Fabtech Technologies Limited — Q3 FY26

Fabtech Technologies Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=WEfpxpE3zyc Published: 3 months ago

0:02 2 seconds Good morning everyone and thank you. I'm Vaynavi. On behalf of Atman Strategic Advisor, I welcome you all to the Q3 0:09 9 seconds FY26 earnings conference call of Pekk Technologies Limited. Today we are joined by Mr. Ashwani Singh, Chief Executive Officer. With this now, I 0:17 17 seconds would like to hand over this call to Ashwini sir to introduce further. Over to you, sir. Thank you. 0:24 24 seconds Thank you. Thank you Vashi. Uh good morning. Good morning all. Thank you for joining us. Uh let me begin with a quick 0:30 30 seconds introduction uh of the leadership team present today. Today we do have with us Mr. A Khan our founder and promoter. Uh 0:40 40 seconds Mr. Aman Anakar our chief growth officer and Mr. Karan who leads our investor relations and strategic analytics. Our 0:48 48 seconds transition our transition to the public market happened relatively quickly and we did 0:56 56 seconds not have the benefit of extensive road shows or the prolonged pre-existing engagement. Despite that we received a 1:03 1 minute, 3 seconds very healthy response and we are grateful for the confidence shown in us. 1:08 1 minute, 8 seconds At the same time, we recognize that our business model and the structural platform we are building are not yet 1:16 1 minute, 16 seconds fully understood by you. We are not a conventional contractor. We are building a design globally positioned life 1:24 1 minute, 24 seconds science infrastructure platform focused on a long-term structural growth. We are also concisely brooming the next 1:32 1 minute, 32 seconds generation of leadership empower empowering young talent to help shape not just future but the evaluation of 1:39 1 minute, 39 seconds the market we operate in many emerging geographies. We are contributing to the very foundation of the pharmaceutical 1:46 1 minute, 46 seconds manufacturing capacity. We are building for the decade ahead not the quarter. 1:53 1 minute, 53 seconds With that I invite our chief growth officer Mr. Aman Anarp to take you through the company in detail. Over to you Aman. 2:05 2 minutes, 5 seconds Good morning gentlemen, ladies. I hope you're keeping healthy and well. Uh I am Aman Anavar. I would firstly like to 2:12 2 minutes, 12 seconds start with a brief presentation of the FAT Technologies Limited offering that we have. 2:21 2 minutes, 21 seconds Milan, can you confirm if my screen is visible? 2:35 2 minutes, 35 seconds Just a second. Yeah. Now is it visible? Yes. 2:40 2 minutes, 40 seconds Perfect. So to start off, FATECH Technologies Limited 2:49 2 minutes, 49 seconds operates in the pharmaceutical, healthcare and biotech industries and is the only turnkey life sciences platform 2:58 2 minutes, 58 seconds with in-house process, air and water manufacturing. 3:02 3 minutes, 2 seconds Processed air and water are the critical lifelines I for biioharmaceutical facility and this enables us to take 3:11 3 minutes, 11 seconds single accountability single solution responsibility and reduces the entire coordination risk of a pharmaceutical turnkey project. 3:22 3 minutes, 22 seconds We are a design and build entity that has been operating over the last three decades that is 30 years in pharmaceutical emerging markets. 3:32 3 minutes, 32 seconds pharmaceutical emerging markets like the Middle East, Africa, Persian Gulf, GCC 3:38 3 minutes, 38 seconds where medicinal independence is becoming a long-term goal and a priority. 3:49 3 minutes, 49 seconds With the in-house capabilities that Fabech Technologies Limited has, the speed to market or the gotom market 3:56 3 minutes, 56 seconds timelines are reduced and the responsibility that we can take ensures that we are the 4:04 4 minutes, 4 seconds reliable partner that is chosen by Greenfield and brownfield entities. 4:11 4 minutes, 11 seconds Our focus is ensuring regulatory confidence compliant facilities across 4:19 4 minutes, 19 seconds the pharmaceutical emerging markets and standing by our motto which is making medicines affordable and available globally. 4:29 4 minutes, 29 seconds Through the last three decades, we have built numerous facilities with WHQ 4:35 4 minutes, 35 seconds approvals, EUGMP, USFDA, CGMP and local regulatory approvals across the pharmaceutical emerging markets. 4:46 4 minutes, 46 seconds Our attention to detail in the pharma, healthcare and biotech industries focused on GMP compliance, energy 4:55 4 minutes, 55 seconds efficiency, operational efficiency and contamination controlled environments has allowed us to build several references across 62 countries. 5:06 5 minutes, 6 seconds We have our regional presence across Algeria, Nigeria, Egypt, Jordan, Saudi Arabia, UAE. 5:16 5 minutes, 16 seconds India being our roots but we are a transnational company having the life sciences platform 5:25 5 minutes, 25 seconds capable of executing projects across the farmer emerging markets. I reiterate this Mina GCC economical regions like Africa. 5:35 5 minutes, 35 seconds We are an extremely asset light lean integrated model which combines GMP expertise which we hold in-house 5:45 5 minutes, 45 seconds with over 180 engineers, technicians, draftsmen, pharmacists and experts on our team. 5:56 5 minutes, 56 seconds We have an order book which you can see as of 3rd November 2025 6:04 6 minutes, 4 seconds with the capabilities across HVAC process automation and clean rooms and we're trusted by leading pharma emerging companies and existing pharma giants. 6:17 6 minutes, 17 seconds The service offering that we provide when we say design and build as you can see in my screen starts at advisory 6:26 6 minutes, 26 seconds consulting where we guide our clients towards disease profiling, market mapping, market planning and financial 6:34 6 minutes, 34 seconds feasibilities to ensure that the products that are selected by our client are feasible for their markets. We are 6:43 6 minutes, 43 seconds also in the business of building profitable businesses for our client. So we have to be very selective with the kind of approach that we must have for our business. 6:55 6 minutes, 55 seconds From the disease profiling step, then comes the design, conceptual engineering, basic and detail 7:01 7 minutes, 1 second engineering and then the entire project management cycle which includes the vendor selection, 7:09 7 minutes, 9 seconds procurement, execution, commissioning, validation, technology transfer and the afterale project support, sales, service and uh maintenance. 7:19 7 minutes, 19 seconds This is the entire service offering of Fabech Technologies Limited that has allowed us the references that we have built. 7:28 7 minutes, 28 seconds Now what you see on the screen is the structure of the Fap Technologies Limited group 7:35 7 minutes, 35 seconds where we have our operations and our acquired companies present. Here 7:43 7 minutes, 43 seconds you have the turnkey engineering services which is process air and water which has Fable Technologies LLP 7:52 7 minutes, 52 seconds focused on critical containment solutions which FAT owns 49% of. We have Fabech Technologies LLC which is a UAE 8:00 8 minutes subsidiary through which we acquired two years back. FTS clean rooms Systems LLC. 8:07 8 minutes, 7 seconds Mark Maker which focuses on critical granulation OSD process solutions which we acquire 33% of in 2024 8:17 8 minutes, 17 seconds and TSA process equipments private limited which focuses on critical water solutions which we will be exiting in the next in this financial year. 8:32 8 minutes, 32 seconds I would like to now focus on I'm going to stop my screen sharing and I would like to speak. 8:41 8 minutes, 41 seconds Uh let me first reiterate that the given nature of our design and build and shipmentbased billing 8:50 8 minutes, 50 seconds especially with a growing international mix. 8:55 8 minutes, 55 seconds Quarterly numbers can fluctuate due to timing. While the annual guidance remains the right lens to evaluate performance. 9:04 9 minutes, 4 seconds Coming to quarter three, the softness is purely a timing issue. 9:10 9 minutes, 10 seconds A meaningful part of Q3 execution was completed during the quarter but not shipped within the same period. 9:20 9 minutes, 20 seconds In export oriented design build projects, revenue is recognized only upon shipment, not upon milestone and project progress certification. 9:33 9 minutes, 33 seconds Accordingly, shipments and inspections for certain projects moved early into Q4. 9:42 9 minutes, 42 seconds Activity happened on the ground, but revenue slipped into quarter 4. 9:48 9 minutes, 48 seconds Additionally, Q3 absorbed the front-loaded costs with backended revenue. 9:55 9 minutes, 55 seconds Certain expenses such as engineering, mobilization, exhibitions, and international business development are 10:03 10 minutes, 3 seconds incurred upfront while the corresponding revenues are recognized with a lag. 10:10 10 minutes, 10 seconds As a result, Q3 reflects the cost and Q4 should reflect the payoff. 10:16 10 minutes, 16 seconds It is important to note that order inflow has not slowed. 10:22 10 minutes, 22 seconds The order book remains strong. Pipeline visibility is healthy and there have been no cancellations or pricing pressures. 10:31 10 minutes, 31 seconds This clearly indicates that the Q3 impact is timing related not demand related. 10:39 10 minutes, 39 seconds Looking ahead, deferred revenues are expected to be recognized in Q4 and execution momentum remains intact. 10:49 10 minutes, 49 seconds Simply put, execution continues, demand remains strong and the numbers will follow with timing. 10:57 10 minutes, 57 seconds We operate in geographies that are on a long journey towards medicinal sovereignity, medicinal independence. 11:05 11 minutes, 5 seconds Many emerging markets want to build their own pharmaceutical capabilities rather than depending on imports. 11:12 11 minutes, 12 seconds This is where we come in. We are in the business of building life sciences infrastructure that make medicines possible. 11:22 11 minutes, 22 seconds We are India's global design build platform for advanced life sciences infrastructure. 11:30 11 minutes, 30 seconds We are not building for the quarter. We are building for the curve and in many cases helping that curve. Our focus is 11:39 11 minutes, 39 seconds on creating the healthcare backbone for countries that want sovereign pharma capabilities. 11:46 11 minutes, 46 seconds We have also launched our Twitter to consistently share what we are building and where we are building it so 11:54 11 minutes, 54 seconds that our business model and depth of work are clearly understood. 11:59 11 minutes, 59 seconds I thank you for this opportunity and we are questionable. 12:06 12 minutes, 6 seconds Thank you msa. Investors the floor is now open for Q&A session. You can raise your hands or drop your questions in the chat. Thank you. 12:20 12 minutes, 20 seconds The first question by Hel Desai and I I hope I'm audible. Can you elaborate a bit more on what disease profiling means? 12:28 12 minutes, 28 seconds Yes. 12:29 12 minutes, 29 seconds Disease profiling is the process of identifying which diseases are more prevalent or growing in a certain 12:37 12 minutes, 37 seconds country or region. Based on this identification of the diseases, the client is able to make a collective 12:47 12 minutes, 47 seconds decision what product he would like to produce. 12:53 12 minutes, 53 seconds And I would like to add to that disease profiling also kind of preempts the 13:01 13 minutes, 1 second disease pattern that would going forward emerge in a particular geography. 13:09 13 minutes, 9 seconds Now this helps us in advising the client in his selecting 13:19 13 minutes, 19 seconds the right product portfolio based on which the facility should come up. And 13:27 13 minutes, 27 seconds as Ashwin and Ana Aman have mentioned, 13:34 13 minutes, 34 seconds we are building profitable businesses. We are helping our clients in those geographies 13:44 13 minutes, 44 seconds build profitable businesses. So disease profiling begins the C uh marks the crux of the business. 13:59 13 minutes, 59 seconds Next question please. 14:11 14 minutes, 11 seconds We are only allowing type questions or we can also uh have the audio on. I think m is uh ask the question. 14:22 14 minutes, 22 seconds Yeah. Hello. Am I audible? Yes. 14:25 14 minutes, 25 seconds Yeah. Good morning. Uh firstly, uh if you could quantify the revenue that was deferred to Q4 that we were supposed to recognize in Q3 if that's possible. 14:38 14 minutes, 38 seconds Sure M I'll take that question. So around you know 20.3 Ks of stock of material was lying at our port now which got delayed and will be built in Q4. 14:52 14 minutes, 52 seconds Okay. And uh any order book number you could give which is uh uh like related to December figure because in the pre-presentation we mentioned the 15:01 15 minutes, 1 second November order book number. So as of Jan 31st our outstanding order book is 926 crores 15:08 15 minutes, 8 seconds 9 26 26 crores. Okay. And this is as of Jan ending right end of Jan 31st Jan. 15:16 15 minutes, 16 seconds Okay. any uh bids or orders that we have in pipeline that we are expecting to see an inflow in the next two months 15:23 15 minutes, 23 seconds February and March will take yes there is a very healthy I'll take it 15:32 15 minutes, 32 seconds there is a very healthy uh hot lead bank that we have close to roughly around 15:41 15 minutes, 41 seconds 455 million 455 million US And uh you will learn shortly of some 15:51 15 minutes, 51 seconds very beautiful convergence that are going to happen in Africa and the Middle East. 15:59 15 minutes, 59 seconds Middle East. 16:02 16 minutes, 2 seconds That is great. And this 926 crores if you could give me the split between the export and the domestic if that's possible. 16:09 16 minutes, 9 seconds We only do it. Sorry. Go ahead. 16:13 16 minutes, 13 seconds uh current if Shinsi has uh then we'll allow it. Yeah. No very very less of domestic numbers. MRI here we are 16:22 16 minutes, 22 seconds largely we're largely export focused the international market the medicinal the farm emerging market 16:30 16 minutes, 30 seconds offers such a big potential that we rather focus on the geographies that are perceived to be uh a no-go areas for 16:38 16 minutes, 38 seconds many and hence when we have ring fenced the market in the last so many years we would want to really reap in the benefits in the in the time times to come. That is great. 16:49 16 minutes, 49 seconds And uh each of these orders, if you could tell me the lead time, how long it takes us to complete the order and kind of recognize the revenue. 16:58 16 minutes, 58 seconds It seems you're representing the entire investor community, but I'll take it. I think you're covering most of the questions. You're covering most of the 17:04 17 minutes, 4 seconds questions. So, generally up till now, we used to be having 9 months to 18 months for delivering an order. But going forward, uh we are speeding the process. 17:16 17 minutes, 16 seconds Even the market is demanding uh uh quick deliveries. They're in a rush to achieve 17:25 17 minutes, 25 seconds medicinal independence. Of course, it's a 15-year old net pipe that we see. Uh but you will see a quick uh realization happening going forward. 17:36 17 minutes, 36 seconds That is great. Um yeah, I think that is it from my side. Thank you so much. Thanks, M. 17:42 17 minutes, 42 seconds Thank you. Next question is from Mr. Yes. 17:52 17 minutes, 52 seconds Yeah. Hello. Yes. Yes. 17:56 17 minutes, 56 seconds Yeah. Uh so I might have missed the earlier clarification on the numbers. So if you could uh just summarize in short 18:04 18 minutes, 4 seconds uh what uh was the uh major reason in this uh dip in top line and the bottom 18:10 18 minutes, 10 seconds line in Q3. Anik may I request you to go through the transcript. The important 18:16 18 minutes, 16 seconds thing crux is uh work you can just summarize in few words. 18:21 18 minutes, 21 seconds Yes. Yes. Work happened in quarter 3 revenue slipping to quarter 4 around 2022 crores of material lying at the board. We are not a quarterto quarter 18:30 18 minutes, 30 seconds story. We are a yearly guidance uh uh and design and build may this is the trade that you will see but the yearly guidance remains intact. 18:40 18 minutes, 40 seconds Okay. And uh can I have the number of the guidance for you? 18:44 18 minutes, 44 seconds Yes. So as we had specified we'll be between 380 to 400 crores and between 39 to 41 crores of pat. 18:53 18 minutes, 53 seconds Okay done. Thank you. 18:57 18 minutes, 57 seconds There's a question in the chat box. Uh what is the average ticket size of a typical order? 19:05 19 minutes, 5 seconds What would be the bidding pipeline and what would be our win rate? Can we also talk about competition? Usually we refrain from talking about competition. 19:13 19 minutes, 13 seconds Um we prefer not talking about European companies and just differing from the topic. But the average ticket size of 19:20 19 minutes, 20 seconds typical orders ranges between $1.5 million to about $5 million on a lower ticket size. 19:31 19 minutes, 31 seconds Yes. And going forward these uh ticket sizes are showing a marked increase where the average ticket size at this 19:38 19 minutes, 38 seconds moment is around $7 million. We have a huge hot lead order bank where an average ticket size is between 7 to$10 19:47 19 minutes, 47 seconds million earlier which used to be as Ammon said $1.5 to $3 million $5 million is now increasing because as you saw and 19:56 19 minutes, 56 seconds many of you might have missed the uh presentation which Ammon gave. Uh we are 20:02 20 minutes, 2 seconds a platform a global life science design and build or an infrastructure platform 20:09 20 minutes, 9 seconds and what it means what what we mean by platform and how we are different from an EPC is a platform has the critical 20:18 20 minutes, 18 seconds capabilities of process air and water within the group where we have invested in companies or we have bred or uh 20:26 20 minutes, 26 seconds developed our homegrown companies to do air and process and containment. 20:31 20 minutes, 31 seconds solutions. So there would not be a company like us which has a very strong design uh platform in-house design of 20:41 20 minutes, 41 seconds oral solids to high-tech vaccines or bioimilars or enco we have a very beautiful uh platform of manufacturing 20:50 20 minutes, 50 seconds critical components that go in the in the in the project that is process oral or injectable air which is needed to 20:58 20 minutes, 58 seconds cover the process and water which is needed to uh feed the process. This all is done inhouse. That's how that's what 21:07 21 minutes, 7 seconds we mean by platform. And this platform is enabling us to uh pitch for bigger projects. Plus add to that our project 21:16 21 minutes, 16 seconds management team in uh uh on the ground in regions which 21:23 21 minutes, 23 seconds matter the most speaking the same language as the customers. 21:29 21 minutes, 29 seconds Our win rate uh 10 to 12% thus far in the last three three months it has increased to 15%. 21:38 21 minutes, 38 seconds And we have raised money for acquiring a European uh entity which will increase our conversion rate to 20 to 25%. 21:51 21 minutes, 51 seconds Next question please. Investors the floor is open for Q&A session. You can raise your hands or drop your questions in the chat box. Thank you. 22:00 22 minutes Yes, Mr. Girish, you can go ahead and ask the question. Hello. Good morning. Am I audible? Yes, Girish. 22:09 22 minutes, 9 seconds Yes. Uh, since you are a bioparma platform provider, um, I wanted to I mean since you said uh vaccines and 22:17 22 minutes, 17 seconds bioimilars and all. So, we also make uh the facility for pyrogen-free water as well like you know those kind of 22:25 22 minutes, 25 seconds facilities like it's a bit technical what I'm asking. 22:29 22 minutes, 29 seconds Yes. And we also maintain it or we just build it and uh uh uh provide it to the uh their own engineering people. 22:40 22 minutes, 40 seconds Uh not really. We don't maintain it as of now and we don't uh see ourselves maintaining till at least uh mid of next 22:49 22 minutes, 49 seconds year. After that we'll see how our plans fractify but largely what we're doing is we're making uh our projects that we supply to 22:59 22 minutes, 59 seconds these critical geographies self uh maintainable by providing them a project manager which takes over as over as 23:07 23 minutes, 7 seconds maintenance manager. So that's one and add to that um Gish to address specifically 23:14 23 minutes, 14 seconds when we execute an end toend design and build project the scope of work also 23:21 23 minutes, 21 seconds includes knowledge transfer trainings of the operators as well. So we have to ensure that the in-house engineering and 23:28 23 minutes, 28 seconds maintenance teams are built on the client side so that the dependence on independent companies is taken away but 23:37 23 minutes, 37 seconds at the same time we have uh started as mentioned in the previous earning call 23:44 23 minutes, 44 seconds exploring the service uh platform the annual maintenance contracts as well. 23:49 23 minutes, 49 seconds So, one of the first IV solutions, the paraben-f free water WFI, what we call it, uh, plant that we're building in 23:55 23 minutes, 55 seconds Djibouti also includes an AMC component, annual maintenance contract. AMC is AM. Yeah. 24:03 24 minutes, 3 seconds Yeah. Yeah. Yeah. Understood. 24:04 24 minutes, 4 seconds Understood. Okay. Got it. Uh, my uh second query was uh regarding the order book uh which now stands at roughly 24:11 24 minutes, 11 seconds around 920 plus cres. So that uh as uh should we understand it that it will all be executed uh roughly in the next uh 18 24:21 24 minutes, 21 seconds months because you said 9 to 18 months is your project duration. That's right. Yes, that's right. 24:27 24 minutes, 27 seconds Okay. And currently we only are looking at uh the farmer sector like unlike your India operations where you're looking at 24:35 24 minutes, 35 seconds food and um other market segments like electronics and all that we are not we are only focusing right now on the 24:44 24 minutes, 44 seconds farmer sector here currently yes the pharma itself the life science itself is offering uh an 24:52 24 minutes, 52 seconds unprecedented opportunity a fantastic opportunity but we have always also mentioned that we are from now preparing 25:02 25 minutes, 2 seconds for the food security issue that is going to happen in these uh geographies that we are operating in. Number one. 25:10 25 minutes, 10 seconds Number two, our India business is largely clean rooms and and and and the the upstream and downstream clean rooms 25:18 25 minutes, 18 seconds whereas we are focusing on turnkey. Now that's the difference. There's a turn company which is packaging process 25:26 25 minutes, 26 seconds infrastructure. Now that is only the clean room infrastructure. 25:31 25 minutes, 31 seconds Number three, there are uh uh opportunities which are unfolding in this part of the world also namely semicons, electronics and data centers. 25:41 25 minutes, 41 seconds Now we will really look at that when it really comes to that level. We of course will 25:49 25 minutes, 49 seconds be in preparation with both our companies and we will take a an apt strategy to address these markets when 25:56 25 minutes, 56 seconds the time comes. Uh till that time we do not want to lose focus from the tremendous opportunity that lies ahead of us. 26:05 26 minutes, 5 seconds Okay fine that's all from my side. Thank you very much. Thank you. Good day. Indeed. There are two questions in the chat box. 26:16 26 minutes, 16 seconds One is what kind of margins would we be seeing going forward? Also the margin profile across segments and geographic regions also any ongoing acquisitions 26:25 26 minutes, 25 seconds going forward and if any what kind of impact would they have? 26:29 26 minutes, 29 seconds Yes. So the margins Neil would remain between 9 to 11% pat we have the we have 26:38 26 minutes, 38 seconds the flexibility to increase the margins if we rationalize our our marketing and business development expense which 26:45 26 minutes, 45 seconds stands to a staggering 8 1/2 crores. All right. Every year we have been spending around 8 and a half to 9 crores in our 26:53 26 minutes, 53 seconds promotion and development only. Now largely we are in the right geographies 27:00 27 minutes ring fence the market present in those uh countries uh uh in those soils. So we could we have that flexibility to 27:09 27 minutes, 9 seconds increase it number one. Number two margin across profile across segments. So that averages out to uh uh the same. 27:18 27 minutes, 18 seconds Africa is a uh eco uh market. It's a it's a sensitive market but we are we 27:25 27 minutes, 25 seconds are deep drilling now in in in Africa uh and uh you will see huge traction 27:32 27 minutes, 32 seconds happening in that continent and to address the eco needs of Africa we are 27:39 27 minutes, 39 seconds taking certain backhanded steps which you will see in times to come which I'm not uh 27:47 27 minutes, 47 seconds I can't share it because this is sensitive information but you will see a very ful uh geographical advantage that 27:54 27 minutes, 54 seconds we'll be taking leveraging different uh supply chain uh geographies using our 28:01 28 minutes, 1 second leveraging our presence in the UAE and in Saudi we are becoming domestic here so you will see very exciting uh uh 28:09 28 minutes, 9 seconds steps that we are going to take forward till uh thus far not taken by any Indian company number one number two 28:16 28 minutes, 16 seconds acquisitions yes there are uh plans to to and We we have a very very decent uh 28:25 28 minutes, 25 seconds acquisition engine that is the uh uh uh war chest for acquisitions and Europe 28:32 28 minutes, 32 seconds offers a very beautiful opportunity. We are closing in on a couple of them here in the UAE and in Saudi we are uh also 28:42 28 minutes, 42 seconds closing in on some acquisition opportunities to get us those uh strengthening the local strengthening the local presence. 28:51 28 minutes, 51 seconds And uh what kind of impact what they have. You will see the impact what they have. It will be very beautiful positive impact because once we are local we preferred and all of these countries 29:01 29 minutes, 1 second want to become local. Want to become local and we have a very head start very decently positioned in capturing the market which is offering. 29:10 29 minutes, 10 seconds What is that? uh Vikas Gupta has asked the question was there also set off revenue deferred in Q2 to Q3 which can 29:18 29 minutes, 18 seconds offset the 20C cr margin now expected in Q4 or as of now it is a onetime guaranteed margin. Uh so listen uh 29:27 29 minutes, 27 seconds because we this point of quarter fluctuation will keep happening. If you saw if you saw quarter one was where was 29:35 29 minutes, 35 seconds subdued. Quarter two uh where we where the spillover from quarter one happened in quarter two and some and some of the 29:44 29 minutes, 44 seconds quarter three also we pulled to quarter two. All right. Similarly, this is all 29:51 29 minutes, 51 seconds as you will not unfortunately we do not have uh a precedence of what we do. 30:00 30 minutes Unfortunately, we don't have anybody else who have done this before us. So to to to learn from their uh experiences, 30:08 30 minutes, 8 seconds their mistakes, their lapses. Here we make mistakes, we will learn. But we have enough buffer, enough freedom to to 30:17 30 minutes, 17 seconds to to uh if not the right word fail but to experiment and as the markets go and 30:26 30 minutes, 26 seconds there are some markets which are al some clients which are also surprised by our speed. So we have the material ready they are not ready with their buildings. 30:36 30 minutes, 36 seconds So we take cognizance of the relationship that we build with them and we really hold the shipment otherwise LC 30:45 30 minutes, 45 seconds says ship it we can ship it dump it there we'll recognize our revenue but then it will not be a very long-term uh relation building we sometimes 30:53 30 minutes, 53 seconds accommodate our clients so you know this is what you will keep seeing in the at least the next uh uh two years the 31:01 31 minutes, 1 second quarter fluctuation I feel could happen But largely we are on track on yearly guidance. 31:08 31 minutes, 8 seconds Yes. 31:11 31 minutes, 11 seconds Break up of the current order book by end user industries all pharmaceutical all life sciences. So honestly uh there 31:20 31 minutes, 20 seconds are no break up as such but yes with for the pharmaceutical emergence in these the medicinal independence that we these 31:28 31 minutes, 28 seconds countries are planning would only give us the generics but we are pretty surprised by the GCC giving us cell and gene therapy projects by giving us uh 31:37 31 minutes, 37 seconds high-tech medicine projects oncology projects we in in Djibouti we finalized secondary practice and 31:46 31 minutes, 46 seconds that is in Botswana vaccine Animal health. Now animal health is 31:54 31 minutes, 54 seconds animal health also is becoming a big industry industry in Africa which we thought will 32:02 32 minutes, 2 seconds happen much later but it's happening now and that has opened a very different uh uh avenue for us. 32:13 32 minutes, 13 seconds Next question please question by an Madwani. Could you please provide a breakup of the current order book? 32:19 32 minutes, 19 seconds That's what I mentioned. That's what I meant. That's what I addressed. 32:23 32 minutes, 23 seconds We thought our business was really not understood and we were expecting a lot of questions this year. 32:28 32 minutes, 28 seconds There's a very nice question by Desh Agarval. Can we say quarter 4 will have a bumper profit exceeding 30 kores? 32:35 32 minutes, 35 seconds It has happened. It has happened earlier with us. So no. Huh? 32:40 32 minutes, 40 seconds It has happened earlier. But uh here if if we see we have to achieve 20 to 24 crores to reach our mark which is pretty 32:49 32 minutes, 49 seconds uh pretty much possible on the right track. Yeah. Myri has given a list of questions. 32:56 32 minutes, 56 seconds Number one, how are the receivable days in the Africa region? And if you could mention what clients are we working for? 33:03 33 minutes, 3 seconds Are these local players or MNC's? I'll take that. Um the clients that we're working with are both MNC's and 33:10 33 minutes, 10 seconds Greenfield investors in the Africa region. We only work on confirmed LC 33:17 33 minutes, 17 seconds backed payments. Um so the timelines of the auto like we mentioned 9 months to 18 months. 33:25 33 minutes, 25 seconds There is no retention over 6 months from installation or handing over of the 33:33 33 minutes, 33 seconds project which is also backed by LC receivable days. 33:38 33 minutes, 38 seconds So receivable days as we have been saying we are a project company but we 33:45 33 minutes, 45 seconds work on LCA project so it is shipment based. Now if we change our methodology of revenue recognition from shipment based current correct me if I'm wrong. 33:54 33 minutes, 54 seconds Yes. shipment based to project completion method or project progress method you will see a substantial jump now that is some call we got to take uh 34:02 34 minutes, 2 seconds but largely it's all LC backed uh and I would correct 6 months say one year time frame retention correct 34:10 34 minutes, 10 seconds and that's about it any timelines when the acquisition will be done first quarter uh we are very diligent when it comes to 34:18 34 minutes, 18 seconds acquiring companies we have very right priced uh companies that we are discussing with 34:27 34 minutes, 27 seconds in our ration and bid to to to to expedite the process. We don't want to compromise on acquisitions. When we were 34:35 34 minutes, 35 seconds getting into uh the IPO, our investors were encouraging or preipo 34:42 34 minutes, 42 seconds investors were encouraging company and all the stuff. But we remain true to what we are building. And we know that 34:51 34 minutes, 51 seconds success in acquisitions can happen if it is rightly priced. And we have very beautiful track record of investing in 34:59 34 minutes, 59 seconds companies and turning them around and really making them add value to us. And we do not want to spoil that record. So 35:07 35 minutes, 7 seconds you will see acquisitions happening safely in the next 6 months. We could even 35:15 35 minutes, 15 seconds surprise you if it happens before March 31st but likely it could spill to next year. Right. 35:22 35 minutes, 22 seconds Yeah. Yeah. And just to address the question right before that, which countries are we targeting in Europe? To 35:28 35 minutes, 28 seconds reiterate uh Maitri, the reason for the acquisition in Europe is to strengthen our 35:37 35 minutes, 37 seconds conversion rates and the positioning in the pharmaceutical emerging markets where these European companies are 35:44 35 minutes, 44 seconds expanding to because as we all know the region of Europe in terms of growth and expansion is a bit saturated. So there 35:52 35 minutes, 52 seconds will be references that will flow from the uh European side but primarily we are focused to strengthen our sales 36:01 36 minutes, 1 second conversions and growth in the same pharmaceutical emerging markets and ring fence it for factor technologies limited 36:12 36 minutes, 12 seconds and question three FY27 what sort of growth are we looking at what can we say Ashwin we are growing at 36:18 36 minutes, 18 seconds 30 to 40% 30 30 is target the yearon-year growth 30% we are looking at 36:25 36 minutes, 25 seconds yes for growth okay investors do we have any more questions 36:33 36 minutes, 33 seconds there's a question by an Madwani to clarify do we primarily execute only turnkey projects and within that what is 36:40 36 minutes, 40 seconds the split between in-house execution and third party execution uh first question we do not execute only turnkey projects 36:50 36 minutes, 50 seconds but at the same Majority are green field turnkey projects that we do execute. But there are also instances where 36:56 36 minutes, 56 seconds brownfield expansions by existing manufacturers are taking place and those projects also do come to us where 37:04 37 minutes, 4 seconds there's an expansion of a machine or a clean room entirely which we call as a brownfield turnkey operation. Many times 37:12 37 minutes, 12 seconds also when a client is diversifying he is an existing manufacturer who is diversifying into a new product range 37:20 37 minutes, 20 seconds which can act as a brownfield expansion or a green field project acting as us for us and within that the split between 37:29 37 minutes, 29 seconds in-house execution and third party execution no we are entirely inhouse execution inhouse 37:35 37 minutes, 35 seconds I would like to I think rephrase this entirely in-house execution is present in all projects that we do at the same 37:43 37 minutes, 43 seconds time in-house manufactured products supplied to a plant is 30% and the rest 37:50 37 minutes, 50 seconds is from other reputable companies. So we are a very lean organization I must say right. 37:58 37 minutes, 58 seconds So yes Vikas Gupta because the stock has crashed leading to the loss of shareholder trust. Honestly speaking we 38:05 38 minutes, 5 seconds were not very communicative and we have realized that people because as Ashid mentioned we 38:12 38 minutes, 12 seconds the IPO happened in we transitioned into IPO very quickly. There were hardly any road shows. So like we did for our 38:20 38 minutes, 20 seconds domestic company Faptic Clean. never really had the opportunity to do road shows to explain to shareholders and the market what our business is. The market 38:30 38 minutes, 30 seconds has not seen anybody and I don't think so the market has seen anybody like us thus far. Uh and what we are building is 38:39 38 minutes, 39 seconds again not for this quarter, next quarter, over the next year but the there is a there is a very beautiful uh 38:48 38 minutes, 48 seconds uh uh drug food security uh life science story emerging. We are working on it. 38:55 38 minutes, 55 seconds not really uh uh uh getting perturbed by what has happened because that's a culmination of many aspects internal 39:03 39 minutes, 3 seconds external everything put together and I would say there are many beautiful companies which have became which have 39:10 39 minutes, 10 seconds become blue chips now at one point of time they were not understood well we it's it's not really bothering us we know that we are true to the cause we 39:20 39 minutes, 20 seconds are a company which talks which which has less of frills and more of substance and you will see that going forward and 39:28 39 minutes, 28 seconds whatever it is you'll always find us now on very communicative like we had done in FAT clean rooms we are very communicative so we will be here also so 39:36 39 minutes, 36 seconds our Twitter uh is uh there in order for us to keep sharing uh whatever is happening with the company 39:45 39 minutes, 45 seconds and uh what's expected from now based on yearly guidance uh I don't want to speculate on that I 39:53 39 minutes, 53 seconds can always say we will do what we have we must do and whatever happens in the 40:00 40 minutes stock market will be the function of how we perform. 40:05 40 minutes, 5 seconds We expect your order wins to be commun Absolutely. I think uh this is speak your question loudly. We deserval 40:13 40 minutes, 13 seconds we expect your order wins to be communicated to shareholders via stock exchanges regularly so that we can retain confidence in company. You're 40:21 40 minutes, 21 seconds right. Absolutely right. That's all I'd like to say and that is what we've learned and we're going to exercise now and 40:31 40 minutes, 31 seconds educate our partners, investors, shareholders about what it is that we're doing, what it is that we're succeeding and what steps are we taking to secure 40:40 40 minutes, 40 seconds our own business as well, right? And grow. Uh there is a question by DHUF. 40:47 40 minutes, 47 seconds Yes, Mr. Dhu, you can go ahead and ask the question. Uh thank you sir for taking my question. 40:53 40 minutes, 53 seconds Uh just I'd like to mention that I recently visited certain pharma plants in Dubai and Shaja that were executed by FATECH and the quality of work and 41:00 41 minutes engineering ex execution was excellent like it gave strong confidence in the company's technical strength especially 41:07 41 minutes, 7 seconds in the GCC region. So, but my question was on the data centers like this is a key global theme like could you share 41:15 41 minutes, 15 seconds how fab is positioning itself in this segment like the markets you're targeting and a broad sense of the opportunity size or order flow we can expect over the next few years. 41:26 41 minutes, 26 seconds Well, as I mentioned D uh yes another way not to succeed would be to 41:34 41 minutes, 34 seconds run in all directions. Number one when we have a very very potent market the farm emerging market is Africa, Middle 41:43 41 minutes, 43 seconds East, Persian Gulf, Mranian countries, Mina region when you have such an opportunity here when you can create a 41:50 41 minutes, 50 seconds life science infrastructure giant making medicine affordability and availability possible. uh we would want to take our 41:58 41 minutes, 58 seconds own time in preparing for the opportunities other than farmer preparing before taking a jump a short 42:06 42 minutes, 6 seconds uh as I mentioned and I I keep on mentioning running in all directions also will wear 42:12 42 minutes, 12 seconds us number one number two uh but it's not that we're turning a Nelson's eye to what's happening as I said you will see 42:22 42 minutes, 22 seconds when it comes to that uh we are prepared to take infrastructure projects at our 42:29 42 minutes, 29 seconds back and call. Whether we want to do it, that's a sub a matter which we would want to discuss within ourselves and take a call. Having said that, we have 42:39 42 minutes, 39 seconds in our ecosystem capabilities uh to take data center projects and that 42:46 42 minutes, 46 seconds if it happens it would be uh it would be seen and thank you Du and I would really in invite every single 42:55 42 minutes, 55 seconds meaningful uh uh uh significant investor to come visit us and see what we are doing in order to understand what 43:03 43 minutes, 3 seconds capabilities we have. In fact, uh you will see a lot of beautiful uh things happening going forward where we owning 43:11 43 minutes, 11 seconds the processed air and water domain and going forward through uh uh 43:19 43 minutes, 19 seconds means we are controlling we we will be controlling the product IPS also which will be making which will be making us compelling proposition for our clients 43:28 43 minutes, 28 seconds to work with us. So uh medicine and independence a is a is a is a is a multi-billion dollar opportunity. 43:40 43 minutes, 40 seconds If data center is a multi-billion dollar opportunity, medicinal independence that these geographers are aim aiming is also 43:46 43 minutes, 46 seconds a multi-billion dollar opportunity which nobody very few people are are positioned to to take advantage of. In 43:56 43 minutes, 56 seconds in summary to all right what AKitly mentioned the priorities are life sciences projects and growing in this 44:05 44 minutes, 5 seconds direction but we're not shying away from the new industries like data centers that are available to us because our 44:13 44 minutes, 13 seconds ecosystem holds the capacity and capability to execute these as well. Uh there is a question by Neil. 44:22 44 minutes, 22 seconds You have a 900 K order book. Could you give us a rough breakdown on the timeline that we can expect the 44:28 44 minutes, 28 seconds execution by roughly Q1 FY28 as you said delivery timelines could get faster so early realization would be possible 44:36 44 minutes, 36 seconds right Neil 900 cr order position. 44:42 44 minutes, 42 seconds Uh Ashin see so uh Neil now you have to understand because we should have a very sustained growth year on year and right 44:51 44 minutes, 51 seconds now our conversion ratios and what we are targeting for you know order booking we must have at approximately double of 44:58 44 minutes, 58 seconds our revenue targets you know the the the growth target and all looking at 900 cr yes this is right that the major portion 45:06 45 minutes, 6 seconds will be covered in next financial year and uh approximately you can say 30 to 45:12 45 minutes, 12 seconds 40% will pass on to the Q1 or Q2 FI28 and that is how we sustain in the market 45:20 45 minutes, 20 seconds during this process definitely our team what we are talking about the conversion ratio of the order which we are now targeting to increase approximately 15%. 45:30 45 minutes, 30 seconds the order position by uh FI27 by end. I think that should reflect our position in the market 45:39 45 minutes, 39 seconds and uh you are very safe to assume that we expect the execution roughly by Q1 FY28. Yes. and uh whatever whatever 45:48 45 minutes, 48 seconds steps that we are taking owning the process the IPS and including the increase in ticket sizes and there are 45:56 45 minutes, 56 seconds steps that we are taking in order to expedite the the civil construction by the clients also because that is something which impacts sometimes most 46:03 46 minutes, 3 seconds of the times us. So those are the concrete steps that we are taking number one to improve our conversion rate. 46:11 46 minutes, 11 seconds Number two to to to increase our ticket size by not just offering what we are doing but the the process and the 46:18 46 minutes, 18 seconds internal infrastructure but al also taking the external infrastructure in terms of PEBB going forward and there is another green energy option which is 46:27 46 minutes, 27 seconds opening where we have tied up with KP uh greens for the solar and that's also a proposition which is now being offered 46:35 46 minutes, 35 seconds and uh uh steps in those uh uh in that way will also be is also are also being taken. 46:49 46 minutes, 49 seconds Okay, next question please. Are we there? Yeah. Yeah. 46:55 46 minutes, 55 seconds Investors, the floor is still open for question and answer session. If you have any questions, you can raise your hands or drop your questions in the chat box. 47:16 47 minutes, 16 seconds We have none. 47:21 47 minutes, 21 seconds So there is one more question in chat box from Mr. Supply package units to be tied into supply. 47:31 47 minutes, 31 seconds Do you supply package units? 47:46 47 minutes, 46 seconds I'm not able to understand this question. Uh uh if we can allow him to uh hello. 47:56 47 minutes, 56 seconds So what what is the restriction of not moving to a percentage completion method? uh I joined a bit late so I could not understand that because most 48:05 48 minutes, 5 seconds of the turnkey EPC contractor actually follows this percentage completion method. So why we are not choosing it? 48:13 48 minutes, 13 seconds Absolutely right question as I mentioned. I'm sorry I didn't get your name. Hi my name is Najit. 48:22 48 minutes, 22 seconds N yes I'm sorry. Uh there was some cross talk also I lasted. N yes you're right. 48:29 48 minutes, 29 seconds There is a percentage completion method which we can use. Number one. Number two, as you as you see, we have largely uh work with secured terms of payment. 48:41 48 minutes, 41 seconds Uh as we go domestic now in the UAE, uh we are we are local company now. Uh FDS 48:48 48 minutes, 48 seconds is 100% held by uh FATECH and in Saudi we are also becoming local. we have 100% 48:55 48 minutes, 55 seconds fractic uh SAI by FAPIC and we are acquiring another one. Uh so going 49:02 49 minutes, 2 seconds forward in some geographies we will we could switch to percentage completion method but we feel uh uh it could happen 49:11 49 minutes, 11 seconds it could be transitioned. It can't it will not happen one shot uh liberalization. 49:18 49 minutes, 18 seconds We will see the pros and cons. We have our advisers, our auditors, our uh our uh mentors. 49:29 49 minutes, 29 seconds discussion one way one thought I'll tell you why we have not moved because payment security 49:35 49 minutes, 35 seconds LC LC percentage completion method may perhaps we'll have to depend on that client to keep paying us on the 49:44 49 minutes, 44 seconds precision percentage completion method until we have till we have a solid experience with a particular client we have repeat experiences of of course 49:52 49 minutes, 52 seconds also but we don't want to spoil them by giving them the per percentage complete ation method flexibility. So that's the 50:00 50 minutes only thing but if the if if if so if that happens you will see substantial growth in our numbers. All right but 50:08 50 minutes, 8 seconds then as we'll see we we'll evaluate the situation in the next 6 months or a year and uh we'll decide accordingly number 50:16 50 minutes, 16 seconds one. Number two one question I'm not able to understand. So you supply package units to be tied into client facilities 50:23 50 minutes, 23 seconds I'm not able to take it. Uh we are can I come in? Uh sorry who's this? 50:32 50 minutes, 32 seconds Uh Tm you want to guide me? Uh if you could unmute yourself to clarify the question. 50:41 50 minutes, 41 seconds Yes. 50:43 50 minutes, 43 seconds Yeah I have unmuted now. Can you hear me? Yes. Yes. Clear. 50:47 50 minutes, 47 seconds Yeah. The simple thing was that I I heard you telling that sometimes the civil work is not ready at the client's 50:54 50 minutes, 54 seconds uh place. So that means the your unit is ready but it cannot be installed or can be tied in to the facilities of the client. 51:03 51 minutes, 3 seconds Uh I don't know how the payment works in such cases. Uh but that means your uh real you can say installation, 51:11 51 minutes, 11 seconds commissioning, handing over etc will be governed by client. So even if you got everything Yeah. everything ready uh 51:20 51 minutes, 20 seconds unless it is tested you will not get the payments. 51:23 51 minutes, 23 seconds Correct and not correct. So you heard half of what I said. What I said was there are times when the gentleman is 51:31 51 minutes, 31 seconds not ready with his civil construction but we are ready with our material. 51:35 51 minutes, 35 seconds Sometimes we hold the material for relationship sake not that we are not we don't have the payment security. I also 51:42 51 minutes, 42 seconds mentioned LCM we have the liberty to ship we can ship it all right but there are certain 51:50 51 minutes, 50 seconds times we take cognizance of the relationship that we are building with the client because it's a huge pipeline 51:56 51 minutes, 56 seconds of 15 years every client offers us so that is what I mention but when we see the LC is getting expired no we'll ship 52:04 52 minutes, 4 seconds it we have that flexibility so we operate with a lot of flexibility we do not we are not governed or we are not 52:11 52 minutes, 11 seconds dictated or we do not do anything which is which is which is uh a matter of 52:17 52 minutes, 17 seconds compulsion no it's our choice yeah I understand you would not like to offend the client but at the same time I 52:25 52 minutes, 25 seconds think if you come to this percentage completion or you can say the inspection by client that yes this much of work is over so this much of payment is to be 52:33 52 minutes, 33 seconds released this is what large contractors most of them like Hundai or all all they follow and I have seen it working well 52:41 52 minutes, 41 seconds because it helps them in procurement of material uh payment of uh you can say the maybe I will say laborers and things 52:49 52 minutes, 49 seconds like that huh so maybe you can review your working strategy because if you say that my company complete unless I ship I don't 52:58 52 minutes, 58 seconds get any money but I have got a LC to back up uh I think uh you have to review this okay no as we said in 53:06 53 minutes, 6 seconds well taken yeah please yeah so uh D and N I think both had similar questions where you we can 53:14 53 minutes, 14 seconds recognize revenue basis milestone. So there are a couple of points which I would like to highlight. You know fap as a company has transitioned from an 53:21 53 minutes, 21 seconds equipment supply to a ton project right over the years our contract have been worded in a fashion where you know it has been dependent to shipment. However, 53:30 53 minutes, 30 seconds going forward now we have completely changed our uh agreement where we made our payments also linked to milestones 53:38 53 minutes, 38 seconds but because all these orders a little long in tenure the change will be effective you know 12 months 16 months 53:46 53 minutes, 46 seconds down the line. So recently we picked up a order where you know we've charged the client for design we've charged them for shipment etc etc. It is just a 53:54 53 minutes, 54 seconds transaction which will happen over a period of time and our old contracts have worded where you know the risk of goods transferred to the end customer on 54:03 54 minutes, 3 seconds shipment. Therefore the auditor has made a view that till the time it is not shipped it is supposed to be parked as 54:10 54 minutes, 10 seconds inventory and therefore we are following this process. We've made this you know we have realized this you know change 54:18 54 minutes, 18 seconds and therefore we have made the contract itself been awarded in a fashion where we can start recognizing milestone based revenue. This will happen over a period 54:26 54 minutes, 26 seconds of time when you know this all new orders start coming with new you know payment terms and new milestone driven activities. 54:33 54 minutes, 33 seconds Okay one thing more in this uh the material is being supplied by the client or you are procuring and doing if you can choose to answer not to answer. Huh? 54:43 54 minutes, 43 seconds And uh do you have a good percentage coming in uh along with the order because uh that is all the financial backup you have if the material is 54:52 54 minutes, 52 seconds coming from the client. Maybe the method which you are following one can sustain as long as you get a good percentage in the beginning. Uh I stop there. I don't 55:00 55 minutes want to go too much into this because uh you may not be willing to answer. 55:04 55 minutes, 4 seconds So DIY I'll give you very simple you know simple questions. Our long gesture is ideally because of designs. We spend 55:11 55 minutes, 11 seconds around 9 to 12 months in designing the entire you know process. Post that we have to have some commercial backup from 55:19 55 minutes, 19 seconds the client to move us to the technical phase. So you know after the design is approved we expect either advance to 55:28 55 minutes, 28 seconds kick in or an LC to kick in. Once client commits payment that is when we start looking at the technical part of the the 55:38 55 minutes, 38 seconds technical is more like forming a boke of that particular design and then we move on to uh advance. Yes, we block our 55:45 55 minutes, 45 seconds working capital block is around 120 days. So we have we need that 3 to 4 months of blockage uh in our top line but that is you know again if you look 55:54 55 minutes, 54 seconds at our cogs or margin which is around 60% of block 60 40% uh 3/4 that is something which we block but we collect 56:01 56 minutes, 1 second around 10 to 15% advance or a full LC from our customers against that I I hope we've cleared that the advance I hope because of a feed and 56:09 56 minutes, 9 seconds detail engineering you get paid by the client sorry uh yeah yeah so otherwise you are building in too much 56:17 56 minutes, 17 seconds of cost and uncertainty into your din no obviously there are certain things which we would not be discussing 56:24 56 minutes, 24 seconds in a forum what Karan mentioned also was protecting our basic business sense so that 56:32 56 minutes, 32 seconds everything is not out in the open but everything happens once we have a confirmation from the client number one 56:39 56 minutes, 39 seconds number two there is a good advance a staggered advance of 15% and 15% or a lump sum advance of 25% to 30% % based 56:48 56 minutes, 48 seconds on which design happens at times in good faith when we get the LOI we start a design okay inhouse so there are various 56:57 56 minutes, 57 seconds pros and uh there are various means on how we address various issues but coming to the conclusion is yes percentage 57:06 57 minutes, 6 seconds completion method we are looking at we could go into it and we are we are we 57:13 57 minutes, 13 seconds are debating we're deliberating your suggestions is well taken. 57:18 57 minutes, 18 seconds Thank you very much. You answered more than what I expected. Thank you so much G. Next question is from Mr. Giresh. 57:27 57 minutes, 27 seconds Since we are project company, will our operating cash flow remain negative in the coming years? Not necessarily because it uh only 24 cash flows 57:36 57 minutes, 36 seconds positive to the other itc based here. This is one of the things I don't think so we will always 57:45 57 minutes, 45 seconds remain cash flow negative but growth working honestly speaking we're very comfortable 57:53 57 minutes, 53 seconds and uh yes current you were nodding some yes so J is basically you know if you're growing at 30% and we're making a p of 10 12%. 58:02 58 minutes, 2 seconds we will be in a way negative cash flow right for 30% where my working capital cycle is 4 months so till the time we 58:09 58 minutes, 9 seconds are in a high growth phase our operating cash flow will be negative unless until we you know look at a very substantial high pat margin that is something which 58:17 58 minutes, 17 seconds is unrealistic you know which can be possible for few projects but cannot be sustainable for all the projects or if 58:24 58 minutes, 24 seconds we use that flexibility of 82 crores expend marketing we So it's it's a 58:32 58 minutes, 32 seconds matter of we controlling some flexibility and deciding uh if we really have to spend 8 and a half 9 crores on 58:40 58 minutes, 40 seconds uh that marketing spend or we can trim it down because now we are largely well seeped in the markets that we are present in. 58:49 58 minutes, 49 seconds Mr. Girish, you have a question. Uh you've raised your hand. 58:52 58 minutes, 52 seconds Yeah. Uh a couple of small questions. Uh in your results you have put other income at 7 crores. like what should we 59:00 59 minutes read that as because it's almost like 10% of the total revenue. So what should we read as uh the other income as moving forward as well? 59:09 59 minutes, 9 seconds There is the other income primarily is on account of uh interest earned on our FDS. So FD is one know which we've 59:17 59 minutes, 17 seconds parked as a margin money for our BGS and secondly the uh FD parked the for the 59:24 59 minutes, 24 seconds IPO money which we know raised the funds. 59:28 59 minutes, 28 seconds Okay fine. Uh the second uh was our ticket size is going to go up above 5 million as suggested that will also help 59:37 59 minutes, 37 seconds our margins profit margin operating profit margins. 59:42 59 minutes, 42 seconds Yes, naturally it would uh because it will give us volumes and uh a very important uh thing that I mentioned in 59:49 59 minutes, 49 seconds the beginning uh we are leveraging now UAE, we're leveraging Saudi, we are leveraging our presence here uh to 59:59 59 minutes, 59 seconds address the EcoAfrican region and we are tapping various uh supply chain uh in different geographies. So you would yes see those benefits coming in. 1:00:11 1 hour, 11 seconds Okay fine. I think that's all from my side for this quarter. Thank you very much. Good day. Thank you. Thank you lots. Uh BMI. 1:00:19 1 hour, 19 seconds Okay. Yes sir. 1:00:24 1 hour, 24 seconds has asked going back to historical financials can you explain the fall in revenues in FY23? 1:00:32 1 hour, 32 seconds Well, we are looking future. I don't know what happened in 23 to be honest with you. But uh u you you remember 1:00:40 1 hour, 40 seconds we had done 200 of top line in 23. 1:00:48 1 hour, 48 seconds Yeah. So no. Huh. 1:00:59 1 hour, 59 seconds Okay. Do we have any more questions? Investors. So, can I have a parting comment? 1:01:10 1 hour, 1 minute, 10 seconds Yes sir. 1:01:14 1 hour, 1 minute, 14 seconds So, thank you very much everyone. Thanks a lot for being here, giving us an opportunity to explain what we do to 1:01:20 1 hour, 1 minute, 20 seconds explain our business and uh reiterating whatever has happened in this earnings 1:01:28 1 hour, 1 minute, 28 seconds call and you will hear more of us uh more from us. Now when we speak about uh medicinal sovereignity, 1:01:36 1 hour, 1 minute, 36 seconds many assume that I I I I assume that many assume that this is limited to generic facilities because we ourselves 1:01:45 1 hour, 1 minute, 45 seconds as I mentioned we were thinking medicine independence in Middle East, Persian Gulf, Africa, Mina, GCC would first give 1:01:53 1 hour, 1 minute, 53 seconds rise to generic facilities. But in reality the pipeline ahead is much broader and deeper. 1:02:00 1 hour, 2 minutes In the GCC in Africa, we are of course doing generics, we're doing IV solutions, 1:02:07 1 hour, 2 minutes, 7 seconds we're doing encore. We are the first one uh uh uh uh to do the first encore facility in GC in in Saudi. The first biosimilar in Algeria. 1:02:19 1 hour, 2 minutes, 19 seconds The first vaccine project, COVID vaccine project in Egypt is ours. There are many firsts to our credit and I think we 1:02:28 1 hour, 2 minutes, 28 seconds should do justice to our investors in sharing all these information with uh with the investors. 1:02:36 1 hour, 2 minutes, 36 seconds Now in GCC we are in advanced stages of finalizing compounding pharmacy platforms and cell and gene therapy facilities. 1:02:48 1 hour, 2 minutes, 48 seconds In fact, one of our reference project done through our subsidiary here for Serenine 1:02:55 1 hour, 2 minutes, 55 seconds uh facility will be commissioned shortly. 1:02:59 1 hour, 2 minutes, 59 seconds These are high value precision-driven segments that reflects where healthcare infrastructure is heading 1:03:08 1 hour, 3 minutes, 8 seconds in Africa. We have recently finalized animal health projects opening an entirely new vertical for us. 1:03:17 1 hour, 3 minutes, 17 seconds Veterinary and animal health manufacturing is a structurally is a structurally growing space and it 1:03:26 1 hour, 3 minutes, 26 seconds strengthens our presence across emerging markets. 1:03:31 1 hour, 3 minutes, 31 seconds Our execution capability remains a core differentiator. I read somewhere some website 1:03:39 1 hour, 3 minutes, 39 seconds expressing some concern over our execution capability order position execution. 1:03:48 1 hour, 3 minutes, 48 seconds So in fact our execution capability and our ground presence of our team in Kenya in 1:03:57 1 hour, 3 minutes, 57 seconds Nigeria Algeria Egypt Saudi UAE is a key differentiator 1:04:05 1 hour, 4 minutes, 5 seconds of our execution capability. We we design inhouse across dosage formats sterile injectables oncology OSD high 1:04:12 1 hour, 4 minutes, 12 seconds containment advanced therapies and this integrated depth allows us to control quality timelines execution with precision. 1:04:26 1 hour, 4 minutes, 26 seconds I would really invite a lot of you investors to come in and see the kind of facilities that we have done 1:04:34 1 hour, 4 minutes, 34 seconds and that is without the without the promoters getting involved 1:04:42 1 hour, 4 minutes, 42 seconds auto mode and as Du I'm I'm glad DH is here and as 1:04:50 1 hour, 4 minutes, 50 seconds various investors were here they were very pleasantly surprised by the quantum of jobs or the magnitude of the jobs 1:04:57 1 hour, 4 minutes, 57 seconds that we are doing. So execution capability is not a challenge. It's a core differentiator. In fact, 1:05:06 1 hour, 5 minutes, 6 seconds our projects speak for themselves. I mentioned that the size, integration and technical intensity of the facilities 1:05:13 1 hour, 5 minutes, 13 seconds that we are building today reflects our capability. 1:05:18 1 hour, 5 minutes, 18 seconds We are also initiating certain strategic steps which over time will significantly as I mentioned already will significantly deepen our order funnel. 1:05:28 1 hour, 5 minutes, 28 seconds We're owning processes. We're owning oral solid manufacturing, injectable process manufacturing, water 1:05:36 1 hour, 5 minutes, 36 seconds and process. We are bidding now for turnkey start to finish projects including the external infrastructure 1:05:44 1 hour, 5 minutes, 44 seconds and these all will deepen our order funnel and enhance or speeden up the process of delivery. 1:05:54 1 hour, 5 minutes, 54 seconds If stakeholders wish to understand the scale of what we are executing, they're welcome to visit to our UAE operations or to Saudi or to Africa or if you are 1:06:01 1 hour, 6 minutes, 1 second really have if you really have Nigeria for that matter, Algeria, the door is open. The size and 1:06:09 1 hour, 6 minutes, 9 seconds sophistication of the projects underway provide clear evidence of our trajectory. We remain confident in our 1:06:15 1 hour, 6 minutes, 15 seconds execution strength and a really long long opportunity ahead, an unprecedented opportunity ahead. 1:07:32 1 hour, 7 minutes, 32 seconds We thank you very much for being here with us and we'll be back soon. 1:07:39 1 hour, 7 minutes, 39 seconds Thank you. We like to thank the management team for providing valuable insights and the guidance and thank you to all the participants for joining the 1:07:47 1 hour, 7 minutes, 47 seconds conference call. We truly appreciate your time and continued interest in the company. Any further queries you for 1:07:54 1 hour, 7 minutes, 54 seconds clarifications please feel free to reach out to us at info@acmailadvisor.com. Thank you everyone. Have a good day. 1:08:03 1 hour, 8 minutes, 3 seconds Thank you. Yes.