Eleganzinteriors Ltd — Q4 FY26

Eleganz Interiors Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=_c_rjQBeG_E Published: 4 hours ago

0:00 Ladies and gentlemen, on behalf of Captify Consulting investor relations team, I welcome you all to the H2 and FI26 0:09 9 seconds post earnings conference call of Elegance Interiors Limited. Today on the call from the management team, we have 0:16 16 seconds with us Mr. Samir Pakwas, chairman and managing director, Mrs. Archa Desai, chief operating officer and Mrs. Kchan 0:25 25 seconds Rajbut, general manager of finance. As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements which may 0:33 33 seconds involve risk and uncertainties. Also, a reminder that this call is being recorded. I would now request the management to briefly briefly run us 0:41 41 seconds through the investor presentation and business and performance highlights for the period ended March 2026, their growth perspective and vision for the 0:49 49 seconds coming year. Post which we will open the floor for Q&A over to the management team. 0:56 56 seconds Uh good afternoon everyone. Um so we'll run through the presentation. Let me give you an overview on the company if you can move forward. 1:11 1 minute, 11 seconds So basically what does elegance do? I know a few people may be familiar but for people who aren't familiar with what 1:17 1 minute, 17 seconds we do we are a end toend uh completely integrated uh fit out service company. 1:25 1 minute, 25 seconds We provide design and build services for our corporate clients. Grade customers across the country. We are present in 1:32 1 minute, 32 seconds Dubai and Singapore also. Um we um there are two types two models basically that 1:40 1 minute, 40 seconds work uh within elegance. One is design and build where a customer just needs to basically take a space. Um it could be 1:48 1 minute, 48 seconds their own space, they can lease a space, whatever they do. Um they come to us from the test fit to the layouts to the 1:55 1 minute, 55 seconds workplace strategy, how the people will move, how the people will sit, the consultancy to entire execution and 2:02 2 minutes, 2 seconds contracting of building the entire space to lock and key. The all these services are provided under one roof that comes 2:09 2 minutes, 9 seconds under design and build. Usually these are lumpsum contracts where a customer just gives their requirements, number of seats, what they want and we design it, 2:18 2 minutes, 18 seconds give them one value for the entire project and uh execute the job based on that. Um the second thing is general 2:26 2 minutes, 26 seconds contracting where the customer basically can go to any architect of their choice. 2:31 2 minutes, 31 seconds Um um they can they do the design journey with them. uh the BOQs are prepared. There's a tendering process. 2:39 2 minutes, 39 seconds There's a bidding process. We bid for it as per BOQ line item wise for depending on the scope that's involved and uh we 2:46 2 minutes, 46 seconds quote for packages that are given to us to quote. This can involve your interior works, your HVAC, your MEP workstations, 2:53 2 minutes, 53 seconds chairs, modular, fire safety, ELV, uh BMS integration, IT services, AV services, everything comes under these 3:02 3 minutes, 2 seconds packages. The clients picks and chooses generally in this what they want to give and what they don't want to give. The industry more or less is moving towards 3:10 3 minutes, 10 seconds design and build. We have been now actively doing this for the last uh 9 years inhouse. Initially we used to 3:17 3 minutes, 17 seconds outsource the design to other companies to support us. Now we are doing it since the last nine years in house and there's 3:25 3 minutes, 25 seconds a good fraction that we picked up in the last 3 four years in design and building. Um we are across 12 states in the country. We have multiple offices. 3:34 3 minutes, 34 seconds 69 695 projects completed. Um 36 plus cities we have executed works. We have 3:41 3 minutes, 41 seconds over 32 million square ft delivered. 37 plus years in the business. Um we uh our 3:49 3 minutes, 49 seconds order book currently stands at about 44 546 crores. We have 29 plus industries 3:56 3 minutes, 56 seconds served 48.8% 28% repeat customers, 499 satisfied clients, 400 plus skilled professionals that work under our 4:05 4 minutes, 5 seconds payroll as employees. Um, labor force is separate from this. Can we move to the next slide? 4:13 4 minutes, 13 seconds Um, we are also found, we can move to the next one. We are also founders of the IGBC uh green building council 4:21 4 minutes, 21 seconds founding members in which we basically all our customers now need lead and well certification. So we're well familiar with that because the grade corporates have the ESG and internal compliances. 4:32 4 minutes, 32 seconds So we are well serviced, well equipped to handle that. Also I've explained to you what design build is. Um 4:40 4 minutes, 40 seconds this is a project that we recently executed. It's about 7 lakh square ft 6x 91,000 design and build. It's the 4:47 4 minutes, 47 seconds largest uh design and build project that any contracting firm has ever done in the country. And uh this was executed 4:54 4 minutes, 54 seconds last uh we handed over last year uh this project. Um again these are a few design build projects that we have done. 5:05 5 minutes, 5 seconds All these customers again are gradeA corporates mostly falling into the Fortune 500, S&P 5:12 5 minutes, 12 seconds 500 and stuff like that. Again general contracting where we you know we do this thing. So our largest order in general contracting till date has been at a 5:20 5 minutes, 20 seconds gross value of 188 crores. It's an airport renovation project which is currently ongoing. 5:35 5 minutes, 35 seconds We can run through. Yeah. So we have a manufacturing facility in Masai. This is 27,000 ft². So all the furniture, polish 5:42 5 minutes, 42 seconds work, uh uh table storage, paneling, everything comes out of the factory. We reduce the workload on site. The quality 5:50 5 minutes, 50 seconds also comes out to be better. It is something uh with uh uh our customers especially they want more efficient 5:59 5 minutes, 59 seconds factory produced material, more quality everything as much as possible on site. 6:05 6 minutes, 5 seconds So everything comes out of this factory from pelmets, doors, flush doors, a lot of everything. We have a polished booth. 6:12 6 minutes, 12 seconds It's completely German tech enabled. Uh the best-in-class machines and uh this currently services the entire country. 6:22 6 minutes, 22 seconds We have recently purchased a land in Capolei uh because we need to do a factory expansion um which will be up 6:30 6 minutes, 30 seconds and ready. We are planning about two years now. We still working on the budgeting and all for that. 6:37 6 minutes, 37 seconds Yeah. Next. So this is the basic broad level current order book. Uh as of March 31st, April 1st, this is 546 crores 6:46 6 minutes, 46 seconds which we have to execute uh in the coming time and we are currently bidding for about 2,600 crores. Usually it's a 6:55 6 minutes, 55 seconds 10 to 12% 15% success ratio. 7:01 7 minutes, 1 second This is where all we are present. We generally don't work in the east difficult area but everywhere is in the country we're capable of executing work. 7:08 7 minutes, 8 seconds We have teams available and currently ongoing projects also we have Chennai we doing large projects we're doing Aabad 7:16 7 minutes, 16 seconds Mumbai Pune Bangalore Na Delhi everywhere Dubai and Singapore also as I mentioned 7:22 7 minutes, 22 seconds earlier is is a part of the team so what do we bring to the table for the 7:32 7 minutes, 32 seconds clients basically they see a one-stop solution whatever they need is done inhouse the capabilities the team u the 7:40 7 minutes, 40 seconds experience the compliances that are required the safety the documentation the ESIPF for labor compliances all this 7:47 7 minutes, 47 seconds we have excellent mechanisms and processes in place uh gradea customers don't need any fallback on them and they're very reliant on how we perform 7:56 7 minutes, 56 seconds for their projects u they have global reputations uh they obviously can't have any issues going up so this is one thing 8:03 8 minutes, 3 seconds that we do plus obviously you know integrating various activities ities understanding the flow sequentially uh 8:11 8 minutes, 11 seconds getting it done by our team um it's already embedded in us for years now 37 years that's what we've got to the table 8:19 8 minutes, 19 seconds we understand sustainability global standards everything whatever the customer needs 8:27 8 minutes, 27 seconds so this is how the clientele is basically spread across we are tightly bound by NDAs actually with our 8:35 8 minutes, 35 seconds customers so we cannot mentioned the client names for this you'll get a fair idea of the type of brand I'll be 8:43 8 minutes, 43 seconds working so we have already we doing you know as you know corporate offices so in 8:51 8 minutes, 51 seconds corporate offices we have various sectors pharma R&D uh engineering 8:57 8 minutes, 57 seconds technology banking BFSI uh uh VC funds large international global leading VC 9:06 9 minutes, 6 seconds funds investment bankers. We already working for them but now we want to focus our energies also in the data centers. We've 9:13 9 minutes, 13 seconds had an opportunity of doing some work for two uh small opportunity for getting into doing for two customers with data 9:21 9 minutes, 21 seconds centers. They giving us further opportunities also. Uh we are establishing a complete uh setup for data centers because that's where we see 9:30 9 minutes, 30 seconds the industry moving also. So, getting our capabilities up, getting our pre-qualification parameters to get 9:37 9 minutes, 37 seconds better. Um, it's a long journey, but yes, data centers is something that we're focusing on. The new factory, as I mentioned earlier, the land is acquired. 9:45 9 minutes, 45 seconds We need to set up an automated plant. We have to, you know, few visits, understand what machinery, latest tech because it has to last for long. um work 9:54 9 minutes, 54 seconds out the reverse of budgeting. We so in due course of time the new factory will be something that will help uh enhance 10:00 10 minutes the business uh uh deliver better products and uh uh scale even larger 10:08 10 minutes, 8 seconds and u order book is something that we we've already discussed. 10:16 10 minutes, 16 seconds So this is just some uh I mean now I'll tell numbers uh so we can go to the next slide. 10:24 10 minutes, 24 seconds So I'll tell Kan to take over from here for the numbers. 10:29 10 minutes, 29 seconds So I'll take you through the financial performance. 10:41 10 minutes, 41 seconds The revenue uh all the figures are in millions. 10:46 10 minutes, 46 seconds Revenue for the H2 financial year 25 was 20006.1 and for the H2 of 26 is 2892.2. 10:56 10 minutes, 56 seconds I beta was uh 174.1 for last H2 and for H2 of 26 is 296.1. 11:05 11 minutes, 5 seconds Net profit for the H2 financial year 25 was 5.6%. For the H2 of 26 is 6.8%. 11:14 11 minutes, 14 seconds So comparatively to the compared to the H2O financial year 25 there is a uh good performance in the ratio. 11:24 11 minutes, 24 seconds Next slide. 11:27 11 minutes, 27 seconds This is half yearly income statement and the annual performance uh highlights are 11:34 11 minutes, 34 seconds for the uh last year revenue was 3927.1 for this year it is 4002A for the last year was 8.4%. 11:46 11 minutes, 46 seconds For the uh 26 is 8.6%. 11:49 11 minutes, 49 seconds Net profit for the whole year uh 25 was 5.3%. 11:54 11 minutes, 54 seconds For the financial year 26 it is 5.5 and uh net debt to equity ratio was uh 12:01 12 minutes, 1 second last year minus 0.3 for the financial year 26 it is 0.11 12:10 12 minutes, 10 seconds this is the annual income statement our revenue breakup state wise and industry wise is uh uh shown here so the major 12:20 12 minutes, 20 seconds revenue from the state Maharashtra and Karnataka And the industry wise the major ratio is from pharmaceutical 12:27 12 minutes, 27 seconds healthcare and the information technology for the uh financial year 26. 12:33 12 minutes, 33 seconds Business model GC and design and build constitute 18.5% for design and build 12:39 12 minutes, 39 seconds and 81.5% for GC. Scope wise the uh 67.9% is contractor base and subcontract base it is 32.1%. 12:51 12 minutes, 51 seconds Top five customer constitute 48.6% and top 10 customer constitute 64.3%. 13:00 13 minutes Next, this is the financial statement. 13:08 13 minutes, 8 seconds Thank you. 13:11 13 minutes, 11 seconds So these are just some certifications that we have. We lead building certified. We have um how we've uh the 13:18 13 minutes, 18 seconds ISO certifications ITBC our certification for founding member the lead certified projects that we've done a few of them mentioned there been 13:27 13 minutes, 27 seconds declined okay and uh yeah I think there are awards also we can if you can go one place before yeah so 13:36 13 minutes, 36 seconds we've been awarded by out business award company of the year for design and build fit out firm uh nominated for best midsize DNB office 2020 proper design also. 13:48 13 minutes, 48 seconds Great place to work certified. Yeah. 13:55 13 minutes, 55 seconds Any questions? 14:07 14 minutes, 7 seconds Thank you sir. Uh for thank you for thank you sir for the presentation. All those who wish to ask question may use the option of raise hand. In case you 14:14 14 minutes, 14 seconds are unable to raise hand just drop a message on the chat window and we'll invite you to ask the question. 14:20 14 minutes, 20 seconds Sir, we'll take the first question from Amit but Amit you can go ahead please. 14:29 14 minutes, 29 seconds Yes. 14:30 14 minutes, 30 seconds Yeah. First congratulation to the management for delivering an excellent H2 FY26 performance despite a weak H1. 14:39 14 minutes, 39 seconds The company successfully achieved its guidance and compensated strongly in H2 with impressive execution and margin recovery. You are man of your words. You 14:47 14 minutes, 47 seconds promised in the last conclave that you will you know compensate uh the H1 with the H2 and you have done it. Uh we are 14:55 14 minutes, 55 seconds thankful for that. Now the first question is uh so net order book stands 15:00 15 minutes at uh 546 cr. Can management clarify the exit unexecuted order book position as 15:07 15 minutes, 7 seconds on 31st March FY26 same 15:16 15 minutes, 16 seconds hello same it's the same it is 546 ma'am it is unexeuted correct yes 15:23 15 minutes, 23 seconds yeah and uh it also includes that airport project of 150 k which you reported some time back correct so it it includes the portion that is yet to be executed. 15:34 15 minutes, 34 seconds So the airport project is uh now running now. 15:38 15 minutes, 38 seconds Yeah. Yeah. So we've done part billing in last financial year. 15:41 15 minutes, 41 seconds Okay. Uh the second question is sir uh come uh FY27 15:49 15 minutes, 49 seconds it may remain a high inflation year because of the Iran US war with volatility in the raw material and labor 15:56 15 minutes, 56 seconds cost. Since the company operate in the relatively thin 5 to 7% net margin, what strategies are being adopted to protect 16:04 16 minutes, 4 seconds the profitability because there is going to be the inflation pressure. So can you please you know guide us you know how the company will uh mitigate the risk of inflation. 16:14 16 minutes, 14 seconds So um our corporates as you know they all gradea corporates very reasonable people they believe in working closely 16:23 16 minutes, 23 seconds with their partners that's the ethos they carry. So today even during the war the you know metal prices and all that 16:29 16 minutes, 29 seconds jumped up and we went back to our customers and we've asked them including the airport that you said and other 16:37 16 minutes, 37 seconds customers that we're doing and we've said there is a price jump escalation for XY Z which is abnormally high 16:44 16 minutes, 44 seconds anything that's gone above 10% say the material prices they have accepted uh that variation as a as a one-off because 16:54 16 minutes, 54 seconds it's a war condition outside that is impacting the prices here. They've been just so copper has gone up, aluminium has gone up, a lot of other prices have 17:02 17 minutes, 2 seconds gone up. They have accepted and they're giving us that uh price back and our teams are working efficiently with the 17:08 17 minutes, 8 seconds customers to identify where the uh the price increases are and which all items 17:16 17 minutes, 16 seconds and what documentation they require to help us to give us the cost escalations as required. So what you are saying is 17:23 17 minutes, 23 seconds that with even with this pressure because you know you have a good understanding with the clients you know our clients are the market clients so we 17:31 17 minutes, 31 seconds can maintain the AITA of 8.6% 6% which you reported in FY26 uh it's a fair assumption. 17:38 17 minutes, 38 seconds Yes. 17:40 17 minutes, 40 seconds Okay. And sir the uh it's small request from investor community that normally you know we are H2 heavy business. So 17:49 17 minutes, 49 seconds normally sometime what is happening that last time it happened that H1 was a was you know not up to the mark and stock 17:56 17 minutes, 56 seconds got corrected because because of the lack of un awareness about the company's business and uh it changed the you know 18:03 18 minutes, 3 seconds uh uh it's basically the uh 130 IPO level to now 80 rupees. So can we do something where we can you know even in 18:12 18 minutes, 12 seconds H1 we can you know give some good comfortable numbers uh to avoid this sort of price uh uh you know moment 18:19 18 minutes, 19 seconds because of the H1 result that we can you know take into the see unfortunately we cannot give that guidance I understand what you're saying 18:28 18 minutes, 28 seconds trust me I understand what you're saying I have seen that beating in H1 but our business is very dynamic right that more 18:36 18 minutes, 36 seconds or less it is H2 heavy H2 really heavy last quarter heaviest of the lot actually. 18:41 18 minutes, 41 seconds We will try to we will see what I mean we we understand what's happened last year. We we we definitely will try to mitigate that. Um 18:50 18 minutes, 50 seconds but also it depends on the customers and how they want to take the billing and they want to take it in H1, H2. Um so I cannot commit anything on that. I can 18:58 18 minutes, 58 seconds commit yes H2 we will do well. Uh I mean overall in the year we will do well but I understand what you're saying and I cannot unfortunately commit on that. But we will do our best. 19:09 19 minutes, 9 seconds No, no. Thanks a lot, sir. And uh once again, you know, we appreciate uh uh your efforts in H2 result. Thanks a lot. 19:19 19 minutes, 19 seconds Thanks, Amit. Uh we'll take the next question from Gunit Singh. Gun, you can go ahead please. 19:26 19 minutes, 26 seconds Thank you for this opportunity. So firstly, can you help me understand the spike in uh trade receivables? 19:32 19 minutes, 32 seconds Uh they have tripled I think if we compare to last year. So what are these 19:38 19 minutes, 38 seconds related to and why do we see such a use spike? 19:45 19 minutes, 45 seconds Uh trade receable has increased in the last quarter because of the sale we have booked the sale in the Q4 around 173 cr 19:55 19 minutes, 55 seconds and because of the same the compared to the last year datas had increased. So if 20:02 20 minutes, 2 seconds you're actually in the Q3 Q4, March was the heaviest of the lot out of the 17. 20:09 20 minutes, 9 seconds Got it. So what should be the normalized trade receivables? I mean uh 20:16 20 minutes, 16 seconds do do we expect them to come down? So you're saying that we received an order of 170 CR which we booked and how much 20:25 20 minutes, 25 seconds of the trade receables is related to that 170 CR uh booking. 20:32 20 minutes, 32 seconds So uh uh the u around the 130 CR we will expect to release in the next uh 3 20:41 20 minutes, 41 seconds months like their credit period range from 45 to 90 days so that they will that trade receivable will be covered uh 20:49 20 minutes, 49 seconds convert into the cash in the coming period. 20:52 20 minutes, 52 seconds Got it. And what is the what are the receivables above 6 months and above one year? 21:00 21 minutes So gators above 6 months are 12 year and mostly retention. 21:08 21 minutes, 8 seconds Yeah, it's mostly mostly retentions. Retentions are between one and two years. So So you include retention and trade receivables. 21:16 21 minutes, 16 seconds Yes. Yes. 21:19 21 minutes, 19 seconds 12 crores mean 12 is only more than 6 months. Retention we show it separately 21:27 21 minutes, 27 seconds and the retention amount is uh just give me one minute 21:42 21 minutes, 42 seconds retention is 30 C. Okay. 21:46 21 minutes, 46 seconds 30 12 and 30. 21:51 21 minutes, 51 seconds Got it. So all of this 30C is above one one uh one one year as on date. Yes. Yes. Yeah. 22:00 22 minutes Got it. And we see that the cash flow from operations are negative this year whereas uh they were slightly positive 22:08 22 minutes, 8 seconds last year. So I would like to understand what is our target for FY27? 22:16 22 minutes, 16 seconds Do we are we making any changes in terms of uh our contracts with the clients or 22:23 22 minutes, 23 seconds uh our vendors? So our cash flow through operations can become positive. 22:30 22 minutes, 30 seconds Are we taking any steps in that direction? 22:33 22 minutes, 33 seconds Operating cash flow got negative because of the jump in trade receivable only and 22:39 22 minutes, 39 seconds for the betterment of uh working cycle we will definitely do a uh collection uh 22:47 22 minutes, 47 seconds faster got it for the part of strategic change in agreement I don't think there is any 22:55 22 minutes, 55 seconds requirement because the period of credit is the same like uh 45 to 90 days only 23:02 23 minutes, 2 seconds because of H2 sale increased the changes in the working capital got uh negative. 23:10 23 minutes, 10 seconds Got it. So um okay so out of this 12 crores of 23:17 23 minutes, 17 seconds receivables over 6 months uh I mean can you throw some light on why these have been delayed? What project are these 23:24 23 minutes, 24 seconds related to and do we expect timely recovery of these and if so by when? 23:31 23 minutes, 31 seconds So basically uh the documentation pack and everything is going on. So probably I'm thinking key H1 before H1 will cover 23:41 23 minutes, 41 seconds up this amount and the payment will be received. 23:45 23 minutes, 45 seconds So I mean generally our contracts we have uh we uh the payment cycle is about 45 to 90 days right if I'm not wrong. So 23:54 23 minutes, 54 seconds I want to understand I mean is this was this a part of the contract or have there been delays in payments? So these 24:03 24 minutes, 3 seconds receivables have uh gone past 6 months what has exactly happened and uh I mean 24:11 24 minutes, 11 seconds do we expect recovery of these? So something in that sense some projects do get delayed above 90 24:18 24 minutes, 18 seconds days payment terms also. Some projects also um they fall when there's an IPC uh in between they fall under back toback. 24:27 24 minutes, 27 seconds So the billing closes our billing doesn't close so our final payments don't get received. So those are just part of that um which will eventually 24:35 24 minutes, 35 seconds get closed but yeah they they spill over above the 90day cycle and that's an understanding to the clients. 24:42 24 minutes, 42 seconds Got it. So we don't we expect to recover all of these. 24:47 24 minutes, 47 seconds Got it. And these are all from our marquee clients. Uh the the recurring clients that we have from or I mean out 24:55 24 minutes, 55 seconds of these 12 receivers, how much are from new clients which are recently onboarded or we working with for the first time and all from regular clients? 25:05 25 minutes, 5 seconds Got it. So secondly, I would like to understand the outlook for FY27. 25:11 25 minutes, 11 seconds So our current unexecuted order book is about 550 CR, right? If I'm not wrong. 25:16 25 minutes, 16 seconds That's right. So how much of it can we expect to execute in FY27 and what kind of growth are we looking at? Uh it can 25:25 25 minutes, 25 seconds be a range also that you can give maybe is is reasonable to expect about 25 30% growth in FY27. 25:34 25 minutes, 34 seconds So we are expecting a minimum of 25%. We can go 25% for sure based on the order book that we have in the bid pipeline at least. And from the current order book 25:43 25 minutes, 43 seconds of 546 we are looking at at least from this executed and build will be about 377 77. 25:52 25 minutes, 52 seconds Okay. So 377 out of this will be executed in FI27. That's what you're saying. Yeah. 26:00 26 minutes Got it. And uh this growth will be uniform. So even in H1 we would see about 20 25% growth 26:09 26 minutes, 9 seconds over H1 last year. Over H1 last year. If you talk about year on year definitely no that definitely 26:16 26 minutes, 16 seconds got it and what about the margins? Uh so I mean there must have been some price escalations related to our materials 26:24 26 minutes, 24 seconds that we used and everything. So are we able to pass on firstly did we see any 26:31 26 minutes, 31 seconds substantial increase in these raw material costs and if so I mean how much of our projects project costs have gone 26:38 26 minutes, 38 seconds up? Secondly, have we been able to pass on these uh uh escalations to our 26:45 26 minutes, 45 seconds clients? What kind of uh contracts do we have with our clients? If you can throw some light and uh would we be able I 26:53 26 minutes, 53 seconds mean would we be able to maintain the uh 9 10%a margins uh given uh the current 27:00 27 minutes scenario. So if you can answer these questions. 27:04 27 minutes, 4 seconds Yeah. So um I said previously also but I I'll also update the same again um we have gone back to our customers and they 27:11 27 minutes, 11 seconds have accepted wherever there's been a price escalation or there's been a huge impact especially met we have gone back to the customers they have given us for 27:20 27 minutes, 20 seconds existing projects also like ongoing projects they have given us the difference and accepted it as I you know said earlier great day corporates right 27:29 27 minutes, 29 seconds they they work with you like your partners they don't call you vendors or contractors or they don't want to squeeze you. They want to ensure your success is their success, right? They have to also get the business started. 27:40 27 minutes, 40 seconds If you fail and if they going to squeeze you and not be unreasonable, the project basically does fail. That's that's how it works. Um whereas they have gone, 27:48 27 minutes, 48 seconds they have accepted it and we are in touch regularly with our clients based on few other items also that are 27:56 27 minutes, 56 seconds constantly you know moving constantly moving. So based on the amount of materials that are purchased within a 28:03 28 minutes, 3 seconds certain period we are even gone down to that level. Say aluminium is being very erratic and dynamic at the moment and a lot of aluminium we use in our projects for the partitions and stuff like that. 28:14 28 minutes, 14 seconds So what we do is on our overall project it's it's not even 0.5% right the estimation but what we've done is we've 28:22 28 minutes, 22 seconds gone back to our customers we've told them so whatever patches of material being delivered metal is quantifiable we do that and we take the escalation based 28:30 28 minutes, 30 seconds on that batch next batch next batch so it's a continuous process that they're doing they have cost consultants involved they are also being reasonable we are being reasonable we are not 28:39 28 minutes, 39 seconds asking for something off bucket it's happening so our beta margins definitely will be maintained going forward 28:45 28 minutes, 45 seconds Got it. And what should we expect our working capital cycle to be? Uh if if you can help us with the working capital 28:52 28 minutes, 52 seconds turns for FY27, it will be uh around uh 60 to 65 days. 29:02 29 minutes, 2 seconds Got it. 70 I think 76. 29:07 29 minutes, 7 seconds Last year working capital cycle as per financial was 66 days. For current year it has increased to 89 because of the 29:14 29 minutes, 14 seconds sales. So normally the working capital cycle is between 60 to 90 days only. 29:19 29 minutes, 19 seconds Got it. So we would be expecting about 25 30% growth in the coming years. So I mean as our top line is growing. We're 29:29 29 minutes, 29 seconds increasing sales uh from the past record uh the working capital cycle has been 29:36 29 minutes, 36 seconds worsening. So despite this growth are we saying that we will I mean reduce the working 29:44 29 minutes, 44 seconds capital cycle to about 60 70 days from what we see currently. 29:51 29 minutes, 51 seconds Yeah it will be normally I mean it it will be around 60 to 80 days only like not going to be higher. 30:01 30 minutes, 1 second Got it. And can you throw some light on a bit pipeline currently? uh what is the bid pipeline and uh I mean realistically 30:09 30 minutes, 9 seconds what kind of uh order inflows do we expect in uh the coming year? 30:16 30 minutes, 16 seconds So a bit pipeline is currently standing at 2,600 crores. We usually expect about 10% to 12%. So I'm saying about 260 crores should come from that. 30:26 30 minutes, 26 seconds Got it. Got it. So I mean we'll execute about 377 CR out of the 550 CR order 30:33 30 minutes, 33 seconds book and we will be winning about one 200 250 CR. So that comes out to a total 30:40 30 minutes, 40 seconds of around 350 370 CR. So are you saying that by the end of this financial year we expect our order book to shrink. So I 30:49 30 minutes, 49 seconds mean does that mean to put it another way does that mean that the uh demand scenario currently is weaker than last year? 30:57 30 minutes, 57 seconds So that's the current pipeline. So if you understand the business right we are in operating materials a client leases a space he comes out with a tender within 31:06 31 minutes, 6 seconds 2 months 3 months usually 15 days at times the entire process of the bidding closes. So the bid peline is something 31:13 31 minutes, 13 seconds that is constant right. So what happens right now we'll take 260 over the next say 3 to four months this build pipeline 31:21 31 minutes, 21 seconds should more or less get you know done what is currently under bidding 260 picked up. So from 260 another version 31:29 31 minutes, 29 seconds is that you will get at least half the billing this year. That's how we're coming to the 25%. Now along the year also the projects will get awarded but 31:37 31 minutes, 37 seconds again those executions because we have a gestation of 6 months 9 months 12 years rare cases 2 years 3 years but our project execution period because of the 31:46 31 minutes, 46 seconds scale we're working at works out to 6 6 9 12 right so those then billing will get spilled over to the next year but the order book will keep piling up I 31:54 31 minutes, 54 seconds hope I hope I was able to explain to you right I got it so I mean if we talk about the demand scenario in terms of 32:00 32 minutes GCC's or our venues data center you mentioned uh I mean how do you what what 32:08 32 minutes, 8 seconds what what do you think uh how does it compare with the previous years I mean is it a very healthy demand scenario is 32:17 32 minutes, 17 seconds it just normal I mean if you can just throw some light so we can understand how the industry is right now 32:24 32 minutes, 24 seconds what we see it is still as healthy as healthy if not more it is definitely not 32:31 32 minutes, 31 seconds reducing I mean there's a big customer the India's largest IT firm okay not allowed to take names but India's largest IT firm we went and sat with 32:39 32 minutes, 39 seconds them and said like what's up you know your stock is crashing and you know AI and this and that they have no plans of reducing their expansion at all they 32:46 32 minutes, 46 seconds have currently over 5 and a half million square feet planned they have no plans of reducing their expansion at all um 32:54 32 minutes, 54 seconds and many other customers and there are a lot of GCC's coming in a lot of Indian customers who are still working on expanding their businesses 33:02 33 minutes, 2 seconds um BFSI you know so many so much happening there's no slowdown at all and we are in touch with you know 33:09 33 minutes, 9 seconds procurement finance projects teams infra team admin team facilities team all these people because and including the 33:16 33 minutes, 16 seconds IPCs that are there in India it's people are just hiring going on doing more 33:25 33 minutes, 25 seconds got it thank you very much just my last question would be that what would be a target trade CEOs for H1 ending 33:36 33 minutes, 36 seconds try to see the stock market at H1 ending. 33:41 33 minutes, 41 seconds So u uh normally the uh our data ratio data turn on our ratio is 80 to 90 days 33:48 33 minutes, 48 seconds right. So uh it will be uh the same as last H2 financial year 25 H2 33:57 33 minutes, 57 seconds ratio wise amount wise amount wise so I mean so around 4050 cr something like that. 34:06 34 minutes, 6 seconds Yeah. 34:07 34 minutes, 7 seconds All right got it. Thank you very much and I wish you all the best. Thank you. 34:13 34 minutes, 13 seconds Go ahead. Uh we'll take the next question from Adjit. Adita you can go ahead please. 34:18 34 minutes, 18 seconds Hi uh very good afternoon to the management of elegance interiors and first of all I would want to congratulate you guys for the great set 34:27 34 minutes, 27 seconds of numbers that you have posted. Uh my uh first question would be uh so we were 34:34 34 minutes, 34 seconds told that uh uh we'll close this year uh around 430 to 450 by amount 42 to 450 CR 34:43 34 minutes, 43 seconds and we just fell short of uh fell short as like we closed the year at 400. So just wanted to understand is there any 34:51 34 minutes, 51 seconds revenue booking that happened in the first like say uh two weeks of April because in many other companies also in 34:58 34 minutes, 58 seconds my portfolio wherein I noted that you know the revenue was deferred by a few weeks and it got uh like punched in the 35:05 35 minutes, 5 seconds next quarter. So can you just throw some light on that? 35:08 35 minutes, 8 seconds No not really. I I I not really and I understand initially you know we had the projections of 430 um but we had uh I 35:18 35 minutes, 18 seconds don't know if we were in touch but we had sort of revised them also because we understood uh towards the last quarter before we hit it that this is what we'll 35:26 35 minutes, 26 seconds be able to build and where projects stood and where they you know how the execution pattern was going on. Um so 35:33 35 minutes, 33 seconds yeah there definitely we haven't had any spillovers in billing that's for sure. I wish we did but we did and uh yeah that's where we stand. 35:44 35 minutes, 44 seconds No no no problem. Thanks thanks for the clarification. Uh another question that I have is like uh sector wise do you see 35:51 35 minutes, 51 seconds any slowdown uh coming from for example corporate offices, airports and lounges the kind of work that we usually do and 36:00 36 minutes the prime minister also emphasized on uh like doing work from home due to the oil crisis that is going on due to the West 36:07 36 minutes, 7 seconds Asia war. So what are your thoughts on that and if we have more IT clients then uh if you have had a discussion with 36:15 36 minutes, 15 seconds those guys what what is the outlook that they are giving for uh FI27 in terms of 36:22 36 minutes, 22 seconds opening new offices and you know yeah one second I'll answer your question 36:28 36 minutes, 28 seconds first sector you know so sector wise we are not seeing I mean 36:36 36 minutes, 36 seconds overall business corporate offices port launches we are not seeing any slowdown in fact we are only seeing as I said you know more and more and more demand 36:45 36 minutes, 45 seconds coming coming in um if you if you actually um go and see in our if you 36:52 36 minutes, 52 seconds look at the presentation that's given 25% of our revenue is from it the rest of it is all from various other segments 37:00 37 minutes right we doing pharma which was about 26 65% we've got uh real estate we've got 37:07 37 minutes, 7 seconds uh what is it transportation financial so it per se is only 25% and also within 37:13 37 minutes, 13 seconds that mix our foreign uh clients in IT right the GCC's are heavier who are 37:20 37 minutes, 20 seconds expanding who are really going up and coming back to India I've already answered previously the top IT company 37:27 37 minutes, 27 seconds in India today we are servicing them across locations and you know large order pipeline from them they are also 37:34 37 minutes, 34 seconds expanding they are constantly their whole pipeline what they had envisaged over the next 3 years has not moved it's not shifted it still stays as 37:43 37 minutes, 43 seconds is I understand Mr. Modi has come and said a few words but what we see over here is that work from home effect has not I mean obviously everyone spoke 37:52 37 minutes, 52 seconds about it got on calls and you know we discussed it um but we don't see any uh impact coming across any sectors due to 38:01 38 minutes, 1 second his speech okay fair enough thank you uh so uh I have one uh I need I wanted to get some 38:09 38 minutes, 9 seconds regulatory clarification so the exchange sought clarification from elegance in the quarter 2 FI26 results under the 38:17 38 minutes, 17 seconds LODR regulation 33. So what was the nature of that query and has it been resolved satisfactory? 38:26 38 minutes, 26 seconds Uh what again come again regarding H1 result? 38:31 38 minutes, 31 seconds Yeah, regarding Q2 Q2 FI26 results under S C LOD regulation 33. So just wanted to 38:40 38 minutes, 40 seconds understand what was the nature of that query and uh has it been resolved? 38:44 38 minutes, 44 seconds We don't have that on hand right now but I can tell you any query that have come have been resolved and there is no pending compliance 38:53 38 minutes, 53 seconds issues per se from but do you remember what it was? Nothing was it was regarding some format issue. 39:00 39 minutes So the thing was yes yes yes that was yesterday. uh there was some format issue was there because of that one number has been not missed 39:08 39 minutes, 8 seconds out. So we have yesterday only rectified the outcome of the result. 39:13 39 minutes, 13 seconds No he's asking regarding H1 he's asking regarding H1 H1 that was also for same for format 39:20 39 minutes, 20 seconds only we have updated the change what is required from the NC. Yes. 39:26 39 minutes, 26 seconds Okay. Thank you. Uh my last question uh being an investor is the company has generated like uh consistent profits for 39:34 39 minutes, 34 seconds several years but but uh doesn't pay any dividend. So just wanted to understand what is the use case for the retained 39:42 39 minutes, 42 seconds earnings like is there a cape capex that you guys are planning or uh an acquisition is being planned or if you can just throw some light on that. 39:53 39 minutes, 53 seconds So at the moment under discussion we have no um we still talking to our 40:00 40 minutes advisers on this and it is something that has been on the cards but we still have no I mean outcome per se eventually 40:09 40 minutes, 9 seconds one day yes when I can't say but yes okay fair enough fair enough and thank you so much 40:17 40 minutes, 17 seconds and all the best for H1 uh we'll meet again thanks thank 40:24 40 minutes, 24 seconds Sir, we'll take the next question from Harlin. You can go ahead. 40:37 40 minutes, 37 seconds Hello. Am I audible, sir? Yes. Yes. Yes. Go ahead. 40:42 40 minutes, 42 seconds Good afternoon, sir. First of all, congratulations for the great set of numbers. So my first question is are there any active projects or ongoing order executions in Singapore and UAE? 40:53 40 minutes, 53 seconds Um no there is a current bid pipeline that's going on in the UAE. Uh Singapore we have just restarted. We had our it 41:02 41 minutes, 2 seconds was a 50/50 joint venture. We had the existing Korean partner exit the company just last month which will be now uh 41:09 41 minutes, 9 seconds setting up and starting again the whole uh journey on our own. So Singapore is missing but there is a bid pipeline that's going on in Dubai at the moment. 41:16 41 minutes, 16 seconds We are waiting for two active projects. 41:19 41 minutes, 19 seconds Uh we're just waiting for the results once that's if any of them come through we will definitely start it. 41:26 41 minutes, 26 seconds Okay sir. So my next question is will company need to take more depth and to execute these orders? 41:34 41 minutes, 34 seconds current orders in hand um we may not need but yes we are we are moving towards uh additional facilities 41:42 41 minutes, 42 seconds especially because we are very bank guarantee heavy so we need bank guarantees in LC's so we are moving for additional facilities in that we will 41:50 41 minutes, 50 seconds take also additional CC limits and keep them parked we're not utilizing them right now in fact IPO funds still sit with us in an FD park uh which we use 41:59 41 minutes, 59 seconds FDOD facility um eventually um I may And if we reach a point where we have already done that 42:08 42 minutes, 8 seconds study in house when we reach a point where you will need where we'll be doing a revenue annual revenue of about 6 600 42:14 42 minutes, 14 seconds between 600 and 700 that's when the we will start again needing to go back to our bankers for CC limits. 42:24 42 minutes, 24 seconds Okay sir. So my next question is has the company already won any data center projects or are there any certifications 42:31 42 minutes, 31 seconds or pre-qualifications required for such projects? 42:35 42 minutes, 35 seconds So we have already executed uh two very small uh components of data centers uh 42:43 42 minutes, 43 seconds two branded data centers. We've executed small parts of them. We were given an opportunity by the customer. Now we are 42:50 42 minutes, 50 seconds moving forward to doing u you know bidding for the larger ones also. Um but it's an organic growth you know the customer is not going to allow you 42:58 42 minutes, 58 seconds directly to build for the larger this thing it's an organic growth um there are no certifications per se required um 43:05 43 minutes, 5 seconds the partners that we appoint our NEP teams and stuff like that whatever certifications they already carry um like the fire safety guy will have a 43:13 43 minutes, 13 seconds grade a class A certificate for fire safety those are fair sufficient enough elegance per doesn't need any certifications 43:22 43 minutes, 22 seconds okay so fair enough so my Last question is has the UEA subsidiary shown any progress amid ongoing geopolitical 43:29 43 minutes, 29 seconds issues or any order wins or active bidding pipeline in that region? 43:35 43 minutes, 35 seconds So we only have an activating pipeline right now over there and that is to the tune of 30 million uh thes but there are 43:43 43 minutes, 43 seconds no orderins we've just started we just got the license um in fact the bank account opening process is also just uh awaited but the at least the bidding has 43:51 43 minutes, 51 seconds started okay sir thank you so much sir okay 44:00 44 minutes sir we'll take the next question from Adita you can go ahead please uh uh I'm Really sorry I forgot to ask 44:06 44 minutes, 6 seconds one uh last question. Uh so uh you have been public for just over a year and the stock uh is already down approximately 44:15 44 minutes, 15 seconds 57 to 60% from its highs. So uh I wanted to understand what is the management's 44:22 44 minutes, 22 seconds message to uh long-term shareholders who bought the share. Is the growth story still intact? And uh if you can just 44:30 44 minutes, 30 seconds throw some light on like uh two to three concrete milestones for the next 6 to 12 months uh which restores the confidence of the investors. 44:40 44 minutes, 40 seconds So yes the growth story is still in. So ours is a long-term business right that's and I and one thing that you said 44:48 44 minutes, 48 seconds is we usually we tell our investors look at it at a long-term perspective. We have been growing over the years right we we we've we we've come to a position 44:56 44 minutes, 56 seconds today like the size of orders that we take and we are moving towards the 100 200 now we have 200 already in our 100 45:04 45 minutes, 4 seconds 200 cr order book values right there are only so many of us right if I actually have to count there are only five seven 45:11 45 minutes, 11 seconds of us who can actually cater to our customers in this now I understand that people saw the price drop was won the 45:19 45 minutes, 19 seconds war the H1 results but when you move to a leaner competition and the 100 200 cr projects the gestation period is also 45:28 45 minutes, 28 seconds longer um because the execution period is longer but on a long term this will all pay back you know there will you 45:34 45 minutes, 34 seconds will see revenue growth you will see the 25% targets being met uh you will see the pat margins being met 45:44 45 minutes, 44 seconds definitely not going down over time slight improvements um because your order sizes are changing the competition is better we are also evolving with our 45:52 45 minutes, 52 seconds processes. We've now moved from for example we used to have procurement tools separate, tendering separate and tally for accounts. We've moved to 46:01 46 minutes, 1 second dynamics. We've launched the first project day before yesterday on Microsoft dynamics. So from tendering to accounts everything moves on that. Um so 46:10 46 minutes, 10 seconds you know that will also help that definitely will improve uh the entire process the internal systems the duplications whatever you know everyone 46:18 46 minutes, 18 seconds knows how it helps. So yes a long-term perspective the company is doing great we are going to show growth the 25% uh 46:27 46 minutes, 27 seconds kagger that we have promised will be there um you all will see now going you all just patience is needed to see how 46:34 46 minutes, 34 seconds the business scales I mean last year H1 to H2 you all saw the difference right 46:41 46 minutes, 41 seconds similarly you all will see it here okay sure are we H1 H1 should this year H1 H2 H1 and H2 46:50 46 minutes, 50 seconds should give a fair idea to our long-term investors who have trusted us or what we say is right. 46:58 46 minutes, 58 seconds Sure. Fair enough. Uh one uh thing I wanted to ask was uh are we leveraging AI like uh for our uh for the design 47:07 47 minutes, 7 seconds part? Is it helping us in reducing the turnaround time for the uh for some parts of the business where we can use 47:16 47 minutes, 16 seconds AI and you know uh as AI is the current buzzword everywhere and all the 47:23 47 minutes, 23 seconds companies they are in some form using it. So are we leveraging it in our company yet? 47:30 47 minutes, 30 seconds So we are leveraging it a lot in terms of design yes but not only that now our design and especially our 3Ds once it's 47:37 47 minutes, 37 seconds so there are not many design tools for corporate offices right there are many design tools and AI that have come for 47:44 47 minutes, 44 seconds residences um but if you see corporate offices really nothing much has yet come but what we have found is that once the 47:52 47 minutes, 52 seconds 3D is done we there are various AI tools that can then make your changes for you really fast on the spot. So we are doing that because customers you know our 48:01 48 minutes, 1 second customers always okay can you change this can you change that can we see it like this can you have this color here which gives a turnar around time and saves time really fast and we've been 48:09 48 minutes, 9 seconds doing that a lot um we have uh using AI now we have developed uh tools also 48:17 48 minutes, 17 seconds which we have rolled out in the organization for say projects which don't involve numbers or finances at all they involve execution task 48:25 48 minutes, 25 seconds management what is there on site what is not on site you waterproofing bakither assign task get it done reporting uh 48:33 48 minutes, 33 seconds tracking systems we've already started doing that I personally have developed my own AI tool that I can get any information by the click of a button in 48:41 48 minutes, 41 seconds the organization I'm using it for HR I'm using it for PD I'm using it for scraping data 48:49 48 minutes, 49 seconds pleasing data I mean it's it's crazy the amount of AI that it's doing and we're definitely using it and leveraging it a 48:56 48 minutes, 56 seconds lot me personally also Okay. So if I have to quantify it uh like uh if uh if you can just quantify 49:03 49 minutes, 3 seconds it like uh by how much how much man hours are we approximately saving uh and 49:10 49 minutes, 10 seconds uh if I talk about the design part so if you have to quantify the 3D team today that sits with us there about 12 49:19 49 minutes, 19 seconds of them they at least have a 30% boost in their uh productivity. Okay, that's the best way. Right now I can quantify it and sort of tell you. 49:29 49 minutes, 29 seconds Fair enough. Fair enough. No problem. 49:30 49 minutes, 30 seconds But last last question uh it was uh a sub question of my first question only wherein I asked if you can share two to 49:39 49 minutes, 39 seconds three key milestones in the current FY which will boost our confidence and like a short-term uh and a long-term vision 49:47 49 minutes, 47 seconds if you can give like milestones milestones in terms of projects or in terms of the business and all. 49:56 49 minutes, 56 seconds Yeah, you can like tell about both. 50:00 50 minutes Yeah, overview. Basic overview. Yeah, overview. 50:03 50 minutes, 3 seconds Basic overview. So, we are um also evolving like our customers are now also you see the memorandum if you read it 50:12 50 minutes, 12 seconds there's a lot of change that got into it. I'll give you a fair idea of where we are headed. Um we are working on tools and verticals in our organization 50:21 50 minutes, 21 seconds that we can enhance the customers requirements. So now there are each corporate customer right when he wants a 50:28 50 minutes, 28 seconds business to expand or a new office to come up they have three models of procurement one being your capeex model right where they come to us say we give 50:36 50 minutes, 36 seconds you x money and you can launch second they have leasing model co-working model so we are seeing how we can service our customers under any model possible so 50:45 50 minutes, 45 seconds that we are working on and you'll in this year itself you'll see progress on that and that will basically change our 50:55 50 minutes, 55 seconds outlook also in terms of business I mean data center I've already said is something that I'm working on personally 51:01 51 minutes, 1 second and aggressively with our customers um we are also looking at tying up or how 51:09 51 minutes, 9 seconds we can align with because it's MEP heavy to explain to you what MEP is MEP means your mechanical electrical PH so 51:16 51 minutes, 16 seconds basically your HVAC your electrical systems your fire systems and all that a data center is very heavy on that angle so we are looking at consortiums tying 51:26 51 minutes, 26 seconds up maybe you know uh looking at how we can take over a little smaller company 51:33 51 minutes, 33 seconds uh work with them together but enhance the me capabilities slingshot into getting into data centers further all 51:40 51 minutes, 40 seconds that is also under working which will also enhance where the company is going 51:47 51 minutes, 47 seconds okay thank you thank you so much we'll take the last question for the day from you can do at least I'm audible. 51:58 51 minutes, 58 seconds Yes. 51:58 51 minutes, 58 seconds Uh actually we have already reached a meaningful topline scale and incremental revenue growth beyond 25% is going to be 52:05 52 minutes, 5 seconds difficult. We understand that. But 5 to 7% bad margin for a such a company which is having you know backward integration 52:12 52 minutes, 12 seconds the design team this 35 years legacy uh GCC and data centers and very good 52:19 52 minutes, 19 seconds clients uh uh with the bank guarantees you know and the creativity involved and we are you know just getting the five to 52:27 52 minutes, 27 seconds 7% pet margin that is you know market don't like this sort of things particularly in theme so what as a investor I would like to request you 52:35 52 minutes, 35 seconds that uh I I think you can improve in the bottom line with S because you know economic scale already you achieved you have backward integration very good 52:43 52 minutes, 43 seconds client GCC at data center is a theme just is coming like anything you know from the IT companies the business is going to the GCC so in this scenario why 52:52 52 minutes, 52 seconds we are not targeting 10 12% pet margin you know stop some leakages do some smart work and you know at least 52:59 52 minutes, 59 seconds otherwise the market will treat you as a 8 to 10 PE companies and it will never even know give the good return to the 53:07 53 minutes, 7 seconds customers. We had a high hope and that's why we invested but we are disappointed because most of the market participation with we are discussing because we have 53:14 53 minutes, 14 seconds lots of you know communication points with the many of the big guys in the SM market and everybody is saying that five to 7% business profit margin is 53:23 53 minutes, 23 seconds something you know market is not you know digesting for a such a good company. So my request to the management is that please do something you know to 53:31 53 minutes, 31 seconds improve the bottom line and uh if you can throw some light uh it's 53:37 53 minutes, 37 seconds understood we are working on it. uh one caveat is see our customers also well aware market what they developing so 53:45 53 minutes, 45 seconds many projects they're inhouse project team their cost consultants the IPCs they have they're well aware of what is a decent price according to them a 53:54 53 minutes, 54 seconds contractor making at anita level 8 10% is is fair enough uh for business and security of payment right because 54:02 54 minutes, 2 seconds payment is guaranteed today if I move to say vgrade you know the payments are not guaranteed we don't have bad debts so for them this is like you know scale 54:10 54 minutes, 10 seconds large projects this is what they can you know this is the fair margin that they feel is fair when they're negotiating with us also or any other vendor at our 54:17 54 minutes, 17 seconds capital for that matter but what we are also doing is as a backward integration now dynamics as I said pillages as you mentioned right for to stop the leakages 54:26 54 minutes, 26 seconds we are working on that we are also you know how we can go back to our OEMs and have rate contracts get them you know 54:33 54 minutes, 33 seconds guaranteed prices we are working on it so we're not saying we're not working on it we are looking at how Pat margins can slowly go up. We definitely want to do 54:41 54 minutes, 41 seconds it and we want to give it back to the shareholders for sure. That is a very clear intent from our end because sir you know I mean this has 54:49 54 minutes, 49 seconds just started right the journey has just been a year. We've already shown a slight improvement where there's a lot of changes that's happening internally 54:56 54 minutes, 56 seconds also um we have to obviously get the entire team of 400 500 people that are working with us on board. Get them you know implementations. There are process 55:04 55 minutes, 4 seconds auditors being hired. They are plugging gaps, trackers are being implemented. So it's it's a journey that will take a year more two maybe you know but you 55:13 55 minutes, 13 seconds will see improvement for sure because sir even but improvement. Yeah sir actually even with the 500 cr top 55:21 55 minutes, 21 seconds line if you deliver 10% pet it is going to be 50 crores pet and with 50 crores you can easily you know get the very 55:28 55 minutes, 28 seconds good market cap it will because 70% you are holding we are holding on 70 80 lakh rupees worth of stock but you are having 70% think something sir we because you 55:37 55 minutes, 37 seconds know we understand this business I constructed 18 data center across India so I understand that sir but 5% margin 55:45 55 minutes, 45 seconds even for the small EPC player is not reasonable for for a such a nice company you know uh 5 to 7% I think it you know 55:53 55 minutes, 53 seconds I think you are you know uh undermining your potential that what I like to uh tell you and convey my message because I 56:01 56 minutes, 1 second we are having you know lots of queries even our even your followers and the you know circles they are telling that company is good everything is good you 56:08 56 minutes, 8 seconds can't find such a good company management in theme but you know five to 7% is something killing the you know the value of our stock and value of our 56:17 56 minutes, 17 seconds company Please do something sir regarding that. That's just a small request. 56:22 56 minutes, 22 seconds 100%. We are working towards it. We agree with you. We are working towards it and you will see. Thank Thank you. Thanks. 56:31 56 minutes, 31 seconds We'll take the last question from Ankor Bati. Ankor, you can go ahead please. 56:37 56 minutes, 37 seconds Hey Samir, congrats on good second half. Um u and really thanks for keeping all of us updated 56:46 56 minutes, 46 seconds throughout the year. Uh two small questions. One you said 377 existing book. Uh will that be evenly spread out 56:54 56 minutes, 54 seconds throughout the year? So can we work with 180 odd hours in the first half? 57:03 57 minutes, 3 seconds So you know how our business cycle is usually right? Even if it is delivered clients take the billing or they delay 57:12 57 minutes, 12 seconds the final billing usually when we hand over a project 30 40% is balance. I really don't want to commit to that. Um 57:20 57 minutes, 20 seconds you we will see but H1 I can say at least 150 150 plus is to definitely 57:29 57 minutes, 29 seconds but I don't 150 180 but I don't want to commit to that. I this much I can say for sure with what I see currently and how the 57:37 57 minutes, 37 seconds projects are annual 25% is a no-brainer this year coming year 57:45 57 minutes, 45 seconds that's okay so one small request I mean given that the first half was last first half was bit of a shock for you as well 57:53 57 minutes, 53 seconds maybe u captify can keep uh or you guys can keep making exchange disclosures on on a quarterly basis if you can that 58:01 58 minutes, 1 second will help second um I think there some aspirations to expand to Middle East and Singapore. Um given the whole war issue, 58:10 58 minutes, 10 seconds any recalibration of overseas aspiration? 58:15 58 minutes, 15 seconds So what has happened is Dubai, we received the license just 2 days after the war broke out. The process had already started. But an internal call 58:24 58 minutes, 24 seconds what we've done is we have not taken the office space. We have start set up as a virtual office because we need an address there. We have done we had 58:32 58 minutes, 32 seconds already closed on the general manager hiring who's going to run the show there 20 years experience. Um we've kept it at that we are supporting from here for the 58:40 58 minutes, 40 seconds bidding by bidding process and everything. If we get the projects that we are doing right now, we understand Dubai is a little going a little slow and we know that there is an impact in 58:48 58 minutes, 48 seconds the industry over there. But we see there are these at least two tenders there with the customers want to proceed and pre what they decided but they want 58:55 58 minutes, 55 seconds to proceed with their office spaces that are required and they're basically not reliant on funds from the UAE but they 59:02 59 minutes, 2 seconds are international firms. Um so if that happens we will then you know go to the office and further hiring. Till then 59:09 59 minutes, 9 seconds we're going very very lean. Singapore is not really affected by the war. Um we've just taken over the company. We are on 59:16 59 minutes, 16 seconds the verge of now closing the again Jonah hiring over there. We should be starting anytime and again we'll start lean there. Uh tap the markets, meet people. 59:26 59 minutes, 26 seconds People already know us. We've done work there. The profile is there. $11 million we had executed already. So then take it from there. So we are going lean. We'll grow it organically. We'll go it slowly. 59:35 59 minutes, 35 seconds We'll keep mind of the war. But uh these offices I mean the companies are existent there without any physical 59:42 59 minutes, 42 seconds office or uh large teams right now. So we're not taking any burden or hit at all. 59:48 59 minutes, 48 seconds Fair enough. Um the capeex which you're doing how much money are you spending? 59:53 59 minutes, 53 seconds Um and does that lead to some sort of a margin improvement in next financial year? 1:00:01 1 hour, 1 second for the inp setting up a plant right factory. 1:00:09 1 hour, 9 seconds Yeah. Yes. 1:00:10 1 hour, 10 seconds Ah so we not right now island it will definitely see what will happen with the factory is one is it will definitely reach to 1:00:18 1 hour, 18 seconds revenue growth. The larger customers who are doing the 200 cr plus projects they want to come and see is your factory 1:00:26 1 hour, 26 seconds capable of delivering to my scale. There was a very large client in and we've worked for them before uh who did an office in Gore. 1:00:35 1 hour, 35 seconds They came they visited our factories they visited our peers. We were not pre-qualified for that job. It was a 1.3 million square ft single building. 1:00:43 1 hour, 43 seconds Everyone missed me knowing the name of the client in Gore. 1:00:46 1 hour, 46 seconds But you know that's and when you hit that and and that job was going to be split anyway between two people but we were not even pre-qualified to bid for the tender. So the larger projects will 1:00:54 1 hour, 54 seconds need that effect. It will go to revenue growth. Um um right now we are doing a lot of outsourcing in the south because the Bombay factory is not able to take 1:01:03 1 hour, 1 minute, 3 seconds care of um so slight so factory furniture is usually 10% of your entire 1:01:10 1 hour, 1 minute, 10 seconds uh cost or revenue or whatever. So if and and we are outsourcing right now if we save money on that by doing it from 1:01:18 1 hour, 1 minute, 18 seconds our factory you will see a 2.3% increase in revenue in pat margins because of a new factory but the main thing is the 1:01:27 1 hour, 1 minute, 27 seconds revenue and confidence that the larger clients will have an industry requirement now that's okay u last sorry I'm just 1:01:36 1 hour, 1 minute, 36 seconds extending it so this week last thing I think now the total asset base is some 340 1:01:43 1 hour, 1 minute, 43 seconds uh you don't have to dilute equity right from here on and second what kind of asset terms can we work with 1:01:51 1 hour, 1 minute, 51 seconds uh in next two years which will then eventually flow down first question I understood the second question I didn't understand 1:01:58 1 hour, 1 minute, 58 seconds all right what did you answer the first one and second I'll I'll probably split it ease out so the first one basically we don't need 1:02:05 1 hour, 2 minutes, 5 seconds to dilute anything right now um we will eventually in two years we have an automatic move to the rainbow that time we'll see if we want you know because 1:02:14 1 hour, 2 minutes, 14 seconds the minute we hit 600 right 600 between 600 and 700 the match is ready we will need to go back to our bankers right we 1:02:22 1 hour, 2 minutes, 22 seconds will not be able to fund it ourselves right now we are on zero net no no debt from the banks at all now eventually do we want to continue that when we hit say 1:02:31 1 hour, 2 minutes, 31 seconds 800,000 or do we want to go back to the capital markets is a decision that you know again we will take and you know also link to main board and stuff like 1:02:39 1 hour, 2 minutes, 39 seconds that That's okay. So at least till 600 no debt and till 800 some dilution. Is that what you're saying? Correct. 1:02:51 1 hour, 2 minutes, 51 seconds Nothing like that. And no additional uh fund requirement. 1:02:54 1 hour, 2 minutes, 54 seconds Whatever we are having currently facility including the bank yeah including the bank facilities we should be fine. 1:03:00 1 hour, 3 minutes Okay. But then that's a that's a decision to be taken then should like the initially when we did the IPO 1:03:07 1 hour, 3 minutes, 7 seconds we also we did it because we wanted to reduce the bank funding right one of the primary reasons we immediately what we did is from the proceeds we wiped out 1:03:15 1 hour, 3 minutes, 15 seconds the debt completely we don't want that burden we need more actually we need more bank guarantees exceed from bankers than 1:03:22 1 hour, 3 minutes, 22 seconds anything else you know books less debt so it's a decision to be taken once you hit that point you know where you say that Okay. 1:03:31 1 hour, 3 minutes, 31 seconds Okay. And uh sorry for the full year you said 9% AITA, right? Sorry. 1:03:37 1 hour, 3 minutes, 37 seconds Yeah. 9 for the full year 9% AITA. Is that the guidance? Correct. 1:03:42 1 hour, 3 minutes, 42 seconds Okay. All right. Thanks. Thanks. All the best. Thank you. 1:03:46 1 hour, 3 minutes, 46 seconds Yeah, sir. Since there are no further questions, sir, will you you'd like to give any closing comments? 1:03:52 1 hour, 3 minutes, 52 seconds No. Um, basically, we are a long-term company. We've been around for a long time. Um there's a lot of change 1:04:00 1 hour, 4 minutes happening, lot of feedback that we've taken from the investor and shareholder community. We are definitely working on all of it and business is growing, 1:04:08 1 hour, 4 minutes, 8 seconds business is strong. Um trust and we will build and definitely shareholders will uh benefit going forward. 1:04:21 1 hour, 4 minutes, 21 seconds Thank you. Thank you to the management team for the valuable time. Thank you to the all the participants for their joining on the call. This brings us to the end of today's cons conference call. 1:04:28 1 hour, 4 minutes, 28 seconds You all may disconnect me. Thank Thank you so much.