Cyient Limited — Q4 FY26

Cyient Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=zwNcckj4T_E Published: 2 weeks ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the Scient Limited Q4 FY26 results conference call. 0:09 9 seconds As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:19 19 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on your Touchstone phone. Please note that this conference is being recorded. 0:30 30 seconds I now hand the conference over to Mr. 0:32 32 seconds Krishna Bodhanapu, executive vice chairman and managing director. Thank you and over to you sir. 0:39 39 seconds Thank you Dorin. Good evening ladies and gentlemen and welcome to Scient Limited's earnings call for the fourth quarter of financial year 2026. I'm 0:48 48 seconds Krishna Bodhanapu, executive vice chairman and managing director and present with me on this call are Sukuml Banerjee, executive director and CEO, 0:57 57 seconds Shinuas Kulkarni, president and CFO and Prabakar Atla, president and chief operating officer. As you know, Prabakar 1:05 1 minute, 5 seconds was also the outgoing CFO and was the CFO for much of for for the financial year 2026. 1:12 1 minute, 12 seconds I would like to mention that some of the statements made in today's discussions may be forward-looking in nature and may involve risks and uncertainties. A 1:20 1 minute, 20 seconds detailed statement in this regard is available in our in our investor update which has been emailed to you and is also posted on our corporate website. 1:30 1 minute, 30 seconds This call will be accompanied by an earnings call presentation the details of which have already been shared with you. Before we begin, I would like to 1:39 1 minute, 39 seconds thank Mr. Mr. Prabakar Atla for his stewardship as CFO and wish him well as he steps into his new role as the chief 1:46 1 minute, 46 seconds operating officer. I also would like to welcome Shinas Kulkarnney as our incoming CFO and look forward to taking 1:53 1 minute, 53 seconds his t to look forward to his leadership in taking our finance strategy and function forward. I'm very happy that 2:02 2 minutes, 2 seconds these two are among the most important roles in any organization and I'm pleased that Krabakar and Shini are in 2:09 2 minutes, 9 seconds these roles as we go forward and as we enter into a very exciting phase of science next orbit. 2:17 2 minutes, 17 seconds At the beginning of this financial year we have been reporting four groups for performance or four segments 2:25 2 minutes, 25 seconds sorry for performance. These are DET which excludes our semiconductor business, signed DM our manufacturing 2:33 2 minutes, 33 seconds business, science semiconductor our semiconductor business and others. The focus of this call will remain the D 2:39 2 minutes, 39 seconds segment and to that extent all numbers from D segment are like to like to the previous period which basically means 2:48 2 minutes, 48 seconds that these numbers are restated to exclude our semiconductor business and the group numbers will include performance of all four segments. While 2:57 2 minutes, 57 seconds Sukumar will take you through the de details of D performance, I'd like to give you a quick update on some of the highlights across the group. On 3:06 3 minutes, 6 seconds semiconductor, as we complete a year of carving out the semiconductor business, I'm proud to say that we stand as 3:14 3 minutes, 14 seconds India's largest customs chip company today. We have a clear focus on owning intellectual property and providing differentiated chips. 3:24 3 minutes, 24 seconds This year has been a year of building revenue momentum, building intellectual property, partnerships, and of course, a world-class scheme has been put together. 3:34 3 minutes, 34 seconds In Q4, we delivered $7.2 million in revenue, a 5% sequential improvement, and our fourth consecutive quarter of 3:42 3 minutes, 42 seconds quarteron on quarter growth in this particular segment. continuing the trajectory from 5.5 million in Q1 and 3:50 3 minutes, 50 seconds our full year revenue stood at $275 million. Of course, we had a negative EBIT for Q4 which now stands with stood 3:59 3 minutes, 59 seconds at 2.8 million but this is because we continue to build a strong team for sales product management and have been creating some very strong IP. 4:12 4 minutes, 12 seconds Some key highlights for Q4. We successfully closed 74% majority stake in kinetic technologies. We're building 4:21 4 minutes, 21 seconds proprietary strength in product and power products. We continue to scale our turnkey ASIC business. And of course, we 4:28 4 minutes, 28 seconds won the mighty back semiconductor complex of India Limited FAB modernization program which will start later this quarter or early next 4:36 4 minutes, 36 seconds quarter. I'm also pleased to announce that the board has agreed in principle to explore a fund raise in the market in 4:44 4 minutes, 44 seconds a combination of debt and equity given the growth in the semiconductor business and the working capital needs of the business. We have started engaging with 4:53 4 minutes, 53 seconds various bankers and will come back with the final details once approved. I just want to repeat that this is for the semiconductor business which is a 5:01 5 minutes, 1 second standalone business and the step down subsidy of science limited. 5:06 5 minutes, 6 seconds Looking forward as we enter into FI27, we have a very strong foundation, a great team and a great organization. We 5:14 5 minutes, 14 seconds will focus on this business and I'm sure there is a very strong growth path ahead for Science Semiconductor. 5:21 5 minutes, 21 seconds If I may just take a minute on ScanDM as you know ScanDM is also a club publicly traded company. So the board of science 5:28 5 minutes, 28 seconds DM made earlier this week to consider their results. While revenue was a bit muted on that sector, uh I'm pleased to 5:37 5 minutes, 37 seconds say that booktoill ratio for the year was at 1.5x. We're now exiting or entering into FY27 with the highest 5:45 5 minutes, 45 seconds order book in scan BLM's history, which means that we will deliver a very strong year in FI27. 5:53 5 minutes, 53 seconds Also, uh profitability for the year was 10.3%. 5:58 5 minutes, 58 seconds which means that we're able to sustain doubledigit profitability which is because we're focusing on the right segments. We're investing in operational 6:06 6 minutes, 6 seconds excellence and maintaining cost and execution discipline. 6:12 6 minutes, 12 seconds We enter FI27 in scan DM with a healthy order book, a mature pipeline and of course a very strong leadership team to execute to our plan there. 6:23 6 minutes, 23 seconds I also am pleased to announce that in the meeting that was done that just concluded earlier, the board of directors has approved a 6:32 6 minutes, 32 seconds proposal to buy back up to 6.4 million equity shares of the company. Did this 6:39 6 minutes, 39 seconds 6.4 million equity shares translates to a maximum of 5.76% of the total paid up 6:46 6 minutes, 46 seconds capital from the shareholders um through a tender offer at a price of 11.25 25 per equity share for for an aggregate consideration not exceeding 720 crores. 6:59 6 minutes, 59 seconds I'll repeat um we will buy back shares at 1125 per equity share up to 720 7:06 7 minutes, 6 seconds crores. The buyback of course is subject to shareholder approval and will be carried out along the lines of SEBI guidelines. 7:15 7 minutes, 15 seconds I also want to say that the promoters, the members of the promoter family, key members of the board of directors, key 7:23 7 minutes, 23 seconds management personnel have all indicated our offer not to participate in this buyback. This reflects our long-term 7:31 7 minutes, 31 seconds conviction in the company's intrinsic value and the strategic direction and ensures that the full benefit of the 7:38 7 minutes, 38 seconds buyback accrews to the shareholders. The board's decision is underpinned that the current market price does not adequately 7:46 7 minutes, 46 seconds reflect the underlying fundamentals and intrinsic worth of the business. Given this disconnect, the buyback represents 7:54 7 minutes, 54 seconds an efficient and disciplined deployment of capital aimed at creating and enhancing long-term shareholder value. The 8:03 8 minutes, 3 seconds one-time capital allocation measure does not reflect any change in our long-term strategy or signal limited growth opportunities. Our pipeline is healthy. 8:13 8 minutes, 13 seconds Our M&A funnel is active and we're very well capitalized to deliver on our execution and strategic road map. Our 8:21 8 minutes, 21 seconds focus on sustainable growth balance sheet discipline and long-term shareholder value creation remains firmly on course. 8:30 8 minutes, 30 seconds The interim dividend of rupees 16 declared at the Q2 board meeting shall be treated as final dividend for the financial year. I also want to reiterate 8:39 8 minutes, 39 seconds that the board has asked us to continue to stick with the 40 to 50% payback which is what uh which is what has been 8:48 8 minutes, 48 seconds given back to shareholders every year and this will now happen not just through dividend but through the right combination of dividend and buyback. 8:57 8 minutes, 57 seconds Before I close, I would also like to mention Project Astro. 9:02 9 minutes, 2 seconds Project Astro uh is a strategic transformation acquisition that we were looking at and this was a transaction 9:10 9 minutes, 10 seconds that would have brought us brought in a step change in both scale and scope of our D business. 9:16 9 minutes, 16 seconds We ran a thorough and structured due diligence process financial, legal, commercial operations and the process 9:24 9 minutes, 24 seconds gave us confidence of the quality of asset that was available. Having completed our diligence, we found 9:31 9 minutes, 31 seconds ourselves at the point of commitment over the last couple of months. As we know, two things have happened. One, how 9:39 9 minutes, 39 seconds rapidly AI has evolved and the impact that it has on the sectors that we operate in. We felt it's important to 9:47 9 minutes, 47 seconds step back and think through what this means for a business like the one that we were trying to acquire. We are quite confident on what it means for this core 9:55 9 minutes, 55 seconds scient. But given that this is a new business, we wanted to step back and think about what it means for this business. 10:04 10 minutes, 4 seconds Simultaneously and as you know the geopolitical uncertainty that emerged around the same time gave us more reason 10:11 10 minutes, 11 seconds to be conscious with the kind of instability we are seeing globally along with the advent of some of the AI stuff. 10:19 10 minutes, 19 seconds We felt it was prudent to wait for things to settle down before committing to an investment of this scale. Of course both these issue carry their own 10:27 10 minutes, 27 seconds gravitas and require a serious deliberation. We have therefore made a conscious decision not to walk away but to pro this transaction and come back 10:36 10 minutes, 36 seconds with a more educated decision in the coming quarters. The reason why I'm bringing this up is there is a large charge against our P&L this quarter 10:45 10 minutes, 45 seconds which relates to project Astro and the cost of all the diligence. Um the number is quite large which which is a 10:53 10 minutes, 53 seconds reflection both of the size the trans strategic nature of the transaction and of course it was a complicated 11:00 11 minutes transaction which is why the um the cost of diligence was as high as it will be but I just want to reiterate that we 11:09 11 minutes, 9 seconds just have taken a pause and if we go ahead the marginal cost will be very little. So that decision will be made in due course. With this I will hand over 11:17 11 minutes, 17 seconds the call to Sukumal who will take us through the business performance of B for Q4 and FY26. 11:26 11 minutes, 26 seconds Thank you Krishna. Uh good evening ladies and gentlemen and thank you for joining us uh today. Um a year ago at 11:34 11 minutes, 34 seconds the FI 25 Q4 results call um I had been 6 weeks into the role. We committed then 11:42 11 minutes, 42 seconds to use FI26 to build strength and stability back into the business, reassess where we play, turn our 11:50 11 minutes, 50 seconds technology investments in digital and AI into engines of growth and re re-energize the organization with the 11:57 11 minutes, 57 seconds right leadership. A year one, let me report back on where the business stands. The clearest forward indicator 12:05 12 minutes, 5 seconds we have is order and take and H2 is where the year turned. Um, H2 came in meaningfully higher than H1. 12:15 12 minutes, 15 seconds So, our H2 year-over-year booking was 5.5% in terms of order intake value. Uh, we 12:24 12 minutes, 24 seconds secured a multi-year framework agreement with leading global rail OEM on signaling and systems integration where 12:31 12 minutes, 31 seconds we are selected as one of the three strategic suppliers in a consolidation process across global vendors. 12:39 12 minutes, 39 seconds We won a supplier consolidation engagement with a midsize global air aerospace airframe manufacturer 12:47 12 minutes, 47 seconds replacing incumbent vendors and consolidating delivery with scient a multi-year network design and 12:54 12 minutes, 54 seconds infrastructure engagement with a leading global telecom operator strengthening science role as a strategic engineering 13:01 13 minutes, 1 second partner. a US-based communications company awarded signed a multi-year contract covering the full network engine life cycle. 13:11 13 minutes, 11 seconds We won a three-year renewal and a scope expansion with an IMIA based communication service provider covering 13:18 13 minutes, 18 seconds radio planning, network performance, EMF management and network agility services. 13:24 13 minutes, 24 seconds Last quarter I had shared examples of our wins in technology that is digital and AI and this quarter I share progress 13:33 13 minutes, 33 seconds that we continue to make progress in our core markets and service areas as well. 13:39 13 minutes, 39 seconds Some of our existing customers have also backed us on price increases this year. 13:44 13 minutes, 44 seconds That is one of the clearest markers of strength of our relationships and the value that we bring to those engagements. 13:52 13 minutes, 52 seconds Turning to numbers, we entered Q4 with momentum. However, a shift in some clients budget deployments created a 14:01 14 minutes, 1 second downward variance against the visibility we had set at the uh beginning of the 14:07 14 minutes, 7 seconds quarter leading to a degrowth of 2.4% quarterover in constant currency, 2.1% 14:15 14 minutes, 15 seconds in USD and8% growth in INR terms. 14:21 14 minutes, 21 seconds This in year-over-year terms for Q4 had a minus 1.5% constant currency, 1.4% 14:28 14 minutes, 28 seconds growth in USD, and a 74 7.4% growth in INR. The revenue stood at 163.5 million USD with normalized EBIT of 12.4%. 14:42 14 minutes, 42 seconds In absolute terms, that was a 4% quarterover-arter growth uh in for EBIT. 14:49 14 minutes, 49 seconds The current geopolitical situation did have an effect as well with some deals in West Asia in our energy business 14:56 14 minutes, 56 seconds being pushed out and we expect that impact to continue in Q1 FI27 as well. 15:02 15 minutes, 2 seconds We have planned for it and the mitigations are already underway. We acknowledge that there were some 15:09 15 minutes, 9 seconds temporary gaps in what I will consider a predictable and stable business. I want also to categorically communicate that 15:18 15 minutes, 18 seconds these when not structural to the business demand or our value proposition in the market. We are confident on rebounding quickly. On the positive 15:27 15 minutes, 27 seconds side, quarter over quarterarter gross margin improved by 114 bps. Annually, North America grew 5.5% year-over-year and APAC grew 3.3% year-over-year. 15:40 15 minutes, 40 seconds Transportation and mobility uh cluster for us grew 4.5% quarter-over-arter and for the full year 15:48 15 minutes, 48 seconds an impressive 13.2% year-over-year in constant currency. This reflects our clear industry leadership, our domain 15:57 15 minutes, 57 seconds strength and the ability to work across the entire life cycle of products especially in aerospace leveraging the 16:04 16 minutes, 4 seconds current volume search and hence creating a durable growth environment for us. 16:09 16 minutes, 9 seconds Network and infrastructure saw a decline of minor of 3.6% quarter over quarter and a fullear decline of 1.6% 16:17 16 minutes, 17 seconds year-over-year. In this segment connectivity that is uh is where we are seeing the most structural shift. Our 16:26 16 minutes, 26 seconds position in autonomous network is differentiated built on our engineing domain knowledge platform IP and 16:33 16 minutes, 33 seconds partnerships and this is where the next wave of client investments is headed. 16:38 16 minutes, 38 seconds Alongside that our continued fiber buildout spend in North America and IMIA is expected to be sustained uh for the 16:46 16 minutes, 46 seconds next 3 to 5 years. Some of our largest customers have already announced hundreds of billions of dollars of 16:53 16 minutes, 53 seconds network expansion plans for the next 5 years. What is changing across both is the nature of the spending itself. It is 17:01 17 minutes, 1 second becoming longer in horizon, transformative in its ask leveraging AI and larger in scale. All that plays directly into our strengths. 17:13 17 minutes, 13 seconds Our strategic units indicate a degrowth of 12.4% 4% quarter over quarterarter and a fullear deg growth of 12.2% 17:21 17 minutes, 21 seconds year-over-year. While the head num headline numbers look sharp, we have taken a set of actions on how we turn 17:29 17 minutes, 29 seconds this cluster around. While the time taken to turn around, as I had indicated earlier as well, will be a few quarters. 17:36 17 minutes, 36 seconds We don't feel this will hamper our ambitions for our next FI as you will continue to see moderation in these numbers downwards. 17:46 17 minutes, 46 seconds On the AI and digital side, we are rolling out science engineering intelligence platform to codify 17:53 17 minutes, 53 seconds fragmented engineering data workflows and domain intelligence spanning CAD, SBOMS, PLM, SCADA, and ERP into a 18:02 18 minutes, 2 seconds coherent agent-driven foundation. The real value is getting delivered through the industry playbooks built on top of 18:10 18 minutes, 10 seconds it. These playbooks spanning after markets, KA or quality and regulatory uh authorizations and AI enabled 18:18 18 minutes, 18 seconds engineering define what outcomes are delivered and how the platform can run within clients environment, the 18:25 18 minutes, 25 seconds customer's environment or a hybrid model because what ultimately matters is the consistent application of codified 18:33 18 minutes, 33 seconds industry knowledge through a through trained agents to deliver measurable business results. Hajot Atri our chief 18:40 18 minutes, 40 seconds business officer for strategic initiatives who I introduced last quarter uh as a new addition in the leadership team is scaling this service line as a new growth engine for science. 18:52 18 minutes, 52 seconds On that note I want to also take a moment to talk about recent leadership appointments. Um as Krishna mentioned 19:00 19 minutes Shinas Kulkani has taken over as chief financial officer driving our financial strategy and a sharper focus on capital 19:08 19 minutes, 8 seconds discipline, capital allocation and margin expansion. Prabakar Atla who served his uh his tenure as the chief 19:17 19 minutes, 17 seconds financial officer transitioned to be a to be the new chief operating officer as on April 1st with a mandate to 19:24 19 minutes, 24 seconds strengthen the foundation transform our core service lines and scale best-in-class delivery models. Raj Kumar 19:32 19 minutes, 32 seconds Ravindra Natan joined us or as we foreignly call him Raj as the chief growth officer in February bringing 25 19:40 19 minutes, 40 seconds years of experience in scaling engineering digital and AI and IT businesses. He leads growth f uh growth 19:49 19 minutes, 49 seconds across energy, automotive and mobility, health and life sciences and mining along with focused regional units in 19:56 19 minutes, 56 seconds India, Japan and Middle East with clear mandate to drive large deals and grow strategic markets. 20:04 20 minutes, 4 seconds We are building to be a more integrated, more relevant and more valuable engineing life cycle partner for our customers. Our strength has always been 20:13 20 minutes, 13 seconds domain expertise and that endures. What changes is how we carry it forward. The company that will win in our sector are 20:22 20 minutes, 22 seconds the ones that layer AI and digital on top of deep domain knowledge and the human expertise. That is exactly what we 20:29 20 minutes, 29 seconds are building towards. With that, let me invite our new CFO Shinas Kulkarni to present a more detailed view of our financials. 20:39 20 minutes, 39 seconds Thank you, Sakumal. Ladies and gentlemen, thank you for joining this opening call today. I will now walk you through the financials for Q4 and for the full year FI26. 20:48 20 minutes, 48 seconds Uh before we review the numbers, I want to confirm that the consolidation structure remains unchanged comprising of four operating units D, DM, 20:58 20 minutes, 58 seconds semiconductor and others. The focus of this call will be D. I will begin with the D segment covering Q4 and fular 21:06 21 minutes, 6 seconds performance followed by the group level numbers. D financials are presented on a like-to-life basis excluding the semiconductor business from FI25. 21:16 21 minutes, 16 seconds Uh I will also highlight the exceptional items as we walk through the results. 21:21 21 minutes, 21 seconds Coming to the D performance for Q4 FI26, uh D reported a revenue of $163.5 21:28 21 minutes, 28 seconds million representing a 2.4% sequential decline in constant currency and a 1.5% yearonyear decline in constant currency. 21:38 21 minutes, 38 seconds In INR revenue was 1,500 crores reflecting growth of8% quarteron quarter 21:45 21 minutes, 45 seconds and 7.4% yearon year driven by favorable currency tailwinds. 21:52 21 minutes, 52 seconds Divered meaningful gross margin expansion in Q4 reaching 38.9% 114 basis point sequential improvement. 22:01 22 minutes, 1 second Operational efficiencies and favorable foreign exchange were the key key key drivers. While year-on-year margins were 22:08 22 minutes, 8 seconds marginally softer, uh these margins reflect the full absorption of annual merit increases offset by productivity gains and structural cost interventions. 22:19 22 minutes, 19 seconds Divered an EIT margin of 12.4% in Q4, a resilient outcome given the revenue softness in the corner. While gross 22:28 22 minutes, 28 seconds margin expansion provided a positive tailwind, it was offset by conscious investments in leadership capability. We 22:35 22 minutes, 35 seconds also had uh forex headwinds from non INR costs in certain geographies. 22:41 22 minutes, 41 seconds Importantly, our cost rationalization program played a pivotal role in absorbing these investments and holding margins steady. We have a very good 22:50 22 minutes, 50 seconds framework in place to ensure the sustainability and content of these cost actions going forward. 22:57 22 minutes, 57 seconds Q4 uh de pat stood at 138 crores reflecting a sequential 7.6% 6% and a 23:04 23 minutes, 4 seconds year-on-year 9.1% decline. This movement was largely attribut attributable to the normalization of other income which had 23:12 23 minutes, 12 seconds been elevated in prior periods due to higher unrealized foreign forex gains and reinstatement related benefits. 23:19 23 minutes, 19 seconds The effective tax rate for Q4 is a bit higher at 29.6% including a one-time prior period to 23:27 23 minutes, 27 seconds draw up on normalized basis. We expect the tax rate to be in the range of 27 to 27 12%. 23:36 23 minutes, 36 seconds On the cash front, DE delivered another strong quarter of free cash flow which came in at 225 crores representing a 23:44 23 minutes, 44 seconds healthy 163% conversion of PAT. This is a direct outcome of sustained focus on working capital efficiency and collections discipline. 23:54 23 minutes, 54 seconds As Krishna highlighted earlier, a key adjustment this quarter is an exceptional charge of 71 crores of due diligence expenses tied to a large 24:03 24 minutes, 3 seconds amended transaction which is currently on hold. To provide a cleaner view of underlying performance, EBIT, PAT and 24:10 24 minutes, 10 seconds EPS are presented on a normalized basis excluding this item. Full reconciliation between reported and normalized figures 24:17 24 minutes, 17 seconds are available in the next shared with you. 24:21 24 minutes, 21 seconds Now moving on to the fullear performance. Uh FI26D revenue was $657.6 24:28 24 minutes, 28 seconds million reflecting a marginal constant currency decline of.7%. 24:33 24 minutes, 33 seconds In INR terms, revenue stood at 5,819 crores registering a 5.5% yearon-year 24:41 24 minutes, 41 seconds growth on the back of favorable currency movements. 24:44 24 minutes, 44 seconds Normalized EBIT margin for FI26 is 12.2% 2% or 67 basis points year-on-year contraction driven by revenue mix annual 24:54 24 minutes, 54 seconds merit increases with with partial relief from the currency not not withstanding a challenging growth backto-back drop 25:02 25 minutes, 2 seconds margin discipline was well maintained through the year normalized path for FI26 is 588 crores 25:09 25 minutes, 9 seconds up 7.2% 2% yearonear underpinned by higher other income and reduced finance costs. This year also saw the highest 25:16 25 minutes, 16 seconds ever treasury income with reinstatement gains of 95 crores providing a meaningful offset to the hedge related impacts. 25:24 25 minutes, 24 seconds Two exceptional items were normalized during the year. the the 71 cr of amended diligence expenses in Q4 which 25:31 25 minutes, 31 seconds we called out earlier plus a 40 crore graduate provision arising from the labor code in uh Q3 at the group level 25:40 25 minutes, 40 seconds Q4 revenue stood at 29.9 million uh dollars reflecting a.9% 25:47 25 minutes, 47 seconds sequential growth and a 7.2% 2% year-on-year decline. INR revenue is rupes 1,927 cr with a sequential uptick 25:56 25 minutes, 56 seconds attributable to the DM segment. For the full year, group revenue is 820. 26:04 26 minutes, 4 seconds 8 million uh down 4.3% in constant currency and 7,268 crores in INR terms, a 1.3% year-on-year decline. 26:16 26 minutes, 16 seconds Group to bit margin contracted the 254 basis points yearon year to 9 and a half% primarily reflecting strategic 26:24 26 minutes, 24 seconds investments in the semiconductor business against the backdrop of revenue softness. These investments are intentional and form part of our 26:32 26 minutes, 32 seconds long-term positioning with nonlinear growth expected in due course. Group PAT is 534 crores with EPS of 48.42 rupees 26:41 26 minutes, 41 seconds representing a 14.3% year-on-year decline. Beyond the DE normalization items, the group results incorporate a 26:49 26 minutes, 49 seconds $3 million impairment in our tooling division, a business outlookd driven through upup reported on the other segment. 26:57 26 minutes, 57 seconds Uh I'll conclude by saying that we are confident of the outlook and the buyback will further improve the financial metrics and adds to the EPS growth next 27:05 27 minutes, 5 seconds year. I will now hand the call back to the moderator for any questions and answers. 27:11 27 minutes, 11 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 27:18 27 minutes, 18 seconds star and one on their touchstone telephone. 27:22 27 minutes, 22 seconds If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a 27:30 27 minutes, 30 seconds question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. 27:37 27 minutes, 37 seconds Our first question comes from the line of Bhavik Meta from JP Morgan. Please go ahead. 27:56 27 minutes, 56 seconds Babeka, your line is unmuted. You may proceed with your question. 28:05 28 minutes, 5 seconds Hello. You are audible sir. You may go ahead. I sure thank you. Uh so three questions. 28:11 28 minutes, 11 seconds Firstly, uh can you quantify uh the exposure to West Asia as a region in terms of the venues for the D business to get a sense of you know what could be 28:20 28 minutes, 20 seconds the potential headwinds we could anticipate over the next couple of quarters? 28:26 28 minutes, 26 seconds Uh yes sure. Uh so firstly our direct exposure to waste Asia business is not significant. However we do work with 28:33 28 minutes, 33 seconds some tier one uh EPC and and uh uh companies which service the uh energy market uh and that is more of a project 28:42 28 minutes, 42 seconds based exposure. So it's difficult to assess in in terms of exact number but um you can consider that uh it's not a 28:50 28 minutes, 50 seconds significant portion of our business overall at science as well as at at an energy level. However, given that 28:57 28 minutes, 57 seconds investment we have been doing in Middle East for almost a year now, we had built up a pipeline uh which was on the verge 29:05 29 minutes, 5 seconds of closure and which is what I referred to in my commentary. 29:11 29 minutes, 11 seconds Okay, got it. Uh the second question is uh around this project Astro what you mentioned any color you can cover in 29:19 29 minutes, 19 seconds terms of what kind of asset you're looking at and you know which vertical was this in to you know whatever you can share. 29:29 29 minutes, 29 seconds Unfortunately I just say it's a very big transformative acquisition. Uh it wouldn't be fair with all the NDAs in place to talk about any specifics 29:38 29 minutes, 38 seconds because that will give away too much detail. 29:41 29 minutes, 41 seconds Okay. Fair. Fair. The last question is on the the business you know if if you if you do decide to go for a liquidity 29:50 29 minutes, 50 seconds raise what kind of dilution are you happy to go with I know because in the DM business we have seen uh the shing go 29:57 29 minutes, 57 seconds to as low as 51% over year any you'll be looking at 30:06 30 minutes, 6 seconds so the first the first race will be a small race uh just to cover for you know that that business still needs some capital uh needs some cash working 30:14 30 minutes, 14 seconds capital etc. which I think um is not fair now to fund from science given that there's a uh there there's an is there 30:22 30 minutes, 22 seconds the business has its own strategy and its own objectives. So um I'll just say that it will be a relatively small fund 30:28 30 minutes, 28 seconds race. We won't dilute more than maybe 10 12% of uh the equity to start with and then depending on how the business 30:36 30 minutes, 36 seconds evolves and the capital needs we'll reook at it but the first equity raise won't be more than 10 12%. 30:43 30 minutes, 43 seconds Okay. Thank you. 30:47 30 minutes, 47 seconds Thank you ladies and gentlemen. To ask a question may press star and one. 30:52 30 minutes, 52 seconds Our next question comes from the line of Manish Agarwal from Trade Swift Group. 30:57 30 minutes, 57 seconds Please go ahead. Uh hello sir thank you for giving this opportunity. I have couple of questions. The first question 31:04 31 minutes, 4 seconds is that uh despite consistent commentium strong pipeline and account mining the re the revenue growth has been modest. 31:12 31 minutes, 12 seconds So can you quantify pipeline to revenue conversion timeline and what specifically is delaying that conversion? 31:22 31 minutes, 22 seconds Okay. Um so if I understand your question right in terms of if you're referring to this specific quarter it was not a pipeline conversion uh issue. 31:32 31 minutes, 32 seconds It was a it was an issue of three key customers delaying their start of program. 31:40 31 minutes, 40 seconds So uh and these are regular business that we do year-over-year uh which got delayed in terms of their budget allocations to these programs. Uh in 31:50 31 minutes, 50 seconds terms of the question about pipeline to revenue conversion typically our uh con 31:56 31 minutes, 56 seconds converted order intake or order book gets consumed to the extent of 75% within the first 9 months. So that's the 32:06 32 minutes, 6 seconds average at a at a company level. So it's not about delays in uh in uh in pipeline. The delay that I called out 32:13 32 minutes, 13 seconds were some specific deals which were accounted for in our forecast for this year this quarter I mean uh which is Q4 32:21 32 minutes, 21 seconds and they got pushed out and will not convert in Q1 as well. 32:28 32 minutes, 28 seconds Okay. Uh so by when can we expect the conversion? 32:34 32 minutes, 34 seconds So the uh just to clarify these were very specific deals which are two three small deals uh which accounted for uh a 32:43 32 minutes, 43 seconds impact a number which impacts at a quarterly level it is not something which impacts at a yearly level. 32:51 32 minutes, 51 seconds Okay. Uh just one more question like given that uh you are returning cash via buyback while also exploring a fund 32:58 32 minutes, 58 seconds raise how do you reconcile these two actions from a capital efficiency standpoint? 33:04 33 minutes, 4 seconds you know absolutely uh so the fund raise the buyback is for scient fundraisers for science semiconductor uh I think it's a good opportunity for us to 33:12 33 minutes, 12 seconds establish the value of science semiconductor because uh we believe that there's a significant value unlock that is available so uh these are two uh 33:21 33 minutes, 21 seconds disconnected actions in the sense that the buyback is really uh because in science looking at our capital requirements looking at obviously where 33:28 33 minutes, 28 seconds the share price is and has been the board felt that it was a good time to do a buyback Now for science semiconductor I think uh we want to establish an 33:36 33 minutes, 36 seconds independent value because we believe there is a huge value unlock in science semiconductor. That's why we're going to raise again again it doesn't need a huge 33:44 33 minutes, 44 seconds amount of money but we're going to raise the money that it needs for it for the the money that science semiconductor needs for us to get to a break even 33:53 33 minutes, 53 seconds point which will happen sometime towards the end of this year early next year. So we want to make sure that uh the science shareholders are not getting penalized 34:02 34 minutes, 2 seconds for the performance of science semiconductor by establishing an independent valuation and an independent capital structure. 34:10 34 minutes, 10 seconds So in that sense yes absolutely we could have funded it from science that's not a problem at all but I think that could have not gone down well also because 34:18 34 minutes, 18 seconds there are a lot of questions that come up on the um the losses in science semiconductor etc margins of science 34:25 34 minutes, 25 seconds semiconductor um my hypothesis and and my strong belief which you will see when we do the capital raise it is a very valuable asset and we just need to establish the value of that asset. 34:36 34 minutes, 36 seconds Oh, thank you so much. I'll join the team. Thank you. 34:43 34 minutes, 43 seconds Our next question comes from the line of Moes Chandani from Ambit. Please go ahead. 34:49 34 minutes, 49 seconds Yeah. Hi. Uh good evening and thank you for taking my questions. Uh firstly on the strategic unit business, this is a very sharp uh degrowth. Now looking at 34:58 34 minutes, 58 seconds Q1 is the expectation that growth will you see continued degrowth uh because of 35:05 35 minutes, 5 seconds uh you know some of these projects getting pushed back or do you think that there'll be maybe a mild recovery going into Q1 and then some improvement in Q2 35:14 35 minutes, 14 seconds and secondly in terms of these push backs in terms of the customers delaying the start of the program do you see that at least coming back in Q2 or Q3 or do 35:22 35 minutes, 22 seconds you think that some of these programs have been permanently cancelled uh because of budget issues? 35:28 35 minutes, 28 seconds So there are two uh two aspects. Let me address the second question first. Um the delays which have happened in 35:36 35 minutes, 36 seconds connectivity uh they are they are already uh in execution already. So it's not that they are pushed out. There was a delayed 35:44 35 minutes, 44 seconds start. Um and these programs have a capacity uh in terms of execution. And so it doesn't mean that because we could 35:52 35 minutes, 52 seconds not execute in Q1 all of that sorry Q4 all of that will get executed in Q1. It basically gets pushed back uh because at 36:01 36 minutes, 1 second the customer end there's a certain capacity at which they can absorb the work that we execute. Uh as we do the designs they have to translate that into 36:10 36 minutes, 10 seconds construction and they only have a limited capacity into construction. So that's from a connectivity perspective. 36:16 36 minutes, 16 seconds when it comes to energy and um your point on West Asia um it's difficult to say when it is going to come back you 36:24 36 minutes, 24 seconds know the situation is very dynamic um but overall from a sustain sustain uh the strategic units perspective uh we 36:33 36 minutes, 33 seconds have uh as a mix of portfolio uh we definitely would want to bring it back 36:39 36 minutes, 39 seconds to as close as flat for next quarter okay understood so flat growth So this is what flat numbers are what you're 36:47 36 minutes, 47 seconds thinking of in the next quarter for the strategic unit. Uh that is that is what we are working towards. That's correct. 36:54 36 minutes, 54 seconds Sure. Sure. And now with the semiconductors business now that you've completed the uh the acquisition of Kinetic any sense in terms of where you 37:03 37 minutes, 3 seconds see uh numbers for FI27 and then also just a little bit in terms of what the strategy is in with your existing 37:10 37 minutes, 10 seconds projects and kinetic how you see growth as well as margins evolving for the semiconductor. 37:17 37 minutes, 17 seconds So um I'll very uh quickly say that uh you know we will have a very good year in the semiconductor business. I think both the core business is doing well. Uh 37:25 37 minutes, 25 seconds we've won a number of programs. Uh the one that of course we talked about is a semiconductor complex modernization program and there's many others and and 37:33 37 minutes, 33 seconds of course kinetic will add a uh significant u number to that. Um I think we haven't publicly disclosed what the 37:41 37 minutes, 41 seconds kinetic number will be. So it might not be prudent here but we will get to a hundred million kind run rate at least 37:48 37 minutes, 48 seconds or hund00 million kind of a number for this uh for this year. 37:52 37 minutes, 52 seconds uh margins for the year will still be negative just because we are building the product portfolio and we're building the uh uh we're building the product 38:00 38 minutes portfolio and the intellectual property that is going to consume a bit of money and and again I want to be very clear that one of the reasons why I do want to 38:08 38 minutes, 8 seconds establish the value of that business is within science we're being unfair to shareholders if we don't establish the value and uh uh yet invest at the rate 38:16 38 minutes, 16 seconds at which we're investing and I'm very confident that this is at least a DM like investment if not even better. So anyway, the on the longer term basis, 38:24 38 minutes, 24 seconds our objective is to focus on two um two things. Uh one is uh what's called 38:32 38 minutes, 32 seconds custom ASIC that is to design and build uh or design, manufacture and supply chips for specialized custom applications. This is somebody has a 38:40 38 minutes, 40 seconds particular uh uh need, we design the chip, provide it to them. And the second is of course to have a product portfolio 38:47 38 minutes, 47 seconds of ASSPs or standardized chips. They're still customizable chips but mostly standard and that portfolio comes 38:54 38 minutes, 54 seconds through um uh kinetic. Now our focus will be primarily on a few areas but it'll be primarily on um uh power um as 39:02 39 minutes, 2 seconds you know power management is a huge thing uh with where things are going both with with the commercial applications like data centers and 39:10 39 minutes, 10 seconds consumer applications, phones, laptops what have you. So our focus will be on power and um uh our stated objective is 39:18 39 minutes, 18 seconds is is to become a leading power silicon manufacturer. I'm also very happy to state that with kinetic last year we 39:26 39 minutes, 26 seconds would have shipped 250 plus million silicon chips uh about 200 plus from kinetic about 20 or so from science 39:35 39 minutes, 35 seconds itself. So we're in a great starting point and and again I'm very very excited where our business is going to go. All right, understood. And then just 39:43 39 minutes, 43 seconds the last question from my side in terms of your outlooks for FI27, you previously said that we wanted to 39:50 39 minutes, 50 seconds reach say a 15% emit margin by 4Q of FI27. Uh and then is is that outlook still there? Uh and also in any 39:59 39 minutes, 59 seconds qualitative expectations that you can give in terms of how growth will look like in FI27 would also begin. 40:07 40 minutes, 7 seconds Uh sure. So on FI27 um as I've mentioned before uh we will u uh uh we'll continue 40:14 40 minutes, 14 seconds that u uh commentary which is we are aspiring for mid to single uh mid to high singledigit organic growth 40:22 40 minutes, 22 seconds year-over-year. Uh there are of course uh dynamics at play in the market but we feel confident that two three of our 40:30 40 minutes, 30 seconds markets uh will produce enough strength uh to get us there. uh the range is between the mid single digits to uh high 40:39 40 minutes, 39 seconds single digits. From a margin perspective, yes, we maintain the same. 40:43 40 minutes, 43 seconds Uh it does def depend a little in terms of volatility that we experience uh because of the current geopolitics 40:50 40 minutes, 50 seconds because uh as you can understand uh in a project based business like energy uh which is a substantial portion of our 40:57 40 minutes, 57 seconds business uh if you see lot of dynamics in terms of volatility it might affect our cost versus our revenue situation on 41:05 41 minutes, 5 seconds a quarterly basis. So other than that uh we do want to uh commit to the fact that we are still working towards those numbers and achieving those numbers. 41:16 41 minutes, 16 seconds Got it. Thank you. 41:19 41 minutes, 19 seconds Thank you. Participants who wish to ask questions may please press star and one. 41:26 41 minutes, 26 seconds Our next question comes from the line of Madur Rati from CCIPL. Please go ahead. 41:34 41 minutes, 34 seconds Sir. So firstly I want to thank the promoters for announcing the buyback and not participating. So which is a huge 41:41 41 minutes, 41 seconds vote of confidence in the business and future prospects of the company. So so now sir being a layman uh investor uh 41:49 41 minutes, 49 seconds who doesn't who's basically uh tech illiterate. So if you could just explain to uh us that what exactly has been the 41:59 41 minutes, 59 seconds pain point that our u uh AITA uh our AITA margins are down from 18% in FI24 42:06 42 minutes, 6 seconds to like 13% this year and despite such huge uh rupee depreciation during this 42:12 42 minutes, 12 seconds period uh one would have expected it to alleviate the other uh I mean the 42:19 42 minutes, 19 seconds recessionary demand and so on. So, so uh so, so in your best judgment when do you foresee us recouping the 1,300 Korea 42:28 42 minutes, 28 seconds that we did in FR24 or reaching around 18% AITA margins? 42:39 42 minutes, 39 seconds So let us so okay you're saying that when will we get back to okay the EIDA numbers you're talking about or the EBIT 42:46 42 minutes, 46 seconds numbers because uh EBIT was never at least not in the last 5 years EBIT I think the highest EIT that we've done 42:53 42 minutes, 53 seconds was 16% uh in uh Q4 of FI24 uh is it EITA or EIT different? 43:00 43 minutes No. So the 18% is the AITA margin in FI24 and it was 1,300 C or absolute AITA. 43:08 43 minutes, 8 seconds Absolutely. Yeah. So question is when will we come back to you know high let's say a 15% EIT margin? 43:16 43 minutes, 16 seconds No I think if we are aspiring towards a 15% EIT now uh by Q4 of FI uh that will translate almost 17 17 and a half% EIDA 43:26 43 minutes, 26 seconds anyway right so we are quite close to that number. So that's the goal we are working towards. Uh so I think the previously stated comment is we will try and get there by Q4 of FI27. 43:38 43 minutes, 38 seconds Understood. And uh sir now this uh you were alluding to the monetization of stake in scient. 43:46 43 minutes, 46 seconds So, so firstly any ballpark uh dilution percentage that we are looking to dilute and also what kind of uh valuation are 43:55 43 minutes, 55 seconds we looking at or in other uh words like if science market cap is around a billion dollars then how much are of our 44:03 44 minutes, 3 seconds market cap are we attributing to science semiconductors. 44:08 44 minutes, 8 seconds So uh from a dilution perspective we will keep it in the 10% range to start with because that's all the the capital we need to get to the next phase of 44:17 44 minutes, 17 seconds break even and and further growth. uh now in terms of uh uh what percentage of science uh market cap now that's for for 44:25 44 minutes, 25 seconds our investors to determine which as I understand it uh the the value that's attributed to science semiconductor is marginal if not negative because if we 44:34 44 minutes, 34 seconds just do a simple uh uh EBIT multiple EV or um EV2IT multiple then it actually 44:43 44 minutes, 43 seconds becomes negative uh because it's a money losing business so right now our understanding or expectation is best case that it's a marginal value or a 44:51 44 minutes, 51 seconds zero value but in reality the value is much higher and that's why we want to create a monetization for it so we can establish the value and really then have 45:00 45 minutes a basis why we want to continue to invest uh to grow a much much larger business now sir finally sir uh which part of our 45:10 45 minutes, 10 seconds business do you believe is most at threat from AI which part of our business is most So is it most under threat from here? 45:22 45 minutes, 22 seconds Yeah. So there are there are there are two three scenarios we have to understand about about what's going to play out and it might sound like a complicated answer but because it is it 45:31 45 minutes, 31 seconds is complicated. Um firstly there is a significant uh opportunity in front of us on AI which is why we invested in the 45:38 45 minutes, 38 seconds agentic platform uh engineing intelligence platform which is a growth driver for us in the future as we have 45:45 45 minutes, 45 seconds pivoted more and more from being an erd company to a full life cycle company from for products. Uh it's a significant 45:53 45 minutes, 53 seconds opportunity in front of us. Just to give you a perspective on outsource spend, um it changes from about $und00 billion 46:01 46 minutes, 1 second which is the erd outsourcing spend to almost $3 trillion which gets spent today on life cycle management. We 46:08 46 minutes, 8 seconds already participate in that uh in a growing and significant way in the aerospace market and that is why you see our robust growth in the transportation 46:17 46 minutes, 17 seconds and mobility segment. So that's a positive. Uh second is there are two hypothesis over here at play. uh and 46:24 46 minutes, 24 seconds this is with regards to our data business. Um one is because of AI there'll be a significant investment by 46:33 46 minutes, 33 seconds several business operations and uh companies in the industrial space to actually structure their operations 46:41 46 minutes, 41 seconds data, manufacturing data, supply chain data which has typically never been focused on because there was no value 46:48 46 minutes, 48 seconds creator or value driver which now exists in the form of AI. Um and because of that there'll be a huge amount of uh 46:58 46 minutes, 58 seconds investment which will happen and we are already seeing some of that starting in terms of uh the data quality, data 47:05 47 minutes, 5 seconds management, data operations um work. So there'll be a plus and a minus which will play out. At what pace 47:14 47 minutes, 14 seconds which one will grow is difficult to say but we believe it will be slightly positive. Third, there is obviously 47:21 47 minutes, 21 seconds compression on some of the work that we do which is not a very significant portion of our business. Uh which is software development. Uh it is an 47:30 47 minutes, 30 seconds established fact that we are already seeing 20 to 30% productivity improvement. So whatever used to take 47:37 47 minutes, 37 seconds 100 units of work now can be done with 70 or or even 60. So given that's a 47:44 47 minutes, 44 seconds small portion of our service portfolio as we are growing our technology business from single digits uh overall 47:51 47 minutes, 51 seconds overall signed revenue all of this is a possible upside for us. So from a signed perspective uh we feel very confident 47:59 47 minutes, 59 seconds given our portfolio AI threat is minimal. Having said that, AI is an evolving topic. Uh as more things come 48:07 48 minutes, 7 seconds into play, uh we will obviously be very vigilant about how does this apply to our business and in in many cases we 48:14 48 minutes, 14 seconds have invested heavily to be ready for what AI brings across our service lines whether it is mechanical engineering or 48:21 48 minutes, 21 seconds plant engineering. In fact, the appointment of Pra Prabakar Atla as the COO uh one of the key aspects is how do 48:29 48 minutes, 29 seconds we transform our service lines ahead of time. So as I said it's a complicated answer uh so which which is what I shared with you. 48:38 48 minutes, 38 seconds Thanks a lot. Thank you. 48:43 48 minutes, 43 seconds Our next question comes from the line of Rajas Jooshi from Chris Capital. Please go ahead. 48:49 48 minutes, 49 seconds Yeah, thank you for the opportunity. Uh hope I'm audible. Uh my first question would be uh on the on the nature of our 48:56 48 minutes, 56 seconds deal win, right? Uh could you please give some quantitative color uh especially some numbers if you may uh on the nature of our deals this quarter? 49:08 49 minutes, 8 seconds Yeah. So um I I think uh we I I talked about the H2 over H2 uh comparison uh of 49:16 49 minutes, 16 seconds 5.5% growth in FI2 uh6 uh over FI25. Uh we also a significant portion of that 49:25 49 minutes, 25 seconds growth came in Q4 uh where we had a 23% growth in order intake uh over previous 49:32 49 minutes, 32 seconds year. Um so that is where I leave it in terms of numbers. uh and comparisons. U 49:40 49 minutes, 40 seconds in terms of nature of deals uh as I cited quite a few of them were uh longer term as in 2 three years consolidation 49:49 49 minutes, 49 seconds deals across various segments like aerospace, rail, connectivity. Uh that is where we have seen significant 49:56 49 minutes, 56 seconds growth. A large portion of our order intake was also project based wins uh that we have in energy that we typically 50:03 50 minutes, 3 seconds have in energy. So that also came in uh as far as Q4 order uh intake was concerned. 50:11 50 minutes, 11 seconds Okay. Okay. Understood. And uh secondly on margins right so the the walk uh to 15% kind of exit margin. Uh if you could 50:19 50 minutes, 19 seconds just expand on some of the levers that are at play uh which will you know support this uh margin expansion. 50:26 50 minutes, 26 seconds Yeah we have a we have a bunch of levers right both on the on the on the revenue side as well as on the cost side. On the revenue side, I think we're talking 50:34 50 minutes, 34 seconds about price hikes. We're talking of uh uh you know on the cost side, delivering the same revenue using automation, AI, 50:42 50 minutes, 42 seconds etc. which which will bring in further savings in our costs. We have uh uh you know uh a program we are running on to cut costs in in some of the 50:51 50 minutes, 51 seconds administrative expenses, right? Uh so the these are all the levers. uh so the other than the usual uh you know uh 50:59 50 minutes, 59 seconds tailwinds from forex etc which we'll expect because of where the currency is today I think there are fundamentally there are a lot of operating levers that we are working on which will yield us 51:08 51 minutes, 8 seconds the uh desired results and if I may add since there was a question on AI a little while back uh AI 51:16 51 minutes, 16 seconds is also an opportunity in terms of being cost efficient within the company and we are doing that in a pretty structured serious way this 51:26 51 minutes, 26 seconds Understood. And then lastly on the pipeline, right? So again uh if you could just help us with uh some color on the pipeline from a segmental basis. 51:38 51 minutes, 38 seconds Um okay so what what I'll share is um that our number of large deals have gone up in terms of pipeline. uh and uh we 51:47 51 minutes, 47 seconds continue to develop those deals and pretty much um I would say in six or out of our or five out of our seven se 51:55 51 minutes, 55 seconds market segments we have large deals now in our pipeline. Uh it is le led largely by connectivity and healthcare at this 52:02 52 minutes, 2 seconds point in time but uh I'm sure uh we'll try start start seeing it coming across multiple uh markets of ours. So that is 52:11 52 minutes, 11 seconds where we are on on pipeline. Uh overall um as a percentage of new pipeline uh that percentage keeps growing up every quarter and it went up uh in Q4 as well. 52:24 52 minutes, 24 seconds Uh thank you for this detailed answer and wishing you all the very best. Thank you. Thank you. 52:30 52 minutes, 30 seconds Thank you ladies and gentlemen. We will take that as a last question. I would now like to hand the conference over to Mr. Krishna Bodhanapu for closing comments. over to you sir. 52:41 52 minutes, 41 seconds Thank you very much. Uh thank you everybody for participating in this call. Obviously a lot of exciting things are going on uh with um of course with the core business in D. 52:52 52 minutes, 52 seconds Uh Q4 was a little bit of a slower quarter and a little bit of uh lower than what we had anticipated due to the 52:59 52 minutes, 59 seconds reasons that Sukal talked about. But I want to say we're very excited about what uh what holds for us in FI27 53:07 53 minutes, 7 seconds including the growth aspiration or the growth u objectives that Sukuml talked about in the the in terms of mid to high 53:14 53 minutes, 14 seconds single digits and also the margin aspirations that Shiny and Sukumal talked about. So the core business with its pipeline and order intake looks very 53:22 53 minutes, 22 seconds good and of course a lot of exciting things are happening within the scient group um which includes what's going to happen with semiconductor and also the 53:30 53 minutes, 30 seconds confidence that the board demonstrated in the management to continue to generate a very strong cash flow in announcing a very very significant 53:38 53 minutes, 38 seconds buyback. uh it will be among the largest buybacks uh in uh the tech sector and that's because our board is very confident that while we have a lot of 53:47 53 minutes, 47 seconds investment opportunities, we also have a lot of avenues for cash generation. So thank you very much for your support and we'll again speak uh next quarter. Thank you. 53:57 53 minutes, 57 seconds Thank you on behalf of Science Limited. 54:00 54 minutes That concludes this conference. Thank you all for joining us. You may now disconnect your lines.