Ems Ltd — Q3 FY26

Ems Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=w7ppOkfOVvo Published: 2 months ago

0:01 1 second Good morning ladies and gentlemen and welcome to the earnings conference call for Q3 and 9 months FY26 of EMS limited. 0:09 9 seconds As a reminder, all participant lines will be in the listenon only mode and there will be an opportunity for you to ask questions after the presentation 0:16 16 seconds concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. EMS limited was incorporated in 2010 by Mr. 0:29 29 seconds Ramir Singh and Mr. Ashish Toumer and is involved in business of sever solution 0:36 36 seconds provider water supply system water and waste treatment plants electrical transmission and distribution road and 0:45 45 seconds allied works operation and maintenance of wastewater scheme projects and water supply scheme projects for government 0:52 52 seconds authorities. Let us now begin with the introduction of the management team. We have with us today Mr. Ramir Singh, promoter and chairman of the company. 1:02 1 minute, 2 seconds Also joining us today is Mr. Ashish Toma, promoter and managing director. I would now like to request Mr. Ramir 1:11 1 minute, 11 seconds Singh, promoter and chairman to give his opening remarks. Over to you sir. 1:18 1 minute, 18 seconds Namaskar Singman 1:32 1 minute, 32 seconds results Q3 Q3 Mr. 1:42 1 minute, 42 seconds Start. 1:46 1 minute, 46 seconds Good morning everyone. This is Ashish Toma, managing director EMS Limited. 1:51 1 minute, 51 seconds So, uh first of all, I'd like to give a brief introduction about the company. Uh the company was incorporated in 2010. 1:59 1 minute, 59 seconds Uh and commenced business in about 2012. 2:03 2 minutes, 3 seconds Uh we started out with a modest revenue of about uh 100 odd crores and uh were 2:12 2 minutes, 12 seconds able to uh scale it up to about 9 30 odd crores in the last financial year. 2:22 2 minutes, 22 seconds uh we primarily execute uh the projects in infrastructure sector with our focus 2:31 2 minutes, 31 seconds being in water sector. Uh about 70 to 80% of the revenue comes from water sector and rest is from other 2:40 2 minutes, 40 seconds infrastructure sectors such as buildings, electricity transmission and distribution etc. 2:46 2 minutes, 46 seconds Uh now about the results of this quarter. Uh as you already must have seen the results, 2:54 2 minutes, 54 seconds the results are uh much lower than expected. Uh this was due to certain 3:04 3 minutes, 4 seconds uh contrib uh factors which were beyond the control of the company. uh such a 3:11 3 minutes, 11 seconds because the major revenue of this quarter was expected to come from Utakhand and as you know Uttakand uh saw 3:21 3 minutes, 21 seconds uh unexpectedly huge rainfall and natural disaster in the Q2. So uh in Q3 3:29 3 minutes, 29 seconds our work was mainly focused on uh repair and uh revamping of the work in progress 3:39 3 minutes, 39 seconds and due to extension of the monsoon to Q3 uh about 15 to 20 days were lost in 3:47 3 minutes, 47 seconds the Q3 and after that when the work resumed uh 3:53 3 minutes, 53 seconds a lot of time was uh lost to removable utilization and repair of the executed 3:59 3 minutes, 59 seconds works. Because of that uh along with that almost half of our the order book that we currently have about 1150 odd 4:08 4 minutes, 8 seconds crores is was procured in Q 2 and Q3 respectively and it is in 4:17 4 minutes, 17 seconds design phase uh in which uh the expenditure of the company is being 4:25 4 minutes, 25 seconds carried out and no revenue can be generated till the execution begins on the site. 4:31 4 minutes, 31 seconds Uh apart from that we would like to reassure you that uh in from the next 4:41 4 minutes, 41 seconds quarter of the financial year uh we would be on our path to recovery and 4:48 4 minutes, 48 seconds would be back on track. uh the projects secured by us are 4:55 4 minutes, 55 seconds with healthy margins and we would be uh making it up in the coming quarters. 5:02 5 minutes, 2 seconds Thank you. 5:06 5 minutes, 6 seconds Should we begin with the question and answer session now? 5:10 5 minutes, 10 seconds Yes. Yes, please. I am HK consult CEO of the company and would like to answer the questions. Uh thank you. Sure. 5:22 5 minutes, 22 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone 5:30 5 minutes, 30 seconds telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 5:38 5 minutes, 38 seconds question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 5:44 5 minutes, 44 seconds The first question is from the line of CA Garvit Goyel from Serene Alpha. Please go ahead. 5:52 5 minutes, 52 seconds Hi, am I audible? Yes. 5:56 5 minutes, 56 seconds Uh good morning to the team and my question is specifically to Mr. Kel. Uh in the opening remarks management is saying uh we face some challenges up to 6:05 6 minutes, 5 seconds 15 days of Q3 but at the same time in last phone call when we spoke to Mr. 6:10 6 minutes, 10 seconds Consul, Mr. council said uh October month uh they delivered very good projections, very good uh execution in the terms of uh executing the projects. 6:18 6 minutes, 18 seconds So why where is the difference sir? I'm not understanding. Uh last call your people were very confident and now you are uh saying utrahand there were some 6:26 6 minutes, 26 seconds issues and we were not able to deliver the project. So where is the gap sir? 6:30 6 minutes, 30 seconds Means your own words are not matching uh this con and the previous. 6:35 6 minutes, 35 seconds Okay. Okay. I got your point and I'm actually consult speaking again. Uh actually in last call we thought that we 6:44 6 minutes, 44 seconds will cover it up in two months particularly in November and December but in civil works and on the road works there was some disaster management also 6:52 6 minutes, 52 seconds inhand and the administration is also with there with us because administration always directs that uh 7:01 7 minutes, 1 second this work has to be started now after the uh security and safety of the citizens. So definitely we started in 7:09 7 minutes, 9 seconds October uh you know first uh second week of October but it could not be uh with 7:17 7 minutes, 17 seconds that pace which we wanted basically to cover up the things so it got a bit late and second thing as far as revenue 7:24 7 minutes, 24 seconds generation is concerned out of those 2,200 cr order book we could start the work of about 1100 cr in Kolkata Aayodha 7:33 7 minutes, 33 seconds Agra and uh Fatapur uh which was started in mid of October for design 7:40 7 minutes, 40 seconds investigations and uh all other things and slight procurements also. So we have done the expenditure on these projects 7:49 7 minutes, 49 seconds of 1100 crores but there was no milestone achieved for which we could achieve the uh receivables or could 7:57 7 minutes, 57 seconds receive the revenue. That is why revenue received is looking less. It is definitely less and margins are even in 8:05 8 minutes, 5 seconds more pressure because expenditures done and the receipts could not be made. So that happened and in civil engineing 8:12 8 minutes, 12 seconds there are this is not a simple industry basically it depends upon so many things. So we couldn't do that and it is 8:20 8 minutes, 20 seconds definitely not as per our expectations, not as per your expectations and let me tell you again that company is not in 8:28 8 minutes, 28 seconds any type of financial distress or any uh order book distress or anything but this is just a phase of time that in the 8:36 8 minutes, 36 seconds quarter ended December 25 we couldn't perform as we thought and we assured you in the last corn call and again we are 8:45 8 minutes, 45 seconds assuring that in This quarter we will try to cover certain things but definitely now we are of the opinion 8:53 8 minutes, 53 seconds that in 2 months or something we will not be able to cover up to that extent but if you compare if you will compare 9:00 9 minutes it after the Q4 then Q4 will definitely be better than Q3 and Q1 of the next 9:07 9 minutes, 7 seconds financial year we will definitely progress very hard because our order book which is under design and uh you 9:16 9 minutes, 16 seconds know pre-engineering phase says we will definitely develop lot of revenue from that. uh so I think this is the 9:23 9 minutes, 23 seconds explanation which I can give uh and uh this is from the management side when you say Q4 will be better than Q3 9:32 9 minutes, 32 seconds Q3 is already uh I would say like uh very lower level right so even if normal 9:39 9 minutes, 39 seconds application that will look like it is better than Q3 so can you put the number to it like uh means whether the situation is improved now from when the 9:48 9 minutes, 48 seconds situation was improved from when the uh the recovery started Is it from the January month or from the February month? So can you give some color on that? 9:56 9 minutes, 56 seconds Yeah actually Q uh there are two things. 10:00 10 minutes If we compare Q4 Q3 from the last Q3 that is QQ then we are definitely not to the expectation as far as PAT or AIA is 10:09 10 minutes, 9 seconds concerned. This is in line with the industry but this is not in line with the our records. Actually we have done 10:18 10 minutes, 18 seconds in last 10 years uh pat around 18 19 or 20% a bit of 26 27%. Which is not in 10:25 10 minutes, 25 seconds that uh line. Still if you compare it with the other peers that is in line uh with the other companies 10:32 10 minutes, 32 seconds but not as per our expectation definitely not. So we have now started uh our pre-engineering in certain 10:40 10 minutes, 40 seconds projects that is of around 1,00 K rupees projects. engineering is in in the approval phase. Uh but it may take 10:47 10 minutes, 47 seconds another one month or so and then we will start generating the revenue because once the work will come in the field then the revenue will be generated. So 10:55 10 minutes, 55 seconds Q4 we will get better and Q1 of the next fiscal years we will overtake it definitely from the previous year. So 11:03 11 minutes, 3 seconds that is what we can we can be cons we can we are a bit conservative for that because we are not giving any aggressive 11:11 11 minutes, 11 seconds guidelines for this quarter again because this is civil engineering work it take time to revamp for pre-engineering and eventually this is 11:20 11 minutes, 20 seconds the cycle that 1100 1200 crores new projects are falling in this quarter previous one and this one so that takes 11:27 11 minutes, 27 seconds around four five months to uh give the revenue otherwise expenditures are always there uh for investigations for 11:36 11 minutes, 36 seconds soil uh investigations for design surveying and everything and revenue starts coming after four five 6 months. 11:43 11 minutes, 43 seconds So uh previously what used to happen one project has come in one quarter two projects have come in another quarter 11:50 11 minutes, 50 seconds and now the four big projects have come in this quarter only. So this is uh this is looking like that but we are very 11:57 11 minutes, 57 seconds sure that we will not disappoint any uh any of you or any of us and we will 12:05 12 minutes, 5 seconds definitely do whatever we are committing but next quarter will not cover the whole the entire thing of the whole 12:12 12 minutes, 12 seconds year. So it will start uh aggressive uh cover up from the Q1 of the next 12:20 12 minutes, 20 seconds fiscal and covering in the Q4 also in comparison to Q3 of this year. 12:27 12 minutes, 27 seconds Thank you. Thanks sir. 12:33 12 minutes, 33 seconds Thank you. The next question is from the line of Koshel Sharma from Equinox Capital. Please go ahead. 12:42 12 minutes, 42 seconds Hi sir, very good morning and audible. Good morning. Good morning. 12:49 12 minutes, 49 seconds Please tell me what is the current order book as of December 2025 and uh what kind of order are we expecting in next 12:58 12 minutes, 58 seconds one to two years going to target unexecuted order book is around 2,200 K uh as of now. 13:09 13 minutes, 9 seconds And what kind of order inflows are we expecting going ahead? 13:14 13 minutes, 14 seconds We are very aggressively bidding now because Delhi Jalboard had started tenders you must be knowing and we are bidding in about uh 2,000 K rupees 13:23 13 minutes, 23 seconds tenders in Delhi Jal board and other places. So we are expecting it to enhance in last 3 four in next 3 4 months by about 1,000 K rupees. 13:34 13 minutes, 34 seconds And so what is current bidding pipeline as of now? around 4,000 crores. 13:41 13 minutes, 41 seconds And what is our winning ratio on an average? 13:44 13 minutes, 44 seconds Uh actually our winning ratio used to be 15%, 10 to 15%. But uh as competition is 13:52 13 minutes, 52 seconds increasing we have become a bit aggressive for that and we are planning to get uh our win ratio enhanced up to 14:00 14 minutes 20%. So 1,000 K rupees we are just planning and we are still bidding and bidding in every place. So 1,000 K we 14:08 14 minutes, 8 seconds are expecting in next 3 4 months uh to achieve the orders and sir uh as you said that there there 14:17 14 minutes, 17 seconds was very challenging phase in Q3 uh but if I compare Q2 to Q3 performance the sale grew around 15% but our cost of raw 14:26 14 minutes, 26 seconds material grew around 25% and the other expenses grew 34%. Uh so could you please highlight what kind of key 14:34 14 minutes, 34 seconds expenses in other expenses give a lot more than uh sales growth and the cost? 14:42 14 minutes, 42 seconds As I told you uh there there are three four phases of any project once the tender is awarded agreement is made then 14:50 14 minutes, 50 seconds the extensive surveys are started and certain procurement certain vendors are decided. So on site certain deployment 14:58 14 minutes, 58 seconds of the employees has to be done for uh proper monitoring and licensing with the government agencies. So there are there 15:07 15 minutes, 7 seconds are expenses in investigations surveys and we have to start some procurement also which are the delayed things. For 15:14 15 minutes, 14 seconds example, I have to lay the 100 kilome fever line. So 100 kilometer procurement of pipe or manholes I cannot make in a 15:22 15 minutes, 22 seconds single stress. So we start doing it after tentative finalization of the uh designs but you know for that that is 15:31 15 minutes, 31 seconds not a milestone in the eyes of the government authority. So the payment doesn't come as a revenue or even as a receivable because there are certain 15:39 15 minutes, 39 seconds milestones though it is an item rate contact but certain items have to be executed. So it is not converted. So 15:46 15 minutes, 46 seconds expenditures are shown expenditures are uh apparent in the balance sheet or in the account but receivables are not that 15:55 15 minutes, 55 seconds is why our AITA and PT has impacted that much. So this will recover but definitely it will not match with that 16:02 16 minutes, 2 seconds 18 19% pat as uh in the previous years because competitiveness is increasing definitely so you know it it may remain 16:11 16 minutes, 11 seconds around 15% as an average for this year but uh the expenses booked in the P&L is against the sales that you executed and 16:20 16 minutes, 20 seconds booked in the uh particular Q3. So the expenditure pertaining to that sale that that sales should be recorded in the 16:28 16 minutes, 28 seconds P&L. So that's why I'm asking the sales growth is 15% but your cost of raw material and other expense grew faster than sales. 16:38 16 minutes, 38 seconds So uh that is because uh some expenditure was done in about uh 50% of 16:47 16 minutes, 47 seconds the our order against 50% of our order book which is at the stage of design and engineering. 16:54 16 minutes, 54 seconds So we cannot book receivables or uh bill it to the department but we have to uh 17:02 17 minutes, 2 seconds book uh expenses in mobilization site establishment procurement of raw 17:08 17 minutes, 8 seconds materials etc. So going forward when in the next quarter as the billing starts 17:16 17 minutes, 16 seconds uh we will be able to build revenue against the expenditure already carried out I think and that would also lead to improvement in the margins. 17:26 17 minutes, 26 seconds So what kind of margin we are closing in this financial year? What is our expectation in terms of evida and ped for financial 26? 17:36 17 minutes, 36 seconds Yeah, for financial 23 uh we expect it to be uh above 15% that is PAT 17:44 17 minutes, 44 seconds and AIA in AIA in excess of 22 23%. 17:52 17 minutes, 52 seconds 22 to 23%. And so what is our current trade receivable as of December 2025 18:00 18 minutes and what is the portion of more than 6 months? 18:06 18 minutes, 6 seconds Yeah. Uh please uh I'll just check it and uh tell it to you. Please hold. 18:14 18 minutes, 14 seconds Yeah. 18:30 18 minutes, 30 seconds And the ratio of unbuild revenue as well. showing the balance sheet. 18:44 18 minutes, 44 seconds Yeah. So the uh unbuild revenue is about 283 crores. 18:51 18 minutes, 51 seconds Okay. 18:53 18 minutes, 53 seconds And other receivables uh 19:05 19 minutes, 5 seconds approximately 500 crores other than more than 6 months sir. 19:13 19 minutes, 13 seconds More than 6 months would be uh 19:21 19 minutes, 21 seconds almost 120 odd crores is less than 6 months and uh other than that it is more than 6 months out of 500 months. is quite heavy in our 19:31 19 minutes, 31 seconds trade resource. Are we expecting any provisioning or something or any challenge? Are we expecting over there? 19:45 19 minutes, 45 seconds Hello. Hello. 19:50 19 minutes, 50 seconds Hello. Yeah. Sorry. Sorry. That that was a mistake on my part. uh the 500 crores is uh the total sum of all the 19:59 19 minutes, 59 seconds receivables that is includes not uh unbuild and uh build also. So the unbuild portion is 283 crores. 20:10 20 minutes, 10 seconds Okay. Okay. The unbuild is 283. 20:14 20 minutes, 14 seconds Less than 6 months is about uh 116 crores. 20:20 20 minutes, 20 seconds 6 months to 1 year is about 23 crores. 1 year to two year is about 87 lakhs. And yes, that that is all. 20:32 20 minutes, 32 seconds Okay sir. Thank you. Perfect. Thank you very much for answering. 20:36 20 minutes, 36 seconds Thank you. The next question is from the line of Udit Mittal from Mittal Family Office. Please go ahead. 20:44 20 minutes, 44 seconds Oh yeah. So I just wanted to breeze about your interest cost. I was looking that your interest costs have uh gone up 20:51 20 minutes, 51 seconds significantly higher. So what's the level of current debt and what's the borrowing plan going forward? Is the company facing any working capital issues? 21:09 21 minutes, 9 seconds Hello. 21:13 21 minutes, 13 seconds Yeah. Uh so yes sir. Yeah. So uh the interest costs uh have ballooned because 21:20 21 minutes, 20 seconds of uh a loan of about 25 crores that we took against the uh ham project that is 21:28 21 minutes, 28 seconds in Miraapur Gazipur uh STB private limited which is a subsidiary of EMS limited. So that was a ham project for 21:36 21 minutes, 36 seconds which we have taken this uh loan. So that uh would lead to would have led to escalation in the uh interest costs. 21:47 21 minutes, 47 seconds Oh, and what's the level of current debt? Yeah, please I'll just answer that. 22:06 22 minutes, 6 seconds including yeah so that would be around uh 700 22:14 22 minutes, 14 seconds crores is our exposure to the banks which includes 650 crores of non-f fund based bank guarantees and about 50 22:22 22 minutes, 22 seconds crores in shape of c uh cash credit limit and that uh this loan that I told you about. 22:30 22 minutes, 30 seconds So any uh plans of further borrowing or something like that? 22:35 22 minutes, 35 seconds No uh no plans on uh expanding in our borrowings. The facilities that we have 22:42 22 minutes, 42 seconds are sufficient for execution of our projects. 22:48 22 minutes, 48 seconds Uh one more thing I just wanted to know recently you had given a disclosure of the promoter holding getting pledged. So 22:56 22 minutes, 56 seconds what was the reason of the pledge and is there any timeline to reduce the pledge? 23:01 23 minutes, 1 second Yeah. So sir we took uh loan of about 210 crores 23:08 23 minutes, 8 seconds out of which uh we have already paid about 70 crores and the current outstanding stands at 140 crores. Uh 23:16 23 minutes, 16 seconds within this financial year we will reduce it to about 100 crores and by next financial year this would be settled. 23:28 23 minutes, 28 seconds So this was uh secured to uh make some investments in the promoter side. Uh no company funds were involved in this. 23:40 23 minutes, 40 seconds Okay. The loan was in personal capacity only. Okay. 23:49 23 minutes, 49 seconds Thank you. The next question is from the line of Ahmed and individual investor. Please go ahead. 24:05 24 minutes, 5 seconds Mr. Are you there? Yeah. Can you hear me? No, sir. I can't hear you. Yeah. 24:13 24 minutes, 13 seconds Can you hear me? Yes, please continue. 24:16 24 minutes, 16 seconds Yeah. So firstly I want to touch upon the last question that was asked by the investor. Firstly the same uh reason was 24:25 24 minutes, 25 seconds given by few two quarters ago when when it was asked about the 24:33 24 minutes, 33 seconds spending it was asked that this financial year it will be reduced but from 11% it has gone to 24%. So there is 24:40 24 minutes, 40 seconds no synonymity with the with the earnings cause and how the things pan out. And now we are looking at the last conference call that was Q2. 24:50 24 minutes, 50 seconds So it was a range and uh we took at it as fast face value and in this quarter as well again now when we are doing this 24:58 24 minutes, 58 seconds gone it is already a month and a half that is passed. So you already have a visibility of Q4. Likewise you have the 25:05 25 minutes, 5 seconds visibility in Q3 for the Q3 yet you went ahead and uh you know guide like uh 25:12 25 minutes, 12 seconds guided for a better Q3 and now we are looking how the Q3 is looking like. Now you have the visibility of Q4. It doesn't cost much to be transparent. 25:22 25 minutes, 22 seconds That is what we would expect at least. 25:24 25 minutes, 24 seconds So borrowings have increased the revenues have gone down. Now I want to check whether this phase where we were 25:32 25 minutes, 32 seconds doing uh somewhere around 1,000 crores a year whether that phase has passed and this is the new normal or probably we're going to touch upon that kind of a 25:40 25 minutes, 40 seconds revenue actually we couldn't get the full 25:50 25 minutes, 50 seconds question but what we could get is that uh probably you are asking that in the last corn call which was somewhere in 25:58 25 minutes, 58 seconds middle of the October or in the middle of the November that we would have known the situation uh about this quarter's results also 26:07 26 minutes, 7 seconds that is what probably you are asking and why we couldn't project uh better than what we have done. I think this is the 26:14 26 minutes, 14 seconds question if you can confirm and then I will try to answer it. 26:19 26 minutes, 19 seconds Yes, that that is how that that is one question and the other question was that like you have said that you will by FI27 26:27 26 minutes, 27 seconds you will reduce the promoters will reduce pledging to zero now when the pledging is somewhere around 28% it was 26:34 26 minutes, 34 seconds 11% one and it was communicated in the effort we are very sorry that your voice is not clear and we are not getting the 26:42 26 minutes, 42 seconds things basically that portion I have got and I Mr. Emma, I request you to rejoin the queue. Thank you. The next question is 26:52 26 minutes, 52 seconds from the line of Nishita from Sapphire Capital. Please go ahead. Yes. Hello. Yes. Hello. 27:00 27 minutes Am I audible? Yes. Yes, you are audible. 27:03 27 minutes, 3 seconds Yeah. So, uh I just wanted some clarification. You mentioned that in FI26 we can end at an AITA of 22 to 23% 27:10 27 minutes, 10 seconds and a PAT of 15%. But in Q3 uh I could see that we've done a P of 10% and an EIT of around 15 16%. So are we 27:20 27 minutes, 20 seconds confident that we can get to these margins in FI26 as a whole because even in Q2 our margins were under pressure. 27:30 27 minutes, 30 seconds Yeah madam actually this is very evident. This is not a free flowing industry basically not works on the 27:36 27 minutes, 36 seconds daily basis or weekly basis. uh what we do actually I have told in the earlier conversation or in some question answer 27:45 27 minutes, 45 seconds session that in this quarter that is Q3 in the month of October we have started 27:53 27 minutes, 53 seconds three big projects that is about 50% of our total uh you know order book that is about 1100 crores we have started the 28:02 28 minutes, 2 seconds work one of the of the order of 700 crores at Kolkata 100 cr in Auda 100 cr 28:09 28 minutes, 9 seconds in Ara and 200 cr in Fatapur. So once we get the LOI and get the agreement done so there are so many things we have to 28:17 28 minutes, 17 seconds mobilize on the side. First is the investigation portion. Second one is the hutment of the labor and other infrastructure office etc we have to 28:26 28 minutes, 26 seconds establish. So eventually in this quarter we have to do this for the four big projects. So our expenditure have been 28:35 28 minutes, 35 seconds made but that is not tangible for getting the revenue or the billable amount. That is why in this quarter it 28:42 28 minutes, 42 seconds is looking like pet is around 10% and raita is 15%. And this is a routine process that if we go in the next 28:51 28 minutes, 51 seconds quarter in this quarter that is running quarter or in the next quarter the revenue will be more than the expenditures in the ratio wise. So we 29:01 29 minutes, 1 second will definitely get it more than 15% or at least 15% for this financial year and 29:08 29 minutes, 8 seconds otherwise for the next thing we will remain about 17 18% of the pet as we have done in the history of the 10 11 29:16 29 minutes, 16 seconds years of the company's history. So this is eventual portion of this quarter it is 15.8 on 9 basis. 29:23 29 minutes, 23 seconds So on 9 months basis it is still 15.86% 86% uh uh uh pat so we are not behind 15% if 29:32 29 minutes, 32 seconds we take the 9 month period but if you take the quarter only so I have explained it that in a quarter you can 29:39 29 minutes, 39 seconds start certain projects which have the expenditure side uh stronger than the receivable sides so that is what happened in this quarter okay 29:47 29 minutes, 47 seconds so it's it's a routine in civil engineering projects sometimes thank you so much okay so uh in general also like you mentioned that we have the current order 29:56 29 minutes, 56 seconds book of 2200 crores. So is that a routine process that once we start the project the revenue will we'll start 30:03 30 minutes, 3 seconds booking the revenue post 4 months of like starting yeah yeah this is cyclic once we execute 30:12 30 minutes, 12 seconds the work we get the receivables and 90 days we take as the uh receivable amount. So this is uh 60 days to 120 30:22 30 minutes, 22 seconds days and sometimes we as an average we take it 90 days period uh after expenditure. So 90 days revenue that is 30:28 30 minutes, 28 seconds 3 months working capital we always require say 1,000 cr turnover. So we require mostly 250 cr rupees uh as a 30:36 30 minutes, 36 seconds working capital minus 250 cr minus the 20% a beta that is about 20 cr rupees we have to have in our hands for as a 30:45 30 minutes, 45 seconds working capital but this figure fluctuates a lot quarter by quarter because civil engineering projects on 30:51 30 minutes, 51 seconds ground they may face so many problems uh sometimes land is not clear sometimes as we have seen in this these two quarters 31:00 31 minutes that rainy season has affected so much in Q3. In Q2 it was affected so much. In Q3 we tried to revamp it and to 31:09 31 minutes, 9 seconds reorganize it. But you know once there is a heavy rain there are some disasters also. So the administration which look 31:17 31 minutes, 17 seconds after the development works they also give the priority to the disaster restoration. So that took some time and 31:25 31 minutes, 25 seconds certain times we were stopped to do the work and that is why this quarter uh otherwise we assure you that this this 31:32 31 minutes, 32 seconds quarter will be much much better and we will definitely be on our pace uh that we will outpace from the Q1 of the next 31:40 31 minutes, 40 seconds financial year. There is no doubt about it and our order book is also likely to get enriched because we are aggressively 31:47 31 minutes, 47 seconds bidding now in you know in Delhi gel board and other states also for Amraat 2 and uh DJB fundings. 31:56 31 minutes, 56 seconds Okay. Okay. Understand question. Yeah. 31:59 31 minutes, 59 seconds Yes. Yes. I got your point and my last question is uh that you mentioned uh we can get 1,000 crores in next two 4 32:06 32 minutes, 6 seconds months. So uh in FI26 what will be our exit order book? Can we expect it to be around 3,000 crores? 32:13 32 minutes, 13 seconds Our exit order book you know if we we are having 20 to 2200 K percentage percent 32:22 32 minutes, 22 seconds by 50% we will we will grow as per order book is concerned we will grow by about 40 to 50%. 32:32 32 minutes, 32 seconds 40 to 50%. Okay. Thank you. 32:38 32 minutes, 38 seconds The next question is from the line of Azhar, an individual investor. Please go ahead. Yeah. Uh good morning. Can you hear me? 32:47 32 minutes, 47 seconds Yeah, we can. 32:48 32 minutes, 48 seconds All right. So, first of all, I would like to say that it doesn't take much to be transparent. That is the first thing. 32:55 32 minutes, 55 seconds Now when we look at earnings call of Q1 promoter pledging was somewhere around 33:01 33 minutes, 1 second 11% and it was guided it was guided that it will be reduced by FI 26 now it is 33:09 33 minutes, 9 seconds ballooned to 28% and you're saying that it will be reduced by FI 27 that being one thing so the commentary is not 33:16 33 minutes, 16 seconds synonymous with what is happening now looking at the earnings call of Q2 in Q2 it was mentioned you already had the 33:24 33 minutes, 24 seconds visibility like you the visibility now for Q4, you had the visibility for Q3, but yet you chose on certain 33:32 33 minutes, 32 seconds hypothetical assumptions that you will be probably rebounding. I just want to understand 33:39 33 minutes, 39 seconds is this the new normal or probably we are crossing that 980 odd crores of financial year figure let's say in FI 27 33:48 33 minutes, 48 seconds or FI28. Do you have that kind of visibility? I understand there was rain issues in Q2. Q2 now you're saying that 33:57 33 minutes, 57 seconds there were delays in Q3 you expected something that didn't pan out. Looking at your competitors 34:03 34 minutes, 3 seconds Q2 rain didn't affect you them in Q Q4 probably the numbers are better both in the terms of bottom line and on the top line. 34:13 34 minutes, 13 seconds That's all. 34:15 34 minutes, 15 seconds Yeah sir. So uh first I would uh like to explain uh or uh give answer to your 34:22 34 minutes, 22 seconds second question. Uh so sir uh I would request you to please understand the nature of the business. Uh the projects 34:30 34 minutes, 30 seconds that we get vary from year to year and state to state. Uh so as a coincidence 34:38 34 minutes, 38 seconds the major portion of the revenue that we expected to book was to come from Uttarakhand. Uh as about 800 odd crores 34:48 34 minutes, 48 seconds in excess of our work order comes from that state. 34:52 34 minutes, 52 seconds The work that we do involves digging up of roads and laying the pipelines in that 34:59 34 minutes, 59 seconds area. due to unexpectedly heavy rainfall and uh the landslides uh 35:07 35 minutes, 7 seconds and natural disasters that took place in that state in the Q2. We expected it to recover by Q3 but uh the disaster uh 35:16 35 minutes, 16 seconds management uh taken up by government that uh took some time more than that 35:24 35 minutes, 24 seconds what we expected and uh we could not execute or book revenue in that state. 35:30 35 minutes, 30 seconds So uh that is for the but uh on overall business side uh we think we can uh 35:39 35 minutes, 39 seconds resume our pace by next quarter. This quarter would likely be still be affected. As far as uh loan again share 35:47 35 minutes, 47 seconds is concerned uh out of 210 odd crores that we uh took from uh NBFC's 70 crores has been paid. 35:59 35 minutes, 59 seconds uh we are committed to bring it down to 100 crores by end of this quarter uh 36:05 36 minutes, 5 seconds quarter and uh the loans uh the shares that are pledged will can only be released after we pay the whole amount. 36:15 36 minutes, 15 seconds So uh okay now I I would like to have a rebuttal over here now that you have the visibility of Q4 and 36:22 36 minutes, 22 seconds you say Q4 will still be affected and Q1 onwards you will outpay. So does that mean we are looking at FY27 crossing 36:30 36 minutes, 30 seconds a,000 crores of a revenue that was we did 980 of a revenue in FY27. 36:36 36 minutes, 36 seconds Does can we safely project that FI27 would be better than FI25? FI26 is a 36:42 36 minutes, 42 seconds corner looking at Q2 and Q3 FI 26 yes FY27 would be better than FY25. 36:51 36 minutes, 51 seconds Correct. Okay. Thank you. Thank you. That's all. 36:58 36 minutes, 58 seconds Thank you. The next question is from the line of Amit Aicha from HG Hava. Please go ahead. 37:08 37 minutes, 8 seconds Yeah. Thank you for the opportunity. Am I? Yes sir. Please continue. Continue. 37:13 37 minutes, 13 seconds Yeah, sir. What is your long-term challenge in entering the flex sheets and paper products industry? 37:24 37 minutes, 24 seconds Hello. Yes, sir. Can you please repeat the question? 37:27 37 minutes, 27 seconds Yes. What is the long-term strategic rational behind entering the flex sheets and paper? What would the revenue target? 37:37 37 minutes, 37 seconds Yeah. So uh as we have already uh clarified this in previous calls also we took that uh 37:47 37 minutes, 47 seconds uh factory from NCT uh to 37:53 37 minutes, 53 seconds uh put it as collateral with banks against our non-funding uh bank 38:00 38 minutes guarantees etc as collateral. So that land came with an established factory 38:08 38 minutes, 8 seconds and uh so uh we initially were not uh 38:15 38 minutes, 15 seconds enthusiastic to run it but uh since it was a running factory when we realized that it can give us a profit of about 5% 38:24 38 minutes, 24 seconds in revenue uh over revenue in that business also. So that is an additional 38:31 38 minutes, 31 seconds uh benefit to the company. Uh it is self-sufficient. It does not require if any funding from the company. So uh we 38:39 38 minutes, 39 seconds are letting it run and uh if it maintains this profit or it improves then much better but we would 38:48 38 minutes, 48 seconds not invest uh any further money if it starts to decline. So uh 38:57 38 minutes, 57 seconds that we would like to uh clarify and can you brief us like what is the employee size and what is the uh uh the 39:05 39 minutes, 5 seconds output that is being generated there and what was the investment done? 39:10 39 minutes, 10 seconds Yeah. So, uh we purchased that land for about 60 crores. Uh 39:17 39 minutes, 17 seconds and uh currently uh it's uh market value 39:24 39 minutes, 24 seconds would be almost uh 100% higher than that. 39:30 39 minutes, 30 seconds Uh location uh it is in uh near Kpur u in a town called Fatipur. 39:41 39 minutes, 41 seconds about uh 120 big of land and the uh the employee size and the 39:50 39 minutes, 50 seconds production like I think so 25 cr is the revenue shown in this quarter. 39:55 39 minutes, 55 seconds Yes. Uh re uh employees I think are somewhere between 50 to 100 employees 40:01 40 minutes, 1 second mostly uh uh semi-skilled and technicians. 40:08 40 minutes, 8 seconds So in your view do you think this can be scaled up? 40:13 40 minutes, 13 seconds Uh so uh it might be possible in future but uh till now uh I think uh that plant is 40:22 40 minutes, 22 seconds producing about 800 to 900 uh tons of uh output and it can reach an output of 40:31 40 minutes, 31 seconds about 1100 plus tons in the uh coming financial year. 40:38 40 minutes, 38 seconds I appreciate you answering about this. Thank you all the best. Thank you. 40:43 40 minutes, 43 seconds Thank you. The next question is from the line of CA Garvit Goyel from Sirin Alpha. Please go ahead. 40:51 40 minutes, 51 seconds Hi. Uh thanks for the follow. Uh in continuation with the earlier participant. Uh I think she asked about the exit order book for this financial 40:59 40 minutes, 59 seconds year and you said 40 to 50% growth. I think the answer was not uh that what she was expecting. So uh can you just 41:06 41 minutes, 6 seconds clarify uh what what is the expected order book that you are people are anticipating after execution of this quarter maybe the new order inflows that you are anticipating in next two months. 41:16 41 minutes, 16 seconds So uh what will be the order book look like uh as on 31st March 2026 that is uh that is you know we are 41:25 41 minutes, 25 seconds having the order book of more than 2200 uh uh k uh 2200 kores as of now uh we 41:33 41 minutes, 33 seconds are expecting 1,000 cr but that could not be a date like 31st March because that could come in the first week of April second week of April or something 41:41 41 minutes, 41 seconds because you know bidding process sometimes get litigated also so we have bidded but we expecting the order book 41:48 41 minutes, 48 seconds to increase by up to 3,000 crores in the Q1 of the uh next financial year. That is for sure because we we don't want to 41:56 41 minutes, 56 seconds give much optimistic uh uh guidelines type of thing that 31st March couldn't be that that date uh because sometimes 42:03 42 minutes, 3 seconds you bid and there is some dispute and there is some dispute resolution boards where it goes and the final LOI or 42:10 42 minutes, 10 seconds agreement is performed it may take four five months altogether. So we are bidding there are some uh bids under 42:18 42 minutes, 18 seconds pipeline some under technical evaluations and different stages. So in Q1 we will definitely have the order 42:25 42 minutes, 25 seconds book of around 3,000 K because 2200 K and in this quarter we can exhaust it by 200 K almost and of course we can have 42:34 42 minutes, 34 seconds 3,000 K in Q1 of the next financial year. 42:38 42 minutes, 38 seconds Got it. And uh secondly uh on the pledge part uh means I maybe missed uh the earlier communication on that uh can you 42:46 42 minutes, 46 seconds please clarify what is the exact purpose uh of this pledge? 42:51 42 minutes, 51 seconds Yeah so uh that uh money was used to uh invest in uh lands and properties. 43:05 43 minutes, 5 seconds No what kind of land and properties? 43:08 43 minutes, 8 seconds individual capacity in individual capacity not in terms of company. 43:14 43 minutes, 14 seconds So that means the promoter is basically pledging the shares to having its uh uh own land and properties in the personal capacity. That's what you are saying. 43:23 43 minutes, 23 seconds Yeah. To start uh that is uh for a real estate business. Okay. 43:31 43 minutes, 31 seconds So in uh not on this Yeah. What sir? 43:40 43 minutes, 40 seconds I'm trying to understand like why are we uh doing so? What is the thinking process behind it? Because on a listed shares we are pledging it and buying the properties in the individual capacity. 43:51 43 minutes, 51 seconds Yes sir. uh so the shares that are listed are also his own personal shares and uh we have already uh reduced it by 44:01 44 minutes, 1 second almost 30 1/3 and uh it would be no firstly you increase it then reduce it right yes yes 44:09 44 minutes, 9 seconds so still it is more than what we were having uh two quarters back isn't it yes sir 44:16 44 minutes, 16 seconds so I'm trying to understand what is the thought process like uh Why when when are we planning to reduce it to 0% like 44:24 44 minutes, 24 seconds again uh earlier participant also mentioned about it is it earlier we were speaking about FI 26 end and now we are 44:31 44 minutes, 31 seconds speaking about we have already already uh we went up to 210 crores of uh money 44:38 44 minutes, 38 seconds borrowed we have reduced it to 140 we have repaid about 70 crores of the 44:45 44 minutes, 45 seconds principal amount along with interest and we are planning to reduce the principal amount to less than uh 100 crores by the 44:54 44 minutes, 54 seconds end of this financial year and uh repay the whole uh amount in the next financial year. The shares that are 45:03 45 minutes, 3 seconds pledged with can only be released after we repay the whole whole amount. 45:11 45 minutes, 11 seconds Okay. Okay. Thank you. 45:18 45 minutes, 18 seconds As there are no further questions from the participants, I now hand the conference over to Mr. Ashish Tumar for closing comments. Over to you sir. 45:30 45 minutes, 30 seconds So as uh I'm SK consul speaking uh CEO of the company. So as a closing comments 45:37 45 minutes, 37 seconds uh definitely we couldn't meet the expectation in this quarter as a result and pat but we can assure that we are on 45:45 45 minutes, 45 seconds the right track and right path. We are aggressively bidding companies not in any financial distress or any type of 45:52 45 minutes, 52 seconds distress and we will definitely revamp it in uh this quarter and uh next quarter onward of the you mean first 46:00 46 minutes quarter of the next fiscal we will see high growth and everything will be perfectly matched. Actually we have also 46:08 46 minutes, 8 seconds faced the same situation after the covid and we fall in 2021 and 22 but we 46:16 46 minutes, 16 seconds maintained the growth of 20% in 23 and we covered it up in the 8 years span of the 8 years span. So we are confident 46:24 46 minutes, 24 seconds that in this year if we are not able to match with the expectation we will definitely be aggressive on next year 46:32 46 minutes, 32 seconds and next year we will do the cover up of the whole things. Thank you so much. 46:40 46 minutes, 40 seconds Thank you ladies and gentlemen. On behalf of EMS Limited, that concludes this conference. 46:47 46 minutes, 47 seconds Thank you for your participation. You may now click on the exit mark button to disconnect. Thank