Exim Routes Ltd — Q4 FY26

Exim Routes Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=77bfe5Epv0w Published: 7 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Q4 FY26 conference call of XM roots Limited. As a reminder, all 0:09 9 seconds participant line will be in listen only mode and there'll be an opportunity for you to ask questions after the presentation concludes. 0:16 16 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. I now hand the conference over to Mr. Manish Goyel. 0:26 26 seconds Thank you and over to you sir. Thank you Akash. Uh good evening everyone. I am Manish, founder and CEO of Exin Roots 0:34 34 seconds Limited and thank you for joining our first earning call as a listed company. 0:39 39 seconds I'm grateful to all our shareholders and the entire Exenus team for being part of this journey. With me on this call, we have Mr. Anul Bunil, our CFO and Mr. 0:50 50 seconds Umar, our CTO. 0:53 53 seconds Today I'll cover three areas in this call. First, the journey and business model of Exen roots. Second, our FY26 1:02 1 minute, 2 seconds growth pillars. And third, our long-term vision around the company and our technology platform. And after that, our 1:10 1 minute, 10 seconds CFO will take you through the financial highlights and key numbers in detail. 1:15 1 minute, 15 seconds Let me start with where this journey began. 1:18 1 minute, 18 seconds Me and my team come from paper engineering background from IIT Ruki and I work closely with global leaders in 1:26 1 minute, 26 seconds paper technology and also have good onground recycling industry experience. 1:31 1 minute, 31 seconds During early years two questions always were with me in my mind. First, India is one of the biggest users of recyclable 1:39 1 minute, 39 seconds paper raw material. The country imports 6 million tons that is 600 cr kgs of 1:46 1 minute, 46 seconds recyclable paper worth around 1.5 to2 billion annually and that true from 50 plus countries but despite the scale 1:55 1 minute, 55 seconds there was no strong Indian company present in this global supply chain. The second question was even more important. 2:02 2 minutes, 2 seconds This supply chain has many moving parts starting from sourcing from recycling collection yards, quality checking, 2:09 2 minutes, 9 seconds price discovery, shipping line management, products management, shipment tracking and then final delivery cost to mills. And 2:17 2 minutes, 17 seconds traditionally all these parts were working in silos. 2:21 2 minutes, 21 seconds For a recycling industry mill, landing cost is extremely important because raw material cost defines their final profitability. So from sourcing to 2:30 2 minutes, 30 seconds execution industry needed a partner who could connect all these dots. With exes industries are now empowered to source 2:38 2 minutes, 38 seconds more than 25 countries with better visibility on inventory cost and delivery timelines. So uh our objective 2:47 2 minutes, 47 seconds was simple to create intelligent bridge between worldwide sources of recyclables and Indian recycling industry. And this 2:56 2 minutes, 56 seconds becomes even very important during global disruptions. For example, in current warlike situation where supply from Middle Eastern countries got 3:04 3 minutes, 4 seconds impacted. Exim roots quickly shifted sourcing to alternate countries and still manage timely delivery and their costings as well. So for industries we 3:14 3 minutes, 14 seconds are not just a supplier anymore. We are becoming a procurement and a risk management partner. 3:21 3 minutes, 21 seconds For FY26 our growth strategy is built on four key pillars. The first pillar is industry relationships and stronger 3:29 3 minutes, 29 seconds global recycling yards control. Asin roots is working with more than 30 paper mills in India and sources more than 3:37 3 minutes, 37 seconds 150,000 metric ton of raw material annually from more than 25 countries. To give you a sense of our scale as we 3:45 3 minutes, 45 seconds speak, Exin Roots is handling almost 20,000 kgs of recyclable material every hour. 3:53 3 minutes, 53 seconds On the recycling collection yard side, our focus is to improve sourcing quality and explore strategic yard partnerships 4:00 4 minutes in a assetike manner. The second pillar is shipping logistic strength. 30% of 4:08 4 minutes, 8 seconds the cost center in our business is shipping logistic management and it is a big task. There are many issues like 4:15 4 minutes, 15 seconds containers availability, documentation problems and transit times which directly impacts the margins. We are currently moving around 6,000 containers 4:24 4 minutes, 24 seconds annually supported by more than 25 global logistic partners and our aim is to scale to 10,000 containers this year. 4:34 4 minutes, 34 seconds Now coming to third pillar which is capital efficiency. As we scale revenue, we don't want to put unnecessary pressure on the balance sheet. We have 4:43 4 minutes, 43 seconds already started the process of onboarding invoice financing partners with initial limits of 2.5 crores and we aim it to expand to 15 crores this year. 4:52 4 minutes, 52 seconds This will help us creating a more capital efficient operating model. 4:57 4 minutes, 57 seconds The fourth and most important pillar is techn our technology platform exim roots intelligence system. 5:05 5 minutes, 5 seconds Many people ask us is roots a trading company or a technology company. 5:12 5 minutes, 12 seconds Execution and operation capabilities remains critical in our industry. But going forward intelligence and data will become the real differentiator. 5:20 5 minutes, 20 seconds So our answer is very clear. Exine roots is a technology enabled recycling infrastructure company. We are building 5:28 5 minutes, 28 seconds technology on the top of real supply chain and real operation problems and that is our strength. So, ARIS is not 5:34 5 minutes, 34 seconds just a software product. It is an intelligence and execution ecosystem. 5:40 5 minutes, 40 seconds It brings together global data with execution power which includes shipping logistics, forex movement, inventory, 5:48 5 minutes, 48 seconds shipment tracking, quality and price analytics, and documentation workflow. 5:55 5 minutes, 55 seconds Today Alice has visibility of nearly 1 million tons of inventory in the system worth around $300 million annually and 6:03 6 minutes, 3 seconds that is 20% of the Indian import market and we are currently converting around 10 to 12% of this visible opportunity 6:11 6 minutes, 11 seconds into actual business annual earlier our manual sales offer conversion used to take 2 to 3 days but now with ARIS the 6:20 6 minutes, 20 seconds same process can happen in a matter of minutes and this happens because of two reasons. First is price discovery. 6:27 6 minutes, 27 seconds Second is our logistic intelligence. 6:31 6 minutes, 31 seconds Also, we are saving a lot of time and manpower because we have automated all the documentation work 6:40 6 minutes, 40 seconds with better inventory visibility and logistic intelligence. We have also started expanding beyond India. We are now able to serve European and African 6:48 6 minutes, 48 seconds mills as well, which is helping roots build a stronger global footprint. 6:54 6 minutes, 54 seconds Going forward, we plan to onboard more shipping partners and invoice financing partners and also another recyclable products directly into our ecosystem. 7:03 7 minutes, 3 seconds AIS will collect deeper data on inventory, shipping, logistics and global macro events. 7:12 7 minutes, 12 seconds The vision is to build a connected recycling ecosystem where all the vendors can come together through technology and execution and help the 7:20 7 minutes, 20 seconds entire ecosystem making faster decision and reducing their risk. With this I would now like to hand over to Anel Bunil our CFO who will take you through the financial highlights. 7:31 7 minutes, 31 seconds Thank you. 7:35 7 minutes, 35 seconds Thank you Manish and good afternoon good evening to everyone. I'm Anul Bansil, the CFO for examin roots. 7:43 7 minutes, 43 seconds Over the next few minutes, I'll take you through our FI26 financials and the balance sheet. One small point before I 7:52 7 minutes, 52 seconds begin. Unless uh I say otherwise, every figure that I'd be quoting is on a consolidated group basis. 8:01 8 minutes, 1 second The next 15 minutes will be structured u in the following way. I will start with the headline numbers, our margins, our 8:08 8 minutes, 8 seconds business segments, then the balance sheet and debt cash and working capital position, how we have used our IP 8:16 8 minutes, 16 seconds proceeds. And to close, a quick word on returns and our FI27 outlook. Obviously, I'll I'll sign post as I go. 8:26 8 minutes, 26 seconds So to start with the headline numbers revenue from operations for FI26 was 207 8:33 8 minutes, 33 seconds cr rupees which was up almost 72% yearonear versus 121 crores for fi25. 8:44 8 minutes, 44 seconds Aribida for fi26 was 14.1 cr rupees up almost 38%. 8:51 8 minutes, 51 seconds Profit after tax was 10.2 in two cror rupees approximately up 35%. 8:58 8 minutes, 58 seconds And earnings per share rose to 6 rupees 75 pesa up from 5 rupees 22 pesa and 9:05 9 minutes, 5 seconds that figure has already been adjusted for our minority interest as well as for the approximately 50 lakh new shares 9:12 9 minutes, 12 seconds that we issued as part of our December IPO. 9:16 9 minutes, 16 seconds So in a nutshell, our top line nearly doubled and our our bottom line grew by about a third. 9:25 9 minutes, 25 seconds On margins, our VA margin moved from 8.5% to 6.8%. 9:32 9 minutes, 32 seconds Now this is basically because the because underlying the numbers is actually positive because our core trading margin which is our gross profit 9:41 9 minutes, 41 seconds from operations before cost of services it actually increased from 19.4% to 22.4%. 9:49 9 minutes, 49 seconds Which is a full 3 percentage points of improvement from FI26 versus FI25. 9:55 9 minutes, 55 seconds The compression that you see in the data line comes from one line item which is the cost of services which is largely freight and logistics driven. The main 10:04 10 minutes, 4 seconds driver of this was a deliberate shift of our sourcing mix towards UK and European markets that carry a higher logistics 10:11 10 minutes, 11 seconds intensity and cost but it gives our mills and our customers the quality and cons consistency that they want. 10:21 10 minutes, 21 seconds Also as as most people are aware, oil prices globally have been elevated in the last quarter which have further pushed freight cost and cost of services across every route. 10:31 10 minutes, 31 seconds And and thirdly as well within EXM we piloted a working capital model with a couple of suppliers wherein we basically 10:39 10 minutes, 39 seconds got them to put in the working capital model and in exchange took a very low commission based fee which further also 10:47 10 minutes, 47 seconds compressed the line that you have seen right. But overall this is how I would read it. Our underlying trading economics are solid and actually 10:55 10 minutes, 55 seconds improved by 3 percentage points and a freight line which is cyclical not structural which temporally masks the line coupled with some working capital effects. 11:08 11 minutes, 8 seconds That brings me to the other part of our P&L which is our operating leverage. Now as I mentioned we grew our revenue by 72%. 11:16 11 minutes, 16 seconds But over the same period, our below the line operating costs actually fell from about 3.8% of revenue to 3.1%. 11:26 11 minutes, 26 seconds And this includes our employee cost that also came down from about 1.7% to 1.4%. 11:33 11 minutes, 33 seconds These efficiencies that we've seen h are directly a result of ERIS which Manish already touched upon earlier in his 11:40 11 minutes, 40 seconds speech where Eris is doing the work that would otherwise need more people and more vendors in a more automated and faster way and this is the core engine 11:49 11 minutes, 49 seconds of our model that as we scale we further bring these efficiencies and costs down. 11:59 11 minutes, 59 seconds Moving on to our two business segments. 12:02 12 minutes, 2 seconds Broadly speaking, you will see there are two segments in our business that are closely interlin. The first is what we call our product segment which is the 12:10 12 minutes, 10 seconds core trading business that did about 3 crores in revenue at around 5 and a half 12:18 12 minutes, 18 seconds 6% operating margin. It is by design a high volume high growth segment and the 12:24 12 minutes, 24 seconds core of what we do. This also drives our second segment which is our services se segment that will include revenues from 12:33 12 minutes, 33 seconds our platform our logistics services as well as our management consultancy services and this segment grew from 12:42 12 minutes, 42 seconds about 3.9 crores to roughly 4.4 crores which is a 13% increase. The core point 12:49 12 minutes, 49 seconds is that this services segment operates at a much higher margin versus the product segment. 12:55 12 minutes, 55 seconds And the mechanism is quite simple. Uh the trading core is the heart of our business model. As it grows, it drives 13:02 13 minutes, 2 seconds the services layer. As more people use it, there's more more partners, more holistic services on built on top of it, 13:10 13 minutes, 10 seconds right? And that is what we want to grow progressively over time which can also drives our overall profit mix and bottom line numbers. 13:22 13 minutes, 22 seconds On to our balance sheet now balance sheet is materally stronger versus last year. Our net worth has roughly tripled 13:30 13 minutes, 30 seconds to 68.7 cr rupees following our December IPO. And also we are net cash positive. 13:36 13 minutes, 36 seconds Um as of 31st March the total debt that we had was close to 16 crores against bank balances of more than 17 crores and 13:45 13 minutes, 45 seconds you would have also seen uh in our financials our trade receivables have grown as well from about 33 crores to 59 crores along with supply advances and 13:54 13 minutes, 54 seconds again this is basically a growth funded build not a quality problem which I'll talk about more detail when when we come 14:00 14 minutes to our cash position in a few moments on our data leverage um our short-term 14:08 14 minutes, 8 seconds borrowings have rose meaningfully this year but I also want to put it in context with three ratios so first and foremost our interest service coverage 14:15 14 minutes, 15 seconds ratio is actually around 15 times so extremely healthy and our total debt vida is around 1 to 1.1 times as well 14:23 14 minutes, 23 seconds our debt to equity ratio is around 23 which is in line with with the previous year right so basically we have ample 14:32 14 minutes, 32 seconds headroom to take on more debt to grow as we choose to Right. So, we're conservatively financed, net cash positive, and with 14:41 14 minutes, 41 seconds borrowing headroom, which means that places us in a strong position for FI27, which brings me to working capital 14:50 14 minutes, 50 seconds optimization. So, two financing actions that we're already taking which are basically important both in the context of FI26 and FI27. 15:01 15 minutes, 1 second First is we have uh we have recently closed a 20 cr debt facility with a tier 15:08 15 minutes, 8 seconds one bank. The first branch of which is uh is already been drawn last week with the balance to follow over the coming quarter. 15:17 15 minutes, 17 seconds This will basically help us grow and meet our intended business targets for FI27, but also replace some of the older 15:25 15 minutes, 25 seconds higher cost borrowings that we have on our books currently and will bring our overall finance costs down. 15:34 15 minutes, 34 seconds It also extends our tenure which is the right structure for a for scaling working capital book business like Exen roots. And the second financing action I 15:42 15 minutes, 42 seconds want to draw everyone's attention to is around invoice financing. 15:46 15 minutes, 46 seconds So we have agreed terms with a leading invoice financing provider and expect to onboard them this month. The agreement 15:54 15 minutes, 54 seconds is to start with an initial limit of uh 2.5 crores and the target is to scale 16:00 16 minutes this to 15 crores throughout the year as we grow our receivables book. 16:07 16 minutes, 7 seconds Basically to let us turn our receivables faster into cash so we can fund our growth without the balance sheet expanding one for one. 16:15 16 minutes, 15 seconds In a nutshell, the idea is we are set up for cheaper funding, thus receivables that increasingly fund themselves and we move towards capital efficient growth. 16:27 16 minutes, 27 seconds In fact, if I were to be so bold, I'd say that between these levers and internal approvals, we do not foresee needing to raise further external 16:35 16 minutes, 35 seconds capital to fund our working capital in the business until we're approaching 500 crores of revenue. 16:44 16 minutes, 44 seconds Now moving on to our cash flow uh positions. Our operating cash flow was negative in FI26 uh approximately - 19 16:51 16 minutes, 51 seconds crores um against - 5 crores the previous year which basically is driven by doubling our trading book and our 16:58 16 minutes, 58 seconds receipt and supply advances have expanded ahead of collections. So again to reiterate this is this is a classic growth funded working capital build and 17:06 17 minutes, 6 seconds not a profitability issue. Right now, specifically, if I go one level deeper, a working capital cycle did widen, but 17:14 17 minutes, 14 seconds very modestly, our data days on a closing basis were were mostly flat. 17:21 17 minutes, 21 seconds Went from 99 to 103 days and on an average basis between FI2526 went from 75 to 80. So, so not much movement over 17:29 17 minutes, 29 seconds there. On the payable side, our creator days actually came down, but that was because we onboarded 17:36 17 minutes, 36 seconds onboarded new sourcing yards who were on tighter terms to begin with as we onboarded them on the platform. 17:44 17 minutes, 44 seconds Again, to preempt what will bring the cycle back down, it's it's basically combination of three things. Better supply terms as you scale volumes with 17:51 17 minutes, 51 seconds these new LS that we've onboarded. the invoice financing program that I just mentioned and scaling that and more 17:59 17 minutes, 59 seconds tighter receivables discipline internally as we scale in the medium-term our objective still 18:06 18 minutes, 6 seconds remains to move towards operating cash flow positive as we scale on the IP proceeds a very quick word we 18:14 18 minutes, 14 seconds we raised 43.7 crores which net of expenses was around 37.2 2 crores of 18:21 18 minutes, 21 seconds this only 9 crores was emarked for working capital which has been fully deployed beyond that 6 and a half crores 18:29 18 minutes, 29 seconds was emarked for general corporate purposes 7.1 crores emarked for office space and around 14.5 crores was allocated to the 18:37 18 minutes, 37 seconds platform and most of this built for platform is actually still to be spent and will be deployed in stages over the 18:46 18 minutes, 46 seconds next 12 to 18 months as we continue to build the platform The point is this, a very relatively 18:53 18 minutes, 53 seconds small portion of our IPO proceeds was a working capital and only deployed at the very end of FI26, which means you don't really see the impact of that on our FI26 financials. 19:05 19 minutes, 5 seconds Um, and that is also why you will see that our returns on capital employed for FI26 moved from 35% to 16% and return on 19:14 19 minutes, 14 seconds equity went from 3 to 15%. and our our return invested capital went from 16 to 9%. And all of this was basically driven 19:21 19 minutes, 21 seconds by a rebel lining because of the fresh IP equity proceeds. Right? So as we again start to deploy all those funds 19:29 19 minutes, 29 seconds towards the year, you will see a positive movement on all of these capital ratios. Right? 19:38 19 minutes, 38 seconds Um one one more would like to make as I as I move towards the growth outlook the business that we are in is 19:47 19 minutes, 47 seconds structurally season seasonal. So historically what you what you've seen or what you will see is that the business is structurally second half 19:55 19 minutes, 55 seconds weighted. So if I look at F26 as an example, H1 generated about about 30 to 20:02 20 minutes, 2 seconds 35% of full year and the second half was 2 weeks of H1. So as you evaluate our business and the fullear outlook, I'd 20:11 20 minutes, 11 seconds urge everyone to not analyze the first half run rate and look at it on a full year basis. 20:18 20 minutes, 18 seconds Which brings me to our outlook for the full year FI27. Our business target is 20:25 20 minutes, 25 seconds 30 to 50% of revenue growth topline and bottom line aiming to hit 300 kores of revenue at the upper end. Now this broad 20:34 20 minutes, 34 seconds range reflects the current geopolitical situation logistics chains and obviously if that picture 20:41 20 minutes, 41 seconds changes material in either direction we'll update you after the after the first half. 20:47 20 minutes, 47 seconds But as far as all the controllable levers are concerned they're all moving the right way. Our core trading margin is expanding. ERS is giving us operating 20:56 20 minutes, 56 seconds leverage as we scale. The refinancing actions that we have taken bring our financing cost down and puts our working 21:04 21 minutes, 4 seconds capital position in a strong place as we move forward. 21:10 21 minutes, 10 seconds So again to recap, our top line nearly doubled. Our trading economics have improved on underlying basis. Our balance sheet is net cash and the levers 21:18 21 minutes, 18 seconds that are always in our control all point upwards. 21:21 21 minutes, 21 seconds Thank you. And with that, let me hand it back to our moderator Kash for the Q&A. 21:28 21 minutes, 28 seconds Thank you very much, sir. We will now begin the question and answer session. 21:32 21 minutes, 32 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. 21:39 21 minutes, 39 seconds If you wish to withdraw yourself from the question queue, you may press star and one again. 21:44 21 minutes, 44 seconds Participants are requested to use handsets while asking a question. 21:50 21 minutes, 50 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 21:57 21 minutes, 57 seconds Ladies and gentlemen, if you have any question, please press star and one on a telephone keypad. 22:03 22 minutes, 3 seconds The first question comes from the line of Kish Gupta from SS family office. Please go ahead. 22:11 22 minutes, 11 seconds Hello sir, a very good afternoon to you. 22:13 22 minutes, 13 seconds My question currently relates to the cash conversion. As we can see over the last few years we have seen receivables 22:22 22 minutes, 22 seconds grow materially faster than operating cash flow that has resulting in a reported earnings not translating into 22:29 22 minutes, 29 seconds cash at the same pace. So given that the company positions itself as a technology enabled B2B platform rather than a 22:38 22 minutes, 38 seconds capital intensive trading business could you please help us understand um Manish why don't I take this and then 22:48 22 minutes, 48 seconds please feel free to add more color on the on the technology side right so yeah so thank you for the question as I 22:55 22 minutes, 55 seconds mentioned uh the technology part helps us scale more efficiently as we grow but Inherently, this is still a very 23:03 23 minutes, 3 seconds operational and execution heavy business, right? Um, now you're right that our receivables have grown, but they've not grown at the same pace as 23:11 23 minutes, 11 seconds our as our growth, right? And and and some of the action that we already taken for this year will help us make sure 23:19 23 minutes, 19 seconds that we are converting the cash that we're getting in terms of syllables faster. Right? So, as an example, if I look at last year, we have more than 23:28 23 minutes, 28 seconds doubled our book essentially. And this is where the solutions around invoice financing and the new debt financing line that we've taken will help us move those actions better. 23:41 23 minutes, 41 seconds And one last thing to add as well in terms of operating cash flow in the in the medium term our objective is to move towards operating cash flow positive but 23:49 23 minutes, 49 seconds if I look at the next 12 to 18 months the priority for the business is growth. 23:55 23 minutes, 55 seconds Manish do you want to add more color on the side of things? 24:07 24 minutes, 7 seconds Do you have any more questions to ask? 24:10 24 minutes, 10 seconds Yeah, I'm waiting for Man if he wants to add something. 24:23 24 minutes, 23 seconds Do you want to add some for the to the question? Mr. Kish, sorry, sorry, sorry. It was on mute. 24:29 24 minutes, 29 seconds Yeah. Uh so I was saying Mr. Kich uh in my speech also I mentioned that this is more than a SAS product. It is more of 24:38 24 minutes, 38 seconds operating system for the recyclables because it is a fragmented part and operation heavy business. So we are focusing more on invoice financing and 24:47 24 minutes, 47 seconds we are improving our terms with the supplier for credits and logistics. So you will see a better cash flow in the coming times. 24:56 24 minutes, 56 seconds So whether this working capital buildup is primarily driven by customer concentration or onboarding of newer customers or maybe longer credit terms. 25:09 25 minutes, 9 seconds Um as I mentioned sir it the last year this this buildup has ply been driven by 25:15 25 minutes, 15 seconds two aspects. One is onboarding of new suppliers right. So the way it works is whenever we onboard a new supplier to 25:23 25 minutes, 23 seconds begin with, the credit terms are much tighter, right? So they could be as tight as payment on advance, right? Um 25:31 25 minutes, 31 seconds as as as our business grows with them, as relationship matures, as we have a trading history, those terms get better, 25:39 25 minutes, 39 seconds right? So the majority of the difference that you have seen a working capital cycle between FI25 and 26 was actually driven by the onboarding of new 25:48 25 minutes, 48 seconds suppliers and and and essentially a tighter payable terms. Um on the other side on the buyer side actually our 25:57 25 minutes, 57 seconds credit terms have been largely unchanged with them. All right. So and and like Manish said the the lever that we are 26:05 26 minutes, 5 seconds then focusing on around invoice financing I then get to move that cash flow position faster more 26:13 26 minutes, 13 seconds and then I think you mentioned something around customer sorry please. Yes sir go ahead no problem. 26:22 26 minutes, 22 seconds Yeah I was saying you mentioned something around customer concentration risk. Actually, our customer concentration ratios have not changed 26:28 26 minutes, 28 seconds materially from FI25 to 26, right? Our top 10 customers uh roughly contribute to the same level between FI26 versus FI25. 26:40 26 minutes, 40 seconds Um and and our top customers are the same percentage as well versus FI25. So, it's not like they're materially increased our concentration risk from 25 to 26. 26:52 26 minutes, 52 seconds So more importantly, what evidence can you provide that these receivables are of high quality and that cash conversion 26:59 26 minutes, 59 seconds will improve as the business scales rather than working capital continuing to grow in line with revenue. 27:08 27 minutes, 8 seconds I I would say the the proof is the proof is is the historical right. We we have not had any any material deviations in terms of write offs on our receivables. 27:20 27 minutes, 20 seconds Um we also work with pretty much the top 30 to 40 paper mills in India right so 27:27 27 minutes, 27 seconds so we're quite conscious and uh and choiceful in terms of the kind of mills that we're working with right and like I 27:36 27 minutes, 36 seconds said the the biggest proof that I can give you is on invoice financing uh platform the fact that we have been able to onboard a a major Indian lender on 27:46 27 minutes, 46 seconds this right so what I will say is is please wait in till H1 and you will see an improvement of this strength with more details to come. 27:57 27 minutes, 57 seconds So given your medium-term outlook for the next 18 to 24 months, your priority is growth right now and post that when 28:04 28 minutes, 4 seconds can we see cash flow from operations converting to majority percentage of profit after tax? 28:14 28 minutes, 14 seconds So I I would say look we I I don't want to commit to a firm number right now. 28:19 28 minutes, 19 seconds What we do know is that for the next 12 to 18 months the priority will be growth but obviously in the midterm as as as the actions that we are taking scale 28:28 28 minutes, 28 seconds specifically on invoice financing right we we move towards an operating cash flow positive and a much better ratio 28:34 28 minutes, 34 seconds obviously to cash conversion and my second question would be to n sir 28:41 28 minutes, 41 seconds given that approximately 50% of the revenues derived from the top five customers with the largest customer 28:48 28 minutes, 48 seconds contributing ing around 20%. So how should investors think about concentration risk once again as the 28:55 28 minutes, 55 seconds business scales? So are you personally actively pursuing diversification strategy that you want to implement over the next couple of months? 29:08 29 minutes, 8 seconds Our target initially was to build a business with uh bigger mills because there's a diversity of products. One 29:16 29 minutes, 16 seconds mill doesn't import one product from the I'll tell you the business perspective one one mill imports like 10 products 29:24 29 minutes, 24 seconds paper products and that two from different countries so the thing is because we are also productdriven we are choosing that which mills are paying us 29:33 29 minutes, 33 seconds higher margins and which products are paying us higher margins. Our focus is to build sustainable business first that 29:42 29 minutes, 42 seconds we can uh we are not doing much of a low margin grades at the moment. We are doing high margin grades. We are we as a 29:49 29 minutes, 49 seconds company our model is to select like which mills are paying better, which mills are having uh you know uh having 29:57 29 minutes, 57 seconds paying capacity has a better paying capacity. So we are our uh our selection of mills are like 30:05 30 minutes, 5 seconds that. So going forward we will be continuing to select the mills like that and we'll grow our business slowly and in a disciplined manner with this uh process. 30:17 30 minutes, 17 seconds So more on that as you said you want to do business with customers that provide a higher margin. So what would be your ideal long-term target for a bit margins that you want to achieve internally? 30:33 30 minutes, 33 seconds uh Anil can you answer that again on this one right we we don't have a long-term target in terms of firm number right obviously there are 30:40 30 minutes, 40 seconds fluctuations that happen in the business but ultimately what what we want to make sure is that the levers that we can control around improving our operating 30:49 30 minutes, 49 seconds leverage through errors so that our are those costs come down as a percentage of revenue improving our our services 30:57 30 minutes, 57 seconds revenue mix which is a higher margin mix that continues to increase as well further boosting our bottom line uh eB 31:04 31 minutes, 4 seconds percentages right um those two levers that we can control we want to make sure that those continue to increase right so 31:11 31 minutes, 11 seconds so that's kind of where we see ultimately I don't have a guidance for you right now in the long term um as you can see last year I believe the margin 31:19 31 minutes, 19 seconds was close to close to seven this year it's lower and obviously want to make sure that we move those underlying figures in a positive way 31:29 31 minutes, 29 seconds so can you provide something in terms of topline for uh slightly longer term. 31:35 31 minutes, 35 seconds Sorry, could you come again? I I I didn't I missed your question. 31:38 31 minutes, 38 seconds He's asking the top line uh for the next two three years. 31:41 31 minutes, 41 seconds Yeah. So top line for the Yeah. So yeah, so let me give you a vision on on that longer term. Uh right, sir. Uh if you look at just the India market, right? 31:49 31 minutes, 49 seconds I'm not even talking the global market which Manish said that we as part of our diversification strategy. We have gone beyond India and 31:58 31 minutes, 58 seconds are now supplying to mills in Africa and Europe. So there is a divers diversification plan in place to go beyond India. But if I just speak about 32:07 32 minutes, 7 seconds India for a second, right, the India market for recycled paper imports is 32:16 32 minutes, 16 seconds 15,000 crores and growing, right? So uh so just from that standpoint, we 32:24 32 minutes, 24 seconds believe that in the longer term, we want to be a top three global player in the 32:31 32 minutes, 31 seconds space and capture um around 8 to 10% of that market share. Right. So long-term 32:37 32 minutes, 37 seconds absolutely even if we even if we just focus on that bit we believe that we can become a thousand cr company 32:47 32 minutes, 47 seconds um just focusing on that right obviously there are security elements in play that Manish mentioned be that around 32:53 32 minutes, 53 seconds geographical mills be that go beyond paper into other recyclables be that around establishing asset light 33:01 33 minutes, 1 second partnership models with yards to further secure our supply chain at favorable terms and margins but in terms of 33:09 33 minutes, 9 seconds topline that is absolutely our our mid to long-term vision in terms of numbers. 33:15 33 minutes, 15 seconds So you want to be a,000 cr topline company and still grow beyond that. So the thousand cr milestone can we see 33:23 33 minutes, 23 seconds that being achieved by FY30 or FY31? 33:29 33 minutes, 29 seconds Um yeah absolutely absolutely right. We see this as a we we totally see this as a fivey year fivey year vision 33:39 33 minutes, 39 seconds and sir coming back on the receivable profile associated with the top five customers specifically I want to ask you 33:46 33 minutes, 46 seconds what percentage of the current trade receivables book remain within agreed credit terms and what percentage is overdue. 33:58 33 minutes, 58 seconds So most of uh so almost all of our book is within the agreed terms, right? Um if your question is more around specifically the top five customers and 34:07 34 minutes, 7 seconds their receivables, I think that's a bit of a broader question. Um if you email us on our on our ID given on a compliance ID, I'm happy to get the team to revert back to you with more details. 34:19 34 minutes, 19 seconds Um or obviously once we share our full records as part of our annual reporting, you can see it over there. 34:26 34 minutes, 26 seconds answer quantitatively what percentage would be overdue of the total receivables book. 34:35 34 minutes, 35 seconds Um again I don't have that answer off the top of my head right like I said it is minimal uh I'm happy to share that over email if you just drop an email to it. 34:45 34 minutes, 45 seconds Okay sir I have a couple more questions I'll surely get back in the queue. Thank you. Lovely. Thank you so much. 34:53 34 minutes, 53 seconds Thank you so much sir. Next question comes from the line of Mr. Arun Oblerti from Apt Work Solutions Private Limited. Please go ahead. 35:01 35 minutes, 1 second Yeah, good evening uh to everyone. Uh thank you for uh you know uh excellent uh call. Uh I have three questions. Uh 35:10 35 minutes, 10 seconds one for Manish Goyel uh another for uh you know Anu Anul Bansil and third for 35:17 35 minutes, 17 seconds you know Mr. Omar. The first question is basically on uh the uh the competitive 35:26 35 minutes, 26 seconds mode. What unique advantages does exim roots possess against global recyclable traders and digital marketplaces? This is a question for Manish. 35:38 35 minutes, 38 seconds Sir, can you please repeat again the question? 35:40 35 minutes, 40 seconds What what unique advantages does exim roots possess against global re recyclable traders and digital 35:48 35 minutes, 48 seconds marketplaces? Basically I want to evaluate sustainable competitive advantage. 35:54 35 minutes, 54 seconds Uh sir see uh when I started this business uh I saw that all the uh 36:01 36 minutes, 1 second suppliers in the world of this I'll talk about paper right now. All the suppliers of the world are commodity traders. So 36:08 36 minutes, 8 seconds when I started I started this business in 2013. So I saw first European and Americans are have the dominance in the 36:16 36 minutes, 16 seconds market and there was very opaque and fragmented information to the Indian paper mills though India was a huge 36:22 36 minutes, 22 seconds importer that time also. So I figured out that what once they once the mills place the order they don't know that 36:30 36 minutes, 30 seconds what quality is going to come what what uh what price what landing costs they are going to pay and what kind of uh 36:39 36 minutes, 39 seconds this uh when the material will be delivered. So what happened that okay then we started the business and we qu 36:46 36 minutes, 46 seconds we started to quantify the data we we because we are paper engineers so we knew that what technical aspects they 36:53 36 minutes, 53 seconds need. So we started mapping suppose one product there is coming from 10 countries. So we mapped all the data of 10 countries of one product and this we 37:01 37 minutes, 1 second did for every product. This 10 countries data we have in our system. No trader in the world is having this data. That is 37:09 37 minutes, 9 seconds why this is one of the reason that we are the only company uh one of the few companies I would say in the world that 37:16 37 minutes, 16 seconds has presence in more than 25 countries because we know that what quality mills will be needing. So this kind of data 37:24 37 minutes, 24 seconds power we have. Then simultaneously we started building logistics data. We started building uh operational data at 37:32 37 minutes, 32 seconds the mill that okay you are using this product you are making this product what kind of raw material you will be needing. So we have put our engineering 37:40 37 minutes, 40 seconds and data into the system. So I believe no because uh no traders can do that. So this is one of the most competitive advantage we have. 37:51 37 minutes, 51 seconds I hope uh that question uh that answers uh your question sir. Yeah, and if I may, I can build on the on the 37:58 37 minutes, 58 seconds second second part of your question because you also mentioned something around around digital marketplaces, right? Um, if you actually look at the 38:07 38 minutes, 7 seconds at the broader market competition, um, you won't find digital marketplace that have actually succeeded succeeded in this business, right? So and it and 38:16 38 minutes, 16 seconds it's not for lack of trying because ultimately an open digital marketplace model. Uh what it fails to really uh 38:25 38 minutes, 25 seconds solve for is the core issue and the core issue is the following. A paper mill cares only about three things. They care 38:34 38 minutes, 34 seconds about their landed price. They care about their quality basically and they right and and they care about postale 38:40 38 minutes, 40 seconds service. Right? At the same time on the on the other side of the equation the yards or the suppliers they actually 38:49 38 minutes, 49 seconds only care about about two things they care about price that they're getting and second they care about operations right so and what I mean by that very 38:57 38 minutes, 57 seconds simply is that uh because they don't have storage space right think of this like a crop so for them what becomes important is if am I getting the best 39:05 39 minutes, 5 seconds price and is the logistics and operations in place that if I have the material ready to be collected on x day it can be collected on XD because if it 39:13 39 minutes, 13 seconds is not then I don't have space to store it right and and ESG laws in especially in international markets countries like UK 39:21 39 minutes, 21 seconds Europe are very strict that you can't just dispose it off or burn it off or all those things and this is where open marketplace digital marketplace models 39:29 39 minutes, 29 seconds fail because they inherently rely on the basic principle of I've connected a a supplier to a mill and they will handle it themselves and I'll just take 39:38 39 minutes, 38 seconds commission from the middle. it doesn't work because suppliers don't want to deal with mills and mills don't want to deal with suppliers directly by the way 39:46 39 minutes, 46 seconds right um and that's and and that is where the system that we have built around is is different is a 39:55 39 minutes, 55 seconds differentiator because it is not a plain vanilla here's a digital open marketplace it actually brings all those 40:03 40 minutes, 3 seconds things together um and and really solves the problems for both both parties 40:13 40 minutes, 13 seconds Manish, there is also another you know uh question I just wanted to ask you regarding international subsidiaries. So 40:20 40 minutes, 20 seconds how are the UK and overseas operations performing relative to India and what contribution do you expect over the next three years? 40:30 40 minutes, 30 seconds Uh sir we uh this is a very relevant and important important question because this is the base of our business. Why we 40:38 40 minutes, 38 seconds open subsidiaries? You wanted to ask that, right? Correct. 40:44 40 minutes, 44 seconds So there in recyclables there's a trade barrier in the system that no traders in the world can import waste paper into 40:53 40 minutes, 53 seconds the country. Okay. So and when I started the business, I mentioned that all the dominance were were with the European 41:01 41 minutes, 1 second and Americans. I saw no Indian company was you know was in the domain. So what 41:08 41 minutes, 8 seconds happened that I thought that what because I have my IIT friends outside India like Anul was in UK my current CEO was sitting in Singapore. So I I just 41:17 41 minutes, 17 seconds spoke to them that time that let's build a infrastructure around the world and let's keep the supply end to end because 41:25 41 minutes, 25 seconds there's a lot of fragmented issues. So we opened first company in Singapore in 2019 and we connected yards recycling 41:33 41 minutes, 33 seconds yards directly to the paper mills. So we know that we learned that how what quality they need and uh what kind of uh 41:42 41 minutes, 42 seconds things more what quality they need what pricing they need around the world. 41:46 41 minutes, 46 seconds Similarly we extrapolate this to UK, US, Germany also we opened. So now what we are doing we are managing end to- end 41:53 41 minutes, 53 seconds supply chain we are not dependent on any third party for you know so we are providing more transparency to the 42:01 42 minutes, 1 second mills. They know that from where the material is coming and when the material will be delivered. So that was the whole purpose of open subsidiaries. 42:10 42 minutes, 10 seconds Okay. Thank you. Uh I have a question for Anul on the revenue quality. Uh 42:17 42 minutes, 17 seconds basically on the revenue quality financially at 25 witness strong growth how much came from volume expansion versus commodity price movements. 42:29 42 minutes, 29 seconds Um actually most of this has come from volume expansion. Right. So if you look at the the numbers our our our volume 42:37 42 minutes, 37 seconds the planet that we are supplying has grown in proportion to our to our revenue pretty much right. So uh if I if I go back towards the start of the year 42:46 42 minutes, 46 seconds in April 2025 we were doing somewhere around around 6 to 8,000 tons per per 42:54 42 minutes, 54 seconds month. uh at the beginning of the year in April 2025 if I look at towards the end of March that number had almost 43:02 43 minutes, 2 seconds doubled right which is basically in line with what we've seen in the in the revenue as well right so I would say 43:09 43 minutes, 9 seconds most of this if not all more than 90% of this has been driven by volume expansion 43:17 43 minutes, 17 seconds okay uh I have another question on uh shareholder base uh what steps are being taken to improve institutional ownership and analyst coverage. 43:31 43 minutes, 31 seconds Um is that for me or is that for Manish or it is for you I'm sure right sorry uh yeah so look a couple of 43:39 43 minutes, 39 seconds things um obviously recently listed company couple of things that we're doing one is 43:46 43 minutes, 46 seconds calls like this getting stronger on our investment on on our activities right so you will see a lot more of that coming 43:53 43 minutes, 53 seconds through for us um just on overall institutional level as well and then and then obviously on the disk level from 44:01 44 minutes, 1 second both me and Manish. Um over the next few months as we as we grow and scale further there's there'll be more reach 44:08 44 minutes, 8 seconds out from from us as well towards institutional investor base. Um and obviously some of these things will also 44:15 44 minutes, 15 seconds become much more much more relevant as we as we scale and move towards that 400 500 core INR scale number as well. 44:23 44 minutes, 23 seconds Right? So all those three activities in combined are what we have in planned over the next 6 to 12 months. 44:32 44 minutes, 32 seconds Mhm. Okay. Uh on the foreign exchange risk, how much of revenues and 44:39 44 minutes, 39 seconds procurement are naturally hedged and what uh formal hedging policies followed? Manish. 44:47 44 minutes, 47 seconds Uh yeah. Uh sir we are not uh following any formal policies uh yet we are in 44:54 44 minutes, 54 seconds fact this is the plan uh we in fact OMR is making a forex platform it is on on our plan this year so basically what we 45:03 45 minutes, 3 seconds are doing is that whatever material is coming to India so we have a plan that suppose uh every month there's a $2 million 45:11 45 minutes, 11 seconds material $1 million material is coming suppose for example so we are following two methods one is direct shipment to the mills and Second is high sales 45:20 45 minutes, 20 seconds model. So we give that options to the mills that if they want to lock dollar rate. So we give them high sales model 45:27 45 minutes, 27 seconds in which they can pay us in local currency. In fact this is a great mode to us. So this has increased in the last 45:34 45 minutes, 34 seconds year also. The revenue from IC sales have increased from last year. Uh and 45:41 45 minutes, 41 seconds secondly is the direct sales. So direct sales we are receiving the payments in USD only. So we don't need to hedge that in INR sale. We are hedging something 45:50 45 minutes, 50 seconds but not much because we are paying advance to the suppliers in IC sales. So automatically it is uh because we are 45:58 45 minutes, 58 seconds working in a closed loop situation. So automatically it is hedged because our costing of dollar doesn't change in that case. 46:08 46 minutes, 8 seconds Okay. 46:10 46 minutes, 10 seconds Thank you. Uh I have a question for uh Omar R. Uh Mr. Omarov, are you there? 46:17 46 minutes, 17 seconds Yes. I guess I'm Yeah. Uh on the AI capabilities, uh which AI uh use cases 46:24 46 minutes, 24 seconds are currently deployed like price forecasting, quality gradient, logistics optimization, fraud detection or buyer seller matching. 46:38 46 minutes, 38 seconds Uh so right now uh we are in the phase of uh collecting all the data for uh you 46:46 46 minutes, 46 seconds know to make uh all the uh AI which will take all these decisions. Uh right now 46:54 46 minutes, 54 seconds what we have been because these are all very critical for us. 46:59 46 minutes, 59 seconds Yeah. Yeah. So uh as Manish already has uh said that uh data is our greatest. We have about seven to eight years of uh 47:08 47 minutes, 8 seconds data in certain products. Uh you know the high margin products that we have. 47:14 47 minutes, 14 seconds Uh so we already have that data. We have built uh certain uh pilot AI for those 47:21 47 minutes, 21 seconds uh specific products. For example, for cupstock uh and uh for certain other grades which you have uh data for, we 47:30 47 minutes, 30 seconds have made uh progress in terms of uh you know getting an AI which will be able to 47:38 47 minutes, 38 seconds match uh that product with certain it will be able to give us pricing for 47:45 47 minutes, 45 seconds those uh products, right? But that AI is still in pilot state. We haven't deployed it at stage yet. 47:54 47 minutes, 54 seconds However, uh currently all the AI that we have uh for uh you know recommending deals to our internal uh internal 48:02 48 minutes, 2 seconds personnel. So whenever there is a deal that is made between a supplier and a buyer 48:09 48 minutes, 9 seconds that is done right now by an agent personnel but the deal right now is recommended by the so the uh matching 48:18 48 minutes, 18 seconds uh is currently being done uh but that is not available to buyers. It is only available to our internal uh members. 48:30 48 minutes, 30 seconds Mhm. Okay. And uh what about uh blockchain integration? Is management exploring blockchain based tracibility 48:38 48 minutes, 38 seconds for recyclable materials and carbon accounting? Uh no sir, we are not doing that. 48:44 48 minutes, 44 seconds So right now we want to be Yeah. Yeah. Sorry. Right now our focus uh right now our focus is 48:51 48 minutes, 51 seconds only uh our whatever we do is driven by uh by by our financial statement uh by 49:00 49 minutes P&L and by our balance sheet. We go backward from there uh and then decide what technology we want to use. Uh it's 49:07 49 minutes, 7 seconds not the other way around right. So whenever we see it's a great position, whenever we see that these technologies will benefit us, we'll uh start looking. 49:20 49 minutes, 20 seconds Okay. Uh uh on the competitive benchmarking just wanted to know which global technology platform or uh 49:28 49 minutes, 28 seconds marketplace does exim roots benchmark itself against. 49:33 49 minutes, 33 seconds Um so so we I I think within the recyclable space as I said there are there are very few 49:41 49 minutes, 41 seconds right uh if I if I if I talk about a couple of examples that we have looked at in the past I mean the one that was 49:49 49 minutes, 49 seconds most relevant was um uh actually let me let me give you two examples. Uh the first one that we looked at in the 49:56 49 minutes, 56 seconds domestic market was recycle essentially where which which we thought was quite an interesting model in terms of in terms of what they were doing. But 50:04 50 minutes, 4 seconds ultimately where we found we felt it was not comparable was because recycle is working in the mystic marketplace model 50:11 50 minutes, 11 seconds only um within the whole international recyclable space which is where we competed. The only company that we have 50:19 50 minutes, 19 seconds really seen uh do it or or try it was uh was this digital marketplace called uh called Safi 50:28 50 minutes, 28 seconds um right which uh which was a private VC backed marketplace and interestingly uh they they tried it for two years and 50:38 50 minutes, 38 seconds then they pivoted towards AI based vision technologies for sorting machines essentially uh because they could not crack the trust and quality problems. 50:48 50 minutes, 48 seconds um that I that I mentioned about previously, right? So, so within the recycle space, like I said, there's really no true competitor benchmark. 50:57 50 minutes, 57 seconds What I will say though is that you know uh and that's one of the big reasons why we onboarded Omar whose background is 51:05 51 minutes, 5 seconds data science in Oro. We we do take inspiration from just in general where the techn is progressing and what other 51:13 51 minutes, 13 seconds companies even in other industry and sectors are doing and see what makes most sense for the problems that our 51:20 51 minutes, 20 seconds suppliers and those face on a day- on day basis right so it's less about trying to replicate an exact technology 51:28 51 minutes, 28 seconds platform in our space more about just taking inspiration from what's out there in general and one thing I want to add add here sir 51:38 51 minutes, 38 seconds uh recyclable market execution mills doesn't place order on a marketplace 51:45 51 minutes, 45 seconds because it the whole trade of the recyclables is based on trust. You just cannot create a marketplace and the 51:53 51 minutes, 53 seconds industries will come over that marketplace and buy their raw material. 51:56 51 minutes, 56 seconds They won't do that in case of recyclables because we have worked on the on ground with the mills. I have worked with more 52:03 52 minutes, 3 seconds than 50 mills in India. I know what what are the real problems they face. So no marketplace only marketplace I'm talking 52:12 52 minutes, 12 seconds about only marketplace cannot provide that trust. This is the biggest problem. 52:15 52 minutes, 15 seconds So that's why we believe that no uh marketplace only market places cannot survive in this recyclable space. That's 52:23 52 minutes, 23 seconds why you have not seen any marketplace in this model. I see. Okay. 52:31 52 minutes, 31 seconds Uh I just uh have another question. uh basically it's a AI versus commodity valuation theme. At what stage do you 52:40 52 minutes, 40 seconds believe the market should start uh valuing exing roots as a technology platform rather than a trading company 52:50 52 minutes, 50 seconds and look uh I would say from from our standpoint we have been extremely clear from the very start that this is a tech 52:58 52 minutes, 58 seconds enabled model. We had never actually called ourselves a a tech only uh only model and said please value us like a 53:06 53 minutes, 6 seconds SAS company which anyways now that I say it value such a SAS company in today's term it might feel like a like a misnomer anyways with what's happening 53:13 53 minutes, 13 seconds in the SAS world um but I'd say like uh we how how we get value from market perspective that is totally up to 53:22 53 minutes, 22 seconds investors what we are and who we want to be that is quite clear which is we see technology as a core pillar for how we operate and execute ute what is 53:30 53 minutes, 30 seconds inherently a physical operational heavy business and want to be looked at it uh from that perspective. 53:38 53 minutes, 38 seconds Just to add to that so when I talked about uh there's rumor here the CT group when I talked about uh you know certain 53:46 53 minutes, 46 seconds uh AI which is the file and not available to uh the mill is something they're using internally. So right now 53:54 53 minutes, 54 seconds what is happening is that uh the deals that used to happen for example they used to take three to five days before 54:00 54 minutes uh AI right. So uh what we are seeing is that uh that we are able to do per person for example we are able to do 54:08 54 minutes, 8 seconds more deals and within the time taken to do one deal or has also come down for some for example from 3 to 5 days to a 54:16 54 minutes, 16 seconds couple of minutes because right now uh the products that we deal in we know exactly what uh price we should ask uh 54:25 54 minutes, 25 seconds you know from suppliers what uh uh what price we should give to the meals we already know that we don't need to go to 54:32 54 minutes, 32 seconds five or six people to uh in the market and inquire about the prices. We already know what the best prices will be. We 54:39 54 minutes, 39 seconds have uh build that muscle by collecting that data for so many years and then building an AI on top of that. So we 54:47 54 minutes, 47 seconds already know what price to buy at, what price to sell at and which will right now will buy what product, right? So uh 54:56 54 minutes, 56 seconds right because of the AI we have and the technology we have developed we have already seen uh improvement 55:04 55 minutes, 4 seconds in the revenue per employee uh we are basically almost uh operating the same 55:11 55 minutes, 11 seconds number of employees as we were uh you know uh at a at much lower uh revenue right and that has only been enabled by 55:19 55 minutes, 19 seconds tech right so I would say to your question we're already operating uh as a tech platform and a tech enabled company 55:28 55 minutes, 28 seconds and we value ourselves as such. uh and I I think that I am taking it out that you 55:35 55 minutes, 35 seconds also um value and uh one more thing I'll uh one more thing I'll add here sir uh I in the 55:44 55 minutes, 44 seconds start of my speech I told that we are importing around 6 million tons of inventory uh in total India currently we have 55:52 55 minutes, 52 seconds around 1 million ton of inventory in our system so we have launched recently four four months back our procurement tool 55:59 55 minutes, 59 seconds for the mills So Mills has a very easy access to see those inventories and they can select they can select the product they can select the shipping lines they 56:08 56 minutes, 8 seconds will get they can see that what shipments are on water. So we are empowering mills. So in fact two mills 56:16 56 minutes, 16 seconds we have uh we have onboarded uh five months back they uh their procurement rate has increased by 30%. 56:24 56 minutes, 24 seconds Excellent with us. 56:27 56 minutes, 27 seconds Excellent. Uh I have one final question uh if you allow me to ask. Uh Exim roots 56:34 56 minutes, 34 seconds has articulated a vision of building the world's first AI enabled closed B2B recyclable trading platform. Could the 56:41 56 minutes, 41 seconds management quantify the expected contribution of this platform in terms of revenue and customer adoption over the next 3 to 56:50 56 minutes, 50 seconds 5 years and identify the milestones investors should track each quarter. 56:56 56 minutes, 56 seconds Uh I'll answer on the customer adoption first then Anchul can Anul and Umar can uh revert on the rest part so see raw 57:05 57 minutes, 5 seconds material is the need of the mill we for sales side we don't need to push the customers if we show them that okay this 57:13 57 minutes, 13 seconds material is available just they have to shop the material suppose there are one material available in five countries so 57:21 57 minutes, 21 seconds this enough is uh this is enough for them to make their decision So we are not pushing any mill to buy 57:28 57 minutes, 28 seconds from us. It is their choice and you cannot push industries to buy material from you. In in business it doesn't work like that. So the system is designed 57:37 57 minutes, 37 seconds like that only because we are giving him so much leverage. So they they have so much power. So automatically they will adopt the product. They will be forced 57:45 57 minutes, 45 seconds to adopt the product. This is my belief and view in this. Mhm. 57:53 57 minutes, 53 seconds I think from a key financial metrics perspective and then I'll hand it hand it on to Omar to talk about um the more core tech elements from a key financial 58:02 58 minutes, 2 seconds metrics I would say there are three metrics that you should keep a close eye on first and foremost is our top line um 58:10 58 minutes, 10 seconds by the way right so u all all all our revenue everything happens via our platform right so when we say it's a 58:19 58 minutes, 19 seconds closed marketplace it may happen that it's it's mills doing it or it may happen through the sales rep but essentially there's no differentiation 58:26 58 minutes, 26 seconds between this revenue is revenue versus this revenue is non revenue so just 58:33 58 minutes, 33 seconds overall key financial metric topline the second one I would say is our operating leverage or operating costs which is 58:42 58 minutes, 42 seconds where the leverage came comes about which I spoke about track those those should come down as a percentage of 58:50 58 minutes, 50 seconds revenue as we scale on the back of our platform. And the third thing is within the revenue split, I would also keep an 58:58 58 minutes, 58 seconds eye on our products versus services segment which we report as well, right? 59:02 59 minutes, 2 seconds And you should see that services revenue as well uh growing over time basically 59:09 59 minutes, 9 seconds right uh so those are the three financial metrics that I I would keep an eye on. Of course the target being over here that as some of these scale things 59:18 59 minutes, 18 seconds come up um the underlying economics and the Bidas will also start to flow through right but at topline I would say those are three financial metrics that 59:27 59 minutes, 27 seconds as investors I would urge everyone to keep an eye on on a quote on quarter year basis at the schema over two months. 59:36 59 minutes, 36 seconds Yeah I I think what we'll uh do is uh we'll move in three phases. The first phase is the current phase which will last for maybe uh next 12 to 18 months. 59:48 59 minutes, 48 seconds Uh what we'll do is that we'll continue uh collecting data and we'll continue improving uh error and optimizing it for 59:57 59 minutes, 57 seconds examin and in terms of financial statements you will uh be able to see that you know with in in the form of 1:00:05 1 hour, 5 seconds greater operating leverage we'll be able to do more and more uh with the the fixed number of employees we have currently right. So that will be the 1:00:13 1 hour, 13 seconds first thing once we collect data over uh more products and more news. Uh we'll 1:00:19 1 hour, 19 seconds also add more actors. So as Manish said right now [clears throat] we uh we have a platform where we already have buyers 1:00:28 1 hour, 28 seconds we have new uh right then we will also onboard other actors which is uh the 1:00:35 1 hour, 35 seconds suppliers uh which uh we already have tried some models offline but uh we'll give them a formal platform to uh place 1:00:43 1 hour, 43 seconds their inventory know which they want to sell. We want to we'll also give a platform to our current logistics partners who supply us uh logistics and 1:00:52 1 hour, 52 seconds rates in offline manner. They will start giving uh us these rates in an automated manner using the platform we give them 1:00:59 1 hour, 59 seconds and then we'll also have answers uh for example the invoice on the platforms and we'll also we'll also 1:01:06 1 hour, 1 minute, 6 seconds expose on the uh platform. So this is the second phase uh and this will enable uh us to collect and add more revenue 1:01:15 1 hour, 1 minute, 15 seconds streams. Uh we'll add a take rate for all the suppliers uh viards. We'll also add take rates for if somebody wants to 1:01:24 1 hour, 1 minute, 24 seconds sell their freight rates or some other freight or they want to sell something. 1:01:28 1 hour, 1 minute, 28 seconds We will also add some take rates for people who want to sell loans or uh give money to uh the you know the buyers 1:01:38 1 hour, 1 minute, 38 seconds right this is the second phase uh in this phase what you'll probably need to look at is uh which are the new services 1:01:46 1 hour, 1 minute, 46 seconds and platforms we have made live and which will help uh you keep track of you know what uh phase they're in and the 1:01:54 1 hour, 1 minute, 54 seconds last stage is when all these uh errors have optimized is uh exam operations the operations inside our company which is 1:02:01 1 hour, 2 minutes, 1 second the phase uh we are in currently uh and the second phase which is connecting all the actors in the ecosystem. Once these 1:02:08 1 hour, 2 minutes, 8 seconds all these things are done uh we will basically have a platform where uh which will become a source of pricing. uh so 1:02:17 1 hour, 2 minutes, 17 seconds where mills and the suppliers will go to to discover price for themselves the prices which we are able to recover for 1:02:24 1 hour, 2 minutes, 24 seconds ourselves right now going forward all these actors will be able to you know refer to this platform and discover 1:02:31 1 hour, 2 minutes, 31 seconds pricing uh and it will also be a place where uh all these names will go to figure out their logistics and also 1:02:40 1 hour, 2 minutes, 40 seconds manage uh their risk uh you know with regard to inputs of factors of production 1:02:47 1 hour, 2 minutes, 47 seconds So from tech perspective this is our stated uh you know staging of development which is next 12 to 18 1:02:55 1 hour, 2 minutes, 55 seconds months we optimize our own operation in the next phase which will again last about 1 and a half years is bringing the 1:03:04 1 hour, 3 minutes, 4 seconds different actors in one phase and the final phase is uh where we monetize everything we build in a in a bigger 1:03:11 1 hour, 3 minutes, 11 seconds manner. I hope that answers this question. 1:03:15 1 hour, 3 minutes, 15 seconds Yeah, thank you so much for uh you know answering all my questions. I see a lot of potential with this product and uh I 1:03:24 1 hour, 3 minutes, 24 seconds hope we'll see again ice in the uh future. Thank you so much team. All the very best. Thank you sir. Thank you. 1:03:32 1 hour, 3 minutes, 32 seconds Thank you. 1:03:34 1 hour, 3 minutes, 34 seconds Thank you sir. In the interest of time that will be the last question. I now hand the conference over to Mr. Tanul Bansil from XM Roads Limited for closing comments. 1:03:45 1 hour, 3 minutes, 45 seconds Thank you Aash. Um at the close I just want to want to thank everyone who's joined today and not just today but 1:03:53 1 hour, 3 minutes, 53 seconds who's been supporting our journey for the last 3 6 9 12 months and beyond. Um on behalf of the entire management and 1:04:00 1 hour, 4 minutes exits team um um all I can say is we commit towards growing and scaling the business as we move forward and 1:04:08 1 hour, 4 minutes, 8 seconds obviously giving you regular updates as the business progresses. Thank you everyone and and have a good evening. Um good afternoon.