Data Patterns (India) Limited — Q4 FY26

Data Patterns (India) Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=TkR4h4D6uto Published: 1d ago

0:01 1 second Ladies and gentlemen, good day and welcome to data patterns limited Q4 FI26 on conference call hosted by Go India 0:09 9 seconds Advisers LLP. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:20 20 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:27 27 seconds your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Miss Pasi 0:34 34 seconds Patel from Goia Advisor. Thank you and over to you ma'am. 0:39 39 seconds Thank you. Good morning everyone and welcome to data patterns India Limited call to discuss the quarter 4 and FI26 0:48 48 seconds earning call. We have the senior management of the company on call. Mr. 0:52 52 seconds S. Reangar Rajan, chairman and managing director and Mr. Wenades Subramanyam, Chief Financial Officer. We have we must 1:01 1 minute, 1 second remind you that the discussion on today's call may include certain forward-looking statement and must be therefore viewed in conjunction with the 1:09 1 minute, 9 seconds risk that the company may face. May I now request Mr. Ranga Rajan sir to take us through the company's business outlook and financial highlights 1:18 1 minute, 18 seconds subsequent to which we will open the floor for Q&A. Thank you and over to you sir. Thank you Pasi. 1:26 1 minute, 26 seconds Good morning ladies and gentlemen and a very warm welcome to all of you to the quarter 4 and fully year FI26 earnings 1:33 1 minute, 33 seconds call of data patterns India limited. We sincerely appreciate a continued trust, support and participation. 1:41 1 minute, 41 seconds I hope all of you had the opportunity to review our earnings presentation which has been uploaded on the stock exchanges and our company website. Before wanker 1:50 1 minute, 50 seconds takes you through the financial performance in detail, I would like to briefly share some key business and operation highlights for the year. 1:58 1 minute, 58 seconds FI26 has been a significant year for data patterns marked by strong execution, healthy order inflows, continued capability expansion and 2:06 2 minutes, 6 seconds increasing participation across strategic indigenous defense programs. 2:11 2 minutes, 11 seconds During the year, we continue to strengthen our position across radars, electronic warfare systems, avionics, communication systems, and strategic 2:19 2 minutes, 19 seconds defense electronics supported by our strong in-house design engineering capabilities built over nearly three decades. 2:27 2 minutes, 27 seconds One of the key highlights of the year has been a strong momentum in order inflows. During FI26, the company recorded order inflows of approximately 2:36 2 minutes, 36 seconds 1121 crores increase of 216% yearon year reflecting healthy demand across multiple defense and aerospace programs. 2:46 2 minutes, 46 seconds The order infos were well diversified across radar systems, avionics, electronic warfare services, and strategic electronics applications, 2:54 2 minutes, 54 seconds demonstrating increasing customer confidence in our technological capabilities and execution track record. 3:02 3 minutes, 2 seconds The order book as on date stands are approximately 2062 crores including orders negotiated which provides a 3:09 3 minutes, 9 seconds strong revenue visibility over the coming years. In addition, we continue to see a healthy pipeline of opportunities across radar systems, 3:16 3 minutes, 16 seconds electronic warfare and advanced defense electronics. 3:20 3 minutes, 20 seconds Other than the order book, additional single vendor contracts based on already supplied products uh which can justify into contract this financial year stands 3:29 3 minutes, 29 seconds to rupees,900 crores. Further based on previous delivery and performance of strategic system supplies uh customers 3:36 3 minutes, 36 seconds would like to place further contracts on such uh programs leading to significant order bookition. 3:43 3 minutes, 43 seconds We could get visibility of these contracts including timelines during the year. Our earlier investments made towards realizing AW suites including 3:51 3 minutes, 51 seconds self-production jammer quads for Indian fighter aircrafts have been well received by IIAF and we're poised to take the next steps for flight testing. 3:59 3 minutes, 59 seconds This will lead to revenue during the medium term. The opportunities being addressed by data patterns with in-house developed large systems already 4:07 4 minutes, 7 seconds delivered to customer has immediate requirement to address strategic space-based surveillance and mitigation allowing data patterns to substantially 4:14 4 minutes, 14 seconds increase revenue in the coming years towards building an order book of at least three years revenue ensuring predictable growth. We are entering into 4:22 4 minutes, 22 seconds an exciting phase in India with the defense and aerospace industry set to grow substantially to reduce reliance on 4:29 4 minutes, 29 seconds imports especially in this geopolitical situation. Further with the advance of AI in all phases of our business data 4:36 4 minutes, 36 seconds patterns has leaprogged into absorption of AI for processes as well as technology and products. This will allow data parts introduce new world-class 4:44 4 minutes, 44 seconds products quickly to address the earning gap on Indian capabilities and products necessiting imports and reliance on 4:52 4 minutes, 52 seconds foreign OEMs to meet our critical defense needs. We've also repositioned some of our products to address the growing requirement of drone detection, 5:00 5 minutes spoofing and jamming with both radars and ESM products. These are an advanced phase of development and expected to bring in additional revenue in the 5:07 5 minutes, 7 seconds medium term. We are investing in expanding our product development across radars for airborne platforms including surveillance and fire control including 5:15 5 minutes, 15 seconds maritime applications which will either to the domain of Indian development agencies and foreign OEMs. We expect these to bring in revenue over the next 5:24 5 minutes, 24 seconds few years and also allow exports of complete products. Our export business also continued to progress steadily during the year. The export order book 5:32 5 minutes, 32 seconds as on date stands at approximately 53 crores and exports remain an important strategic pillar of our long-term growth 5:40 5 minutes, 40 seconds road map. We are actively engaging with customers in Europe and other international markets while strengthening our export oriented 5:47 5 minutes, 47 seconds marketing and business development initiatives. We continue to execute repeat businesses from UK and expect export momentum to improve meaningfully 5:56 5 minutes, 56 seconds as our complete system capabilities mature further. We believe that our revenue from exports will increase starting this year as most countries are 6:04 6 minutes, 4 seconds increasing the spend on defense leaving the geopolitical present geopolitical situation. We believe that the products and capabilities offered data patterns 6:13 6 minutes, 13 seconds will allow even western countries to procure from data patterns leveraging our capabilities and much shorter time frames delivery time frames meeting 6:21 6 minutes, 21 seconds their requirement. During the year 2425, we also achieved an important milestone with the successful development and export of transportable position radars 6:31 6 minutes, 31 seconds to a European country, including successful site acceptance testing. This reflects not only our technology capabilities, but also the growing 6:39 6 minutes, 39 seconds acceptance of Indian defense systems and engineering expertise in international markets. We're also getting additional inquiries for these products from 6:46 6 minutes, 46 seconds various countries. We believe the global defense industry is entering a multi-deade investment cycle driven by rising geopolitical uncertainties, 6:55 6 minutes, 55 seconds accelerated modernization programs, and increasing focus on self-reliance in defense manufacturing. Advanced electronics, radar systems, electronic 7:04 7 minutes, 4 seconds warfare, and intelligence surveillance capabilities are becoming central to modern defense preparedness globally. 7:09 7 minutes, 9 seconds This creates a significant long-term opportunity for India's indigenous defense ecosystem with a strong in-house design capabilities, advanced 7:18 7 minutes, 18 seconds engineering expertise and proven execuation track record. Data patterns is well positioned to capitalize on this opportunity. 7:25 7 minutes, 25 seconds Coming to our financial performance, uh FI26 has been another strong year for the company. Revenue of F26 grew by 31% 7:33 7 minutes, 33 seconds year on year to 925 crores while AIDA increased by 35% year on year to 371 crores. Looking ahead, the outlook of 7:42 7 minutes, 42 seconds Indian defense sector remains extremely strong. We remain committed to delivering sustainable and profitable growth while continuing to invest in 7:49 7 minutes, 49 seconds future technologies, strengthening our complete systems portfolio and maintaining a strong balance sheet. We continue target revenue growth around 20 7:57 7 minutes, 57 seconds 25% over the short term while maintaining healthy AIDA margins of 38 to 40%. And preserving our net cash 8:04 8 minutes, 4 seconds status. Most importantly beyond financial performance we remain deeply committed to contribute towards India's 8:11 8 minutes, 11 seconds journey of technological self-reliance and strategic defense capability development. With that I would now like to hand over the floor to our CFO Mr. 8:19 8 minutes, 19 seconds Venermonium to take you through the financial performance in greater detail. 8:24 8 minutes, 24 seconds Thank you sir. Good morning ladies and gentlemen and thank you all for joining us today. We are pleased to report another strong year of operational and financial performance for data patterns. 8:36 8 minutes, 36 seconds FI26 reflects a continued strength of our execution capabilities, resilient business model and increasing demand 8:43 8 minutes, 43 seconds across strategic defense and aerospace programs. Let me take you through the key financial highlights for the quarter and full year FI 2526. 8:53 8 minutes, 53 seconds Revenue from operations for FI26 stood at 925 crores as compared to 780 crores 9:00 9 minutes in FI25 registering a healthy growth of 31%age year on year. Gross profit for the year increased by 35%age year on 9:09 9 minutes, 9 seconds year to 585 cr due to increase in revenue and favorable product mix. While 9:16 9 minutes, 16 seconds gross margins improved to 63%age compared to 61%age in FI25. 9:22 9 minutes, 22 seconds EITA for FI26 to 371 crores as again 275 crores in the previous year reflecting a 9:30 9 minutes, 30 seconds growth of 35% yearon year. EITA margins improved to 40%age supported by operational efficiencies and improved 9:38 9 minutes, 38 seconds absorption of the fixed costs. Profit asset tax for FI26 stood at 271 crores 9:45 9 minutes, 45 seconds registering a growth of 22% yearonear while pack margin remains healthy at 29%age. 9:52 9 minutes, 52 seconds Coming to the quarterly performance Q426 revenue stood at 345 crores while the 9:59 9 minutes, 59 seconds revenue was lower by minus3% yearon year. 10:05 10 minutes, 5 seconds uh Due to timing of execution of certain programs, revenue nearly doubled sequentially with a growth of 99 10:13 10 minutes, 13 seconds percentage quarteron quarter reflecting strong execution momentum during the quarter. 10:19 10 minutes, 19 seconds Pertinent to also note that share of fourth quarter revenue was 37% in FI26 as against 55% in FI25. 10:29 10 minutes, 29 seconds Graph margin for Q4 FI26 improved significantly to 73%age as compared to 49%age in Q4 of last year. AITA for the 10:39 10 minutes, 39 seconds quarter stood at 193 crores with EITA margins at 56% while PAT for the year for the quarter 10:47 10 minutes, 47 seconds stood at 139 crores with pack margin of 40%age. 10:52 10 minutes, 52 seconds From a working capital perspective, we continue to seek improvement in operational efficiency during FI26. 10:59 10 minutes, 59 seconds Our cash conversion cycle improved meaningfully to 365 days in FI26 from 428 days in FI25, 11:08 11 minutes, 8 seconds reflecting strong execution, better inventory management, and continuous focus on disciplined working capital 11:14 11 minutes, 14 seconds control. As of March 2026, our order book stood at approximately 926 cr while 11:22 11 minutes, 22 seconds including negotiated and expected orders. The order book pipeline remains strong at around 200 262 crores. Our 11:31 11 minutes, 31 seconds order book continues to remain diversified across radar systems, avionics, electronic warfare, communication systems, and strategic electronic applications. 11:42 11 minutes, 42 seconds The company continues to maintain a strong balance sheet and remains a debt-free company. We believe our healthy liquidity position and 11:50 11 minutes, 50 seconds disciplined the capital allocation strategy provides us with the flexibility to continue investing in R&D 11:57 11 minutes, 57 seconds infrastructure, advanced technologies and manufacturing capabilities. 12:02 12 minutes, 2 seconds Going forward, we remain optimistic about the long-term opportunities in the domestic and international defense sector and continue to focus on 12:11 12 minutes, 11 seconds execution, operational efficiency, technology development, and profitable growth. With that, we would like to open 12:19 12 minutes, 19 seconds the floor for question answers. Thank you. 12:25 12 minutes, 25 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 12:32 12 minutes, 32 seconds star N1 on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star N2. 12:41 12 minutes, 41 seconds Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 12:56 12 minutes, 56 seconds We will take our first question from the line of Deepen Wakil from Philip Capital, India. Please go ahead. 13:03 13 minutes, 3 seconds Hi uh thank you for this opportunity and congratulations on a great Aida margin uh and surpassing the revenue and 13:11 13 minutes, 11 seconds guidance uh uh for the year. Uh so uh my first question is uh on the lines of uh 13:19 13 minutes, 19 seconds uh your margin profile itself. So you have told us that uh uh you have told so this this photo you had some great abida 13:27 13 minutes, 27 seconds margins. So can you help us understand as to what is the which product makes led to such strong abida margins and out 13:34 13 minutes, 34 seconds of those order books what kind of aid margins can we expect going ahead. 13:42 13 minutes, 42 seconds You see we have a differentiated product line. 13:46 13 minutes, 46 seconds uh the margins for Q2 was much lesser because I earlier explained in that call also that there's a strategic program 13:54 13 minutes, 54 seconds where we've taken a contract at a lower cost and the margin but it's we built us a capability to build a complete system 14:02 14 minutes, 2 seconds and also the program management office which is necessary other than also demonstrating mechanical capabilities 14:09 14 minutes, 9 seconds which is not uh when we talk we're an electronics company. So these are the takeaways from this contract and also 14:17 14 minutes, 17 seconds our our commitment that these will also lead to future contracts. So we take some contracts with lower margin consciously to ensure that we build a 14:26 14 minutes, 26 seconds capability product capability and also which allows us future expansion. So that is the reason the last year quarter 14:34 14 minutes, 34 seconds quarter to quarter differences were there and uh though there's a increase in revenue in quarter two and uh you know overall revenue has been as per 14:43 14 minutes, 43 seconds guidance is slightly better than guidance and the rest of the margin which you talk about uh is that is normally where our complete product development is done inhouse where all 14:52 14 minutes, 52 seconds the IP is created in house we don't import anything and integrate so this is in nature of exactly what we normally do 14:59 14 minutes, 59 seconds and since there is no bot out in was the last quarter uh revenue and it is all our own full systems which has been 15:06 15 minutes, 6 seconds developed by us was told the margin profile was seen different so you need to look at not u you know you can't give 15:13 15 minutes, 13 seconds a direct guidance on uh you know contract to contract how it will go in terms of aid or margin because this is 15:20 15 minutes, 20 seconds the overall business cycle there are very many products and uh we take some products at different kinds of pricing 15:27 15 minutes, 27 seconds based on our uh one ability to absorb it to to see how uh the future of business is going to look at and the business 15:35 15 minutes, 35 seconds business prospects. We take a call on that and take a decision where to make an offer, how to quote it. Uh this is what we've done and now that the 15:43 15 minutes, 43 seconds opportunities are much larger and becoming much much larger. We need to build a capability upgrade into into the in a company to address larger 15:51 15 minutes, 51 seconds opportunities going forward. I think I've answered your question. If anything else you please ask again. 15:57 15 minutes, 57 seconds Yes sir. So that was very much clear. So just uh so another thing on that so you mentioned that you have currently 2,000 16:04 16 minutes, 4 seconds cr of auto books office 1,000 roughly 1,000 cr is already in the books and 1,000 cr expected. So any timeline on that as to when we can expect 16:12 16 minutes, 12 seconds finalization of those,000 cr where negotiations are completed. 16:16 16 minutes, 16 seconds I think in the next one to two months time we should expect the contracts to happen. 16:21 16 minutes, 21 seconds Okay. Unless of course there is some unless of course there is some uh you know see these are all government customers so I can't predict for them 16:30 16 minutes, 30 seconds but our feeling is that it should happen in the next one to two months time and over and about that we are expecting 16:38 16 minutes, 38 seconds orders to the tune of 15 to 20 billion for FI27. 16:42 16 minutes, 42 seconds Yes. See what has happened is we have developed products earlier and uh those products during the course of this year will have repeat orders. Um so that has 16:52 16 minutes, 52 seconds been projected 1,900 crores. So these are all single tender orders just expected during the course of the year. 16:58 16 minutes, 58 seconds The timing is not exactly visible. That is why I said during the course of next 12 months we should get additional order book which is based on already developed 17:06 17 minutes, 6 seconds products and delivered and accepted by customers and repeat requirements are already quoted for in some situations and inquiries have also come in for 17:15 17 minutes, 15 seconds other wherever we're talking about those 900 crores they've already quoted for those requirements. The only thing is the some of the negotiations may have to 17:22 17 minutes, 22 seconds happen and the timelines are not exactly in our control but it should happen during the course of the year. 17:28 17 minutes, 28 seconds Got it sir. Got it. So last question on the productions are so so in this order inflow what will be the pro proportion 17:36 17 minutes, 36 seconds of the production order inflow which are expected to be like a short cycle orders. So any indication on those that 17:43 17 minutes, 43 seconds out of those 2,000 cr or maybe 1,000 cr what how much will be the quantum of the production orders? 17:50 17 minutes, 50 seconds uh I can't give you exact ratio now uh what is already delivered I said if you get the repeat order of,900 crores that will all be production orders because 17:57 17 minutes, 57 seconds already we've done the development on the existing 2,000 crores um some are service orders some are already 18:06 18 minutes, 6 seconds developed orders and some are new development which is going to take place and uh so I don't have the exact mix on percentages but uh whatever we've taken 18:15 18 minutes, 15 seconds up even for development initiatives we're taking up we're looking at it only with the perspective of future requirements are there for such products and programs. So uh whatever we develop 18:24 18 minutes, 24 seconds we develop as building blocks and they have a future requirement in other applications as well. So that is how the development cycle is actually managed by 18:33 18 minutes, 33 seconds the company. So uh I can't give you exact number but there will be larger size production contracts for the 18:40 18 minutes, 40 seconds overall business we expect as we go along. 18:44 18 minutes, 44 seconds Got it sir I have few more question but I'll get back on the queue. Thank you so much. 18:50 18 minutes, 50 seconds Thank you. Next question is from the line of Rashika from Goldman Sex. Please go ahead. 18:56 18 minutes, 56 seconds Hi, good morning everyone. Uh thank you for the opportunity. Uh sir, I have two questions. Uh you indicated that you're 19:04 19 minutes, 4 seconds working with global OEMs. I wanted to understand what's the traction around that and if we have anything apart from UK. Uh secondly, uh when can we expect to get the order for for Brahmo Seeker? 19:16 19 minutes, 16 seconds Certain media articles indicate that the production is hampered. Will it have a material impact on our revenue growth in FI27? 19:25 19 minutes, 25 seconds Okay. Uh first question is global OVMs uh a number of them have started visiting us and uh quite impressed with whatever we've achieved in terms of 19:34 19 minutes, 34 seconds capabilities and products. So similar products are required in Europe. So inquiries have started coming from Europe for building such products and 19:41 19 minutes, 41 seconds they quite like our prices and delivery time. I think in the next two three months time or four months time we should start getting some uh contracts 19:50 19 minutes, 50 seconds from these global OEMs which will lead into some development initiatives initially but then which will lead to 19:57 19 minutes, 57 seconds year and year or quarter to quarter delivery for their actual military programs for which they are addressing their opportunities. So this is going to 20:04 20 minutes, 4 seconds be not a one-off system but it will be multiple systems based on what we already developed and modified to meet their OEM requirements. So this is one part of the story on exports concerned. 20:15 20 minutes, 15 seconds We also want to now expand our own export team, build a a team to address exports because we believe that there is 20:23 20 minutes, 23 seconds going to be increased uh uh you know look at India with our capabilities and delivery models which Europe and uh and 20:33 20 minutes, 33 seconds US and other countries would be looking at very seriously. So I think this is a growing business and since we have done 20:41 20 minutes, 41 seconds a lot of product development in house uh which match matches the requirement immediately I think there will be a lot 20:48 20 minutes, 48 seconds of traction once we put the marketing team to address the opportunities. So we are going not just UK but other than UK 20:57 20 minutes, 57 seconds also in Europe inquiries have started coming in other people who are visiting us also from US from civil aviation and things like that people have started 21:04 21 minutes, 4 seconds visiting us and quite taken interest in our capabilities and inquiries have started coming in 21:11 21 minutes, 11 seconds regarding Brahmo seekers uh the first variant of the development seeker order is under execution. Once there is 21:19 21 minutes, 19 seconds execution is completed I think in the next four five months time the production orders would start coming in they've indicated production orders and 21:26 21 minutes, 26 seconds they want it to be delivered uh before next year middle is what be the customer is saying so I don't think there is 21:33 21 minutes, 33 seconds going to be any uh distress on delivery timelines as faros is concerned with our kind of stickers and systems whatever 21:42 21 minutes, 42 seconds orders is given in 3 four months back in bro we've already delivered and uh in by March we delivered it. So our timelines 21:49 21 minutes, 49 seconds for delivery is quite fast uh with respect to other competitors which were there in this line of business. So I 21:56 21 minutes, 56 seconds don't think we'll have a a problem in terms of revenue and anyway this is uh this this is part of the expected order 22:03 22 minutes, 3 seconds of,900 crores is what we projected not in the autos and hand situation. So I don't think there'll be a revenue upset 22:10 22 minutes, 10 seconds based on dro even if there's a a delay but I don't think there's going to be a delay. Understood sir that's helpful. 22:18 22 minutes, 18 seconds Thank you. 22:21 22 minutes, 21 seconds Thank you. Next question is from the line of Hardi Kraat from Capital. Please go ahead. 22:29 22 minutes, 29 seconds Thanks for the opportunity and congratulations team on a wonderful result. Uh sir my first question would be with regards to the current order 22:36 22 minutes, 36 seconds book. So we have some thousand odd crores of order book and we expect another thousand odd crores of negotiated orders to flow through in the 22:43 22 minutes, 43 seconds coming uh month or two. Just wanted to understand you know uh our order book mix if I look at today uh the share of 22:51 22 minutes, 51 seconds uh uh services and that is roughly 350 odd cr uh the order book is at the end of 4q. Uh when you talk about the 22:58 22 minutes, 58 seconds negotiated orders could you give us an indication as to uh what part of this would pertain to services or and what part would pertain to products? 23:08 23 minutes, 8 seconds I think about uh on this thousand odd crores which I have sped maybe 100 crores will be on services but the rest is on product delivery. 23:18 23 minutes, 18 seconds Got it. So that would mean that in the next two months we'll be sitting on a product order book of about we should be sitting uh again not understanding that 23:26 23 minutes, 26 seconds you know the orders can be delayed but our expectation is that we should be sitting at an at a product order book of about 1,500 odd crores. Would that be 23:34 23 minutes, 34 seconds correct? uh 575 that you already have and some 900 odd crores that you'll be getting. 23:39 23 minutes, 39 seconds Yeah, around that or even slightly higher. 23:42 23 minutes, 42 seconds Got it sir. So now I want to understand uh you know since a large part of our product portfolio and because of our faster execution timeline uh the execution has largely been short cycle. 23:53 23 minutes, 53 seconds What do you expect the uh the execution cycle to be on the 1500 crores of uh orders that you'll be sitting at in in a month or two? 24:00 24 minutes So that is not whether we can execute or not. depends on the program requirements. Some of the program requirements are spread over three years delivery. Some is delivered to in a few 24:09 24 minutes, 9 seconds months. So that varies from the uh contract to contract and that will be mostly based on customer requirements not on our ability to deliver. 24:20 24 minutes, 20 seconds No sir, I I get that. What I'm trying to understand is that based on the delivery schedules that you have uh what is your 24:27 24 minutes, 27 seconds expectation in terms of order execution cycle if you can break it down and uh what do you expect again we're not holding you to this but we 24:35 24 minutes, 35 seconds we have projected about 20% revenue growth we won't have a problem on those things so that will happen and if the 24:43 24 minutes, 43 seconds other 1,900 crores things come in early some part of it can be executed this year also and uh and that will also bump 24:51 24 minutes, 51 seconds up our revenue model. So since the you know we don't have the exact timing we have only projected this 20 25% growth 25:00 25 minutes but once the contracts are hand we already developed these products our ex timelines can be matching customer requirements or even earlier so 25:08 25 minutes, 8 seconds depending on that uh the delivery model will happen. So at the present moment uh we don't want to wage any kind of saying 25:17 25 minutes, 17 seconds that we will do this this way because we know we confident doing this but uh this is this is a base point I think as the 25:24 25 minutes, 24 seconds contract starts coming in larger contracts our uh our projections may vary from quarter to quarter. Got it 25:33 25 minutes, 33 seconds sir. That's very helpful. Uh sir another point was sorry to interrupt Hardik you may please rejo. 25:42 25 minutes, 42 seconds All right it no worries. 25:45 25 minutes, 45 seconds Thank you ladies and gentlemen in order to ensure that the management will be able to address questions from all the participants in the conference kindly 25:54 25 minutes, 54 seconds limit your questions to two per participant. Should you have a follow-up question please rejoin the queue. We will take our next question from the 26:00 26 minutes line of via Bhartia from PNB. Please go ahead. 26:05 26 minutes, 5 seconds Uh yes. So I just wanted to understand about the order inflow for the year. 26:09 26 minutes, 9 seconds You've said around 1,500 to 2,000 crores. Uh this is apart from the 1100 crores that has been negotiated, right? 26:17 26 minutes, 17 seconds Yes. 26:18 26 minutes, 18 seconds Okay. So uh then would it be correct to assume that you'll be ending the year with around 3,500 to 4,000 crores affordable? 26:27 26 minutes, 27 seconds No, we will also be executing contracts which is coming in. No volume of the book for the youth. Uh 26:36 26 minutes, 36 seconds I think it's a bit early for that. We will come towards the year end before we give you the numbers. It's a bit early because there are a lot of programs 26:44 26 minutes, 44 seconds we're working on. Some of the large contracts and strategic programs also the order may start coming in and as the order starts coming in the order book 26:51 26 minutes, 51 seconds size will grow plus the export revenue which is going to happen. So there are so many areas of product development and 26:58 26 minutes, 58 seconds uh you know we making offers to customer so we go successful um you know we will we will be able to have a very healthy 27:06 27 minutes, 6 seconds order booker moving ahead that is why in the opening remarks I mentioned that this is the first time I've given a allrounded view on the market and where 27:14 27 minutes, 14 seconds we are in terms of uh investment models and product models and how the business is supposed to scale in the coming uh 27:23 27 minutes, 23 seconds you know in the in the short and medium term. I given you overall perspective on uh existing uh uh you know repeat 27:30 27 minutes, 30 seconds business from existing deliveries uh new things which can happen and then other areas where we are focusing on product 27:37 27 minutes, 37 seconds development also plus the export and the repeat business is expected. So we've also said that if some some of this what 27:45 27 minutes, 45 seconds we predicted is happens you'll have a healthy product uh you know order book which will also give us a clarity of 27:52 27 minutes, 52 seconds quarter to quarter growth over the next two to three years time while we still strive for building larger businesses going ahead. So I think we have a fairly 28:01 28 minutes, 1 second rounded view I've given on the opening remarks. So but to exactly tell you end of March what will it be I think towards 28:09 28 minutes, 9 seconds a Q2 Q3 depending on how we get the orders uh going ahead that will give you better answers. 28:16 28 minutes, 16 seconds Understood. Thank you very much. 28:19 28 minutes, 19 seconds Thank you. Next question is from the line of Akshai from AK investment. Please go ahead. 28:25 28 minutes, 25 seconds Uh hi sir. Uh uh my one question is already answered and uh congratulations on the great set of number and uh sir my 28:32 28 minutes, 32 seconds second question is how much cash flow from a are we expecting to generate in FY 27 and going forward for the next two 28:39 28 minutes, 39 seconds to three years because uh for the last two years our guest flow generation uh from operations has been very weak 28:47 28 minutes, 47 seconds I didn't understand the question what is it guest what is that what what did you ask sir I am asking about the guest flow 28:55 28 minutes, 55 seconds from operation Since last two years our cash flow from operation has been very weak. So over the next two to three years guess from operating sir. 29:05 29 minutes, 5 seconds So cash flow from operations. Okay. Okay. Okay. 29:09 29 minutes, 9 seconds Yes. So over the next two to three years how much conversion from are we expecting? 29:16 29 minutes, 16 seconds Uh I don't know you want to answer this question. 29:18 29 minutes, 18 seconds The cash conversion cycle today is at 365 days. uh we are seeing improvements 29:25 29 minutes, 25 seconds year on year. We expect it to you know uh probably settle down at 320 to 340 days going forward but uh year on year 29:33 29 minutes, 33 seconds we cannot uh uh at the beginning of the year it's very early to you know calculate all that and come out with an 29:40 29 minutes, 40 seconds answer for this. uh but we are uh definitely focusing on uh reducing the working level cycles and uh it is also 29:49 29 minutes, 49 seconds showing some improvements uh year on year going by that we expected to settle down at 340 to 3 I mean 320 to 340 days 29:57 29 minutes, 57 seconds going forward uh but uh probably during the middle of the year we can take a review on this and uh some color can be 30:04 30 minutes, 4 seconds given but uh this is too early now okay so thank 30:12 30 minutes, 12 seconds Thank you. Next question is from the line of Pujen Sha from Molecule Ventures. Please go ahead. 30:20 30 minutes, 20 seconds Hello. Uh am I audible? Hello. You are audible. 30:25 30 minutes, 25 seconds Yes. Yes. So first question pertains to uh so uh uh in the last our concourse we 30:33 30 minutes, 33 seconds have stated that we might issue the 1100 cr in 1 to two months timeline while that has been delayed but while I was 30:41 30 minutes, 41 seconds also reading uh uh some of the tenders participation and where we can I feel that uh there is also one order of 107 30:50 30 minutes, 50 seconds cr for pages NK1A is it possible that is the same Order one order. 30:56 30 minutes, 56 seconds No, what is that order? 1,07 cr. What is that? 30:59 30 minutes, 59 seconds Uh 1,7 cr order. Or order value for pages MK1A. Tages. Okay. 31:08 31 minutes, 8 seconds So is it the same order which I been considering or you have been considering in the last call or it is just different order all together? 31:17 31 minutes, 17 seconds These are not the tis one. TJS one is part of uh some inquiries have come we quoted for whatever our products are 31:25 31 minutes, 25 seconds going avionics is going into the so this hopefully the order should come uh during the course of this year it 31:33 31 minutes, 33 seconds normally goes a very large negotiation cycle with h so we have to wait and watch when the order is placed but um 31:41 31 minutes, 41 seconds we've not projected anything on last year for cages we had orders in hand which we executed but the new order projections is this year only we're 31:50 31 minutes, 50 seconds talking about uh other than that uh orders on hand situation or already delivered products which repeat orders 31:57 31 minutes, 57 seconds may happen for this we've already quoted and changes also we already quoted so we need to see when the contract comes 32:04 32 minutes, 4 seconds it'll be only this year okay but I just want to answer because the tender was closed on I think 13th or 32:13 32 minutes, 13 seconds 23rd of March I don't remember the date and in 65 days of timeline it needs to be concluded on their side. So there is 32:21 32 minutes, 21 seconds no update from uh on the portal or something like that. So how should we I don't know which which you're talking 32:27 32 minutes, 27 seconds about. I'm not aware of what what you're talking about. Uh so I won't be able to comment on it. 32:34 32 minutes, 34 seconds And to give you more clarity actually the orders negotiated of,000 cr which was shown uh in the previous conference 32:43 32 minutes, 43 seconds call is not a single case it's multiple cases. uh some of them uh we have got the contract and that number now stands 32:51 32 minutes, 51 seconds at,90 cr I mean we have got some more contracts negotiated uh in between last conference call and 32:59 32 minutes, 59 seconds now so put together 1,90 cr as on date as we speak so including that our order book today is stands at 2,000 cr plus 33:07 33 minutes, 7 seconds 262 cr to be precise right right you to wait for the tous order to happen and we'll announce it to 33:16 33 minutes, 16 seconds the market as and when the order happens. 33:19 33 minutes, 19 seconds Okay. I just want to understand I'm sorry to interrupt Pujen. You may please rejoin the queue for more questions. Sure. Sure. 33:27 33 minutes, 27 seconds Thank you. 33:30 33 minutes, 30 seconds We will take our next question from the line of Marvid Coyle from Sarin Alpha. Please go ahead. 33:38 33 minutes, 38 seconds Hi. 33:41 33 minutes, 41 seconds Yes, you are. Hi, good morning and congrats for good numbers. Uh sir in your opening remarks you mentioned about some delays of certain programs. Uh can 33:49 33 minutes, 49 seconds I know what kind of programs are these and secondly uh if these delays and these programs are getting deferred to ever 27 then uh fundamentally uh your 33:59 33 minutes, 59 seconds growth should be more than 25% then why we are speaking about 20 25% so that's my first question. No, I never mocked 34:06 34 minutes, 6 seconds any. What is this 13 programs? I don't know what he is talking which 13 programs. No, 13 I'm saying uh you mentioned about 34:13 34 minutes, 13 seconds some program getting delayed uh in execution in Q4 that will be deferred deferred in next year. That's what you said, right? 34:21 34 minutes, 21 seconds No, no, no. I never mentioned I never said anything like that. I never said anything like that. I only compared 34:28 34 minutes, 28 seconds quarter 2 to quarter four performances and then there are expected orders from whatever we deliver in quarter two but I 34:35 34 minutes, 35 seconds never talked about any delays. I only talked about orders which is expected let's say another,900 flows for repeat contracts. I'm not able to give you 34:44 34 minutes, 44 seconds timelines on those orders because these are all government contracts. But I expect this to happen over the course of this year is what I said. I never talked about uh delays on any any other thing. 34:56 34 minutes, 56 seconds Okay. Understood. Okay. So, uh so uh if I look at the execution in Q4, uh it is uh falling behind Q4 last year, right? 35:04 35 minutes, 4 seconds So, we were having the order book in our hand, right? So, uh what is stopping us in executing those contracts? Like what is the reason behind the poor execution? 35:14 35 minutes, 14 seconds This is not a poor execution. Actually, execution is actually very good. It's not poor. It is a good execution. And execution is has to be in line with 35:22 35 minutes, 22 seconds customer requirements. I may have an order on hand but customer doesn't want delivery today. There may be preconditions to our delivery. So based 35:29 35 minutes, 29 seconds on customer request we deliver and based on the contract. So execution has not been poor. Actually execution is very good. We delivered things in 2 months 35:37 35 minutes, 37 seconds and 3 months which is very very good and our board is very happy with the execution how we manage the execution. 35:43 35 minutes, 43 seconds So there's no delay from our side. It's a question of uh the agencies, government agencies getting together to 35:50 35 minutes, 50 seconds approval these kind of things normally goes through a process and that process delay is not uh you know addressed by us. We can't address those process 35:58 35 minutes, 58 seconds delays but we've never had an execution delay from our office. 36:03 36 minutes, 3 seconds Understood. Understood. And secondly on I'm sorry to interrupt I'm sorry to interrupt Mr. Goyel. You may please rejoin the queue. Thank you. 36:14 36 minutes, 14 seconds We will take our next question from the line of Shri Narayan Mishra from Baroda BNP Parab. Please go ahead. 36:22 36 minutes, 22 seconds Uh thanks for the opportunity. Uh so my first question is on the uh largest order that we have received in Q4 IMD radar development and service order. 36:32 36 minutes, 32 seconds What would be the execution cycle uh for that order? 36:37 36 minutes, 37 seconds Uh the requirement is between uh over 18 months. We're trying to see how fast we can deliver it. 36:44 36 minutes, 44 seconds Okay. And uh answer since I can see in the order backlog services uh mix has 36:51 36 minutes, 51 seconds increased significantly. So would that mean uh trade receivable days would improve or how should we see that? 37:00 37 minutes No no you're talking about services. 37:02 37 minutes, 2 seconds Yeah. In the order book services has increased significant. But trade receiv 37:15 37 minutes, 15 seconds the services part of the contract will be built as and when the services uh happen and uh delivery of the services happen. So there are two individual 37:22 37 minutes, 22 seconds parts to the order. So uh we will not build the overall amount and wait for services to happen over the next four five years. That is not the way revenue recognition is done. 37:32 37 minutes, 32 seconds It's not done that way. service uh service orders represents our uh AMC revenue. AMC is actually for multiple years. It's not a single year agency. 37:42 37 minutes, 42 seconds So there is a process for revenue recognition. Sorry. Sorry sir. There's a process revenue recognition. 37:49 37 minutes, 49 seconds This is not add to you know any uh what is receivables increase and all those things. So, so from the date of billing 37:57 37 minutes, 57 seconds of a service order, how many days it takes to collect the amount? Depends on that depends on the customer. 38:04 38 minutes, 4 seconds Depends on the customer and the processes involved. 38:07 38 minutes, 7 seconds See what we do is after the service again depends on the contract when the billing can start. We the end of the 38:14 38 minutes, 14 seconds service contract one year over the annual billing can be up to the end of the year or it is quarterly billing and quarterly. So it depends on the contract 38:22 38 minutes, 22 seconds varies from contract to contract and the payment cycle terms varies from customer to customer. 38:28 38 minutes, 28 seconds But in general if you were to generalize is it better than productions and orders or I can't generalize because there you uniquely government agencies are there. 38:36 38 minutes, 36 seconds IMD is the first case which is taken up now. So until we get some money transfer from IMD we won't be able to generalize. 38:44 38 minutes, 44 seconds Okay. Okay. Thank you for answering my question. Yeah. Thank you. Thank you. 38:48 38 minutes, 48 seconds Thank you. Next question is from the line of Amed Sharma, an individual investor. Please go ahead. 38:56 38 minutes, 56 seconds Uh hello. Yeah. Hi, thank you for the opportunity sir and congratulations on great set of numbers. Uh I have two specific questions. One related to our 39:03 39 minutes, 3 seconds current order book. So we have about 38% of our current order book coming from services which has uh roughly an elongated entry to 5. So uh does that 39:13 39 minutes, 13 seconds and even even in our uh negotiated order book of,90 cr uh even within that also we have a sizable amount coming from 39:22 39 minutes, 22 seconds services. So does that put a pressure for us uh in terms of our growth side would would our growth maybe say 25% 39:30 39 minutes, 30 seconds growth. Uh would that be a pressure point for us for the coming year as well as for next year at 28? 39:38 39 minutes, 38 seconds Okay, this question has already been asked and answered. 39:42 39 minutes, 42 seconds 90 crores I gave an approximately about 100 crores to the services the rest is product delivery so it will not affect the uh our topline revenue growth as 39:51 39 minutes, 51 seconds what we projected we projected 20 25% we believe we should be able to do this on top of why we said we should do this also that there are number of repeat 40:00 40 minutes contracts we're expecting during the course of the year so it happens early then we can deliver those products earlier so that also will bring in 40:07 40 minutes, 7 seconds additional revenue or uh you know either the part of the revenue projections or over and above the revenue projections you can do that. So it depends on how 40:15 40 minutes, 15 seconds the order inflow happens during the course of this year. 40:19 40 minutes, 19 seconds But so basically what we are saying is that the quick execution order book like we had in the current year is what we are largely depending on for the to 40:27 40 minutes, 27 seconds achieve the ballpark number that we are guiding for the current work. Yeah, we believe it'll be substantially higher than the guidance 40:34 40 minutes, 34 seconds number is what we expect because I think a lot of long-term initiatives the company has taken and I think those 40:42 40 minutes, 42 seconds initiatives one by one will startifying into contracts once it starts getting in contracts our auto situation should grow substantively in the coming years is 40:51 40 minutes, 51 seconds what we expect and we have you know developed products and over a period of time to ensure that this we can scale the company very quickly. 41:01 41 minutes, 1 second into multiple thousand core company rather than scale it 20% year and year. 41:06 41 minutes, 6 seconds That is not what we're looking at in the management cycle here. We actually looking at some very high scalability in the coming years and the strategy and 41:14 41 minutes, 14 seconds product development mix is working towards how to build that scalability and sustainable scalability is what we're working on. 41:21 41 minutes, 21 seconds Got it. Got it. And my second question you may please rejoin the queue. Thank you. 41:29 41 minutes, 29 seconds Next question is from the line of Sahil Karia from Whitpine Investment. Please go ahead. 41:35 41 minutes, 35 seconds Yeah, thank you for the opportunity. So I just want to ask apart from thating. No, 41:42 41 minutes, 42 seconds I can't hear you at all. I can't hear you at all. Can you come to nearer the phone and call? No. 41:50 41 minutes, 50 seconds Yeah. 41:56 41 minutes, 56 seconds I'm sorry to interrupt Sahil. Can you use your handset mode please? Yeah. Am I audible now? Yes. Yes. 42:03 42 minutes, 3 seconds Yeah. Uh so apart from the remote missile which are the missile programs are delivering sleepers and IR products too and for which products would be the one vendors. 42:15 42 minutes, 15 seconds I'm still very confused with your question. Um you're not very audible. 42:20 42 minutes, 20 seconds Apart from missiles which are the missile programs are we delivering products to and for which products are we air1 vendors? 42:28 42 minutes, 28 seconds Um other than the bramos product there's one other program for the air defense they've done a seeker that is under 42:36 42 minutes, 36 seconds delivery mode now but u there are no other programs on the missile area they'll be working on seekers but uh as 42:45 42 minutes, 45 seconds a as a concept uh we want to take up initiatives to build other kinds of seekers electic etc seekers on our own 42:53 42 minutes, 53 seconds and where we were positioning ourselves with an industry partner to see that we can hit the revenue model as we go along but those are all development 43:01 43 minutes, 1 second initiatives internal to office but uh as of now we don't have anything else because this we work on whatever DRO allows us to do we develop the products 43:10 43 minutes, 10 seconds as per the requirement so till then it will be now it's very controlled by the missile program itself as the missile 43:17 43 minutes, 17 seconds program becomes opened up other agencies start building large corporates start coming into the business then maybe we should be able to do a large part of the 43:26 43 minutes, 26 seconds desile uh and have a ecosystem which will develop the system but that yet to happen. 43:33 43 minutes, 33 seconds Okay. Uh I'm answer I'm really sorry Sahil you may please rejoind for more questions. Thank you. 43:42 43 minutes, 42 seconds A reminder to all the participants kindly restrict yourselves to one question only. In case of follow-up question please rejoin the queue. We 43:51 43 minutes, 51 seconds will take a next question from Janesh Karia from Union AMC. Please go ahead. Uh yeah good morning sir am I audible? 44:00 44 minutes Yeah. 44:01 44 minutes, 1 second Uh yeah thanks for the opportunity. So my question is on the MA program. Uh any update on uh our consortium uh position 44:10 44 minutes, 10 seconds for the MCA program and irrespective of the outcome of the which consortium is winning uh what would be our opportunity within the MCAR program? 44:21 44 minutes, 21 seconds Yeah RFP is expected any time now. So that is the first status. Second is on 44:28 44 minutes, 28 seconds the AMA we've the glass cockpit is developed by us. The mission systems is developed by us for the LC mark 2 which 44:35 44 minutes, 35 seconds is going to be taken to AMA. We're hoping that as we go along more such uh on the sensors and 44:43 44 minutes, 43 seconds RWR and radar and things like as and when we are able to develop products and uh it is acceptable customer or such programs to follow. At the present 44:52 44 minutes, 52 seconds moment we have only the cockpit solutions and machine management system is being done by us. 44:59 44 minutes, 59 seconds Thank you. 45:01 45 minutes, 1 second Next question is from the line of Santo from I thought PMS. Please go ahead. 45:07 45 minutes, 7 seconds Uh hi am I audible? Yes. 45:12 45 minutes, 12 seconds Huh? Okay sir. I just want to know like what are the negotiated orders of S grow? uh you did say that if the delivery skills are okay, we might 45:21 45 minutes, 21 seconds deliver some of those contracts this year. Uh would that growth be over and above the guidance of 20 25% you're waiting for? 45:30 45 minutes, 30 seconds No, I never mentioned I think you misheard me misunderstood the whole thing which I've answered. I never said 45:38 45 minutes, 38 seconds the,000 crores uh we totally talked about orders in hand expected orders that we negotiated with this,000 crores. 45:45 45 minutes, 45 seconds I never said that this will be delivered earlier and things like that. I've talked about other 1,900 crores. If it were to come single businesses to happen 45:54 45 minutes, 54 seconds the course of the year comes in early then I can issue with them early. That is what I talked about not on the contracts on hand. 46:02 46 minutes, 2 seconds Uh I didn't understand. 46:05 46 minutes, 5 seconds What was the second part of the question? Uh now I'm just asking that if that 1,000 cr if the deliver schedule is 46:12 46 minutes, 12 seconds allowing you to uh get the revenue today would that be over and above the guarant you're suggesting for because is there 46:20 46 minutes, 20 seconds any capacity constraint is my question as well? No, we are building large capacities for expert contracts already 46:27 46 minutes, 27 seconds capacity we have built plus we building something about nine floors of factory space uh to build in additional capacity 46:36 46 minutes, 36 seconds to see that we you know the larger as we the program sizes increase and the volume of contracts increase to scale to 46:43 46 minutes, 43 seconds a multi,000 cr company we already uh you know started investing on capex and infrastructure expansion because it 46:50 46 minutes, 50 seconds takes one to two years time so we're already in the process of doing it for seekers and other things we already put the capacity building blocks and 46:58 46 minutes, 58 seconds infrastructure necessary to ramp up production already we've done that so I don't think we will have a problem in execution as it happens we are aware of 47:05 47 minutes, 5 seconds when this will happen of course the timelines are not very predictable but so we have a cautious view of not overspending on infrastructure and the 47:14 47 minutes, 14 seconds contacts don't happen I don't want to sit on uh you know capex infrastructure there so this has to be judiciously implemented but we aware that scaling is 47:22 47 minutes, 22 seconds going to happen substantive ly and uh we taking aggressive position on terms of capex infrastructure to address the scaling requirements as we go along. 47:33 47 minutes, 33 seconds Okay, understood. Thank you. 47:36 47 minutes, 36 seconds Thank you. Next question is from the line of Deepen Wakil from Philip Capital India. Please go ahead. 47:43 47 minutes, 43 seconds Hi sir. Uh thank you for the follow-up opportunity. So I wanted to understand on your product development and also on the virup paka so component for the 47:50 47 minutes, 50 seconds varupaka radar that you had supplied to Indian air force as well. So any update on that as to what is the progress how was the response and if there's any 47:59 47 minutes, 59 seconds concrete order which we can uh expect from there and you also mentioned about the new areas of development around 48:07 48 minutes, 7 seconds anti- drone systems drone detection. So can you tell us about more about the timeline as to when these products will 48:14 48 minutes, 14 seconds start getting commissioned or rather in that approval stages and we can expect some revenue from them. 48:21 48 minutes, 21 seconds Okay. First is Viruaka is not our product. Virua is a de project uh name for the super 30 radars. This is not 48:30 48 minutes, 30 seconds ours. We call it by different name. So we never delivered Vupaka or any equivalent to air force as yet. So that 48:38 48 minutes, 38 seconds is a wrong information. you have received uh so we have our own versions of it and we believe that uh that will also be taken up by air force in the 48:47 48 minutes, 47 seconds coming years but because of the uncertainty and timelines which I can't predict uh we've not given revenue 48:54 48 minutes, 54 seconds expectations out of those things and uh in our you know opening remarks similarly when you talk about anti- 49:01 49 minutes, 1 second drone yes products are getting done we will be participating in demonstrating the products to army and air force and 49:09 49 minutes, 9 seconds whatever. So that will happen but again we don't have clear timelines when what will happen. We have started quoting in some locations and if we are successful 49:17 49 minutes, 17 seconds the quotes we will may get the order but these are all things which is again a code and competition basis. So timelines 49:25 49 minutes, 25 seconds are and revenue model is not u uh is not what do you say uh very clear now. So but then we need to expand the product 49:33 49 minutes, 33 seconds portfolio and be aware of what is happening when the need of the customer is trying to address a need overall. So we're developing a number of products 49:41 49 minutes, 41 seconds and these are all repurposed products already we've done something with incremental effort of 3 four months I can position the products so it makes 49:49 49 minutes, 49 seconds sense to do that and uh our product will be reliable and meeting the specifications. So we believe that there will be some uh revenue model going 49:57 49 minutes, 57 seconds ahead but I can't predict anything at the present moment on new product development we don't do revenue projections unless clarity is there for 50:06 50 minutes, 6 seconds the market and uh it is an acceptable stage and later requirements started inquiries are coming in I can't give you 50:13 50 minutes, 13 seconds projections I'm only talking about the overall business environment and product development uh to help to to the 50:21 50 minutes, 21 seconds investors understand how scalability we are going to ensure that we can be a larger business going ahead in the next 2 three years time that is how the 50:30 50 minutes, 30 seconds overall business perspective and product development has been explained not to the exact revenue model because I can't give you numbers like that I'm also looking for the timeline on the 50:39 50 minutes, 39 seconds new product development as to when we can expect the new products to start coming into your product portfolio per se that will all happen as it's happening 50:48 50 minutes, 48 seconds already but that depends on the product antidone is a smaller system so it can happen quickly 50:54 50 minutes, 54 seconds But the other you know the the other AW suite for selfjammer is a 2 year two and a half year initiative which you've 51:02 51 minutes, 2 seconds taken up and there is in the next one year it will come to conclusion. It depends on the product and the complexity of the project and program and the acceptance models. Air trials have to be done. It takes a longer time. 51:12 51 minutes, 12 seconds It takes one to two years time to do air trials. So why I give you the overall perspective is that we are not only looking at contracts now we're also 51:22 51 minutes, 22 seconds looking at a shorter term some kind of product initiatives and repeat contracts slightly mediate term we've already 51:28 51 minutes, 28 seconds invested and continue to invest in new products and products which is actually needed by the country which will which 51:35 51 minutes, 35 seconds is not presently you know positioned no Indian company is positioning the only foreigners are positioning products there so in competition to products our 51:43 51 minutes, 43 seconds product should be far more economically priced and support systems are going to be far superior as long as the product 51:50 51 minutes, 50 seconds meets world class specifications. So based on that we believe there are low hanging fruits but timelines are not 51:58 51 minutes, 58 seconds predictable so we will not predict timelines and revenue models out of that. 52:03 52 minutes, 3 seconds Got it sir. Uh thank you for answering my question and all the best. Thank you. 52:10 52 minutes, 10 seconds Next question is from the line of Ada from Adventist Institutional Equities. Please go ahead. 52:15 52 minutes, 15 seconds Uh so hi sir uh congratulation on your set of numbers. Uh my doubt is regarding our competitive tier which is Astra 52:24 52 minutes, 24 seconds Microwave. I have been following the different companies as in this case uh Astra Microwave is also like in line 52:32 52 minutes, 32 seconds with providing more on complete system like similar to us. They they have been transitioning in that aspect. So how are we trying to question ourselves in case 52:41 52 minutes, 41 seconds of the competitive front when compared to one such player like let's say in case of systems and orders which we are 52:48 52 minutes, 48 seconds going to like to comment on specific competition and open line so I will reference and answer this question. 53:04 53 minutes, 4 seconds So that's all for questions from my side sir. Uh or if if possible could you just uh explain more on our technological 53:12 53 minutes, 12 seconds side in case of our product development which is part of our R&D and then like details more on the technical part of it. 53:22 53 minutes, 22 seconds Yeah we have a strong uh in-house techn about 200 engineers working with us. So 53:31 53 minutes, 31 seconds um that's what we've done all through the years. We uh develop products and write off the revenue expenses except in 53:39 53 minutes, 39 seconds few cases where we d a few fund for product development which is capitalized. Uh we don't do capitalizing. We continue to do enormous 53:47 53 minutes, 47 seconds amount of product development uh as part of our yearly requirements and then have the product ready for markets which we 53:54 53 minutes, 54 seconds perceive or we believe is going to open up to us. So we take shortcut and initiatives and upfront invest products 54:02 54 minutes, 2 seconds and we're investing now products on radar. So full earlier only the hardware was being done by us because the software is done by them. However the 54:10 54 minutes, 10 seconds market has opened up we decided that we build the software and full radars. So we've done a few radars by and some of them have been exported. Now we're 54:18 54 minutes, 18 seconds building the drone detection radars. We want to get into the airborne uh radar programs. So we are doing the airborne development programs for airborne radars including software as complete radars. 54:28 54 minutes, 28 seconds Uh we we are doing the IFF we want to do the mission systems we want to do the EW already it's flying so we want to 54:35 54 minutes, 35 seconds enhance the scale of EW the communication intelligence we want to do worldclass systems by increasing specifications to see that uh it is a 54:43 54 minutes, 43 seconds top-of-the-line world class specifications are met. So like that in every product uh area we're trying to improve the product capability and 54:52 54 minutes, 52 seconds address it with the world markets and see that we are uh in align with the world systems so that we can offer best 54:59 54 minutes, 59 seconds solutions for India and not uh you know second to none is what we're trying to do. So our area of focus is uh if you 55:07 55 minutes, 7 seconds take avionics um you know uh radio mission systems uh communications 55:14 55 minutes, 14 seconds uh radars EW IFFF a lot of other things which goes into UAV platforms the uh 55:21 55 minutes, 21 seconds parts of the radar as for D requirements complete radar solutions wherever we can do that exclude of these parts and systems to international OEMs all of 55:30 55 minutes, 30 seconds this is what we're looking at we have a fairly uh deep technological capabilities and all of them and uh we have a very strong group of people 55:39 55 minutes, 39 seconds who've been with this company for 20 25 years will drive this technology and also the middle management on engineering for all 15 20 years in the 55:46 55 minutes, 46 seconds company. So there's a very it's a very homegrown kind of an organization where there are no levels and product talks 55:54 55 minutes, 54 seconds and all of us listen. So the idea is to develop products which is world class with the market opening up and we want to build a large scale company going ahead. 56:05 56 minutes, 5 seconds Thank you sir. 56:09 56 minutes, 9 seconds Thank you ladies and gentlemen. We will take that as the last question for today. I now hand the conference over to the management for closing comments. 56:18 56 minutes, 18 seconds Uh thank you all for joining in on this uh conference call earnings call for Q4 and the year uh 2526. 56:27 56 minutes, 27 seconds Uh I've taken time to give you an overall perspective of uh how our business is growing and where we are trying to develop products. The intent 56:34 56 minutes, 34 seconds is to see that we scale up multiple times in the coming years. The market opportunities are very very large considering that India has been 56:42 56 minutes, 42 seconds importing all our defense systems and these are core competency in IPdriven products. We have been completely little dependent on foreign OEMs who don't 56:50 56 minutes, 50 seconds share the uh the details and do a manufacturing only in India. As against that we want to build our own capability 56:58 56 minutes, 58 seconds and full products to see that they're completely self-reliant and uh with world-class products. some of our initiatives have started giving some uh 57:06 57 minutes, 6 seconds results and some orders are going to come on the EW which we competing with Germany we got some contract we're going to get some contract centers have been 57:14 57 minutes, 14 seconds open and negotiations completed so things like that similarly on the EW uh jamming we've done all the including the 57:23 57 minutes, 23 seconds software the mechanical the systems the cooling systems the electronics which is world class so we believe that also 57:30 57 minutes, 30 seconds should give us some substantive revenue opportunities going ahead Right. The third area is what we've already developed and we taken some additional 57:38 57 minutes, 38 seconds risks in addressing these opportunities because we believe it'll help us build scale repeat orders as well as build program management capabilities in the 57:46 57 minutes, 46 seconds company. You take them and successfully execute the contracts customers quite happy. So we believe that there will be some additional requirements will come 57:54 57 minutes, 54 seconds up which will build scale into the company. Uh fourthly is we are looking at exports till now that has not been a focus area but with the geopolitical 58:03 58 minutes, 3 seconds environment the export then now takes a precedence because a lot of companies are looking at how quickly can we 58:10 58 minutes, 10 seconds deliver products for their uh their military programs. So we're trying to address it. Sim similarly in US programs 58:17 58 minutes, 17 seconds and we need to now have a team to go and address uh Japan to Korea to Europe to UK uh to other countries including US. 58:27 58 minutes, 27 seconds So that we are trying to put a team together to see how to address this. 58:31 58 minutes, 31 seconds We're also looking at how do we scale capabilities in terms of uh you know electics. So what is it we need to do to 58:38 58 minutes, 38 seconds build an electropics not just a uh you know electronics company and uh domain. 58:44 58 minutes, 44 seconds So domain and electronics mechanical all we integrated together to build our own systems. So I give you an overall idea. 58:51 58 minutes, 51 seconds We're very bullish like I said on the growth opportunities of what India offers today and since we've been importing everything it now you know it 59:00 59 minutes is up to us for grabs. Obviously there are time lapse and uh it's government agencies so we need to be aware of that and not do overinvestment and then have 59:09 59 minutes, 9 seconds competition foreigners who come on the back route and put them infrastructure then you lose the business so we are cautious of that development and what we 59:17 59 minutes, 17 seconds putting money in um uh so but overall I think we taking the right approach and direction and the board and the 59:24 59 minutes, 24 seconds technology board in the company are quite clear that we're going the right track so we will continue to build like is and uh you know scale the company quite quickly. This is what we expect. 59:36 59 minutes, 36 seconds We're very bullish on data finance growth going ahead. Thank you very much for your listening patiently for this. 59:42 59 minutes, 42 seconds If you have any further questions, please pass it on to go India advisor and uh we'll get them answered to you through them. Thank you all. Thanks for listening in. 59:56 59 minutes, 56 seconds Thank you very much on behalf of going advisers. That concludes this conference. Thank you all for joining us today.