Data Patterns (India) Limited — Q3 FY26

Data Patterns (India) Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=JaonmI9m6hQ Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the data patterns India Limited Q3 FY26 earnings call hosted by 0:09 9 seconds Go India Advisers. As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions 0:18 18 seconds after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on 0:27 27 seconds your Touchstone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Miss Monali Jen from Go Advisor. 0:37 37 seconds Thank you and over to you ma'am. 0:40 40 seconds Well, good morning everyone and welcome to data patterns India limited call to discuss the Q3 and 9 month FY26 0:49 49 seconds earnings. We have the senior management of the company on call. Mr. S Rangar Rajan, chairman and managing directors 0:56 56 seconds and Mr. Banker Subramanyan, Chief Financial Officer. We must remind you that the discussion on today's call may include certain forward-looking 1:04 1 minute, 4 seconds statements and must be therefore viewed in conjunction with the risk that company may face. May I now request Mr. 1:10 1 minute, 10 seconds Ranga Rajan to take us through the company's business outlook and financial highlights subsequent to which we can open the floor for Q&A. Thank you and over to you sir. 1:21 1 minute, 21 seconds Thank you. 1:23 1 minute, 23 seconds Good morning, ladies and gentlemen, and thank you for joining us for the Q3 and 9month FY26 earnings call. 1:31 1 minute, 31 seconds I trust you had an opportunity to review our earnings presentation available on the stock exchanges and on our website. 1:39 1 minute, 39 seconds FI26 is shaping up to be a good year in line with our expectations. Our order book has reached an all-time high of,868 1:48 1 minute, 48 seconds crores, largest in the history of data patterns, underscoring our strong execution capabilities, deep domain 1:55 1 minute, 55 seconds expertise and growing relevance within the defense ecosystem. 2:00 2 minutes Order inflows during 9 month FI26 and till date have remained healthy and well diversified across services and 2:07 2 minutes, 7 seconds applications reflecting increasing customer acceptance of our products and solutions. Key events during the period 2:14 2 minutes, 14 seconds include large production and development orders for electronic warfare suites from ECL and the ministry of defense further further strengthening our 2:22 2 minutes, 22 seconds position in high value mission critical programs. Our export order book remains healthy at approximately 63 cr and 2:30 2 minutes, 30 seconds export continue to evolve as an important pillar of our long-term growth strategy. We actively involved engaging 2:38 2 minutes, 38 seconds with our customers across the international markets while strengthening our export focused marketing and business development activities. We continue to execute 2:47 2 minutes, 47 seconds regular business on the UK and expect export momentum to improve further as our complete system offerings mature. 2:56 2 minutes, 56 seconds We believe this strong momentum is sustainable. The recent union budget has also reinforced the government's long-term commitment to defense 3:02 3 minutes, 2 seconds modernization and indigenization with a meaningful increase in capital procurement. The sharp rise in 3:09 3 minutes, 9 seconds allocations of for other equipment including radars, electronic warfare systems, missiles, and advanced electronics clearly signals a focus on 3:18 3 minutes, 18 seconds new age defense technologies. This aligns extremely well with data patterns course strengths and long-term strategic 3:26 3 minutes, 26 seconds direction positioning us favorably for future growth. 3:30 3 minutes, 30 seconds Let me give you all a brief overview of financial performance. During Q3 FI26, we delivered a strong quarter with 3:37 3 minutes, 37 seconds revenue growing 48% yearon year 173 crores supported by improved execution across defense programs. On a 9-month 3:45 3 minutes, 45 seconds basis, revenues increased 86% year on year to 580 cr reflecting a meaningful scale up in defense execution. Aida for 3:53 3 minutes, 53 seconds the quarter stood at 70 78 crores up 44% yearon year with aida margin sustained at a healthy 44%. 4:02 4 minutes, 2 seconds Profitability remained robust with pat rising 31% year and year 58 cring 4:09 4 minutes, 9 seconds profit margin of 34%. Overall, we're pleased with the quality, consistency, and resilience of our earnings. In 4:18 4 minutes, 18 seconds addition, we're pursuing co-development activities with global defense measures, particularly in radar and electronic 4:26 4 minutes, 26 seconds warfare domains. These partnerships are aimed at developing solutions not only for Indian defense requirements, also for global markets, enabling us to 4:35 4 minutes, 35 seconds leverage our competencies on a worldwide scale. 4:38 4 minutes, 38 seconds We're also engaging with Indian large corporates to build an Indian defense ecosystem. We have partnered with Barat Forge to bid for the AMA production and 4:47 4 minutes, 47 seconds are one of the three shortlisted to get the RFP. 4:51 4 minutes, 51 seconds We're also attempting to develop other electronic systems to strengthen the Indian content with Indian IP with Indian large corporates in line with the 4:59 4 minutes, 59 seconds GOI stated objectives of Atman. Besides providing a competitive edge to our partners, we're actively involved in 5:07 5 minutes, 7 seconds developing the smart cockpit and mission systems for LCM Mark I, which we believe will be adopted for AMA. We're also offering the advanced sensors like 5:16 5 minutes, 16 seconds infrared search and track and missile approach war in partnership with the European partner meeting made in India content. 5:24 5 minutes, 24 seconds Strategically is steadily transitioning from a subsistance supplier to full systems and solution provider for the defense 5:32 5 minutes, 32 seconds sector. Our focus is not limited to any single platform or application. We're actively pursuing opportunities across 5:39 5 minutes, 39 seconds radars, electronic warfare, avionics, seekers and other mission critical defense electronics. And we selectively 5:46 5 minutes, 46 seconds undertake strategic contracts that offer long-term relevance and scalability. 5:52 5 minutes, 52 seconds We continue to invest ahead to offer strategic systems with in-house IP meeting user timelines which will give us a competitive edge. Our internally 6:00 6 minutes funded development are advancing well and should be offered to the users in the coming years which would should scale our revenues. 6:09 6 minutes, 9 seconds The long-term goal is to scale revenue meaningfully over the next three years while maintain high profitability, technological independence and selective global expansion. 6:20 6 minutes, 20 seconds Looking ahead with strong policy environment, rising defense allocations, increasing indigenization, and a clear shift towards advanced electronics and 6:27 6 minutes, 27 seconds systems. We believe data is well positioned to benefit from long-term defense spending. We remain committed to 6:35 6 minutes, 35 seconds delivering 20 25% revenue growth over the medium term, maintaining healthy IITA margins, and preserving our net 6:42 6 minutes, 42 seconds debt-free balance sheet. With that, I'll now request Wanker to take you through the financial performance in detail. 6:50 6 minutes, 50 seconds Thank you sir and good morning everyone. 6:52 6 minutes, 52 seconds I will take you through the key highlights of our financial performance for the quarter and 9 months ended March December 31, 2025. 7:01 7 minutes, 1 second Q3 FI26 revenue stood at 173 cr registering a strong 48%age year-on-year growth driven by improved execution across multiple defense programs. 7:12 7 minutes, 12 seconds Revenue for 9 months FI26 increased sharply by 86%age yearonear to 580 7:19 7 minutes, 19 seconds crores reflecting significant scale up in operations and sustained execution momentum during the year. Production 7:27 7 minutes, 27 seconds contributes highest to the revenues at 57%age followed by development at 37%age. 7:34 7 minutes, 34 seconds Abita for Q3 FI26 stood at 78 crore up 44%age yearon year with AITA margins 7:42 7 minutes, 42 seconds maintained at healthy 40 44%age highlighting the strength of our operational model for 9 months FI26 ITA 7:52 7 minutes, 52 seconds grew at 42%age yearon year to 178 cr supported by favorable execution mix and operating leverages 8:00 8 minutes net profit for Q3 FI26 was 58 K cr up 31%age year on year translating into a 8:08 8 minutes, 8 seconds net profit margin of approximately 34%age. 8:12 8 minutes, 12 seconds Pat for 9 months 26 stood at 133 cr reflecting 23%age yearon-year growth 8:20 8 minutes, 20 seconds despite quarterly variations in execution mix. Gross margins remain strong during the quarter reflecting the 8:27 8 minutes, 27 seconds high value nature of our product portfolio and strong in-house capabilities. Overall profitability 8:35 8 minutes, 35 seconds continues to remain healthy and resilient. Working capital remains well controlled and we continue to focus on 8:42 8 minutes, 42 seconds efficient execution and prudent capital management with the record order book strong execution visibility and 8:51 8 minutes, 51 seconds discipline cost management. We remain confident of achieving the fullear revenue and EITA margin guidances. 8:59 8 minutes, 59 seconds That concludes the financial highlights from my side. Thank you. 9:07 9 minutes, 7 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. 9:17 9 minutes, 17 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies 9:26 9 minutes, 26 seconds and gentlemen, we will wait for a moment while the question Q assembles. 9:31 9 minutes, 31 seconds Our first question comes from the line of Amit Digshit from Goldman Sach. Please go ahead. 9:40 9 minutes, 40 seconds Yeah. Hi. Uh good morning everyone and thanks for the opportunity. 9:43 9 minutes, 43 seconds Congratulations for a good set of numbers. A couple of questions from my side. The first one is going back to the beta margin. I mean 46 and a half% is a 9:53 9 minutes, 53 seconds number that no other radar electronics company has achieved in the world possibly at this point in time. uh while 10:00 10 minutes uh you highlighted in the prepared remarks that it is on the account of favorable execution mix but what we see 10:07 10 minutes, 7 seconds in the execution mix that there are uh you know avionics is coming there is ew system so I mean it's all about the our 10:16 10 minutes, 16 seconds core platforms that are coming to four that seems to be sustainable so just wanted to understand that what kind of aeta margins do we expect given that 10:24 10 minutes, 24 seconds these are your focus areas in the future as Um see auda margins is a composite 10:36 10 minutes, 36 seconds addition of various contracts executed during the quarter or the year. So it'll depend on um you know the competitive uh 10:45 10 minutes, 45 seconds scenario plus uh what products we're really doing and how much of it is uh designed by us and how much bought out 10:54 10 minutes, 54 seconds is going to be there. What you see when the bida margins are higher or the the gross margin more importantly than eida 11:01 11 minutes, 1 second margin will be in products which is completely designed in house. Uh why is that higher? Because the building blocks 11:09 11 minutes, 9 seconds which some of the companies import even including large corporates uh outside India u then they build the overall 11:16 11 minutes, 16 seconds system based on the building block imported or bought out. Whereas we actually design the building blocks to work on a raw material cost and write 11:24 11 minutes, 24 seconds off the revenue expenses on the year of development uh as part as part of our uh P&L. So when this adds up and we use our 11:33 11 minutes, 33 seconds own kind of building blocks into systems the the gross margin goes up. Uh but you need to keep in mind that we have done 11:42 11 minutes, 42 seconds all the development and there's a cost attached to it is actually been written off. If you were to do not do that then I margins will probably be much lower. 11:50 11 minutes, 50 seconds So that is to answer this and then uh generally we try and address markets based on our strength of products rather 11:59 11 minutes, 59 seconds than compete in every area where we buy and sell or trade or integrate alone. We do not participate in such contracts. We 12:08 12 minutes, 8 seconds participate to build IP and those contacts where we are there's a lot of Indian a lot of ADP content that is 12:16 12 minutes, 16 seconds where we participate. So largely the AIDA margin should be similar to what we've been presenting till date. Of course there will be changes because 12:24 12 minutes, 24 seconds some systems there has to be integrated integration happens and like trucks have to be brought and things like that on a system level in those contracts theida 12:34 12 minutes, 34 seconds margins or the gross margin comes down and consequently the margin comes down I hope I manage your question it's not a 12:40 12 minutes, 40 seconds straight answer because uh it theida margin is a mix of so many things as part of the execution of various kind of 12:48 12 minutes, 48 seconds contracts we take up quite clear sir the second question is essentially on exports. Now looking at 12:55 12 minutes, 55 seconds the current EU India FDA and the possibility of uh of some of the big bang deal happening particularly on 13:03 13 minutes, 3 seconds Rafal uh I mean uh and there could be some reciprocal element to it while I don't want to go into that the point is 13:10 13 minutes, 10 seconds that we have made you know a good foothold in export market now with P and all and export revenue is 9 and 9.6% in 13:20 13 minutes, 20 seconds this quarter. Uh so just wanted to uh get a sense on uh what all products we 13:27 13 minutes, 27 seconds are uh kind of seeing a good traction in the export market and how this EU India FDA is going to help us. So from a 13:36 13 minutes, 36 seconds overall perspective from a macro sense if you can give us some picture on that sir. 13:42 13 minutes, 42 seconds Uh the opportunities are fairly large in the world market today. Um um earlier India used to be a lowc cost country 13:50 13 minutes, 50 seconds sourcing for the world market um and but what we have done what we are doing is actually IP driven products so there's a 13:59 13 minutes, 59 seconds shift in what we do and what typically is imported especially in the defense scenario but operate because the spend in the European markets is going to go 14:07 14 minutes, 7 seconds up due to geopolitical environment uh I think there's an opportunity for us pe companies like us who have strong 14:15 14 minutes, 15 seconds IPdriven product development capabilities, participate and address some of the needs where they will be spending. We need to do a lot more work 14:24 14 minutes, 24 seconds uh in the export market, go meet people, talk to them, invite them here. All this has to happen. So we've already started 14:31 14 minutes, 31 seconds doing this before the FT was signed and there has been some considerable traction with a few companies and they've shown very lot of interest in 14:40 14 minutes, 40 seconds what we're doing to see whether this can be deployed or used or modified for their requirements in their in their avionics and other areas of operation. 14:50 14 minutes, 50 seconds Uh we've started getting RFS from them and hopefully this will all turn out to contacts going ahead. So uh we need to 14:58 14 minutes, 58 seconds this is these are early uh days. We need to actually do a lot more work in the export market. Put a team together and 15:06 15 minutes, 6 seconds drive the export market with a on a consistent basis to see that two three years down the line we have a steady business which can scale. We have 15:15 15 minutes, 15 seconds competitive advantages in terms of uh competencies which is world class. 15:20 15 minutes, 20 seconds Second our cost of development is far lower than the cost of development in Europe. Third, our uh you know since 15:28 15 minutes, 28 seconds everything is done inhouse more than what the large corporates do there because they rely on lot of subcontracts to do it. We're able to bring an economy 15:35 15 minutes, 35 seconds of scale and cost to them. Fourth, the time frame which we can deliver. Uh they are just astonished that we can deliver 15:42 15 minutes, 42 seconds these things in a time frame which they never imagine is possible and uh they like that especially because uh they 15:50 15 minutes, 50 seconds have a need and the need has to get unaddressed and they're not able to actually deliver to their customers for a few years and we bring in that 15:58 15 minutes, 58 seconds additional strength to see that deliveries can happen early. 16:02 16 minutes, 2 seconds uh on top of that uh we are also willing to co-invest in some of the product development which can be world used worldwide. This is also of interest to 16:09 16 minutes, 9 seconds them and uh since we have raised money and we have money in our kitty we can co-invest not just looking at Indian markets but also world market as you go 16:17 16 minutes, 17 seconds along. So the multiplrong strategy on exports which we need to formalize and we are thinking about it put a team behind it and start this activity 16:26 16 minutes, 26 seconds probably next year early to see that some traction happens and export is possible. uh we're also attempting to do such similar things in the US markets. 16:34 16 minutes, 34 seconds Now the trade agreement in the US is also done. Uh the the the duty structures have come down. So I think we 16:42 16 minutes, 42 seconds should be able to get some early wins and all this. It'll take some time because it'll be early wins for where they get used to our culture, our 16:50 16 minutes, 50 seconds quality process etc etc because these all certified programs and once the confidence comes I think the scale can happen much faster than what we can do 16:59 16 minutes, 59 seconds in India. So we are seized of the opportunities we understand it. So we are very excited about the opportunities is happening and especially it fits our 17:08 17 minutes, 8 seconds kind of development capability we've done about 1100 engineers recruiting another 150 this year this year. So we're building a competency skill which 17:16 17 minutes, 16 seconds will be useful in these areas. Early the opportunities were not there. The opportunity is opening up now. I hope we able to address the opportunities satisfactory and grow the business. 17:29 17 minutes, 29 seconds Great sir. Thank you so much and all the best. Thank you. 17:34 17 minutes, 34 seconds Thank you participants. Please restrict yourselves to two questions. If you have any more questions, you may rejoin the queue. 17:42 17 minutes, 42 seconds Our next question comes from the line of Hartik Raat from IIFL Capital. Please go ahead. 17:48 17 minutes, 48 seconds Thanks for the opportunity and uh very many congratulations to the management team on your robust quarter and healthy 17:56 17 minutes, 56 seconds uh growth and inflows. Now my first question is with regards to the employees themselves. So the PPT and the press release mentions that you know orders negotiated which are not awarded 18:04 18 minutes, 4 seconds as on date uh stands at about 11 billion rupees. Just wanted to understand you know why when do you expect these orders to be received and what could be the 18:13 18 minutes, 13 seconds broader mix between you know development and production within this any large orders that you'd like to highlight which is within the orders that are 18:19 18 minutes, 19 seconds negoti one to two months time uh because these 18:27 18 minutes, 27 seconds are only uh document work which has begun and sign so I think next one to two months time we should uh these 18:34 18 minutes, 34 seconds should be converted contracts uh this consists of a large portfolio of products uh some in the development area 18:42 18 minutes, 42 seconds uh but again uh like I said in the earlier question we've taken up contracts which is in the core competency area of data patterns so it 18:51 18 minutes, 51 seconds is more of redesigning what has already been designed for a different application airborne application that is one of the larger orders we caught uh 18:59 18 minutes, 59 seconds which is uh which which we you should getting a signing and uh it's in line with our competencies That is all that's all I 19:08 19 minutes, 8 seconds can say at this point. I don't want to get into the exact nature of the contract. Um I think uh once contract 19:15 19 minutes, 15 seconds comes we will discuss a bit more in detail. 19:19 19 minutes, 19 seconds Fair enough sir. And you know with these orders coming in uh you know we could possibly be looking at an order book of about you know 18 to 19 billion whenever 19:27 19 minutes, 27 seconds they come which will be very sizable uh and like it was mentioned in the PP the highest ever for us. uh what would be 19:34 19 minutes, 34 seconds the execution cycle so to speak for for this order book? 19:39 19 minutes, 39 seconds Again it varies. There are service orders as part of the contract AMC etc which will be done over the many years. 19:46 19 minutes, 46 seconds The order deliveries itself uh some can be delivered next year some year after next etc. Again it depends on the contract. There are multiple clutch 19:54 19 minutes, 54 seconds contracts which add up to this 1,800 crores. 19:57 19 minutes, 57 seconds So uh it's very difficult to say exactly. have not done the arithmetic to see that we'll be doing it now. But these are not the only orders. We also 20:06 20 minutes, 6 seconds expect to sign more contracts in the next two to three months time probably another five 600 course of contracts which can get signed and during the 20:14 20 minutes, 14 seconds course of next year we're also looking at a a lot number of uh uh single data contracts based on what has already been 20:21 20 minutes, 21 seconds designed and developed that also is expected. So the order book is expected to grow and we are trying to see whether 20:28 20 minutes, 28 seconds advanced action on design advanced action on production can happen so that we can you know scale the business 20:35 20 minutes, 35 seconds substantively in the next coming years but last question would be with regards 20:42 20 minutes, 42 seconds to the open capital cycle while you mention opening remarks that you know it's been fairly contained could you please put a number on that and in 20:49 20 minutes, 49 seconds addition to that you know our cash on hand is at the lowest in the last uh 8 to nine quarters. Uh could you also 20:57 20 minutes, 57 seconds please uh delve a bit into what kind of receivable cycles you're looking at within that enterprise site? 21:03 21 minutes, 3 seconds Can you repeat the first question? I couldn't understand it. 21:06 21 minutes, 6 seconds Uh so you mentioned Yeah. So you mentioned that working capital has been largely contained. If you could put some number to that as to 21:14 21 minutes, 14 seconds what kind of working capital days we're looking at. And uh secondly, our cash balance uh is at one of the lowest 21:22 21 minutes, 22 seconds levels in the last eight quarters. Uh how are you seeing the situation and do you expect some you know large size receivables that are uh sort of materializing in the near future? 21:33 21 minutes, 33 seconds I'll ask the second part of the question will ask the first answer the first part. uh the data situation has been extended but we are expecting all the 21:41 21 minutes, 41 seconds cash to come in the next three to four months time and that will again uh you know take care of the cash on hand situation which you talked about there 21:49 21 minutes, 49 seconds are some large development contracts you have taken the last year and year before last and uh they are in the final stage 21:56 21 minutes, 56 seconds of uh acceptance to the customers on integration once that is done we expect the money to come in these are large 22:03 22 minutes, 3 seconds value money which will be coming in which will recharge our cash factory that is going to happen in the next could be months time the maximum of four 22:11 22 minutes, 11 seconds months time I think correct all the money this is one the other one regarding working capital I think will answer this question 22:19 22 minutes, 19 seconds yeah the working capital uh it was uh around 428 days in March it has come down to uh you know uh we've not 22:28 22 minutes, 28 seconds published the balance sheet numbers uh for December but internally uh it has come down to 340 is and we expect uh it 22:38 22 minutes, 38 seconds to be remaining at the same level by March also. But going forward once all the collections happen this will improve 22:45 22 minutes, 45 seconds and uh as we have been uh mentioning in our earlier calls also uh you know over uh next probably some 3 to 5 years time 22:54 22 minutes, 54 seconds it will gradually come down to 270 to maybe 300 days. Uh that is a working 23:02 23 minutes, 2 seconds capital cycle that we are expecting uh in line it is in line with our uh expectations only. Uh collections on 23:10 23 minutes, 10 seconds development contracts is uh you know getting delayed but uh the production contracts we are able to collect it 23:17 23 minutes, 17 seconds faster. So we expect uh maybe around 270 270 to 300 days of working capital cycle going forward sir 23:26 23 minutes, 26 seconds and we also get advance against all these contracts help us so the net borrowing from banks is actually zero we 23:33 23 minutes, 33 seconds only work on bank guarantees non-fund limits is what we're working on that is also the second point third is this 23:40 23 minutes, 40 seconds we've taken very large development contracts last couple of years and all of them have very high potential of 23:47 23 minutes, 47 seconds multiple times getting into production orders which can be few, thousand crores each. So we've selectively participated in programs that will give us long-term 23:56 23 minutes, 56 seconds gain on a large scale which is which is what the company has actually working towards uh you know the whole organization working towards scaling up 24:05 24 minutes, 5 seconds the technology. So it's in line with what we expecting and the working capital is going to be large is larger than cost of development contracts. 24:19 24 minutes, 19 seconds Thank you. The next question comes from the line of Deepen Vakil from Philip Capital. Please go ahead. 24:25 24 minutes, 25 seconds Uh hi sir. Uh good morning and uh congratulations on a healthy execution. 24:31 24 minutes, 31 seconds Uh sir my first question is relating to the order inflow. So, so we usually mention that our order pipeline is close to around 20 to 30 billion in next 18 to 24:39 24 minutes, 39 seconds 24 months and considering that we are uh looking at a strong order wins in fourth quarter. Uh would you like to update on 24:46 24 minutes, 46 seconds the order info guidance going ahead as well as to what we are seeing especially over one is overall order inflow and 24:54 24 minutes, 54 seconds another is on the recurring side of what kind of recurring orders can we expect going ahead? 25:00 25 minutes Um I won't comment on the recurring orders but I can comment on the order pipeline products we develop now uh uh 25:08 25 minutes, 8 seconds we can expect another2 to3 billion dollars of order pipeline and capability matter of fact in a couple of years I 25:16 25 minutes, 16 seconds think it should go much beyond that if if what we think won't happen of course we have no control over the market and the timing of when they contact them 25:23 25 minutes, 23 seconds because it's a government all my business is government but uh the products were developed and how It's been appreciated by the customers and 25:32 25 minutes, 32 seconds the quality and the reliability of the products and the advanced nature of technology which is deployed in the product the requirements which we have quoted against and got the development 25:40 25 minutes, 40 seconds contracts are all large value contracts going ahead and multiple systems required across India. So if this is 25:47 25 minutes, 47 seconds fractifies our order book situation should scale up multiple X times in the next couple of years or three years time 25:56 25 minutes, 56 seconds is what we expect. uh uh we've been driving the product developer activities towards scaling substantive revenues and 26:04 26 minutes, 4 seconds we are in track at at the present moment. We still work in process because the orders have not come the repeat products have been delivered but it 26:12 26 minutes, 12 seconds should it should in our mind it should turn out to be large contracts moving ahead. Uh this is one. Second is with 26:19 26 minutes, 19 seconds our initiation into export markets also we believe that uh this also should take 26:26 26 minutes, 26 seconds off and start giving us some uh in a repetitive business out about probably another couple of years down the line 26:34 26 minutes, 34 seconds both in civil aviation as well as defense equipment uh we're working on both both sides with few companies we 26:42 26 minutes, 42 seconds can scale up the number of organization and get the initial diveins and initial products side I think next two three 26:50 26 minutes, 50 seconds years we we will probably get repetitive business outside India here in India mostly it's project based so we're not 26:57 26 minutes, 57 seconds able to predict repetitiveness so we get into AMA program and LCA and so helicopter programs and all of them uh 27:05 27 minutes, 5 seconds there is plagued by delays on deliveries from our customers back our product deliveries also get delayed acceptance 27:12 27 minutes, 12 seconds get delayed but uh in a mature market where there is a need uh this is predictable business is what we expect 27:20 27 minutes, 20 seconds whatever orders we're getting from UK it's a predictable business they give you a long-term order which monthly deliveries we we want the part portion 27:27 27 minutes, 27 seconds of our turnover uh to at least be that so that we can tailorize this this ups and downs and unpredictability in the 27:35 27 minutes, 35 seconds market we would like to do that strategically I think that is necessary so we're working both ends of the spectrum to see that we don't miss out 27:42 27 minutes, 42 seconds on opportunities in India but also bring in some business in for markets. We're working on both. It takes a bit of time 27:50 27 minutes, 50 seconds because these are opened out just now to us and we have to focus. We've been looking India all all through our life. 27:56 27 minutes, 56 seconds Now our focus is also shifting to for India out of India along with the concentration India. So we are aware of 28:03 28 minutes, 3 seconds the opportunities and aware of how to scale this business and guided by our board. I think we on the right track and we're very excited about the opportunities lying ahead. 28:14 28 minutes, 14 seconds Got it sir. That's very encouraging. Uh so uh my second question is on the bramos side of it. So uh in this year also major order received we are looking 28:23 28 minutes, 23 seconds at missiles from bramos. So is it like a new product and any update on the seeker trials that are ongoing from bramos. 28:33 28 minutes, 33 seconds Uh we've completed the secret trials. 28:34 28 minutes, 34 seconds We've got a development contract with marginal differences with which go into production orders. uh we'll be delivering it in the next one or two 28:42 28 minutes, 42 seconds months time uh ahead of schedule uh and I think we've done a good job in the product development. It's a reliable product. Once that is done, we expect 28:52 28 minutes, 52 seconds Bramos uh to give us start giving the production orders. We've also gone ahead and ordered the equipment for uh 28:59 28 minutes, 59 seconds production testing. So that'll be arriving in the next three or three four months. So we can set up a line for series production with monthto- month 29:06 29 minutes, 6 seconds deliveries will happen starting uh 26 27 and uh this is one area we've done. 29:14 29 minutes, 14 seconds Second is on other than Ramos we've also done a madile higher band uh seeker that is also in advanced stage of delivery development 29:23 29 minutes, 23 seconds and delivery expect some repeat contracts there we want to focus on this kind of uh uh seeker capabilities with 29:30 29 minutes, 30 seconds other uh OEMs to see whether we can use this for other OEMs modify it for other requirements also seeker should start 29:39 29 minutes, 39 seconds the I can't put a timeline but what we hear is it should start by this year on this this calendar year that is 29:46 29 minutes, 46 seconds financial which is 26 27 you should start getting production orders got it sir congratulations on the braos order it was a long awaited one uh I'll 29:55 29 minutes, 55 seconds call back on the queue for further questions thank you and all the best thank you the next question comes from 30:03 30 minutes, 3 seconds the line of Sriram Kapoor from Jeffrey's group please go ahead hi sir thanks for the opportunity I just 30:11 30 minutes, 11 seconds want to ask on your order flow so Um last quarter you mentioned u in your press release that you had about 550 crores worth of orders negotiated but 30:20 30 minutes, 20 seconds yet to be received. Um this quarter order flow was about 240 crores. Um so um and and you've also mentioned you 30:27 30 minutes, 27 seconds have about 1100 crores worth of orders negotiated and completed. So just wondering 300 crores from that last quarter's number has spilled over and is 30:35 30 minutes, 35 seconds part of this negotiated orders and um that's first clarification. Could you give that? Actually I've not done this calculation the way you're asking. 30:44 30 minutes, 44 seconds Okay. 30:45 30 minutes, 45 seconds Uh maybe maybe you can write to uh uh go India and we can write back to you. I'll do the uh let me look at the order what 30:54 30 minutes, 54 seconds was told last quarter and this quarter and see whether there's an overlap or already it's been received. Let me do this exercise and get back to you. 31:02 31 minutes, 2 seconds Sure no problem. And just on the timelines of these orders. So you mentioned um 1,100 crores. So you're expecting this in the next 1 2 months 31:10 31 minutes, 10 seconds and the other in your presentation you've also mentioned another 500 crores on top of this right which could also come this quarter. So are we expecting 31:17 31 minutes, 17 seconds you know around 1,600 crores worth of orders this quarter itself or could some spill over to next year? Uh just wondering on timelines should happen this quarter. 31:28 31 minutes, 28 seconds Understood sir. Thank you so much. 31:31 31 minutes, 31 seconds Thank you. The next question comes from the line of Aman Sunni from Invest Analytics Advisor Advisory LLP. Please go ahead. 31:41 31 minutes, 41 seconds Hello. I'm audible. 31:44 31 minutes, 44 seconds Uh yes, just be a little louder and go ahead with your question. Thank you. Uh hi. Uh uh is it fine now? Yeah. 31:52 31 minutes, 52 seconds Yes. 31:52 31 minutes, 52 seconds Hello. Uh yes. Uh so uh most of my questions are answered. Uh just one clarification on uh this industry-wide ship building capex happening uh over 32:00 32 minutes the next few years. So how does management assess the addressable opportunity here like uh uh any of our product categories falling into that opportunity sir? 32:12 32 minutes, 12 seconds Uh we've not actually addressed uh ship building as such. We work on equipment 32:19 32 minutes, 19 seconds and uh we've not done any development on the platform management system, things like that, bridge management system, so many other things on the ship. They've 32:28 32 minutes, 28 seconds been traditionally they've been importing and there are companies who actually focus on it many years. We've been actually working on sensors quite a 32:35 32 minutes, 35 seconds lot and uh we've not done some many work on that. What we are trying to do is some of upgrades for Navy. We're trying 32:42 32 minutes, 42 seconds to offer our electronic warfare suites, some of the radars etc. and see whether those opportunities can be addressed. Uh 32:50 32 minutes, 50 seconds presently we are engaged in this kind of line of things. Uh we've not actually looked at new ship buildings. We have uh of course made some offers but we not 32:58 32 minutes, 58 seconds got the contract though we were low sport for example takan and some things goes into ships tactical uh air 33:06 33 minutes, 6 seconds navigation systems things like that. Uh we have products for these kind of things not yet got orders. So we may 33:14 33 minutes, 14 seconds probably have to pursue such contracts but at present moment we don't have anything which uh we can say is going to give us a regular returns. 33:25 33 minutes, 25 seconds Secondly on the export part uh you are very bullish on export uh as export will provide the better revenue visibility as well as you mentioned to one of the 33:33 33 minutes, 33 seconds participants. So going ahead like currently it is 19% of our uh uh revenue in this quarter. uh over the years how much percentage of export do you expect 33:42 33 minutes, 42 seconds uh to the overall topline uh very difficult to answer that question presently what's happening is 33:49 33 minutes, 49 seconds our Indian revenue model is increasing uh year to year and it going to be substantive increase is going to happen 33:56 33 minutes, 56 seconds in next two three years time so I don't think the export will uh keep in pace with that kind of increase revenue in 34:03 34 minutes, 3 seconds the domestic markets the focus is in Indian domestic markets But we do over a period of time maybe 3 years down the line we would have to 34:12 34 minutes, 12 seconds build an export business which is sizable then we can talk about numbers which is meaningful today it's very difficult to talk about this but uh to 34:20 34 minutes, 20 seconds answer your other question on the ship building a ship building not there we're also working with some foreign companies 34:27 34 minutes, 27 seconds see whether we can do Indian content for modernization of gun control radars uh IRS that is in research and track 34:37 34 minutes, 37 seconds etc. uh which are modern sensors and uh fighting equipment necessary and our ships have got old equipment. The 34:45 34 minutes, 45 seconds requirement to modernize these kind of ships. The advantage is that uh if you can get in of course it takes time to 34:53 34 minutes, 53 seconds prove the system on the ship and then then get the inquiries and it's a two-year kind of time frame or maybe 35:00 35 minutes more. Once you get in there will be a number of ships which needs upgradation that give you a regular business year and year. So we're working on some kind 35:08 35 minutes, 8 seconds of programs like this uh where a lot of Indian IP is there but we don't have all the applications in various areas for which we will get partners that 35:17 35 minutes, 17 seconds application orientation they have we will use and manufacture in India but uh the main part will be designed by us in India. So the IP content is still 35:26 35 minutes, 26 seconds retained and that will be based on our core components you already developed. 35:29 35 minutes, 29 seconds So we addressing the market in different ways. I've not projected all this. These are all uh potential business but not projected because you're not sure when 35:38 35 minutes, 38 seconds it will happen. What the size of business will happen is not sure. But like this we attempting a number of programs uh which can come out of a core 35:46 35 minutes, 46 seconds competency which is being product competency built by us. It can be used in various kinds of platforms. That is why in the opening remarks I said we not 35:54 35 minutes, 54 seconds platform specific. We can do a number of platforms. uh the capabilities are IP generated can go to any very very many many platform. We have to go through the 36:03 36 minutes, 3 seconds end go through the process go through certifications qualification install the systems and see where it goes to bring in scale which is what we want. 36:14 36 minutes, 14 seconds Got it. And one last thing I'm sorry to interrupt ammon uh those were your two questions I would request you to fall into back into the queue. 36:21 36 minutes, 21 seconds Thank you. The next question comes from the line of Joti from Nirmal Bank Securities. Please go ahead. 36:28 36 minutes, 28 seconds Uh it is not Joti core, it's Joti Gupta. 36:31 36 minutes, 31 seconds Good morning sir. Thank you for the opportunity. I wish you swift recovery and great health and great set of 36:37 36 minutes, 37 seconds numbers. Uh one just uh wanted to ask this sudden increase in your revenue any specific orders that has been delivered 36:46 36 minutes, 46 seconds if you can if you can elaborate. And second is uh what is uh the status on fire control radars? Do you expect any 36:55 36 minutes, 55 seconds orders coming through in the next couple of quarters or what is the status uh that you anticipate in the future? 37:04 37 minutes, 4 seconds Answer the first question. It's not sudden orders. 37:08 37 minutes, 8 seconds There have been delays in getting the orders. It's got delayed very badly. We expected to happen much earlier because 37:15 37 minutes, 15 seconds of some processes. This got delayed got up now. So we it's not nothing hurdle. It's all started work two years back for all these contracts. 37:26 37 minutes, 26 seconds Suddenly we don't get orders like this because it's a so this is not sudden. 37:30 37 minutes, 30 seconds Second is um the fire control radars are still in development stage. 37:37 37 minutes, 37 seconds It's going to take some time before this can realize lot of potential. So you've taken money uh for uh PAB money to 37:45 37 minutes, 45 seconds invest in large development activities which can give substantive revenue business,000 37:52 37 minutes, 52 seconds crores of potential revenue. One is the fire radars. Second is the modern EW suite which includes the ped jammers and 38:01 38 minutes, 1 second the radar warning receiver and the ensuing uh kind of subsystems. All of thisly designed by us. Matter of fact uh 38:10 38 minutes, 10 seconds as we speak there are in you know uh users are in our office actually testing some of the products with the one 38:18 38 minutes, 18 seconds statement products which is already been designed. So these are all on track but it'll take time but happens it happens 38:25 38 minutes, 25 seconds you're talking about order book uh which the requirements above 10,000 crores that is why the development cycles are also going to be long but we have to 38:33 38 minutes, 33 seconds certify it in the air put in 38. This will all happen over the next two three years time but in the next two three 38:41 38 minutes, 41 seconds years we have to continue with what we're doing see the auto scales the revenue scales and we meet market expectations and our own ambitions be a 38:50 38 minutes, 50 seconds large in the short so this is the path in which you're going you're building products for maybe four five years down the line 38:58 38 minutes, 58 seconds which will come into large orders so we have a medium-term short-term kind of uh targets and a medium-term target and a 39:06 39 minutes, 6 seconds long-term target we're trying to see how to address all of them based on and build products. See the important thing is build products. 39:13 39 minutes, 13 seconds India is of products because you always importing product. Correct. 39:17 39 minutes, 17 seconds So you want to build products in India increase the total addressable market and then compete. There's no point in my 39:25 39 minutes, 25 seconds saying three lakh crores is going to be spent in India on defense capital because we cannot address those three lakh crores. 39:31 39 minutes, 31 seconds True. True. So we have to look at more what is addressable bias and the addressive market has to be increased so that we have a percentage game in this 39:39 39 minutes, 39 seconds which can be competitive capability etc etc what do we need to do how to address the market and we ahead that we need is 39:48 39 minutes, 48 seconds modern worldwide class systems. So the uh attempt is to try to increase our TAM and that's what we're trying to do with 39:56 39 minutes, 56 seconds products but there'll be deep products which is world class and uh highly reliable. 40:03 40 minutes, 3 seconds So the focus is developing such products and 5 radar one such products. M you're also seeing that with the 40:11 40 minutes, 11 seconds international companies coming in they're also excited with some of the other products we're doing and they also have some 40:18 40 minutes, 18 seconds so we look at their absolute upgrade programs also and re redesigned the products already designed by us India 40:26 40 minutes, 26 seconds suit the end customer requirement that also we are on on on the job which are also on the same core competencies we 40:33 40 minutes, 33 seconds build multiple solutions which can also help us reduce risk and also give repeatable business going ahead. 40:43 40 minutes, 43 seconds Thank you. The next question comes from the line of Sukrit Patil from Eyesight Fin Trade. Please go ahead. 40:49 40 minutes, 49 seconds Good evening. Uh sorry, good morning to the team. Uh my first question to my first question is uh looking ahead how do you see data patterns uh balancing 40:58 40 minutes, 58 seconds between expanding its order book ensuring timely execution of defense projects and uh maintaining profitability as the defense electronic 41:07 41 minutes, 7 seconds space evolves with newer opportunities and customer uh requirements. What will guide your decision-m process on where to place the strongest focus in the coming years? That's my first question. 41:17 41 minutes, 17 seconds I'll ask my second question after this. Thank you. 41:21 41 minutes, 21 seconds It's a a bit not very clear question. Uh can you put it in fewer words so that I can ask a question because you talked 41:29 41 minutes, 29 seconds about defense and modern electronics and reliability and all that what we're doing already but I can understand it. 41:38 41 minutes, 38 seconds Yeah. Yeah. I I I'll just uh I'll just rephrase it. I want to understand how you decide where uh how I want to 41:46 41 minutes, 46 seconds understand how do you decide when growth through new orders should be in the top of the list or when execution discipline 41:54 41 minutes, 54 seconds or margin protection becomes more important. Basically what is the thought process behind shifting focus as the conditions change 42:03 42 minutes, 3 seconds be very clear about contracts which we pursue. We want to build a profitable company. you're not going to be going after the revenue business. 42:13 42 minutes, 13 seconds It has to be bottom line driven business. You're very very clear about it. We've always been doing that. It has to be IP driven. It has to differentiate 42:20 42 minutes, 20 seconds and uh it has to allow us to build more products because without bottom line, you won't have the money to build additional products and scale the 42:28 42 minutes, 28 seconds company. Yes, it's a it's a longer harder work. Uh there's no easy way to it. But uh over the last 30 odd years 42:37 42 minutes, 37 seconds we've been doing that and now that the foundations are built and deep skills and product capability has been built within the company and infrastructure built we don't see why we should change 42:46 42 minutes, 46 seconds this to suddenly go into revenue business model and see that growth happens for revenue business at at the cost of bottom line. We think that is 42:54 42 minutes, 54 seconds not the correct thing to do especially for the DNA of our company. This is one. 42:59 42 minutes, 59 seconds Second is the opportunity in India is scaling up substantively and that scale up is happening and looking at making in India as a mandatory requirement. I 43:07 43 minutes, 7 seconds think it supports uh the way we have been thinking about make in India. 43:11 43 minutes, 11 seconds Matter of fact the last 20 odd years if you come in our office and exhibitions of ours always have a bland made in India with pride. So we take pride in 43:20 43 minutes, 20 seconds our products. So because we take pride in our products it's a reflection of what we are. We believe it has to be world class. It has to be reliable. It 43:29 43 minutes, 29 seconds has to be what standard. So we try to attempt quality standards to that extent and uh go by it. We continue to go with 43:37 43 minutes, 37 seconds the same DNA and our approach. We're not going to change the approach and this approach is going to give us huge benefits going ahead. So how do I scale 43:45 43 minutes, 45 seconds the business if it's going to only bottom line? We we quote or invest in products where there is large market 43:52 43 minutes, 52 seconds available and the gaps are there. In the scenario of Indian markets, there are gaps which is not filled by others and 44:00 44 minutes probably filled by foreign company OEMs, India international OEMs. We try to address those gaps and try to replace 44:08 44 minutes, 8 seconds those gaps with Indian products at a much lower cost and also see that if we have it customized to the customer 44:14 44 minutes, 14 seconds requirements much faster ahead of time and the support which is going to be obviously much much better designed and 44:22 44 minutes, 22 seconds made in India. We give you long-term support and we uh invest ahead to see that the products available when the customer requires it. Yes, we take a 44:30 44 minutes, 30 seconds risk of doing such things but uh uh we we want to differentiate ourselves from others. We build the products and we incrementally building the products with 44:39 44 minutes, 39 seconds poor IPs. So our risk in that way is also protected are not very high. So this is our DNA and this is how we want 44:46 44 minutes, 46 seconds to continue to do business and I think that we are right time at the right place uh not only for Indian Indian context but also international context. 44:54 44 minutes, 54 seconds So we don't have exposure to international business we we will we'll make attempts to see that our presence is there and we start slowly scaling to 45:02 45 minutes, 2 seconds international business also but Indian focus is going to be the way we are. I think the scale is going to happen by itself and we are in the right track 45:10 45 minutes, 10 seconds with the right products and I think scale will happen. 45:14 45 minutes, 14 seconds Thank you. Participants please restrict yourselves to one question. If you have any further questions kindly rejoin the queue. The next question comes from the line of Santos from I thought PMS. 45:25 45 minutes, 25 seconds Please go ahead. Uh thanks for the opportunity. 45:31 45 minutes, 31 seconds Congratulations on numbers. I just have a couple of questions. You didn't mention the TAM of about 15,000 to 20,000 crores. Uh what is a SAM from 45:39 45 minutes, 39 seconds that and where do you see those cross in terms of timeline? Uh I didn't understand the first part. 45:47 45 minutes, 47 seconds The second part timelines is probably another 3 to 5 years. What is the first part? 45:55 45 minutes, 55 seconds Okay. So what you mentioned that TAM is 15 to 20,000 crores and what is your serviceable additional market from that? 46:04 46 minutes, 4 seconds uh when I see addressive market time is addressable market 15 20,000 crores or much beyond that you take variance of 46:11 46 minutes, 11 seconds what we develop to other programs outside India it'll probably go more than 20,000 crores so that's the reason we're putting deep money and larger 46:20 46 minutes, 20 seconds development cycles see that we address the market with a product which is not available in India 46:28 46 minutes, 28 seconds thank you the next question comes from the line of Vikas Dai from Siren Alpha Analytics LLP please go ahead. 46:37 46 minutes, 37 seconds Hello am I? Yes we are. 46:41 46 minutes, 41 seconds Hi uh I want to uh understand from you uh although you addressed this question uh related to this uh to the earlier participants uh on the uh current 46:50 46 minutes, 50 seconds competitive landscape uh particularly on our uh product category uh as I am seeing many many players now speaking 46:57 46 minutes, 57 seconds about radars and EWC spending on the R&D and the product development. Uh I agree that we we are ahead in this journey. Uh 47:04 47 minutes, 4 seconds but going ahead if if the competitive intensity rise and uh ultimately it is a uh tender-driven business. Uh so how do you see in the terms of protecting our 47:12 47 minutes, 12 seconds margins in the medium to long-term term we need to differentiate ourselves from competition. That's the only way we will 47:21 47 minutes, 21 seconds get uh differential treatment. Uh that's one. Second is though there are number of companies talking radars in EW and 47:29 47 minutes, 29 seconds all that they're not developing all the portions of the radars they still has to collaboration or a number of companies 47:36 47 minutes, 36 seconds have to do piece parts to build a system that also makes it more complex to build a complete system and offer a system as a system before without contracts. It 47:44 47 minutes, 44 seconds has to be more as to end driven and uh component of subsystemdriven where they 47:52 47 minutes, 52 seconds become low sport in each of the subsystems and then try to get the parts that doesn't give you a a flavor and a competency to build the entire system. 48:02 48 minutes, 2 seconds We went through this exercise about 15 18 years back and decided that uh this is not going to scale the business. We 48:09 48 minutes, 9 seconds need to build IP and build all parts of the system. So it's taken this time to build it, get reliability and build that competency. So we are now 48:17 48 minutes, 17 seconds here what we are. Yes, competition is nimble and capable and they will catch up or we will probably be better than 48:24 48 minutes, 24 seconds us. We need to see what the landscape is and how we doing it and address the landscape and see what we're doing there. But we want to get the early 48:32 48 minutes, 32 seconds buyins when once early buyins come uh a number of years the contact is protected. So we need to look at opportunities like this get early buy in 48:41 48 minutes, 41 seconds and see how do we remain ahead of the game and this is what we need to do. We have to be watchful build competencies 48:48 48 minutes, 48 seconds which is differentiated and address the customer requirements better than others and be competitive. So uh coming back to 48:56 48 minutes, 56 seconds the bottom line the bottom line is the last question which I look at today because I can compete in almost all contracts in DRO today. We can do 49:06 49 minutes, 6 seconds everything what electronics audio wants but we don't do this because for the exact reason what she said a number of other competitors and subsystems who 49:14 49 minutes, 14 seconds want to go for the L1 business to get a handle in those areas we don't want to prove ourselves again and get a handle 49:21 49 minutes, 21 seconds and go their path and you know put our efficiencies and our uh uh bandwidth in 49:28 49 minutes, 28 seconds such programs I rather focus the bandwidth and build end products which can scale substantively going ahead So we differentiate the contracts. We 49:37 49 minutes, 37 seconds choose contracts what we want to build on and try to go after contracts which we think we want to do and be competitive there. So it's a question of 49:45 49 minutes, 45 seconds strategy how we want to scale the business and we are clear about what we want to do and uh look at opportunities individually look at whether it is going 49:53 49 minutes, 53 seconds to be strategic to our thought process of growth or it is going to be one of those systems where it will be only L1 50:00 50 minutes to keep our engineers engaged. We don't want to keep our engineers engaged at this present moment. They all be engaged. Everybody working seven days a 50:08 50 minutes, 8 seconds week. So we will differentiate based on where the meantime we'll build without tenders. We'll build our own products. 50:18 50 minutes, 18 seconds Be ready for future orders as as and when it happens. We believe it will happen. 50:23 50 minutes, 23 seconds Thank you. The next question comes from the line of Ammon Vij from Astute Investment Management. Please go ahead. 50:31 50 minutes, 31 seconds Uh good morning sir. My question is on the uh seeker side. So when when you talk about 1500 cr kind of order 50:39 50 minutes, 39 seconds expected in next quarter you are not including seeker quarter right that production order will be after that. 50:45 50 minutes, 45 seconds That is one clarification. The question is also uh 50:52 50 minutes, 52 seconds I'm sorry you're not am you're not quite audible. If you could change your location uh that would help. 50:59 50 minutes, 59 seconds Yeah. Yeah. Yeah. Is this better? Yes, much better. Go ahead. 51:04 51 minutes, 4 seconds Yeah, sir. So, my question was on the seeker business. So, when we talk about 15 billion kind of order inflow for f uh 51:12 51 minutes, 12 seconds for quarter 4, we are not including uh the seeker production orders. U is the understanding correct? That is the 51:20 51 minutes, 20 seconds classification I want. And the question is also on the production line we are setting up. So, you talked about other than Zamos also we are looking at other 51:28 51 minutes, 28 seconds seekers. So we are setting up like maybe 15 20 seekers a month line or smaller or 51:35 51 minutes, 35 seconds a bigger line that is on the seeker uh side question sir and one final question on soy upgrade also. So given we are 51:43 51 minutes, 43 seconds doing pods and other u things. So is it safe to assume including everything it's like maybe a 300 k per plane opportunity for us? These are the two questions. 51:56 51 minutes, 56 seconds Yeah, the curve business uh production order is not included in uh the next few ones out of the book. So that is not 52:04 52 minutes, 4 seconds included. And question number one, question number two is uh um there is no requirement for 20 a month from the 52:13 52 minutes, 13 seconds present contracts. We want to put infrastructure to do that. We have infrastructure plan to address customer requirements and probably and deliver 52:22 52 minutes, 22 seconds ahead. But as and when the requirements go up, we can also scale up our infrastructure quite quickly. Since 52:30 52 minutes, 30 seconds everything is designed by us, even the test equipment is designed by us, we can have anything can be scaled up quite quickly and we have the infrastructure 52:37 52 minutes, 37 seconds done. We're also putting up additional factory which is going to come up in the next one to two years time uh with the 52:44 52 minutes, 44 seconds large space available for production as well as design. So we are continuously investing in infrastructure 52:51 52 minutes, 51 seconds capex to see that we are ahead of the game delivering ahead of the game. So that we continuously doing this is the first part of the seeker business which 52:59 52 minutes, 59 seconds you talked about and the second part you talked about is the Sukoy 30 upgrades. 53:06 53 minutes, 6 seconds Um uh I don't think uh at the present moment you're looking at 300 crores because see these are upgrade programs and there's no contracts. They're 53:14 53 minutes, 14 seconds actually going building the products going through certifications and uh immediately directly on 100 kind of uh 53:23 53 minutes, 23 seconds uh seekers or 250 seek 250 suki 30s I don't expect government to place orders for all of them one shot at 300 crores 53:31 53 minutes, 31 seconds per aircraft to an organization like ours so initial contracts which is come 53:38 53 minutes, 38 seconds to H is about 84 aircrafts and their value is anywhere published We're trying to see whether some part of 53:45 53 minutes, 45 seconds it can be done with whatever pods and whatever you talked about and as and when our content on the things go up because it's not very simple to get 53:54 53 minutes, 54 seconds content on aircraft because we are a private sector and information on uh uh you know HL would like to do a lot of 54:01 54 minutes, 1 second them themselves but uh it's going to be very difficult to get the content as you go up so we taking an opportunity where gaps are available address the gaps and 54:10 54 minutes, 10 seconds we're going to see when the confidence of the user builds up we can get more content then increase our scale per aircraft. This is what to think other 54:18 54 minutes, 18 seconds than that pods separate inquiries are going to come for 100 pods etc sets that is separately also happening other than 54:25 54 minutes, 25 seconds the 84 is cleared for for H so we look at opportunities and then we'll be able to say what kind of numbers we can put inside present moment it is definitely 54:34 54 minutes, 34 seconds not 300 crores thank you the next question comes from the line of Jan Kasui from Bundan 54:41 54 minutes, 41 seconds alternates please go ahead yeah good morning sir thank you for the opportunity good set of numbers sir. I I 54:49 54 minutes, 49 seconds I remember in ter just a while back you talked about the civilian side especially with now that we have seen news coming in from halis now apart from 54:57 54 minutes, 57 seconds the fighter aircraft they are now considering the on the civilian side of the aircraft. So what kind of opportunities do you see in that any in 55:05 55 minutes, 5 seconds terms of uh some electronic products or what is the kind of addressable market do you see in coming two to three years? 55:12 55 minutes, 12 seconds Yeah, it's very early stage. Uh they can't we can't comment on it now. 55:18 55 minutes, 18 seconds They're exploring opportunities. They're trying to work with one or two OEMs to see whether we can do some products for them. Uh it will take some more time 55:26 55 minutes, 26 seconds maybe a year or two years or three years, two years before a predictable revenue model can be told to market 55:33 55 minutes, 33 seconds investors. These are all exploratory kind of business that you're doing. The intent is to get into civil markets because volumes are much much larger in 55:42 55 minutes, 42 seconds defense and it's a month-to-month capability and once we bring in the requirements scaling can happen quite quickly very large scale the numbers are 55:51 55 minutes, 51 seconds very very large and also cash flows are very different. So as part of business initiative it is necessary or mandatory 55:58 55 minutes, 58 seconds to see that we scale in these areas. So we are doing some exploratory uh work in this but not to give you any data at the present moment. 56:11 56 minutes, 11 seconds Thank you. The next question comes from the line of Vishal set an individual investor. Please go ahead. 56:16 56 minutes, 16 seconds Uh this is regarding the Utam A radar which is developed by NRD. The question 56:24 56 minutes, 24 seconds is you know whether this uh utam radar has data any role to play in it and is it a competing product or a 56:32 56 minutes, 32 seconds complimentary one to our existing product line the present moment uam 56:41 56 minutes, 41 seconds you're talking about we don't have a role to play so it's a it's a very similar product 56:48 56 minutes, 48 seconds we've designed and we're looking at partnership with GRD or LRD see whether we work with our radar as against 56:56 56 minutes, 56 seconds working with them as a second alternative. We don't know how it goes. 57:01 57 minutes, 1 second Uh if it doesn't happen, we go alone and try to build the radar directly for air force. Both options are open. It depends on how the alignments take place. But 57:10 57 minutes, 10 seconds presently, we don't do anything in Thank you. The next question comes from the line of Nishan Chawan from Giochit Financial Services. Please go ahead. 57:26 57 minutes, 26 seconds Nishan please. Am I audible? Yeah. Am I audible? 57:30 57 minutes, 30 seconds Yeah. Hi sir. Earlier you mentioned uh something about AMA. So uh that we've been shortlisted for the next round. So, so any timelines to watch uh in terms of 57:39 57 minutes, 39 seconds uh what happens next and uh how far are we from the prototyping stage and everything and uh related question would 57:46 57 minutes, 46 seconds be uh should one completely ignore the scope of highend to this program as of now. 57:54 57 minutes, 54 seconds Oh, this is what is published I'm talking about. I'm as knowledgeable as you are because you not told us anything. Maybe bar for you know a bit 58:01 58 minutes, 1 second more than us. But regarding HL participant I think you've not been selected down selected to the three to 58:08 58 minutes, 8 seconds receive RFP. What I hear uh regarding timelines what ADA is saying is 3 to 6 months the contract 58:17 58 minutes, 17 seconds should get placed. You have to go by what they say. I have no inside information to say anything different. And uh then uh the program is on. 58:25 58 minutes, 25 seconds Whoever gets the contract from Amazon and the details for the program program the RFP details is not yet published. So 58:33 58 minutes, 33 seconds we have not delivered to say anything at the present moment. Even if they published we'll be signing in India so I won't be able to talk about it. 58:43 58 minutes, 43 seconds Thank you. The next question comes from the line of Akshai Joani from Exponent Tribe. Please go ahead. 58:50 58 minutes, 50 seconds Thank you for the opportunity sir and congratulations on a great set of performance sir. I wanted to continue on the Brahmo seeker uh bit. You know every 58:59 58 minutes, 59 seconds uh year uh what we hear from the what we see on the internet is that we make about 100 odd missiles and we increasing 59:06 59 minutes, 6 seconds the capacity to 150. Assuming that we are we increase the capacity the seeker requirement would then also be 150. Uh 59:14 59 minutes, 14 seconds what is our sense of the share of wallet that we get? Do we think we can get all of the 150 to make in the as we get the 59:23 59 minutes, 23 seconds production orders or we think it'll be like half of it and hence what is the kind of capacity you are currently working with that you want to add? Thank you. 59:33 59 minutes, 33 seconds Yeah, I'm not uh first is I don't have knowledge on how many of the missiles actually get fitted with seekers 59:40 59 minutes, 40 seconds uh that based on the contract from customer to promos and uh we are not uh privy to such information. What I can 59:48 59 minutes, 48 seconds say is the inquiry given to us what the order comes to us we can only talk about it and here say on the scale what I hear 59:55 59 minutes, 55 seconds is that the requirements are large uh because the successful vile and uh they are planning to buy more of them and 1:00:03 1 hour, 3 seconds some more are being exported also so we need to go with whatever they say and I have to go with what RFP I get and 1:00:10 1 hour, 10 seconds contract I get I can't talk about work share between us and somebody else because I don't have any idea uh clearly what it is we will be able to tell you 1:00:19 1 hour, 19 seconds what we get orders and what we hear is that the requirements are large that's that's the present extent of my knowledge 1:00:28 1 hour, 28 seconds thank you ladies and gentlemen due to time constraints that would be the last question for today I would now like to hand the conference over to the 1:00:35 1 hour, 35 seconds management for their closing remarks uh thank you all thank you for tuning in to for the Q3 9month uh presentation 1:00:44 1 hour, 44 seconds call to the investors Um um as we have been saying during the question answer session also uh we are 1:00:53 1 hour, 53 seconds uh very committed to building scale in this business requirements are large. 1:00:58 1 hour, 58 seconds The government is giving us a lot of opportunities and largely uh India is still importing very major sensors and technology products and systems. We want 1:01:07 1 hour, 1 minute, 7 seconds to address that portion of the business and see what is it we can do in India and how the IP can be more and the Indian content can be more. Our 1:01:16 1 hour, 1 minute, 16 seconds government also says that large portion of this which will be made Indian made that also enthused to see that we invest more obviously investment and 1:01:24 1 hour, 1 minute, 24 seconds development happen when the contracts happen and business happens. uh I'm happy to say that the business whatever 1:01:31 1 hour, 1 minute, 31 seconds we designed in the last couple of years are coming for getting into uh the end stage where we expect some very large 1:01:39 1 hour, 1 minute, 39 seconds contracts to happen in the next one to two years time which can rapidly scale up the company's uh business. uh once we do that I think we'll be in a different 1:01:47 1 hour, 1 minute, 47 seconds scale to probably address larger markets and uh as we uh you know going ahead 1:01:55 1 hour, 1 minute, 55 seconds we're also looking at not just India like I said we're also looking at export maybe we give a three three to five year kind of horizon to see how to scale that 1:02:02 1 hour, 2 minutes, 2 seconds business model and go the third partion is also build an Indian ecosystem with large defense contractors in India to see whether partnerships can be done 1:02:11 1 hour, 2 minutes, 11 seconds post uh it's not easy uh But we're going to make an attempt. 1:02:17 1 hour, 2 minutes, 17 seconds We've started with bar forge. Let us see whether we get what we get out of this is all of course long-term. It's not going to be shortterm. But any 1:02:25 1 hour, 2 minutes, 25 seconds development in defense is a long-term program. But this will be put the foundation to scale up later. As far as the short and medium-term, I think the 1:02:33 1 hour, 2 minutes, 33 seconds order book is scaling up very nicely. We will scale up the audible book in the coming year also which will also give us that whatever projection we want to do 1:02:41 1 hour, 2 minutes, 41 seconds multiple extra turnover which we did last year or this year we should be able to start doing the next three years time. So this we will work on and look 1:02:48 1 hour, 2 minutes, 48 seconds at other opportunity how to scale the business to be a large corporate in the next 5 to seven years. That is our ambition and vision and this all will 1:02:56 1 hour, 2 minutes, 56 seconds come out of uh uh internally developed and also with partnerships uh but a lot of IP being done within data patterns. 1:03:04 1 hour, 3 minutes, 4 seconds We are uh you know we building the skill sets on terms of people capabilities. 1:03:09 1 hour, 3 minutes, 9 seconds We're also building infrastructure and investing in infrastructure seeing that we address these opportunities as and when it happens and be ahead of the game 1:03:17 1 hour, 3 minutes, 17 seconds and as far as possible. So we are and uh we're trying to get into also this revenue model on a quarterly basis or a 1:03:25 1 hour, 3 minutes, 25 seconds repeat revenue model to give that ups and downs to reduce the up and down a project model. We're trying to see what what is the best way to do this. Looking 1:03:34 1 hour, 3 minutes, 34 seconds at various opportunities and see strategize to see what is it we need to design on. It's a bit tougher but we want to go in the direction also to see 1:03:42 1 hour, 3 minutes, 42 seconds the smoothen cash flows and things like that and get an order book. So we are attempting to do a whole lot of things. 1:03:48 1 hour, 3 minutes, 48 seconds Uh we happy to say that these are all work planning out the way we want. There has been some delays but anyway that's 1:03:55 1 hour, 3 minutes, 55 seconds part of the problem uh with government driven orders. uh we know they're going to be so we need to have a bouquet of products to see whether the are not 1:04:03 1 hour, 4 minutes, 3 seconds affecting our scaling ambitions revenue growth as we plan to be we want to be IPdriven business as I keep telling you 1:04:11 1 hour, 4 minutes, 11 seconds not to be a topline business we continue to strive to be an IPdriven business and we're looking at other opportunities like anti- drone systems we have a 1:04:19 1 hour, 4 minutes, 19 seconds product now designed for anti- drone both passive as well as active antidone as well as jamming so we built some 1:04:26 1 hour, 4 minutes, 26 seconds products out of what existing products get to see whether we reposition these products. Rent applications can be large. So we're doing a lot of lot of 1:04:34 1 hour, 4 minutes, 34 seconds good things. I hope it all this what we done finally goes into contract. I believe there's a need to the market. I 1:04:42 1 hour, 4 minutes, 42 seconds think we in the right direction. We're very very enthusiastic and uh committed to what we're doing and excited with the 1:04:49 1 hour, 4 minutes, 49 seconds opportunities is happening. Uh and that's uh I think we're going ahead. We we will build a scale as we go along. 1:04:57 1 hour, 4 minutes, 57 seconds It's what we what we think presently. 1:04:59 1 hour, 4 minutes, 59 seconds Anyway, thank you very much for listening in asking the questions. Uh please if you have anything further, please write to Go India and we will respond to your questions one on one. 1:05:10 1 hour, 5 minutes, 10 seconds Thank you very much again. 1:05:12 1 hour, 5 minutes, 12 seconds Thank you sir. Ladies and gentlemen, on behalf of Go India Advisers, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.