategy execution and how we align strategy with the inorganic investments that we would like to 28:24 28 minutes, 24 seconds prioritize and we'll continue to build and enhance leadership across all levels. People are the core assets of science. 28:33 28 minutes, 33 seconds We have and we do not just say that we actually put our money where our mouth is. We have rolled out merit-based 28:41 28 minutes, 41 seconds increments to nearly 90% of our associates starting in April over the last two quarters with remaining set to be covered in this particular quarter. 28:50 28 minutes, 50 seconds We have consciously done this ahead of the entire peer group as we firmly believe this is an important aspect of 28:58 28 minutes, 58 seconds ensuring success versus tactical margin management. 29:02 29 minutes, 2 seconds In addition, we continue to invest heavily in development initiatives. 29:06 29 minutes, 6 seconds These include leadership development programs across all levels, a dedicated woman leadership program and a 29:14 29 minutes, 14 seconds significant investment in technology career ladder for associates focused on technology excellence especially focused on AI. 29:22 29 minutes, 22 seconds In summary, I'm extremely proud to be part of this very rich legacy of science rooted in values first and in and in 29:30 29 minutes, 30 seconds customers and people centricity. I'm very confident and excited that my leadership and I are scripting the 29:38 29 minutes, 38 seconds decisive next chapters and evolution of science ahead to build a science that is stronger, better and bolder than before. 29:46 29 minutes, 46 seconds I would now like to turn to Q2 FI26 performance results and share some quick views on the same. 29:53 29 minutes, 53 seconds Sign D grew by 3.3% quarter over quarter and 4.5% year-over-year in INR terms 30:02 30 minutes, 2 seconds which is 1% quarter over quarterarter and.1% year-over-year in US dollars. In constant currency terms, this translates 30:10 30 minutes, 10 seconds to.5% quarter over quarter and a negative.6% 6% year-over-year, more or less flat. 30:19 30 minutes, 19 seconds The event percentage margin stood at 12.2% up 16 BPS quarter over quarter despite wage hikes, several seasonal 30:27 30 minutes, 27 seconds headwinds, which reiterates the steady progress I mentioned previously that we are working towards quarter over quarter. 30:35 30 minutes, 35 seconds Importantly, Q2 FI26 witnessed a very strong recovery across our major business units. Transportation and 30:43 30 minutes, 43 seconds mobility unit and the network and infrastructure units delivered 3.9 and 3.6% quarter overquarter growth 30:51 30 minutes, 51 seconds respectively driven by focused account mining and sales approaches across the value chain of our customers. strategic 30:59 30 minutes, 59 seconds units cluster witnessed a degrowth which was anticipated and driven largely by holiday season impact in Europe um and 31:08 31 minutes, 8 seconds the ramp down of a large program that we have already talked about. 31:13 31 minutes, 13 seconds In terms of key business highlights, I'm very happy to report that we added seven new logos of strategic importance across 31:20 31 minutes, 20 seconds industry. As I mentioned in the previous quarter, our unique buildtospec proposition in conjunction with scient 31:30 31 minutes, 30 seconds products continue to remain strong. A leading aerospace OEM has chosen scan as their 31:37 31 minutes, 37 seconds B2S partner to deliver high value electronics component that will be delivered for over several years and 31:44 31 minutes, 44 seconds decades. Our key accounts continue to demonstrate strong revenue growth with at 3% quarter over quarterarter and 11% 31:53 31 minutes, 53 seconds year-over-year thanks to our focused account mining. As I mentioned previously, I'm also happy to announce that Science 32:00 32 minutes has been shortlisted for the best mobile 5G service innovation award at the global connectivity awards 2025 for the 32:09 32 minutes, 9 seconds value delivered through science Brisburn AI, our industryleading AI product that intelligently detects and resolves 32:16 32 minutes, 16 seconds network issues for leading communication providers. 32:21 32 minutes, 21 seconds Tank also won the prestigious recognition as a value engineering supplier for 2025 from one of our 32:28 32 minutes, 28 seconds established uh one of our uh esteemed customers Honeywell for its stellar contribution in 32:35 32 minutes, 35 seconds innovation of products and processes and optimization of total cost of engineing in oil and gas projects. This award is a 32:43 32 minutes, 43 seconds testament to our strong expertise and customer centricity in driving value beyond injuring to our customers. 32:52 32 minutes, 52 seconds Overall, I think Q2 is a demonstration of resilience and recovery of performance across key verticals 33:00 33 minutes building momentum to deliver strong H2 of FI26. 33:04 33 minutes, 4 seconds With this I now conclude my remarks and would like to hand over to our CFO Prabakar Atlas to provide more color on 33:12 33 minutes, 12 seconds our financial performance for Q2 FI26. Thank you Sukumal. 33:23 33 minutes, 23 seconds Hello everyone. 33:25 33 minutes, 25 seconds Thank you very much for your time today and for your kind participation in the call today. Krishna and Sukum have covered much of these in their update. 33:34 33 minutes, 34 seconds But as a quick summary, here are the key financial highlights for the quarter. 33:39 33 minutes, 39 seconds And as with the previous quarter, the D numbers are excluding our semicon business. 33:46 33 minutes, 46 seconds On revenue front, we had a healthy quarter for D which delivered a revenue of 164.4 million, which is a few crores of 50 B in constant currency. 33:58 33 minutes, 58 seconds In rupee terms at INR 1,438 crores the Q growth is at 3.3%. 34:07 34 minutes, 7 seconds That we delivered this growth despite a fluid microeconomic environment and the fact that Q2 is a challenging quarter 34:14 34 minutes, 14 seconds for us due to vacation period in Europe we believe is a good directional indicator of the quarters ahead. With 34:21 34 minutes, 21 seconds this we also believe that our H2 for D will be stronger than H1. 34:29 34 minutes, 29 seconds On EBIT front, TE EIT per Q2 came in at 12.2%. 34:36 34 minutes, 36 seconds Which is a 16 bit expansion quarter on quarter. 34:40 34 minutes, 40 seconds The headwinds we had in this quarter include the second branch of wage hike and we happy to report that we were able 34:47 34 minutes, 47 seconds to fully mitigate this impact with the cost optimization program which is already delivering tangible results. 34:54 34 minutes, 54 seconds We also had two one-off items in this quarter. One is a headwind of restructuring cost which had a negative 35:01 35 minutes, 1 second impact of about 200 on EIT per quarter most of which is one off and the other was a one-off tailwind of 35:10 35 minutes, 10 seconds insurance reimbursement for legal expenses incurred and accounted for in the previous period. 35:16 35 minutes, 16 seconds Both the above items are included in our margin numbers for the quarter and the one-off tailwind has to some extent mitigated the one-off headwind in the quarter. 35:26 35 minutes, 26 seconds With all these puts and takes, we believe that the net improvement of 16 quarter and quarter is quite a good outcome for the quarter. 35:36 35 minutes, 36 seconds Back for the quarter is a DR 137 crores representing a 16% degross quarter on 35:42 35 minutes, 42 seconds quarter and a 16.2% 2% dig year on year while the EBIT expanded quarter on quarter the overall unrealized effects 35:51 35 minutes, 51 seconds gain were a tailwind to our fat for this quarter but at the same time the Q negative movement of fat Q and Y is 35:59 35 minutes, 59 seconds because these tailwinds were much stronger in the previous quarter compared to the current quarter. 36:06 36 minutes, 6 seconds Our cash conversion for D continues to remain very strong and for Q2 the FTF to PAT conversion was at 114% and we remain 36:14 36 minutes, 14 seconds very focused on cash generation as a key business goal. 36:20 36 minutes, 20 seconds Moving on to group performance which now includes all the four segments of bet semicon DM and others. Group revenue de 36:28 36 minutes, 28 seconds grew by 3.7% year on year in rupee term while the pad de grew by 29% year on year. Much of the fat movement year on 36:36 36 minutes, 36 seconds year is due to the negative movement of unrealized gains between these two quarters. 36:42 36 minutes, 42 seconds FCF for Q2 was quite strong at rupees 173 cr which represents 117% FDF to fat conversion for the quarter at group level. 36:52 36 minutes, 52 seconds Also very pleased to announce the approval of the board for an interim dividend of Indian rupees 16 for the current financial year. This is a 37:00 37 minutes reflection of our intent to translate the benefits of our strong cash generation with our shareholders. And on that also like to take a moment to 37:09 37 minutes, 9 seconds express our sincere appreciation to all our investors and analysts for all your support and steer as we navigate a fluid 37:16 37 minutes, 16 seconds macro with some unprecedented macro challenges but laced with with some very interesting opportunities which Krishna 37:23 37 minutes, 23 seconds and Tukumar addressed in their comments and which we believe we're getting to exploit. With this thank you again for your time and I'll hand over the call back to the moderators for Q&A. 37:34 37 minutes, 34 seconds Thank you very much sir. We will now begin with a question and answer session. Anyone who wishes to ask questions may press star and one on 37:42 37 minutes, 42 seconds their touchstone phone. If you wish to withdraw yourself from the question Q, you may press star and two. Participants 37:49 37 minutes, 49 seconds are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. You may please press star and one to ask questions. 38:19 38 minutes, 19 seconds You may please press star and one to ask questions at this time. 38:34 38 minutes, 34 seconds The first question is from the line of Moises Chandani from Ambit Capital. Please go ahead. 38:40 38 minutes, 40 seconds Yeah. Hi. Uh good evening and thank you for taking my question. So my first question was more in terms of uh the near-term in terms of Q3 and Q4 of FI26. 38:49 38 minutes, 49 seconds So you've seen a very strong rebound in the transportation segment. Do you think the segment is going to continue to drive growth for you even in the uh near 38:58 38 minutes, 58 seconds future? And then also in terms of networks and infrastructure where you've seen a good rebound. So how do you see things uh even for that segment going into the second half of FI26? 39:10 39 minutes, 10 seconds Sure. Uh so thank you for your question. 39:13 39 minutes, 13 seconds Um firstly on transportation uh we do believe that uh we have uh from the strength of our presence in the market 39:20 39 minutes, 20 seconds and our positioning uh we should be able to sustain growth and uh while I would like not to comment about quarter 39:27 39 minutes, 27 seconds specifically but if you have to if I take a horizon of the next four to six quarters we definitely see this uh as a 39:36 39 minutes, 36 seconds area that we can depend on for consistent and significant growth. uh when it comes to network and 39:43 39 minutes, 43 seconds infrastructure as I had called out uh in Q1 that our primary focus right now and our high uh focus on energy is to 39:51 39 minutes, 51 seconds actually change the service mix which is far more critical for us um and not that growth is not critical but while growth 40:01 40 minutes, 1 second is good we would like to first make sure that we are focused on the changing the service make because that is significantly important for the midterm 40:09 40 minutes, 9 seconds and the uh and the long term So our focus would be more on how we drive metrics around the mix of services 40:18 40 minutes, 18 seconds from wireless wine to wireless mix as an example but on transportation we remain very confident. 40:25 40 minutes, 25 seconds Understood. And then on strategic units you mentioned that you know there is one part of it which is holiday driven and the other was also due to the ramp down 40:33 40 minutes, 33 seconds of a large project. uh in terms of the ramp down do you see uh you know any terms of I mean do you see that ramp down continuing in Q3 or do you think 40:41 40 minutes, 41 seconds that that's broadly done uh going forward I think we are mostly done with it there 40:48 40 minutes, 48 seconds will be still some ramp down in in Q3 but uh I think materiality to overall numbers has gone down substantially 40:57 40 minutes, 57 seconds all right understood and then maybe just speaking on the broader macro environment right so you I mean have seen some uh improvement in terms terms 41:04 41 minutes, 4 seconds of growth you called I think Sukam you called that out in the beginning of the call as well. Uh so now in terms of macro in terms of you know deal flow 41:12 41 minutes, 12 seconds conversions etc. do you see some improvement in the macro versus where you were in one Q in you know deal trampups deal signings etc. 41:22 41 minutes, 22 seconds Uh so yes uh so obviously Q1 included the month of April and March where obviously we had a significant freeze on 41:31 41 minutes, 31 seconds uh decision making and significant spike in uncertainty. I think most of our customers and industries have definitely 41:39 41 minutes, 39 seconds uh um now understood and digested the changes that are going on in the global macroeconomic situation. So it has 41:47 41 minutes, 47 seconds definitely improved. Uh however we I would not like to say that the market environment is strong. I think market 41:55 41 minutes, 55 seconds environment is definitely much better than the early part of Q1. 42:00 42 minutes All right. Got it. Uh thank you for taking my questions. 42:03 42 minutes, 3 seconds Thank you participants. You may please press star and one to ask questions at this time. 42:21 42 minutes, 21 seconds The next question is from the line of Shreddha Agarwal from MSC. Please go ahead. 42:28 42 minutes, 28 seconds Yeah. Hi. Uh, two questions. First of all, you have indicated. I'm sorry to interrupt you, ma'am. 42:36 42 minutes, 36 seconds Ma'am, your voice is muffled. Can you use your handset, please? Can you hear me better now? Yes, ma'am. Please proceed. 42:43 42 minutes, 43 seconds Yeah. Hi. Congrats on a steady quarter. 42:46 42 minutes, 46 seconds Two questions from one is you indicated that there was a one-time restructuring expense of close to 200 bits in this 42:52 42 minutes, 52 seconds quarter. So what was it related to? Um any any indication on that? 43:00 43 minutes Uh firstly thank you for the question. 43:02 43 minutes, 2 seconds Um it is related to the cost optimization that we were doing under which we had to restructure some part of the operations especially around people 43:11 43 minutes, 11 seconds that we have and therefore that is a one-off period. much of it is a one-off. 43:17 43 minutes, 17 seconds So is it rel layoff and one time severance payment to such people? Yes. 43:26 43 minutes, 26 seconds Okay. So this entire impact is baked in for this quarter or we expect some residual impact in next quarter as well. 43:33 43 minutes, 33 seconds Uh much of it is in the current quarter. 43:36 43 minutes, 36 seconds There could still be some more activities we might take up through the I that's continuous activities we do as a part of the business as usual operations that we optimize capacity 43:44 43 minutes, 44 seconds capability present etc. But what you see right now is the largest piece of what we would do in the current 43:51 43 minutes, 51 seconds and what was the quantum of the one-time gain on uh the insurance reimbursement benefit that you got? 43:57 43 minutes, 57 seconds It's actually a bit lesser than the headwind. 44:01 44 minutes, 1 second So uh the headwind was about 200 bit on restructuring and the tailwind was actually much bit lesser than that. 44:09 44 minutes, 9 seconds Right. Right. And uh in terms of aerospace and transportation um while you've indicated that macros have gotten 44:16 44 minutes, 16 seconds a little better but in terms of growth for us is it still uh led by MRO activities or have we started seeing 44:24 44 minutes, 24 seconds some green shoots of recovery and design related activities as well? 44:30 44 minutes, 30 seconds So I think it's a mix of service areas that we are seeing recovery. So I would not call out design as a significant 44:39 44 minutes, 39 seconds contributor yet. Um as you know the uh obviously whenever a new design gets announced it's pretty uh worldwide 44:47 44 minutes, 47 seconds public news and no such announcement has happened. So while we continue to do design for business jets for many other 44:54 44 minutes, 54 seconds smaller aircraft carriers or aircraft airframe manufacturers um and there are always uh variations and uh extensions 45:03 45 minutes, 3 seconds that are done to existing designs which is also design work. While that continues uh our uh work remains uh 45:12 45 minutes, 12 seconds pretty varied across the product as well as the aftermarket of the products but also we are seeing significant traction in cross-selling uh across digital and 45:21 45 minutes, 21 seconds AI. So our technology infusion and technology UI from aerospace and the transportation sector in general uh has also picked up significant momentum. 45:32 45 minutes, 32 seconds Right. and say you indicated that uh your second half would be better than first half and this is despite furlow's 45:40 45 minutes, 40 seconds impact. I know for us the furow impact is relatively higher in 2Q because it's holiday season but in terms of growth 45:47 45 minutes, 47 seconds trajectory going into 3Q. Uh do you expect 3Q would have better growth compared to 2Q on a Q1Q basis despite 45:56 45 minutes, 56 seconds the furlows in other verticals if not in the scitec portfolio? 46:03 46 minutes, 3 seconds Yeah. So um I think first thing as we have me mentioned uh previously also we maintain our no guidance policy. Second 46:11 46 minutes, 11 seconds our intent is to continue the trend I talked about in terms of quarter overquarter improvement uh in our quarter overquarter performance. So that 46:19 46 minutes, 19 seconds trend is something that we are very committed to making it happen. Third as we have discussed uh we have a healthier pipeline on our near-term programs and 46:27 46 minutes, 27 seconds projects that we can convert for QC and Q4. Um I would probably leave it there in terms of giving you an answer on the 46:35 46 minutes, 35 seconds H2 versus H bar and we have discontinued giving our order intake number but any quant any indication or any qualitative uh uh 46:44 46 minutes, 44 seconds indication on what that number should as in how much is the improvement in uh order intake number for this quarter in 46:52 46 minutes, 52 seconds terms of any improvement in deal closure cycles that we've seen or what has been the improvement in the pipeline buildup. 46:58 46 minutes, 58 seconds Yeah. So order intake uh remains healthy. Uh as I mentioned our order intake not just in terms of absolute numbers but quality of order intake 47:07 47 minutes, 7 seconds which is essentially new business as a percentage of overall order intake is going up. Our order intake as a 47:15 47 minutes, 15 seconds percentage from a technology standpoint which is digital and AI which is critical for science growth strategy is 47:22 47 minutes, 22 seconds going up. So uh I think definitely we are in the right direction. So it's not just an indication from pipeline order intake is also in the right direction 47:31 47 minutes, 31 seconds and in generally every year 3Q we do see a good amount of renewal happening and that trend would follow this year as well. 47:38 47 minutes, 38 seconds That is correct. Okay. Thank you. That's it from my side. Thank you. 47:45 47 minutes, 45 seconds Thank you sir. We take the next question from the line of Shulab Kova from Morgan Morgan Sandley. Please go ahead. 47:55 47 minutes, 55 seconds Yeah. Hi. Uh am I audible? Yes, sir. Please proceed. 48:00 48 minutes Yeah. Thanks for taking my question. Uh uh my my first question is um uh is a bit uh bookkeeping question. So I just 48:09 48 minutes, 9 seconds want to check this order intake number that we were calling out uh which is uh the non-generable portion uh which was 48:16 48 minutes, 16 seconds uh 21% uh last quarter. What's what's that number for for this quarter? that number is 27 now. 48:26 48 minutes, 26 seconds Okay. Okay. Understood. Uh and then uh secondly um with respect to networks u 48:33 48 minutes, 33 seconds when we talk about you know change in mix that we're trying to do from a medium to long-term perspective. Uh I I know you called out uh wine going to 48:42 48 minutes, 42 seconds more towards wireless. uh but from a service line perspective if you could highlight uh you know uh what is it that 48:50 48 minutes, 50 seconds we're trying to change and u u what can that change lead to? 48:57 48 minutes, 57 seconds Sure. So uh you might be aware that science business has been built uh significantly on our strength on fiber 49:04 49 minutes, 4 seconds technology uh and essentially uh doing fiber design fiber rollout and 49:11 49 minutes, 11 seconds essentially creating access to the wireless uh site uh that has been the core strength of scient for quite a few 49:18 49 minutes, 18 seconds years and I would say even decades um obviously fiber rollout and fiber investments continue to be healthy so 49:27 49 minutes, 27 seconds it's not a business that we see uh any kind of significant uh challenges in the near future. But uh where we believe the 49:36 49 minutes, 36 seconds real growth and the technology harnessing can happen is from the acquisition we had done with Selfieet uh 49:43 49 minutes, 43 seconds a few now two three years back where we have capabilities on manageability observability 49:50 49 minutes, 50 seconds um around wireless networks including the Visborn AI platform uh which I talked about a little while back which got awarded even in Q2. Um we would like 50:00 50 minutes to create uh service offerings which are more focused around how do you drive network automation and more importantly 50:08 50 minutes, 8 seconds network autonomy. Um leading customers in the leading network carriers today in the world are between level two level 50:16 50 minutes, 16 seconds three autonomy and everybody aspires for level five autonomy um in the next four to five years or even sooner in some 50:23 50 minutes, 23 seconds cases. Um and we are working with them and the co organizations of these network carriers to help them adopt 50:31 50 minutes, 31 seconds autonomy of their networks. Um which is where we are spending most of our energy in terms of building community. 50:41 50 minutes, 41 seconds Understood. Understood. And the the uh the next question is you know with respect to uh the changes that you 50:50 50 minutes, 50 seconds highlighted um it's quite a bit of I would say uh detailed level of changes that were mentioned and uh it actually covers the breadth of the organization. 51:02 51 minutes, 2 seconds Uh so uh you know from an outside perspective it's difficult to uh you know uh uh understand those uh you know 51:09 51 minutes, 9 seconds how they're progressing etc. But just wanted to understand that whatever you've seen so far um what areas within 51:17 51 minutes, 17 seconds these would you classify that are uh you know the most difficult or would take the most amount of time for for you to see some sort of results. 51:29 51 minutes, 29 seconds Uh I think um there was a similar question in the uh last quarter uh investor call as well. So I'll probably 51:37 51 minutes, 37 seconds repeat my answer from from that which is um changes which are more uh with regards to areas of focus policies u how 51:46 51 minutes, 46 seconds to do rep prioritization of focus uh which are more concrete black and white is always easy to do um and most of them 51:54 51 minutes, 54 seconds have fallen in place. uh there is definitely a change management aspect uh which is necessary in order to uh adopt 52:02 52 minutes, 2 seconds to the performance culture that I referred to. Uh and that is something which will take some time. Uh and uh we will we definitely make sure that we 52:12 52 minutes, 12 seconds stay patient and stay perseverant uh in making that change happen. 52:19 52 minutes, 19 seconds Understood. Understood. Uh and and then lastly on the margins bit uh uh just wanted to understand that while on 52:26 52 minutes, 26 seconds growth uh we called out that H2 will be stronger than H1 from a from a cadence perspective how should one think about 52:34 52 minutes, 34 seconds the margins in the rest of the year um u given that you've already started with some bit of wage hike for most of the 52:41 52 minutes, 41 seconds associates. So, so how should one think about uh with H2 on growth better than H1, how should the margin cadence pan out? 52:50 52 minutes, 50 seconds Prabhaka, thank you for the question. Uh in line with the revenue commentary that we spoke of earlier, we also believe that the H2 margin will be stronger than margin. 53:02 53 minutes, 2 seconds Okay. Okay. Okay. And that will be is a it's a function of um u you know operating leverage on growth or there 53:09 53 minutes, 9 seconds are other levers which will which will help on that growth uh it's not only revenue dependent it's also a number of 53:17 53 minutes, 17 seconds things that we are doing. We spoke a little bit about the cost of the commission program in the earlier part of the conversation. So results are becoming more and more tangible today. 53:26 53 minutes, 26 seconds So we also see benefits coming from that and a number of other understood. Uh thanks for taking my question. 53:35 53 minutes, 35 seconds Thank you sir. Thank you. 53:46 53 minutes, 46 seconds The next question is from the line of Nitish Ree from Chris Capital. Please go ahead. 53:53 53 minutes, 53 seconds Uh hi thank you for the opportunity. uh just following up. Uh my question is on the a bit margin from next quarter. So uh since we don't have any restructuring 54:01 54 minutes, 1 second cost in the next quarter, can we expect a 100 to 200 basis point expansion and margin because uh there will be a benefit on the cost side. Right. 54:11 54 minutes, 11 seconds So tempting as it is to refrain from commenting on the quarterly guidance for revenue or margin at this point in time. 54:17 54 minutes, 17 seconds But I'll just come back and say you have very good observation. We believe that H2 is going to be better than H1 by margin. 54:26 54 minutes, 26 seconds Okay. Thanks so much. Thank you. 54:42 54 minutes, 42 seconds Ladies and gentlemen, as there are no further questions from the participants, I would now like to hand the conference over to Mr. Krishna Bodhanapu for 54:50 54 minutes, 50 seconds closing comments. Thank you and over to you, sir. 54:53 54 minutes, 53 seconds Thank you very much and thank you everyone for taking the time for this call this evening. I thought it was important to give you all a good overview of the semiconductor business 55:01 55 minutes, 1 second considering it is very strategic to us and it is still in an investment mode. I also thought it was important for Superman to give an overview of the 55:09 55 minutes, 9 seconds state of the business and the way forward and if I may say the way forward looks very promising thanks to a very strong focus Sukuml has brought on 55:17 55 minutes, 17 seconds operations leadership and technology adoption. Sukma will of course keep you posted up keep you updated periodically 55:25 55 minutes, 25 seconds on the progress of these changes. The board also strongly believes in the growth prospects signal by the increase 55:32 55 minutes, 32 seconds in the interim dividend. So all in all I believe we find ourselves in a good place and well positioned to deliver as 55:39 55 minutes, 39 seconds Sukal and Prabak has said a stronger H2 both in revenue growth and margins compared to H1. Thank you for your 55:47 55 minutes, 47 seconds support and I look forward to speaking to you again next quarter. Thank you members of the management. 55:52 55 minutes, 52 seconds Ladies and gentlemen, on behalf of Scient Limited, that concludes this conference. We thank you for joining us and you may now disconnect your lines. 56:00 56 minutes Thank you.