Elecon Engineering Company Limited — Q3 FY26

Elecon Engineering Company Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Rfqhv_narxg Published: 4 months ago

0:00 Ladies and gentlemen, good day and welcome to the Elicon Engineering Company Limited Q3 FI26 earnings 0:08 8 seconds conference call hosted by LRA Securities India Private Limited. As a reminder, all participal lines will remain in the 0:16 16 seconds listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:22 22 seconds Should you need assistance during the conference call, please signal the operator by pressing star then zero on your touchstone telephone. 0:31 31 seconds Please note that this conference is being recorded. 0:34 34 seconds I will now hand the conference over to Mr. Histo from Securities India Private Limited for opening remarks. Thank you and over to you. 0:44 44 seconds Yeah. Uh good evening everyone. Uh we welcome you all for the QC FI26 and FI26 funding conference called Teleon 0:53 53 seconds Engineering Company Limited. Today we have with us the management that presented Mr. Deep Malawari head of 1:00 1 minute division, Mr. Koshik Patel head of high equipment division and Mr. 1:07 1 minute, 7 seconds Chief financial officer along with his team to give us a convenient outlook. Uh over to you uh uh sir give us outlook for the quarter three on uh 14. 1:20 1 minute, 20 seconds Yeah, thank you Harshit. 1:23 1 minute, 23 seconds Good evening everyone and a warm welcome to Elicon Engineering's Q3 and 9 months FI26 earnings conference call. Joining 1:32 1 minute, 32 seconds me today are Mr. Deepak Daladi head gear division, Mr. the Koshik Patel head MSE division. The earnings press release and 1:41 1 minute, 41 seconds the investor presentation have been filed with the stock exchanges and are also available on our website. I trust 1:49 1 minute, 49 seconds you have had the opportunity to review them. I will begin with a brief overview of our business performance followed by 1:56 1 minute, 56 seconds a detailed discussion on the financial results. 1:59 1 minute, 59 seconds Helicon Engineering today stands among Asia's leading manufacturers of industrial gear 2:07 2 minutes, 7 seconds solutions and material handling equipment. Built on decades of engineering excellence, deep domain 2:13 2 minutes, 13 seconds expertise and trusted customer relationships, our material handling equipment division 2:20 2 minutes, 20 seconds is emerging as a powerful growth engine for the company. Backed by over 75 years of experience, the division has unique 2:29 2 minutes, 29 seconds capabilities to design and manufacture large complex and high capacity equipments such as veant tip plus 2:39 2 minutes, 39 seconds stacker reclaimers, crushers and specialized conveyor systems. 2:45 2 minutes, 45 seconds These capabilities are possessed by very few players in India creating a strong competitive mode for eleving 2:54 2 minutes, 54 seconds serving sectors such as power, steel, cement, ports, mining and the 3:01 3 minutes, 1 second fertilizers. The MS business continues to deliver customized high value solutions that enhance customer efficiency and reliability. 3:12 3 minutes, 12 seconds In our gear division, Elicon's Elicon maintains a leadership position in India's organized industrial gear 3:19 3 minutes, 19 seconds market. We offer one of the widest and most comprehensive gear portfolios ranging from heavyduty gear boxes to 3:27 3 minutes, 27 seconds precision engineered components catering to industries such as steel, cement, sugar, power, and defense. Continuous 3:37 3 minutes, 37 seconds investments in research and development and infrastructure ensure that innovation, customization, and life 3:44 3 minutes, 44 seconds cycle support remain central to our value proposition. 3:50 3 minutes, 50 seconds With a presence across nearly 95 countries, a strong global distribution network and the long-standing 3:57 3 minutes, 57 seconds relationships with the customers worldwide, Helon is well positioned to benefit from the ongoing capital 4:04 4 minutes, 4 seconds expenditure cycle in India and international markets. With this, I now hand over the call to our gear division 4:12 4 minutes, 12 seconds head, Mr. Deepak Dalwari, who will walk you through the performance of the gear division. 4:18 4 minutes, 18 seconds Yeah, thank you Mr. Nasiman. The gear division which contributed approximately 78% of consolidated or revenue in Q3 4:28 4 minutes, 28 seconds delivered a largely stable performance with revenue growth of 1.3% yearonear. 4:34 4 minutes, 34 seconds Both domestic and overseas businesses demonstrated resilience during the quarter. The mutated growth was largely 4:43 4 minutes, 43 seconds due to timing related factors including delays in order inflows during the first half of the year followed by execution 4:51 4 minutes, 51 seconds and dispatch departments arising from customer-driven dispatch schedules. If importantly the underlying demand 5:00 5 minutes environment remains healthy. We are witnessing strong inquiry levels and improving order inflows across domestic 5:08 5 minutes, 8 seconds and international markets. Market sentiment is gradually improving supported by ongoing investments in 5:15 5 minutes, 15 seconds power, steel, cement and a visible pickup in sugar segment. With this improving visibility, the gear division 5:24 5 minutes, 24 seconds is well positioned to return to a stronger growth trajectory. To conclude the gear division, to conclude the 5:31 5 minutes, 31 seconds division performance, I now hand over the call to Mr. Toshik Patel, head of MS division. 5:40 5 minutes, 40 seconds Thank you Deepak G. The MHE division continue its strong growth momentum 5:47 5 minutes, 47 seconds delivering 16% yearon-year revenue growth during the quarter. This performance was driven by robust demand 5:56 5 minutes, 56 seconds from power, cement, mining and C sector along with steady execution. We remain 6:03 6 minutes, 3 seconds confident that the MHE business will continue to perform well in Q4, FY26 and 6:11 6 minutes, 11 seconds beyond, supported by a healthy order book, a strong project pipeline and deep 6:18 6 minutes, 18 seconds customer engagement. With this, I now hand over the call back to Mr. Niman to 6:25 6 minutes, 25 seconds provide further overview on Alicon's financial performance. Thank you. 6:32 6 minutes, 32 seconds I will now be walking you through the in-depth financial performance for Q3 and 9 months FYI26. 6:39 6 minutes, 39 seconds Financial performance Q3 FI26. 6:42 6 minutes, 42 seconds We are pleased to report a resilient and encouraging performance in Q3 FI26. 6:48 6 minutes, 48 seconds Despite certain short-term challenges for the quarter ended December 2025, our consolidated revenue from operations 6:57 6 minutes, 57 seconds stood at rupees 552 crores compared to 529 crores in Q3 FI25 7:04 7 minutes, 4 seconds reflecting a year-on-year growth of 4.3%age. 7:09 7 minutes, 9 seconds The gear business reported a largely flat performance during the quarter primarily impacted by timing related 7:17 7 minutes, 17 seconds delays in order received and execution as well as customer-driven dispatch deferments. However, the underlying 7:25 7 minutes, 25 seconds demand environment remains healthy. We witnessed robust order inflows across both domestic and international markets 7:35 7 minutes, 35 seconds supported by sustained inquiry levels which gives us confidence in future order inflows. 7:42 7 minutes, 42 seconds The domestic market contributed 76%age of the consolidated revenue while overseas markets accounted for the remaining 24%age. 7:51 7 minutes, 51 seconds The consolidated order intake during Q3 FI26 stood at rupees 701 crores 7:59 7 minutes, 59 seconds representing a 7%age year-on-year growth. The order in flow combined with a healthy enquiry pipeline keeps us 8:06 8 minutes, 6 seconds optimistic about growth prospects going forward. 8:11 8 minutes, 11 seconds Consolidated AITA for the quarter was 109 crores compared to 143 crores in Q3 8:17 8 minutes, 17 seconds FI25 translating into an AITA margin of 19.8%age. 8:23 8 minutes, 23 seconds Margins were temporarily impacted due to flat revenue performance, higher employee cost and a change in product 8:31 8 minutes, 31 seconds mix. We expect margins to normalize as volumes pick up. Operating leverage plays out and the order book converts more rapidly into revenue. 8:42 8 minutes, 42 seconds Profit after tax for the quarter stood at rupees 72 crores representing a pat margin of 13%age. 8:51 8 minutes, 51 seconds Performance for 9 months ended December 2025. for the 9 months ended December 2025 after adjusting for the onetime 8:59 8 minutes, 59 seconds arbitration of income of Rs 25 crores recognized in Q1 FI26 in the MC division adjusted consolidated revenue stood at 9:08 9 minutes, 8 seconds rupes,595 crores compared to,429 crores in 9 months FI25 9:15 9 minutes, 15 seconds adjusted EITA for the period was 340 crores with an AITA margin of 21.3%age 9:21 9 minutes, 21 seconds in addition to the rupees 25 crores recognized in revenue in Q1 FI26 and additional 10 crores was recorded under 9:29 9 minutes, 29 seconds other income as part of arbitration settlement. Furthermore, rupes 80 crores was recognized as exceptional income 9:37 9 minutes, 37 seconds below PBT representing unrealized mark tomarket gains from investment reclassification. 9:46 9 minutes, 46 seconds As a result, profit after tax for 9 months FI26 including these one-time items stood at rupees 335 crores. 9:57 9 minutes, 57 seconds Segment wise performance gear division. 10:00 10 minutes The gear division contributed 78%age of total revenue in Q3 FI26. Revenue for the quarter stood at rupees 429 crores 10:08 10 minutes, 8 seconds compared to 423 crores in Q3 FI25 reflecting a flat yearon-year performance due to the aforementioned reasons. 10:19 10 minutes, 19 seconds We expect a faster execution of orders to convert into revenue in Q4 which should support improved performance going forward. A bit for the gear 10:28 10 minutes, 28 seconds division stood at rupees 78 crores in Q3 FI26 compared to rupees 118 crores in Q3 FI25. The EIT margin declined to 10:37 10 minutes, 37 seconds 18.2%age compared to 27.8%age in the same quarter last year primarily 10:44 10 minutes, 44 seconds due to higher employee cost and product mix. As revenue scale ups, we are confident that margins will require with operating leverage coming into play. 10:54 10 minutes, 54 seconds Order intake for the quarter was rupes 464 crores and the open order books stood at rupees 811 crores as of 31st 11:02 11 minutes, 2 seconds December 2025 providing strong revenue visibility for the coming quarters. Material handling equipment division. 11:11 11 minutes, 11 seconds The MSE division continued its strong growth momentum during Q3 FI26. 11:17 11 minutes, 17 seconds Quarterly revenue stood at rupees 123 crores compared to rupees 105 crores in 23 FI25 resisting a 16%age yearon-year 11:26 11 minutes, 26 seconds growth. Growth was driven by strong demand in the product supply and aftermarket segments particularly from 11:33 11 minutes, 33 seconds the power cement fertilizer and port sectors. A bit for the division student rupes 25 crores compared to rups 33 11:42 11 minutes, 42 seconds crores in Q3 FI25. A bit margins during the quarter were impacted by products. 11:49 11 minutes, 49 seconds Order intake during the quarter was rupees 237 crores compared to 185 cr 63 FI25. The open order book stood at 11:58 11 minutes, 58 seconds rupees 561 crores as of 31st December 2025 reflecting strong growth prospects ahead. 12:08 12 minutes, 8 seconds While there has been short-term execution delays in the gear business, the fundamentals of both the divisions remain strong. The temporary mismatch 12:16 12 minutes, 16 seconds between order intake and execution has impacted near-term revenue recognition. 12:23 12 minutes, 23 seconds However, our solid order book and execution pipeline provide clear visibility for growth in the coming 12:29 12 minutes, 29 seconds quarters. On the balance sheet front, we continue to maintain a robust financial position with a strong net cash balance 12:37 12 minutes, 37 seconds of approximately rupes 600 crores, providing significant flexibility to growth opportunities, execute our capex 12:45 12 minutes, 45 seconds plans and navigate macroeconomic uncertainties. 12:49 12 minutes, 49 seconds Our capex outlay for FI26 to 2028 is estimated at rupees 400 crores aligned with our long-term strategic priorities. 13:00 13 minutes Though our financial 9 months performance remains strong and uh demonstrate the underlying strength of the business given the near-term 13:09 13 minutes, 9 seconds softness we believe it is prudent to revise our outlook for FI26 13:16 13 minutes, 16 seconds on a consolidated basis. FI26 revenue may be lower by up to approximately 13:25 13 minutes, 25 seconds 5%age and adjusted EITA margins may be lower by up to approximately 2%age compared to our earlier guidance. 13:36 13 minutes, 36 seconds That said, we remain confident about an improvement beyond the near-term supported by a healthy order book, a 13:44 13 minutes, 44 seconds robust inquiry pipeline and improving execution momentum. With that, I would now I would now like to open the floor for questions. Thank you. 13:58 13 minutes, 58 seconds Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a 14:04 14 minutes, 4 seconds question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, 14:11 14 minutes, 11 seconds you may press star and two. Participants are requested to use their handsets while asking a question. 14:19 14 minutes, 19 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 14:27 14 minutes, 27 seconds We take the first question from the line of Sanjay Lda from Bastion Research. Please go ahead. 14:33 14 minutes, 33 seconds Yeah. Hi, thank you for the opportunity. 14:36 14 minutes, 36 seconds So my first question would be sir uh we have seen order intake was the slowest in the last eight quarters. How are you 14:44 14 minutes, 44 seconds seeing this and what's your view going forward? Hello. 14:51 14 minutes, 51 seconds Yeah. Can you hear me? Yeah. 14:55 14 minutes, 55 seconds See uh now in near future time is coming quarters the there is a good expecting business in the power sector there is a 15:04 15 minutes, 4 seconds substantial capacity increase going on this segment. So we are hoping good orders from the power sectors then even 15:12 15 minutes, 12 seconds steel sectors are also now growing and overall trend for the steel sector is also showing in the growth. So we are 15:20 15 minutes, 20 seconds also hoping good orders from the till 15:22 15 minutes, 22 seconds field till field till field till field 15:32 15 minutes, 32 seconds we are also hoping the good business in the sugar factory sugar industry also 15:39 15 minutes, 39 seconds sir can you throw some light on the inquiries which you are talking about. 15:44 15 minutes, 44 seconds So what I want to understand is when you say we have a good inquiries and we have a good bid pipeline. So can you throw 15:51 15 minutes, 51 seconds some light on how much is the bid bid pipeline we have we have and how much is going to converted into the order book so that we get to know that how much 16:00 16 minutes percentage it is going to acrew on you because from the last three four quarters we are mentioning that but the order intake and the order flow has been 16:08 16 minutes, 8 seconds quite a uh lower side on that front. I understand the business dynamics but just wanted to have your views on that. 16:17 16 minutes, 17 seconds See uh whatever orders uh we actually now the power investment has started and 16:24 16 minutes, 24 seconds they have releasing the orders. So we also received very good orders from the say LNT, MHI and uh QLR and all. 16:36 16 minutes, 36 seconds So we are getting the orders from the power industry and but uh at the latest stage they want their requirements. So 16:44 16 minutes, 44 seconds that's why it is uh to be executed in the next financial year and also there are many inquiries 16:51 16 minutes, 51 seconds uh floating from the power industries and they are in pipeline and we are hoping the all inquiries to be converted 16:58 16 minutes, 58 seconds into the orders. So uh we have a very full confidence for achieving the good inquiries and all whatever in the pipeline it will be converted into 17:07 17 minutes, 7 seconds orders which will be useful in the next coming quarters. 17:13 17 minutes, 13 seconds So uh my another question we are seeing comparatively better demand for the domestic market for quite some time 17:20 17 minutes, 20 seconds while uh when while uh when we communicate to the you know in our investor presentation we say that export 17:28 17 minutes, 28 seconds revenue should be over 50% going forward in the by fi3. So how do you see you know this divergence because uh uh how 17:36 17 minutes, 36 seconds do you see export market will pick up what is the grow growth strategy for export any inorganic acquisition we are 17:43 17 minutes, 43 seconds evaluating on that space yeah um at the moment we are not looking 17:51 17 minutes, 51 seconds at any inorganic acquisitions at the same time how we look at the export uh business as such uh we have explained in 17:59 17 minutes, 59 seconds many investors conference call earlier that uh we are putting lot of efforts lot of activities as has been ongoing 18:06 18 minutes, 6 seconds for past 3 four years. We also line uh we also backed uh lined up OEMs and we 18:14 18 minutes, 14 seconds have met the guide uh revenue targets of what we were looking for and these all 18:20 18 minutes, 20 seconds the OEMs you are aware that they are going to give us a sustained business in forthcoming years. uh so 18:29 18 minutes, 29 seconds overall the um long-term export growth or uh prospects what we are looking at 18:36 18 minutes, 36 seconds and considering how we are the at present the market share is and there is a huge potential so all those aspects and internal what are the efforts which 18:45 18 minutes, 45 seconds we are doing all are in place at the same time we are aware that certain geopolitical situations and and certain 18:52 18 minutes, 52 seconds regions economic growth and other thing those all the external factors which is presently impacting Yes. Uh um having 18:59 18 minutes, 59 seconds said that for the efforts all the activities which we have been doing for 4 to 5 years now and all the orders 19:09 19 minutes, 9 seconds which you executed and how the customers are looking at presently based on the experiences which they had with us for 3 19:17 19 minutes, 17 seconds four years. uh we are confident that in coming years we'll be able to reach our milestone of 50% revenue coming from the exports. 19:30 19 minutes, 30 seconds Uh sir can you also throw some uh growth guidance? I'm not talking about a year perspective from that point of view. I'm 19:37 19 minutes, 37 seconds talking about the longer you know three-ear time frame what the growth we are uh targeting. So last time we say 19:45 19 minutes, 45 seconds that no it's 20% growth guidance uh we have lower down that's okay that's the business part of that but if if if I see 19:54 19 minutes, 54 seconds threeear time frame what are the growth prospects we are uh looking for 20:03 20 minutes, 3 seconds it's around 20 to 25%age uh uh what we are looking at as the guidance overseas 20:13 20 minutes, 13 seconds okay sir Thank you. We get back and later. Thank you. 20:18 20 minutes, 18 seconds Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. 20:26 20 minutes, 26 seconds Also, ladies and gentlemen, in the interest of time, we would request to restrict to two questions per participant. 20:35 20 minutes, 35 seconds We take the next question from the line of CA Garvit Goyle from Seren Alpha. Please go ahead. 20:42 20 minutes, 42 seconds Hi. Hello. Thank you. Yeah. Yes. 20:47 20 minutes, 47 seconds Good evening sir and uh thanks for the opportunity. Uh sir uh in continuation uh to the earlier participant only uh 20:55 20 minutes, 55 seconds over the last one and a half year or two years we are uh continuously speaking or putting some emphasis on the export side. uh while we uh also received a few 21:05 21 minutes, 5 seconds orders uh uh that were announced earlier uh uh the these have not been yet translated into materials in the larger 21:12 21 minutes, 12 seconds volumes. So as a result uh in the uh benchmark uh export target export against 23 phase uh the business has 21:19 21 minutes, 19 seconds delivered only a marginal uh annual growth uh of around 4 to 5% despite a consistent effort and focus that we are 21:26 21 minutes, 26 seconds putting into uh but at the same time if we look at the domestic uh market uh India appears to be in a strong kx cycle 21:34 21 minutes, 34 seconds uh particularly across the sectors that we uh serve to uh we have not heard from management a clear articulation uh 21:41 21 minutes, 41 seconds around the incremental market share changes in India and uh maybe targeting at 25 30% kind of growth in at least in 21:48 21 minutes, 48 seconds the domestic market while exports are muted. Uh we are in Indian market even in the Indian market we are currently 21:56 21 minutes, 56 seconds doing at 15 to 20% kind of number. So I I agree that the margins can be a thing uh you as a management try to protect 22:03 22 minutes, 3 seconds but sir anyways uh if we look at last two quarters margins have also certain uh so uh I just wanted to understand 22:10 22 minutes, 10 seconds from you like why we are not aggressive on the domestic side and number two despite the cautious take that we are 22:18 22 minutes, 18 seconds taking on the domestic market uh why are we facing a fall in the margins uh is it because even uh even within the existing market share that we are speaking about 22:26 22 minutes, 26 seconds continuously around 40% we have started facing the competitive prices. 22:32 22 minutes, 32 seconds Yeah. Yeah. I'll address it. Um so while we continue to focus on our um export 22:40 22 minutes, 40 seconds market, uh we have been very strong in the domestic market as you know that nearly 40% of the organized market share 22:48 22 minutes, 48 seconds is what we hold. Uh that still continues. We continue to be the leadership uh leading the market in the 22:55 22 minutes, 55 seconds Indian scenario. Um and we are taking all the efforts to while we may not go for a aggressive market increase from 23:03 23 minutes, 3 seconds now on which which comes with an additional competitive scenario and compromising on the margins etc. At the 23:11 23 minutes, 11 seconds same time we continuously look at how we could enhance the product, upgrade our products, reduce our cost um all those 23:20 23 minutes, 20 seconds aspects and how to retain the current market like you see that what are the uh incremental uh business segments like 23:29 23 minutes, 29 seconds power sector and things like that which is happening. Uh we are able to continuously upgrade uh improve our 23:35 23 minutes, 35 seconds revenue on account of that. Um so therefore our uh domestic uh um approach 23:43 23 minutes, 43 seconds is continues to uh remain robust. Uh we got a separate team who are continuously 23:50 23 minutes, 50 seconds bagging those orders and approaching the market. So all those efforts are also or always there. Um and in terms of margins 24:00 24 minutes we see more that it is a scenario which is playing out due to the a lower turnover in the first three quarters 24:08 24 minutes, 8 seconds once we see in the fourth quarter while of course turnover from a point of view 24:16 24 minutes, 16 seconds as what we have given the guidance there has been a little bit of a lower 24:22 24 minutes, 22 seconds outlook in the current year uh in terms of margins overall margins how we see uh it gets normalized when we approach the 24:31 24 minutes, 31 seconds Q4. So um so we remain on the same more or less same this thing. Of course considering the market in the current 24:39 24 minutes, 39 seconds year our marketing team generally uses its uh flexibility uh to increase 24:47 24 minutes, 47 seconds and decrease the price at which we sell the products. So at the same time overall our approach towards margins remains the same in the domestic market. 24:58 24 minutes, 58 seconds So uh for now uh you are saying going ahead also we will be focusing on maintaining the market share increase instead of uh uh focusing on increasing 25:07 25 minutes, 7 seconds the market share in domestic market. Is that understanding correct? 25:10 25 minutes, 10 seconds Yes your understanding is correct. um you would uh uh reasonably try to increase the market share but uh if it 25:17 25 minutes, 17 seconds comes with an a very aggressive uh competitive scenario then we would like to uh look at uh maintaining the margins 25:26 25 minutes, 26 seconds but in that case how we will be able to grow for example 25:36 25 minutes, 36 seconds case like I'm not understanding we are at the same time we are speaking about 20 to 25% growth right and we are aware like uh geopolitical tensions are there 25:43 25 minutes, 43 seconds so export is uh bit on third right now for us so if we are not looking to grow in Indian market maybe at more than 25% 25:52 25 minutes, 52 seconds then how we will be able to achieve that uh guided numbers so that I'm not able to understand 25:58 25 minutes, 58 seconds yeah um see the growth what the export growth what we had indicated to be around to 20 to 25% is how we see it at 26:07 26 minutes, 7 seconds the same time we will have to factor in the uh geopolitical situations which are beyond our control. 26:13 26 minutes, 13 seconds Um at the same time our efforts definitely would be there to uh reach our milestones uh subject to these 26:20 26 minutes, 20 seconds geopolitical uh considerations. At the same time, our approach towards export market uh in terms of adding new clients 26:28 26 minutes, 28 seconds uh identifying growth opportunities in different markets, approaching different markets with the different approaches uh 26:35 26 minutes, 35 seconds connecting with the OEMs, consultants um and distributors in different uh regions. All those efforts and expanding 26:43 26 minutes, 43 seconds our uh network of branches um and wherever required if there is assembly 26:51 26 minutes, 51 seconds centers sort of thing we are established we are keenly looking at uh so therefore all the efforts are on to 26:59 26 minutes, 59 seconds improve that uh to reach that milestone of export projections. 27:07 27 minutes, 7 seconds Thank you. 27:08 27 minutes, 8 seconds We take the next question from the line of Sunil Aman Khan Kotari from Unique PMS. Please go ahead. 27:16 27 minutes, 16 seconds Uh uh thanks for opportunity sir. Uh my question is to Kik basically looking at 27:23 27 minutes, 23 seconds the power sector opportunity which is uh seems to be materializing thermal power 27:30 27 minutes, 30 seconds mainly. So just wanted to understand your thoughts for next 2 three year how you see MH division's opportunity how 27:39 27 minutes, 39 seconds prepared we are because I think some for some years we we were not investing much in MH division so in terms of team 27:48 27 minutes, 48 seconds technical capability our uh investment in the machines uh little bit detailed 27:54 27 minutes, 54 seconds uh thought process on MH's preparedness to capture the growth and possibility of growth will be very helpful. 28:02 28 minutes, 2 seconds Okay. Uh first of all I will give you the updates on the market. Yes. Recently 28:10 28 minutes, 10 seconds as you mentioned uh there is a good opportunity for us as MH 28:18 28 minutes, 18 seconds to grow and to cater the business in the power sector because there are many projects 28:26 28 minutes, 26 seconds as have already been announced by the various end users like NTPC and other state government bodies. So I think few 28:34 28 minutes, 34 seconds orders has been finalized and out of it we got the good business in current year. So in couple of years yes there is 28:42 28 minutes, 42 seconds a good visibility for us to grow further and apart from the power of course other 28:50 28 minutes, 50 seconds sector also helping us to grow because most of the end user has already announced their capex investment and of 28:57 28 minutes, 57 seconds course some capital investment also there to upgrade their existing equipment. So we are hoping good uh growth in next 2 three years. 29:10 29 minutes, 10 seconds And regarding by our coming our capability we have been in 29:17 29 minutes, 17 seconds this business for more than 75 years. We have our own uh manufacturing setup over here. We have a design dedicated design 29:26 29 minutes, 26 seconds team for our equipment. In fact, we have upgraded our equipment uh considering the present market requirement and 29:35 29 minutes, 35 seconds customer needs and uh as far as manufacturing is concerned if you see our most of the 29:42 29 minutes, 42 seconds products uh required the fabrication activity. Although we have our internal setup for the fabrication but for 29:50 29 minutes, 50 seconds fabrication uh we have been now outsourcing to get the things done only to get it machining we have a internal 29:59 29 minutes, 59 seconds process and apart from the upgrading our existing machines uh we have a capex plan near to 30:06 30 minutes, 6 seconds 35 to 40 K and out of it few machines we are expecting to get it in next quarter. 30:16 30 minutes, 16 seconds Next quarter means Q1 of next financial year. So we are also investing in our machinery as well as the 30:25 30 minutes, 25 seconds as well as the expanding our uh uh capacity 30:32 30 minutes, 32 seconds to meet the near future uh opportunity or grab the opportunity to that. 30:41 30 minutes, 41 seconds I hope uh Yeah. Yeah. Yeah. My second question is sir on uh the competition I mean 30:50 30 minutes, 50 seconds compared to say previous cycle of 20207 uh how you see the competition 30:57 30 minutes, 57 seconds competitor pricing and what what any ability we have added in terms of maybe 31:04 31 minutes, 4 seconds product or are we again planning or thinking about entering some maybe EPC 31:11 31 minutes, 11 seconds or something what's your thought process for future growth back than my industry. 31:18 31 minutes, 18 seconds Okay, let me make it clear. uh we have adopted the strategy that we should uh 31:24 31 minutes, 24 seconds focus on equipment supply and providing the after sale service and that we continue over the next 2 years 31:33 31 minutes, 33 seconds mean we we don't have a thought to enter into EPC business but looking to the 31:39 31 minutes, 39 seconds present uh market needs I think for us we have ample opportunity to put our 31:46 31 minutes, 46 seconds equipment in the new projects which is being announced by the end user Reason is only that many end user has 31:54 31 minutes, 54 seconds changed their strategy for closing the tender and those strategies are favorable to 32:02 32 minutes, 2 seconds MSE in fact favorable to Alicon to supply the equipment in the market or 32:09 32 minutes, 9 seconds for particular projects. As far as the competitor is concerned, you must be aware about the market scenario that few 32:18 32 minutes, 18 seconds player luck MCL engineering then TRF they are McN become bankrupt. TRF has 32:26 32 minutes, 26 seconds already announced to shut down their material handling operation. So only few competitors are there like LNT and TK. 32:35 32 minutes, 35 seconds But again if you see the business strategy of LNT and TAL they are more focusing on the EPC projects. Of course 32:42 32 minutes, 42 seconds we have a competition with them but but not to the extent at every sector and Alicon being the first equipment 32:51 32 minutes, 51 seconds manufacturer for material handling equipment. Uh most of the PSUs preference is with Alicon. 33:01 33 minutes, 1 second Okay. Thank you. and my good wishes to Mr. Rimman for future career and thank you very much. 33:09 33 minutes, 9 seconds Thank you sir. 33:11 33 minutes, 11 seconds Thank you ladies and gentlemen. A reminder please restrict your questions to two per participant and rejoin the question queue for follow-up questions. 33:22 33 minutes, 22 seconds We take the next question from the line of Gorav Nikam from Tumblr investments. Please go ahead. 33:29 33 minutes, 29 seconds Yes sir. Uh sir I have uh one question on the uh on the gear division. What was the mix of engineered gears in this 33:37 33 minutes, 37 seconds quarter's revenue and you on the gears specifically you mentioned about the revenue difference which happened. So 33:45 33 minutes, 45 seconds would you able to quantify how much was this revenue deferral that you talking about? Yeah just just a minute. 33:53 33 minutes, 53 seconds So in in terms of uh revenue deferral uh it is around 30 to 40 crores where uh 34:00 34 minutes some of the uh dispatches uh what is uh um uh where we try to uh squeeze before 34:09 34 minutes, 9 seconds December that is getting extended to January or February. uh so the uh uh 34:16 34 minutes, 16 seconds revenue mix in the EP and CP so uh the CP is uh uh uh 52% this quarter again uh 34:25 34 minutes, 25 seconds and the remaining is for uh 48% EB for this quarter understood sir um so that that was 34:33 34 minutes, 33 seconds question number one just a quick on the question uh second question on the export side I mean we had indicated our 34:40 34 minutes, 40 seconds OEM count that uh that we had uh acquired had had tie up. Can you update on that business? What is their status 34:48 34 minutes, 48 seconds and how much business did we do with them in this quarter or in 9 months whatever you are comfortable? 34:56 34 minutes, 56 seconds Yeah. Um it is uh around 18 OEMs um where we are tied up with um having tied 35:04 35 minutes, 4 seconds up with 18 OEMs the uh revenue what we got during this 9 months is around 31 crores. 35:13 35 minutes, 13 seconds Okay. 35:14 35 minutes, 14 seconds And what we look forward in future is that repetitive business uh which could come in future. 35:21 35 minutes, 21 seconds Got it sir. This is great sir. Thank you. 35:26 35 minutes, 26 seconds Thank you. We take the next question from the line of Raj Sha from Inamc. Please go ahead. 35:33 35 minutes, 33 seconds Yes. Uh hi sir. Am I able? Yeah. Yeah. 35:38 35 minutes, 38 seconds Okay. Sir my first question is uh regarding the gross margins. So if you see uh the gross margins of 43% that we 35:45 35 minutes, 45 seconds reported in this quarter is uh lowest in last five years. Uh I know you ciphered some reasons relation of customer uh 35:53 35 minutes, 53 seconds deferments and product mix but uh can you throw some light on exactly where uh these customers where they visit 36:01 36 minutes, 1 second international or domestic and product mix changes as you mentioned engineered products uh in years of 52%. I fa to 36:09 36 minutes, 9 seconds understand why this turned this fall in gross margins uh occur in this quarter. 36:15 36 minutes, 15 seconds Yeah. Um the gross margin uh see the product mix is around 52% from catalog products and 48% from engineer products. 36:25 36 minutes, 25 seconds The gross margin largely uh while uh in certain things like for example exports during this quarter we are little bit 36:34 36 minutes, 34 seconds low where the margins are better off. Uh then the product mix sometimes keeps fluctuating between catalog products and 36:43 36 minutes, 43 seconds engineered products. So that's also one of the sort of I we would say that it's a more of a timing thing and uh uh 36:50 36 minutes, 50 seconds specifically we are also few orders specific orders which we are executing presently uh this is for sort of 36:57 36 minutes, 57 seconds indigenously developed product for um for the Indian Navy uh which is of though it is of a smaller order value um 37:07 37 minutes, 7 seconds since it is being done for the first time by us uh it has got higher sort of manufacturing cost which is more towards 37:15 37 minutes, 15 seconds the learning and understanding and designing and things like that. Uh so that's also again from a uh one time 37:24 37 minutes, 24 seconds point of view. At the same time overall there is no significant gross margin 37:30 37 minutes, 30 seconds in the long term it is impacting us. uh only thing is that probably 0.5 or 1 percentage as what we had explained 37:39 37 minutes, 39 seconds considering the competitive scenario our marketing team uh how we are view how our approach towards 37:47 37 minutes, 47 seconds that we look at the pricing of the products and accordingly factor those things but otherwise gross margin per 37:56 37 minutes, 56 seconds say in gear division as well as of course M division is strong in the gear division the overall gross margin levels remains the same 38:04 38 minutes, 4 seconds except for during this year it has been on the lowest side. 38:10 38 minutes, 10 seconds Okay. Okay. So just to follow up with that you said 1% you attribute towards competitive scenario. Now uh the the 38:18 38 minutes, 18 seconds amount uh that you told regarding the Indian Navy order if you can attribute some percentage to that uh and whether 38:26 38 minutes, 26 seconds this will be uh beneficial for us in the future orders of Indian Navy. 38:33 38 minutes, 33 seconds Yes. uh it is around 0.5% uh definitely that is a thought process that by bagging this uh those orders 38:42 38 minutes, 42 seconds which is of a significant for us uh in the first time when we execute we are this thing but once we establish our 38:50 38 minutes, 50 seconds credentials then there is a potential that such orders could come in the future and whatever the learning cost 38:57 38 minutes, 57 seconds which we incur in the first year obviously we will not be incurring it for a similar product in future Yes. Um 39:04 39 minutes, 4 seconds and um we are eagerly eager to back those orders and um while in the initial years it could be a little bit on lower 39:13 39 minutes, 13 seconds side on the margins definitely there is a huge pro prospects for such orders. 39:20 39 minutes, 20 seconds Okay there any update on I would request you to retrain the queue for followup question. 39:25 39 minutes, 25 seconds That was a followup question. This is the second question that okay please go ahead. Yeah. So any 39:32 39 minutes, 32 seconds update on the 200 cr aircraft carrier order that is expected in two four uh and next generation beside Russ in defense. 39:42 39 minutes, 42 seconds Yeah. Um see one is that it is getting bit longer time. So probably Mr. Deep you can explain. Yeah, that uh new 39:51 39 minutes, 51 seconds generation Corvette uh that is we are expecting uh the GSL and GRSC are expecting the orders 39:58 39 minutes, 58 seconds anytime and we are expecting RFP uh by the Q3 of next financial year and aircraft carrier order. 40:10 40 minutes, 10 seconds Hello sorry aircraft carrier carrier the bigger aircraft carrier. 40:18 40 minutes, 18 seconds Yeah. And the regarding this indigenous aircraft carrier that followon uh project is expected to be uh given to 40:27 40 minutes, 27 seconds the uh shipyards in coming future and for that we can get the RFP in the Q1 of financial year 27. 40:38 40 minutes, 38 seconds Okay. Okay. Okay sir. Uh uh this is not a question but if you can just uh uh 40:45 40 minutes, 45 seconds leave more detailed in guidance uh regarding the segment as well last year last quart 650 crores in MS 2 in similar 40:55 40 minutes, 55 seconds if you can get that would be great yeah 41:01 41 minutes, 1 second uh it's broadly around from m and the balance is towards Okay. Thank you sir. 41:14 41 minutes, 14 seconds Thank you. We take the next question from the line of Niljan from White Pine Investment Management Private Limited. Please go ahead. 41:23 41 minutes, 23 seconds So uh two questions. One is uh on the margins front I think you have discussed that but if you remove the Indian Navy margins how much would the margins for the gay division come back to? 41:36 41 minutes, 36 seconds Sorry, can you repeat again? 41:39 41 minutes, 39 seconds If you remove the exceptional uh uh lower margins in the Indian Navy, 41:46 41 minutes, 46 seconds how much could the margins come back to on the Navy on the G side? 41:52 41 minutes, 52 seconds You're looking at uh uh gross margin or net margin? A bit margin. 41:58 41 minutes, 58 seconds A bit margin. uh if we if you remove that if you remove the lower margin of the 42:05 42 minutes, 5 seconds Indian Navy how much would the adjusted margin for the G division B? 42:12 42 minutes, 12 seconds Yeah. So, so specifically probably we will uh uh come back to you on uh and clarify to you specifically but it has to be useful if you discuss 42:21 42 minutes, 21 seconds here because uh how will the public know uh because uh you know public forum uh or you can just uh tell us some broad 42:30 42 minutes, 30 seconds range you know because uh the margins fall has been quite uh large in the last 42:36 42 minutes, 36 seconds five quarters or in the company so that's the reason I'm asking it uh it is around 2 to 3%. 42:47 42 minutes, 47 seconds Okay. The other question is in the last few quarters or orders for the uh order intake has been good in the gas 42:56 42 minutes, 56 seconds division, right? But uh the revenue reported for the gas has not increased. 43:03 43 minutes, 3 seconds So our cumulative order book from March is increased from 4 583 crores to 811 43:10 43 minutes, 10 seconds crores but our run rate of gear revenue has slowed down. So what might be the reason and can we also correlate that 43:19 43 minutes, 19 seconds the margin will be lower in the existing orders because there's a as you said employee cost and other cost increase or uh or those have been taken care of. 43:31 43 minutes, 31 seconds See uh for the question to your first uh question answer to your first question the whatever orders we have booked in Q3 43:41 43 minutes, 41 seconds they are major for the power industries and their requirement are at the later stage. So all gear all these orders will 43:49 43 minutes, 49 seconds be executed in the next I mean next financial year. So that's why the order books are showing high but the order 43:56 43 minutes, 56 seconds executions they have been deferred by the customers in the next financial year. 44:03 44 minutes, 3 seconds I got it. Any any timeline you have a thought on when it will start those revenues because the run itself from from Q1 itself. 44:14 44 minutes, 14 seconds Q1 itself. Okay. Answer last question on the uh on the uh 44:21 44 minutes, 21 seconds uh US tariff uh on the export how are you managing it like uh would you be impacted uh if the tariff uh status go maintainance? 44:34 44 minutes, 34 seconds Uh you're asking of the tariff and uh impact to us. Yes sir. Yeah. 44:48 44 minutes, 48 seconds Yeah. Um, broadly you know that uh as economy US economy per per is not 44:56 44 minutes, 56 seconds growing well. Um, at the same time while we are not uh while we are looking at more growth opportunities the present uh 45:04 45 minutes, 4 seconds revenue is not that much impacted we are able to manage that due to the tariff implications. 45:12 45 minutes, 12 seconds Okay. Sir and the question did you not request you to please turn back to my the question was not answered just one second sir the question was that the 45:20 45 minutes, 20 seconds orders that you have in hand do they have higher margins or do I have lower margins the orders of 811 crores on the 45:27 45 minutes, 27 seconds G site we will work out that and uh clarify 45:36 45 minutes, 36 seconds later point of Thank you 45:45 45 minutes, 45 seconds ladies and gentlemen. In the interest of time, we request you to restrict to one question per participant and rejoin the question queue. We take the next 45:53 45 minutes, 53 seconds question from the line of Sakit Kapoor from Kapoor and company. Please go ahead. Yeah, sir. I hope I'm audible. 46:01 46 minutes, 1 second Yeah. 46:02 46 minutes, 2 seconds Yeah. So, firstly, uh the small point is uh about our existing order book. uh the closing order book is at 1372 K. So if 46:11 46 minutes, 11 seconds you could just give us some color what is the execution cycle I think so you mentioned about some power companies uh order which is there in the order book 46:19 46 minutes, 19 seconds but they will get executed for Q1 and then sir you have also spoken about some product mix and absorption of cost 46:27 46 minutes, 27 seconds because of the increased employee cost and others. So if you could just give us some color as the other participant has asked how is the margin profile uh 46:36 46 minutes, 36 seconds likely to be on the existing uh on on the existing order book and lastly sir on the utilization level since we have 46:43 46 minutes, 43 seconds already done uh capex and we are also emphasizing further addition what is our current capacity utilization levels for 46:50 46 minutes, 50 seconds both the divisions see for the uh uh your answer to your 47:01 47 minutes, 1 second first question actually uh mostly orders are for EP divisions. So their execution 47:07 47 minutes, 7 seconds cycle is around 5 to 6 months. So all orders will be executed mostly in the next financial year and starting from 47:14 47 minutes, 14 seconds the quarter four. So few orders will be executed in quarter four and maximum orders in uh next financial year. 47:26 47 minutes, 26 seconds Thank you. 47:28 47 minutes, 28 seconds We take the next question from the line of Rohan from Invasion Capital. Please go ahead. 47:34 47 minutes, 34 seconds Hello. Uh sir, thank you for the opportunity. Uh so sir, my question was broadly on the impact of uh increasing 47:42 47 minutes, 42 seconds commodity price metal prices. So uh how does that impact our existing order book uh in terms of margins going forward? 47:51 47 minutes, 51 seconds Thank you. 47:54 47 minutes, 54 seconds See as such uh because of the uh this demand situation in the existing markets 48:01 48 minutes, 1 second the uh price range are more or less stagnant. So there is no such uh increment in the commodity markets and 48:09 48 minutes, 9 seconds because of that our raw metal prices are almost stagnant. So there is no much impact because of the raw metal prices for getting the orders from the market. 48:22 48 minutes, 22 seconds Sure sir. But uh for our existing order book uh you know some of the metal you know we'll purchase right in future and and at a higher price. So will we be able to park this on to our customers? 48:34 48 minutes, 34 seconds I don't think uh in the near future also there will be a price increase in the market for the metals and uh all the 48:42 48 minutes, 42 seconds uh major uh uh commodity items. We don't see any increase because normally we 48:49 48 minutes, 49 seconds look uh uh look forward for the six months onwards for the role model prices for the booking the orders as well as uh 48:58 48 minutes, 58 seconds the study of the markets and that we find that there are no it doesn't seem any increase or I mean major change in 49:06 49 minutes, 6 seconds the raw motor prices of the major category items of the uh this uh commodity materials. 49:13 49 minutes, 13 seconds No no absolutely sir. So I am talking about the increase in commodity prices that already happened the metal prices that have gone up in the last 1 2 months. I'm talking about that sir. 49:24 49 minutes, 24 seconds Yeah. Uh if you see No, but we are also managing and having a good relationship with our uh suppliers. So we are managing the prices. 49:35 49 minutes, 35 seconds Okay. Okay sir. Thank you. 49:39 49 minutes, 39 seconds Thank you. We take the next question from the line of Aman Sony from Invest Analytics Advisory. Please go ahead. 49:54 49 minutes, 54 seconds Ammon please unmute your line and proceed with your question. Hello now. Yes, please go ahead. 50:02 50 minutes, 2 seconds Just uh clarification on the guidance part. uh you mentioned most of the order book in the gear segment will be getting 50:09 50 minutes, 9 seconds executed much here right but at the same time we are targeting 1800 PR in gear season for this year maybe to achieve 50:18 50 minutes, 18 seconds that number we need to uh do around 575 cr in last quarter right so out of the 50:25 50 minutes, 25 seconds existing order book of 800 cr we have to execute 575 that means uh we have to execute a significant portion in Q4 itself isn't it Yes. 50:36 50 minutes, 36 seconds So we have lined up because now we are having good orders on hand. So we have lined up all our manufacturing activities and we are confident that we 50:44 50 minutes, 44 seconds will achieve all the numbers what we have guided. 50:48 50 minutes, 48 seconds Uh no no uh actually I'm asking while you are saying uh out of the existing uh gears order book uh significant portion 50:55 50 minutes, 55 seconds will be executed in next year right then how we will be managing uh 575 51:04 51 minutes, 4 seconds execution we see we for that what what I talked about that 51:12 51 minutes, 12 seconds was for the engineering product but for the catalog products we are having a less manufacturing cycles of say 1 month 51:19 51 minutes, 19 seconds or 30 days or 60 days. So for that we are getting the orders and we will execute orders and there is a very good orders in pipeline. So we will 51:27 51 minutes, 27 seconds definitely execute these order in the shorter uh lead time. So does that mean in Q4 also uh we will be particularly 51:35 51 minutes, 35 seconds executing more of catalog product and that's why margins can be on lower side because production which is not getting 51:43 51 minutes, 43 seconds no no it is not like that uh the CP orders uh which we are getting we are educating in the same quarter the EP 51:50 51 minutes, 50 seconds products uh uh orders we are we get in uh September month uh in Q2 it will be 51:56 51 minutes, 56 seconds delivered somehow in uh Q4 and the uh some orders be received in Q3 uh for the 52:04 52 minutes, 4 seconds key uh EP product it will be delivered in Q4 only. So the mix of the CP and EP 52:11 52 minutes, 11 seconds would be similar uh in Q4 but the some uh EP products which we got uh in the December month only that would be uh spillover in Q1 next year. 52:24 52 minutes, 24 seconds and sir in the last few I would request you to join back the queue for followup questions a follow up only uh on this question on the margins 52:31 52 minutes, 31 seconds part uh means in last few quarters we have been speaking uh again and again about like product mix is getting impacted product mix is getting impacted 52:40 52 minutes, 40 seconds so I just wanted to understand like when this picture will get cleared like uh if that is going to be the case like if we are facing any delay in execution of our 52:48 52 minutes, 48 seconds engineering products then our margin profile is going to be suffered Uh yeah this is the one case. The other 52:57 52 minutes, 57 seconds case is that if you see the product and the service miss so uh that also includes in the margins. So this this 53:05 53 minutes, 5 seconds quarter uh that uh that is another uh one case uh uh the service portion uh uh from the revenue uh that also impacted 53:13 53 minutes, 13 seconds the margins but uh we have the uh good order in the service business also. So that will be executed in Q4. M 53:21 53 minutes, 21 seconds so uh uh that is not the case in Q3 the margins are lower uh in the Q4 uh that 53:28 53 minutes, 28 seconds uh uh the EP products and the service uh that will be mix of all the things. So matters uh it will not like that it happened in Q. 53:46 53 minutes, 46 seconds We take the next question from the line of Silk Kumar from Joys Capital Services Limited. Please go ahead. 54:00 54 minutes Circle. Please unmute your line and proceed with your question. 54:10 54 minutes, 10 seconds Since there is no response, we will move on to the next question which is from the line of Sani Visher from Access Securities. Please go ahead. 54:19 54 minutes, 19 seconds Yeah, so this is kind of a follow up on the earlier question the from the earlier participant. So uh at the end of 54:27 54 minutes, 27 seconds Q2 also we had a very strong order book and we were very confident about uh achieving good revenues in Q3 and Q4. Uh 54:35 54 minutes, 35 seconds but uh as it went there were some external factors which are beyond our control and we could not achieve it in the Q3. Uh now again we have a good 54:44 54 minutes, 44 seconds order book and we are expressing confidence in very good performance in the Q4. So what is the change? What gives us the confidence that this time 54:52 54 minutes, 52 seconds it will happen and or are there any similar risks that we will not be able to achieve this guidance? 55:03 55 minutes, 3 seconds Yeah. Um see uh what happened is like what uh Miss Ashish also uh said uh for 55:11 55 minutes, 11 seconds catalog products um what we when whenever we project we factor in that from the time we um inquiry to the execution it takes about 1 month or so. 55:24 55 minutes, 24 seconds Uh so based on that we uh considering the market scenario we get the understanding of how the market is performing and accordingly factor that 55:32 55 minutes, 32 seconds and uh more since for the engineer product it there is a more clarity we are able to provide better clarity on 55:40 55 minutes, 40 seconds that aspects. So therefore depending upon how the for that quarter it is fluctuation 55:47 55 minutes, 47 seconds we factor both the order on hand how how it will be executed plus the order intake what we'll be getting for catalog 55:56 55 minutes, 56 seconds products which will be delivered in the quarter. So this sort of mix and match fluctuates and uh that is what we'll be factoring in when you come for revenue. 56:08 56 minutes, 8 seconds Okay. to simply say the confidence levels of achieving this guidance is higher compared to the earlier process. Is that right? 56:17 56 minutes, 17 seconds Yes. Uh the guidance whatever we have spelled out with the revision you would know what we have spelled out uh that is achievable definitely. 56:27 56 minutes, 27 seconds Okay. Okay sir. Thank you. 56:31 56 minutes, 31 seconds Thank you. We take the next question from the line of Ashwini Sharma from MK Global Financial Services Limited. 56:38 56 minutes, 38 seconds Please go ahead. Yeah, my questions have been answered. Thank you. 56:45 56 minutes, 45 seconds Thank you. We take the next question from the line of Puhi from Arian Capital Markets Limited. Please go ahead. 56:59 56 minutes, 59 seconds Julie, please unmute your line and proceed with your questions. 57:07 57 minutes, 7 seconds Since there is no response, we will move on to the next question which is from the line of Manish Gupta from Equinox Investment Advisors. Please go ahead. 57:17 57 minutes, 17 seconds Yes sir. Am I audible? Yes. 57:22 57 minutes, 22 seconds Uh so with US trade deal being delayed again and again and there is rather no clarity when it will be fine uh what are 57:30 57 minutes, 30 seconds the geographies uh where you are more optimistic about Europe? 57:36 57 minutes, 36 seconds Yeah we are more mis expecting the Middle East and the Europe. 57:46 57 minutes, 46 seconds Okay. And uh since China is also facing tariffs from US, they would be competing hard in these geographies as well. So uh 57:55 57 minutes, 55 seconds how is our competitive uh competitiveness compared to China in these markets? 58:01 58 minutes, 1 second See you may be knowing that China though they are competing but they are were not 58:08 58 minutes, 8 seconds very good in the after share service. So uh that's why we are not facing uh any competition from China in terms of the 58:16 58 minutes, 16 seconds order executions and getting the uh traction from the Europe and Middle East because uh in the after sell service we 58:25 58 minutes, 25 seconds are having upper age compared to the China. 58:29 58 minutes, 29 seconds Okay. And my second question would be uh you moderated the currency 26 guidance. 58:36 58 minutes, 36 seconds So beyond financial year 26 what would be your guidance in spect of top line as well as uh how would you expect the 58:43 58 minutes, 43 seconds margins to behave in uh uh periods after financial year 26? 58:49 58 minutes, 49 seconds Yeah. Uh probably in another in the current quarter we will have to do the budgeting exercise wherein we get the 58:56 58 minutes, 56 seconds inputs from all the uh both the divisions and different markets and then we'll be able to spell out of how we look at in the next year. 59:06 59 minutes, 6 seconds Generally we do uh we give our guidance uh in Q4 call. So uh we will we will 59:13 59 minutes, 13 seconds maintain the same and we will uh spell out the uh uh next year guidance uh in Q4 call. Thank you. 59:21 59 minutes, 21 seconds All right sir. And sir considering that private capacity is just not taking off and geopolitics is kind of uh very very 59:30 59 minutes, 30 seconds volatile as far as export markets are concerned. So do you feel there is a uh downward test to growth in coming years 59:38 59 minutes, 38 seconds for you or you expect things to normalize sooner rather than later? 59:44 59 minutes, 44 seconds See power industries has started now performing and they have now released uh I mean uh investments government uh is 59:54 59 minutes, 54 seconds releasing investment in power. So we are hoping good tractions from the power industries and even uh sugar industries 1:00:01 1 hour, 1 second are also expecting to pick up in coming uh months. So we are expecting good traction from the sugar industries and 1:00:09 1 hour, 9 seconds also from the steel industries and cement also started now uh showing some expansion. So we are uh expecting good 1:00:18 1 hour, 18 seconds attractions from all these segments since we are also spread out fairly well 1:00:26 1 hour, 26 seconds in different industries across uh this thing any don't take on few industries uh we are 1:00:33 1 hour, 33 seconds able to manage that and uh that's how we are optimistic that uh the growth will be better. 1:00:42 1 hour, 42 seconds Thank you ladies and gentlemen. We take that as the last question and conclude the question and answer session. I now hand the conference over to the management for their closing comments. 1:00:56 1 hour, 56 seconds In closing, I would like to thank all of you for joining us today and for your continued trust and support. While the 1:01:03 1 hour, 1 minute, 3 seconds gear division delivered a resilient performance during the quarter, we are particularly encouraged by the strong momentum and long-term potential of the 1:01:12 1 hour, 1 minute, 12 seconds ME division, which brings balance and incremental growth to our overall business. 1:01:18 1 hour, 1 minute, 18 seconds Even as we revise our near-term guidance, our focus remains firmly on disciplined execution, prudent capital 1:01:26 1 hour, 1 minute, 26 seconds allocation, and strengthening our leadership in high growth segments. We are confident in our ability to build on 1:01:33 1 hour, 1 minute, 33 seconds the current momentum, navigate short-term challenges and continue delivering sustainable value for our shareholders and all stakeholders. 1:01:43 1 hour, 1 minute, 43 seconds Thank you once again for your participation. Should you have any further questions, please feel free free to reach out. Have a great evening. 1:01:53 1 hour, 1 minute, 53 seconds Thank you. 1:01:55 1 hour, 1 minute, 55 seconds Thank you. On behalf of LR Securities India Private Limited, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.