Garden Reach Shipbuilders & Engineers Limited — Q3 FY26

Garden Reach Shipbuilders & Enginers Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Eq48fHKRT-k Published: 3 months ago

0:00 Good evening everyone. I'm Goro Gther from concept investor relations. I welcome you all to the analyst meet of garden reach ship builders and engineers 0:09 9 seconds limited to discuss its Q3 and 9month FI26 results. We have with us today Commodore PR Hari Indian Navy retired chairman and managing director S. 0:19 19 seconds Niranjan Makun Valerra director finance and chief financial officer and Shri Sep Mahapatra company secretary and compliance officer. Please note this 0:28 28 seconds cons conference is being recorded. I would now like to hand over the floor to Commodore PR Haris sir to give his opening remarks. Sir over to you. Thank you. 0:39 39 seconds Thank you Gorav. Uh once again good afternoon ladies and gentlemen. Uh it is indeed a pleasure to be here with you 0:47 47 seconds today and uh I eagerly look forward to this particular meeting which we have once a year when we interact uh with you 0:54 54 seconds all in person and uh thank you all for attending this uh conference to discuss 1:02 1 minute, 2 seconds our financial results of your company uh for the quarter ending 31st December 2025 and the 9 months ending 31st 1:10 1 minute, 10 seconds December and uh also to provide you a glimpse of the future outlook 1:19 1 minute, 19 seconds as I normally do. 1:23 1 minute, 23 seconds I shall first touch upon uh the financial highlights u then provide you you all an overview of the physical 1:32 1 minute, 32 seconds performance that has translated into this financial performance. Then uh touch upon the current uh order book 1:39 1 minute, 39 seconds status and also an update on the projects that we are currently executing 1:46 1 minute, 46 seconds and then give you a glimpse again of the future outlook and also our expansion 1:53 1 minute, 53 seconds plans. Uh coming to the financial performance uh yes uh Q3 has been a good 2:02 2 minutes, 2 seconds quarter for all of us and the results have been encouraging. Our revenue from operations yearon year has gone up 2:09 2 minutes, 9 seconds from,271 crores to,86 crores that is registering a growth of uh 49%. 2:18 2 minutes, 18 seconds And uh so have all the financial parameters coming down to the bottom line. Our profit after tax has moved up 2:25 2 minutes, 25 seconds from 98 crores during the last uh uh that is Q3 FI25 to 171 crores during the 2:33 2 minutes, 33 seconds current I mean the recently concluded quarter that is registering a growth of 74%. 2:39 2 minutes, 39 seconds uh if you take the 9month period I'll just put things in perspective our revenue from operations so far has been 2:48 2 minutes, 48 seconds 4,883 crores and if you compare the FY25 revenue from operations was 5,76 2:56 2 minutes, 56 seconds crores we almost touched that figure in a 9 months uh span so on the whole uh Q3 and the 9 month 3:06 3 minutes, 6 seconds period has been uh interesting good and I can assure you that better times are yet to come. 3:13 3 minutes, 13 seconds Uh this financial performance is of course obviously the result of a strong uh physical performance and again uh to placeh things in the right perspective. 3:24 3 minutes, 24 seconds We have delivered uh five uh uh major platforms uh that is ships during the 3:31 3 minutes, 31 seconds last uh 9 months that is the first nine months of the financial year and that is translating almost a ship every 2 3:39 3 minutes, 39 seconds months. Uh these include uh one uh frigate P7 alpha uh two anti-permanential three 3:49 3 minutes, 49 seconds anticipial watercrafts and one survey vessel and uh the way the pro projects are progressing we intend uh delivering 3:58 3 minutes, 58 seconds three more major vessels in the next uh 3 months. 4:05 4 minutes, 5 seconds All the major projects are progressing uh satisfactory I should say. I will just give you a glimpse of the ongoing 4:14 4 minutes, 14 seconds projects and before that I'll touch upon the order book. Our order book position as of 31st December is uh 18,482 4:24 4 minutes, 24 seconds crores and interestingly this is the first uh time we are dipping below 20,000 which is a good news for you 4:32 4 minutes, 32 seconds which means our execution rate is picked up. I've been attending uh investors meet uh this is the 13th 4:41 4 minutes, 41 seconds quarter since uh 2022. I think we did the investors meet of course in virtual mode sometime in uh 4:50 4 minutes, 50 seconds April 2022. So this is the 13th quarter on a trot where we are showing uh yearon-year growth. 5:01 5 minutes, 1 second Now I mentioned the order book position is 18,482 crores and this comprise of uh 10 projects uh consisting of uh 42 5:09 5 minutes, 9 seconds platforms and these include uh four projects of the Indian Navy. The P7 alpha projects 5:17 5 minutes, 17 seconds we have delivered one of the three ships and two more ships are under construction. The second ship has almost 5:25 5 minutes, 25 seconds touched the 93% physical progress and we intend delivering the ship in the next 3 months. That is one of the ships which I mentioned that we'll be delivering in 5:33 5 minutes, 33 seconds the next 3 months. The third ship of this project is on track and uh this calendar year we'll be delivering the 5:41 5 minutes, 41 seconds third uh ship. Coming to the next project that is a surveillance project is a four ship project. Three ships have already been delivered and the fourth 5:49 5 minutes, 49 seconds ship has touched almost 95% physical construction in a month that is next month March we'll be delivering the third ship and closing the project. 5:59 5 minutes, 59 seconds Coming to the antisin shallow watercraft project it's a eight ship project. Three ships have already been delivered and 6:05 6 minutes, 5 seconds the fourth ship almost touched about 92 93% and in the next three months in May 6:13 6 minutes, 13 seconds April May we'll be delivering that platform. The other four ships of the project are on track and we intend closing this contract uh during the next 6:22 6 minutes, 22 seconds financial year. Uh coming to the fourth uh naval project that is the next generation oceangoing patrol vessel 6:30 6 minutes, 30 seconds project. It is moving on track. The deliveries will start from uh 2027 that is financial year 2728 and culminate 6:39 6 minutes, 39 seconds it's a four ship project and culminate uh in financial year 2829. So far the progress of the project has been good 6:47 6 minutes, 47 seconds with the first two ships having achieved almost 60% progress and the next two about 45 to 48% progress. 6:58 6 minutes, 58 seconds Now in addition to these uh defense platforms we are also executing u one project for the government of West 7:05 7 minutes, 5 seconds Bengal. It's a small project uh but a very interesting project that is for hybrid uh fairies. It's a 13 vessel project and uh uh two different sizes. 7:16 7 minutes, 16 seconds Seven ships of uh 100 passenger and six ships of 200 passenger. We will start commencing the delivery during this uh 7:25 7 minutes, 25 seconds financial year. That mean the coming financial year with the first two vessels will be delivered during the first quarter and that project will be closed during the first half of FI28. 7:38 7 minutes, 38 seconds We are also doing uh three different projects of uh research vessels. One an ocean research vessel for the ministry 7:47 7 minutes, 47 seconds of earth sciences project moving on track around 20% physical construction has been achieved. The targeted uh there 7:55 7 minutes, 55 seconds is a contractual delivery is uh during uh the financial year 2728 well on 8:01 8 minutes, 1 second track. an acoustic research ship for the ministry of defense that is a DRDO the Kochi based uh lab of theirs project on 8:11 8 minutes, 11 seconds track uh the production has already commenced the delivery is during the financial year again 2728 and two 8:18 8 minutes, 18 seconds coastal research vessels for the geological survey of India that comes under the ministry of uh uh mines 8:26 8 minutes, 26 seconds interestingly and this project will be completed during calendar year 202127 that means the first half of FI28 will 8:34 8 minutes, 34 seconds close this uh project. In addition to that uh we are also doing two export projects. One a small project for the 8:42 8 minutes, 42 seconds government of Bangladesh. It's a uh 1,000 m cube uh meter cube dredger on track so far. We're crossing our 8:50 8 minutes, 50 seconds fingers. So as so far there has been no red flags. Uh the the stage payments are coming in. So nothing for you to worry as of now. This project will be 8:58 8 minutes, 58 seconds completed during the first half of the no the third quarter of uh financial 9:05 9 minutes, 5 seconds year 27 and we are also executing uh 12 multi-purpose 9:14 9 minutes, 14 seconds vessels for a German client. I think last time when we met uh we had a contract of four of these vessels. Then 9:22 9 minutes, 22 seconds after seeing our performance and inspecting our site and the progress they increased to eight and as of now it has been increased 12. So this 12 ship 9:31 9 minutes, 31 seconds project is uh in hand. We have done the keying of uh two of these vessels and the third ship keying is planned later 9:39 9 minutes, 39 seconds this month. Project on track. The delivery of the last of these vessels. 9:43 9 minutes, 43 seconds The deliveries will commence uh uh during the second quarter of financial year 27. 9:52 9 minutes, 52 seconds and will stretch to financial year 29. So it's a slightly long drawn project. 9:59 9 minutes, 59 seconds Uh this is the status of the ongoing projects uh that we are executing. 10:05 10 minutes, 5 seconds And to give you a glimpse of what are the orders uh what we expect and uh what is likely to come out in the near future. 10:15 10 minutes, 15 seconds uh we as you are aware last time again when we met I had uh mentioned that we would be bidding in such a fashion as to 10:24 10 minutes, 24 seconds win the uh next generation coveret uh order yes we have won it we have become the L1 and it's a big project uh the 10:32 10 minutes, 32 seconds price it's a five ship project uh amounting to approximately 33,000 uh crores 10:39 10 minutes, 39 seconds and uh the price negotiations have been completed and the contract negotiations are in final stages. It requires certain 10:46 10 minutes, 46 seconds approvals but uh we are confident of uh this contract getting concluded during the current financial year which means 10:54 10 minutes, 54 seconds next month uh we intend closing this contract signing the contract with the Indian Navy. They have also indicated that the the approval process is well on 11:02 11 minutes, 2 seconds track uh which means uh we are hopeful and confident of ending the current financial year with an order book around uh 50,000 crores. 11:15 11 minutes, 15 seconds In addition to this is what is assured. 11:18 11 minutes, 18 seconds In addition to these orders what we are executing and what is on the anvil uh the navy has already obtained navy and 11:26 11 minutes, 26 seconds coast guard have already obtained uh approval of necessity from the defense acquisition council for seven uh 11:33 11 minutes, 33 seconds projects. Uh these include uh three big ticket projects. One is the P7 bravo project. It's a seven ship project. 11:42 11 minutes, 42 seconds Approximately 70,000 crores is the AO amount. It could be around that maybe marginally higher. Uh again to be split 11:51 11 minutes, 51 seconds between two shipyards. Then the LPD landing platform uh dock it's again a big project attractive project which has 11:59 11 minutes, 59 seconds been lingering for a very long time. So the A1 has finally been accorded and uh the the A1 value could be to the tune of 12:08 12 minutes, 8 seconds around 35,000 crores. And the third big project is a 12 ship uh mine uh counter measure vessel project 8 and two eight 12:17 12 minutes, 17 seconds and four eight ships for the L1 shipyard four ships for the L2 shipyard this the A1 value is around 32,000 crores so in 12:25 12 minutes, 25 seconds addition to these there are other smaller projects but all put together for the projects where uh A has already 12:34 12 minutes, 34 seconds been accorded and where we expect the RFPs to come out from now which means something could come out in the next 12:41 12 minutes, 41 seconds month onwards for the next 12 months is approximately 1 lakh 55,000 crores 12:48 12 minutes, 48 seconds in addition to uh of course of course these are all on none of them are nom on nomination basis 12:55 12 minutes, 55 seconds these are all on competitive bidding but the the pool of competitors is limited so we have uh confidence in winning at 13:04 13 minutes, 4 seconds least 20% of these orders keeping the P7 bravo project what I mentioned that big biggest ticket item among these there we 13:12 13 minutes, 12 seconds stand in edge because we already executing the P7 alpha project we have the design we know the equipment manufacturers we know exactly how it 13:20 13 minutes, 20 seconds functions so like what I assured you last year when we met physically so this year my k is to win the P7 bravo project 13:28 13 minutes, 28 seconds so let us see and uh uh this is only for the defense segment now on the non-defense segment as you are aware The 13:37 13 minutes, 37 seconds government has uh already promulgated publicized a slew of initiatives and one important thing for all of us is that uh 13:46 13 minutes, 46 seconds for the first time they have aggregated the demands of the government entities that is the OMGC and such agencies. 13:56 13 minutes, 56 seconds Uh that demand alone is coming to is available in open media. is it's coming to 207 platforms starting from smaller 14:04 14 minutes, 4 seconds size platforms support vessels to VGC's and beyond. So a conservative very 14:11 14 minutes, 11 seconds conservative uh value of these projects could be plus one lakh crores. Naturally they will come out in a staggered 14:19 14 minutes, 19 seconds fashion. Two uh tenders are already out and one EUI is already out. two tenders for platform support vessels and MR 14:28 14 minutes, 28 seconds tankers are live as of now and one expression of interest for the VGC is also live. So this is moving but of 14:37 14 minutes, 37 seconds course the pace at which the other orders what I mentioned on the defense segment perhaps could be faster and here 14:44 14 minutes, 44 seconds the competition pool is bigger uh so so that we are all on the same page. So all in all uh the defense segment and the 14:53 14 minutes, 53 seconds non-defense segment put together in the next if I'm adding the non-defense segment in the next 12 to 18 months we 15:01 15 minutes, 1 second have around uh 2.5 lakh crores plus in the on the table for us to get a substantial chunk. 15:13 15 minutes, 13 seconds Now having said this uh now the demand is good but what about our uh capacity 15:20 15 minutes, 20 seconds to handle this we are good to handle the defense projects because we have been brought up groomed nurtured in that 15:29 15 minutes, 29 seconds fashion now that the market has opened up for the non-defense segment especially for large platforms we I 15:37 15 minutes, 37 seconds repeat we had a constraint we still have a limit we have de conflicted the situation the constraint has become 15:43 15 minutes, 43 seconds lesser and with this in uh mind what we have done is we have systematically increased our production capacity. 15:52 15 minutes, 52 seconds Uh two years back we had a capacity to construct uh 24 platforms concurrently. 15:58 15 minutes, 58 seconds Today that is in 2025 we increased it to 28 platforms that is big and small and mediumsiz put together and with the 16:07 16 minutes, 7 seconds ongoing modernization that we are executing by the end of this uh calendar year we intend enhancing this to 32 16:15 16 minutes, 15 seconds ships but this also would not be adequate to meet the demand that is existing. So within our confines 16:22 16 minutes, 22 seconds geographical con present confines we will not be able to meet this requirement and it is with this intent 16:29 16 minutes, 29 seconds that we intend moving growing out of uh Kolkata first and thereafter out of West Bengal. So just to give you a glimpse 16:38 16 minutes, 38 seconds some of them are in liquid prompts some of them already action has been taken. 16:41 16 minutes, 41 seconds We are going in for brownfield as well as greenfield expansion. As far as brownfield expansion, uh three sites we 16:48 16 minutes, 48 seconds have taken over from the Sha Prasad Mukhaji port in addition to what we had earlier. Of them, two of these sites we 16:56 16 minutes, 56 seconds have physically started the modernization activities to get them to production uh level readiness and the 17:04 17 minutes, 4 seconds third site uh the negotiations are in final stages and we intend we already engaged a consultant for the DPR. 17:13 17 minutes, 13 seconds So this brownfield expansion we are good to go with two of these facilities we'll be able to commence production by end of the calendar year and the third facility 17:22 17 minutes, 22 seconds which is a bigger facility we expect the production to commence there after the modernization efforts are completed in a 17:29 17 minutes, 29 seconds span of 2 years. Uh this is what we are planning within West Bengal but even then even that is not good enough. So we 17:38 17 minutes, 38 seconds have uh moved ahead with uh finalization of 17:44 17 minutes, 44 seconds sites uh two sites in Gujarat uh one in Kandla and one near Bhavnagar. 17:54 17 minutes, 54 seconds The one is with the government entity. 17:56 17 minutes, 56 seconds We are partnering a government entity for the Kandla site and a private entity for the Babnaga site. 18:06 18 minutes, 6 seconds The in for the private entity we already engaged a consultant for finalizing the DPR and for the second that is with the 18:14 18 minutes, 14 seconds government entity they have engaged a consultant already. So this is where it stands but these two facilities will 18:22 18 minutes, 22 seconds take a finite time for getting production ready. Our conservative estimate is 3 years from now and this 18:29 18 minutes, 29 seconds should meet the demand for largesiz platforms both in India and for abroad because we are getting a lot of queries from abroad we are not able to meet as 18:38 18 minutes, 38 seconds of now. So our long-term plan is to get these facilities up and about so that the demand which is coming from within India definitely and what is coming from abroad we can meet. 18:49 18 minutes, 49 seconds In addition uh what we are currently doing to offset the capacity constraint is what we started about uh 18:57 18 minutes, 57 seconds five years back or six years back on a public private partnership model where we we wanted to test the system. So at 19:05 19 minutes, 5 seconds that point of time a private shipyard had spare capacity and we had excess load. So we outsourced a part 19:12 19 minutes, 12 seconds construction of these vessels and believe me that has that model has been successful and we have been able to of the seven platforms which we had 19:20 19 minutes, 20 seconds offloaded in partial or 75 person construction we have been able to take out five of them. In addition this is a 19:27 19 minutes, 27 seconds big player private player and in addition we are also engaged uh uh business relationship with a smaller shipyard and two of the ships we have 19:36 19 minutes, 36 seconds taken out from there. So what we are doing currently to offset the capacity constraint in terms of building certain types of vessels we are following a PPP model. 19:47 19 minutes, 47 seconds So uh I think I have covered the financial performance. I just given you a glimpse then the status of the order book order book position and the status 19:55 19 minutes, 55 seconds of the orders what is expected and what is our plan to address the demand huge demand that is existing. 20:04 20 minutes, 4 seconds As I mentioned, I just sum up my uh my my interaction not interaction actually my 20:12 20 minutes, 12 seconds conveying the point address or whatever you can call that uh the year so far has been good especially the last quarter 20:20 20 minutes, 20 seconds but as I mentioned the better times are yet to come. Thank you. I'm open for questions all your queries. 20:31 20 minutes, 31 seconds Thank you sir. Uh we now open for the question and answer session. Would request the participants to please uh introduce themselves and ask the 20:39 20 minutes, 39 seconds question. Would request everyone to limit their questions to two so that we can address everyone's queries. Thank you. 20:47 20 minutes, 47 seconds One may take a second what director finance uh was mentioning that I missed talking about the the initiatives which 20:54 20 minutes, 54 seconds the government has uh promulgated already and some of them are active live as of now. the various schemes for 21:02 21 minutes, 2 seconds incentivizing or revitalizing the ship building segment. So the total financial 21:10 21 minutes, 10 seconds outlay what they have provided is about uh 69,725 crores divided into two three pillars. 21:20 21 minutes, 20 seconds The first is about the ship building financial assistance which is a very attractive uh scheme where uh uh certain 21:27 21 minutes, 27 seconds kind of platforms which are constructed in India based on the type of platforms 21:34 21 minutes, 34 seconds get uh incentivized subsidy ranging from 15% to 30%. It's a very very attractive sum and that amounted what has been a 21:42 21 minutes, 42 seconds year mark for this is 24,736 crores. In addition to that, the government has also promulgated an 21:50 21 minutes, 50 seconds attractive scheme. Again, it's very interesting scheme. It is called the ship building and ship breaking credit note. 21:57 21 minutes, 57 seconds Uh the funds allocated for that is 4,1 crores. And uh again what is interesting 22:04 22 minutes, 4 seconds is that if you if any of the ship owners break a ship in India then he gets a credit of 40%. 22:12 22 minutes, 12 seconds Realized from the breakage and this gets parked transferable and when the company 22:20 22 minutes, 20 seconds owner builds a ship in an Indian shipyard he can utilize this credit. So one way it is very good for the ship building ecosystem that whoever is 22:28 22 minutes, 28 seconds breaking because people are looking at India as the ship breaking hub also. So we have we are coaxing them to come to India and binding them in so that they 22:38 22 minutes, 38 seconds avail this credit facility and in addition to this they also come out with a 25,000 cr scheme for maritime 22:45 22 minutes, 45 seconds development fund and uh this scheme catters for brownfield expansion wherein x% a 22:53 22 minutes, 53 seconds certain percentage of the investment you made towards brownfield expansion is subsidized by the government and also 23:02 23 minutes, 2 seconds around 5,000 crores has been earmarked for an interest incentivization policy. 23:07 23 minutes, 7 seconds So here the in interest is uh unfortunately very very high and none of the ship owners are able to afford that 23:15 23 minutes, 15 seconds kind of interest. So 3% uh interest subsidy has been provided. This scheme is also active and the last of course is 23:24 23 minutes, 24 seconds uh development of maritime clusters. So there again the third I think I have covered 25,000 plus 24,000. So whatever 23:32 23 minutes, 32 seconds is remaining out of that 69,000 has been earmarked. I my memory is right it comes to about 29,000 I think. So that has 23:39 23 minutes, 39 seconds been earmarked for 19,000 19,989 crores has been earmarked for development of 23:45 23 minutes, 45 seconds ship building clusters where green field facilities once you set up you get up to 23:53 23 minutes, 53 seconds 50% subsidy. So these schemes are very very interesting and we including the activities which I had mentioned that's 24:01 24 minutes, 1 second in two areas we have commenced the brownfield expansion we will definitely be leveraging these schemes of the government including the ship building financial systems. Thank you. 24:12 24 minutes, 12 seconds I'm open for your questions please. Thank you sir. 24:15 24 minutes, 15 seconds Good evening sir. Here any uh hit chi from uljk financial 24:23 24 minutes, 23 seconds services. So my first question is on corvetus. Uh so if you receive this order by this financial year, what is 24:31 24 minutes, 31 seconds your execution cycle? Uh and second question on bravo at uh what stage the talks has been came. 24:42 24 minutes, 42 seconds Thank you. uh the next generation covers uh yes if we execute I mean if we conclude the 24:50 24 minutes, 50 seconds contract during the current financial year the the first phase is the pre-production phase where the design 24:58 24 minutes, 58 seconds activities the are progress and based on the design activities the equipment uh procurement actions commence but as far 25:07 25 minutes, 7 seconds as you are concerned the revenue approval will commence two years down the line which means If FI26 25:15 25 minutes, 15 seconds end we are concluding the contract FI28 end that means the fourth quarter of FI28 we can expect uh revenue approval. 25:26 25 minutes, 26 seconds Is that what you meant to ask? Yes. And uh the second part on the P7 bravo as I 25:33 25 minutes, 33 seconds mentioned uh the AO of the defense acquisition council has already been accorded almost uh 6 months back and it 25:41 25 minutes, 41 seconds is moving very fast because this is a project which navy really wants to go and uh there was at a point of time a 25:49 25 minutes, 49 seconds thought process for uh giving a repeat order but that is not rectified. So Navy is very keen on this project and I 25:56 25 minutes, 56 seconds expect the RFP to come out uh let us say in April if April the RFP come I'll give you further RFP is expected to come out 26:05 26 minutes, 5 seconds in April then the bid submission time and all sim akin to NGC we expect the contract for P7 in Bravo to be signed 26:13 26 minutes, 13 seconds maybe February March 2027 this is where it stands Okay, 26:26 26 minutes, 26 seconds I think they muted your mic sir. So you must be ask. 26:30 26 minutes, 30 seconds Yeah, sir. First of all, thanks for meeting as usual every year and as usual increasing the order except this year. 26:42 26 minutes, 42 seconds Sir uh sometimes back we had a MOU with swan defense and uh we don't know anything about what 26:51 26 minutes, 51 seconds is the kindly elaborate on that swan defense and recently few days back you have a 26:58 26 minutes, 58 seconds tied up with Hindustan shipyard so what is the position for these two entity 27:06 27 minutes, 6 seconds so you said except this time order book but I can assure you I know I know by end of the financial year will surpass was uh cumulative of all last three years. 27:15 27 minutes, 15 seconds Last three years we'll be able to touch that. Having said that uh yes we have uh a liveou 27:22 27 minutes, 22 seconds with swan defense. The intent of thisou was for bidding and uh executing large platforms the platforms which we cannot 27:31 27 minutes, 31 seconds handle at our premises. So we are in discussion with a couple of foreign owners for vessels above 250 m length. 27:41 27 minutes, 41 seconds It like as you full fully would appreciate some of these negotiations take as long as one year the the 27:48 27 minutes, 48 seconds contract discussion some tender conditions not tender the the the contractual conditions something which we don't agree we are in discussions 27:57 27 minutes, 57 seconds with the contract I mean theou is very much live we expect this to see light of the day I mean translating into an order 28:04 28 minutes, 4 seconds in the next financial year so it is life coming to HSL we have signed a a consortium agreement with them an MOU 28:13 28 minutes, 13 seconds with them very recently. This is been with with an intent to put our hat in the ring for the LPD project because we 28:22 28 minutes, 22 seconds as GRSC purely because of the dock size we would not have been able to bid for 28:28 28 minutes, 28 seconds that. So with this MOU we'll be able to bid because you may be aware from the media reports that Swan had an MOU signed with MDL for this project. Yeah. 28:38 28 minutes, 38 seconds Yeah. So the moment we realized that we didn't want to miss the bus. So we caught hold of HSL and with HSL we have 28:45 28 minutes, 45 seconds signed an MO. It's a good uh let us say way ahead for both the shipyards our expertise and their 28:52 28 minutes, 52 seconds infrastructure availability. It will benefit both the shipyards for the LPD project. That is the intent why we went 28:59 28 minutes, 59 seconds in for that. And sir regarding the platforms we are moving from 24 platforms to about 30 to within next one 29:09 29 minutes, 9 seconds year. Sir any outlook for next 3 years where we would like to be totify all the orders? 29:19 29 minutes, 19 seconds Okay sir. uh as far as this uh platforms are concerned yes by the end of this calendar year we'll be able to get it to 29:26 29 minutes, 26 seconds 32 ships uh concurrent construction within our own premises and uh I had mentioned in passing that two of the 29:34 29 minutes, 34 seconds facilities uh brownfield facilities in Kolkata we already started the revitalization process we expect that to 29:43 29 minutes, 43 seconds be put to operation from end of this year calendar year so I'm keeping a conservative figure as far as the ship 29:50 29 minutes, 50 seconds building capacity is concerned, we should be able to get to around 30 35 ships by 2020. 29:59 29 minutes, 59 seconds End of 2026 that is mean this year by end. But but the order book you I think did you want to know about this or the order book? 30:08 30 minutes, 8 seconds No platform and order book. 30:10 30 minutes, 10 seconds Order book. So now this year if we are ending with 50,000 crores and with next 30:18 30 minutes, 18 seconds uh year likely to be next financial likely to be one of our peak uh years with respect to revenue you consider 30:25 30 minutes, 25 seconds drop plus the pre7 bravo pre7 bravo also I I would like to go conservative at this stage that hypothetically if JRC 30:33 30 minutes, 33 seconds becomes L2 shipyard the order book order value is likely to be to the tune of around 30,000 crores. So if things gone 30:41 30 minutes, 41 seconds well, we would like to look at uh ending uh FI27 30:48 30 minutes, 48 seconds with an order book plus uh around 70,000 crores. 30:53 30 minutes, 53 seconds Okay. I would like to go only up to there sir. Then we'll see. Okay. Next year you can ask me sir. 31:00 31 minutes And sir about uh what about margins? 31:04 31 minutes, 4 seconds Orders are not at the cost of margin. I assume none of these uh what I just discussed none of them yes we have taken a few 31:11 31 minutes, 11 seconds orders at very low margins that was for sustenance and entry like like I'll give you an example there was a point of time when we were doing an OP we we were not 31:20 31 minutes, 20 seconds sure about the NGC project so we had to take a couple of orders to sustain so we had taken them at uh low margins the 31:29 31 minutes, 29 seconds first uh I don't know whether you remember or not the first ferry project that we took The electric ferry project 31:36 31 minutes, 36 seconds that we took very small project but we took it at actually we subsidized the project. It was to make an entry but 31:44 31 minutes, 44 seconds right now having consolidated our position in both the defense ship building as well as to an extent in commercial ship building margins will be let us say healthy. 31:55 31 minutes, 55 seconds It will not be at the cost of order book enhancement will not be at the cost of margins. I think that answers your question. And sir uh regarding next two 32:03 32 minutes, 3 seconds years financial year 27 then 28 is landmark 10,000 cr executable 28 10,000 cr. 32:17 32 minutes, 17 seconds So this year we okay I'll put it last five years we have been able to provide a caggr of 32:26 32 minutes, 26 seconds around 25% plus this year uh I think in my opening statement I had mentioned that uh in 9 months we have touched 32:33 32 minutes, 33 seconds 4,883 crores so and this quarter is also going to be healthy so with that uh 32:41 32 minutes, 41 seconds again we'll be able to provide a cag between 25 to 30% in this financial year next financial that is FI27 is going to 32:50 32 minutes, 50 seconds be a peak year because that is when one P7 alpha would have just come out now I mean maybe by April means we'll get a 32:57 32 minutes, 57 seconds substantial amount there but the last one will definitely come out during FI 27 so 27 is going to be the peak year 33:06 33 minutes, 6 seconds I'm putting in a roundabout fashion but that is okay thank you yeah hi sir this is hers from ARA uh 33:14 33 minutes, 14 seconds could you please give us a order book breakup in terms terms of the ship wise audible breakup this 33:28 33 minutes, 28 seconds yeah I had mentioned our order book total order book is at uh 18,482 33:35 33 minutes, 35 seconds crores um and of this still P7 alpha takes the major chunk it's around 46% at 33:43 33 minutes, 43 seconds uh 8,236 crores surveal large uh uh 343 crores 33:49 33 minutes, 49 seconds and disembow aircraft uh 2559 crores the OPV project 3,136 33:56 33 minutes, 56 seconds crores so from the defense segment it is 14,276 crores that comes to around 77% of our total 34:05 34 minutes, 5 seconds order book the non-defense segment uh the ocean research vessel acquistic research ship the coastal research ship 34:13 34 minutes, 13 seconds and the West Bengal feries put together it comes to about 900 crores, 897 crores. 34:19 34 minutes, 19 seconds The export both the projects put together come to around,481 crores. So the defense segment is 34:28 34 minutes, 28 seconds contributing about 77%. The non-defense segment around 18% and the balance 5% is 34:35 34 minutes, 35 seconds from the other smaller verticals uh like uh the portable steel bridges, the diesel engine plant, the naval surface 34:43 34 minutes, 43 seconds guns as well as the ship repair. ship repair uh we started with point something percentage when we started now 34:50 34 minutes, 50 seconds we have crossed 1% and it'll keep increasing because uh we were initially testing waters with ship repairs but now 34:57 34 minutes, 57 seconds we are good to go so this is our order book uh breakdown thanks for sharing sir so just a added question here uh in the uh just in the 35:07 35 minutes, 7 seconds order book which you mentioned at the year end that you want to reach 70,000 crores uh are you assuming 50 50 this year and 50 35:14 35 minutes, 14 seconds but next year will be Next year is based on an assumption that uh we are getting the 35:21 35 minutes, 21 seconds P7 Bravo at least as the L2 shipyard and if we get that then that is a figure which would automatically arrive it 35:28 35 minutes, 28 seconds right but in history sir we haven't seen any tender in shipping which has come out and got you know execute as in you 35:35 35 minutes, 35 seconds know got awarded in a year's time frame look at the NGC order so is there something that we uh you can tell us 35:42 35 minutes, 42 seconds that uh progress has been very good or you know it's such a extension of the earlier order so it the timelines are much lesser 35:49 35 minutes, 49 seconds I'll uh okay I'll explain uh see there was a you are absolutely right there was a time when uh the tender used to come 35:58 35 minutes, 58 seconds then it used to take one and a half years we ourselves have got we we also experienced similar like the OPV tender from the time L1 declaration to contract 36:07 36 minutes, 7 seconds signing it took one year we got declared in somewhere 2022 23 we said but you see the P7 alpha project NGC project the 36:16 36 minutes, 16 seconds tender was out in August the L1 was declared in October and now we are almost uh good to go. 36:24 36 minutes, 24 seconds So you definitely there is an improvement because there has been a total change in the way my ministry is 36:30 36 minutes, 30 seconds pushing the cases. So again I would like to reiterate if the RFP comes out in 36:37 36 minutes, 37 seconds April 2026 then the contract signing would happen in the next financial year. 36:46 36 minutes, 46 seconds Okay sir. Okay that's a good news. And so third question is just on uh the tie-ups which you have done one on with Swan and the other with SL uh Hindustan 36:55 36 minutes, 55 seconds shipyard. Now who will get the technology sir as in we have to look at foreign companies for a tie up for getting technology either on the 37:03 37 minutes, 3 seconds commercial side or on the LPD side. So because who will be getting the technology so that's remains the key you got the you know the depth now you got 37:11 37 minutes, 11 seconds the capacity but where will the technology come from? See as far as the 37:18 37 minutes, 18 seconds medium-siz platforms or less complex platforms like what we are doing or what is being currently executed by the Indian shipyards 37:26 37 minutes, 26 seconds there is no need for a technology partner but like Kochi is building certain hybrid vessels they don't need a technology partner for that my vessels 37:35 37 minutes, 35 seconds what I am building or what MD is building we don't need a technology partner we fully good to go but for the LPD project or the VGC project the BGC 37:45 37 minutes, 45 seconds EOI conditions itself stipulate that an experienced and proven BGC manufacturer. 37:51 37 minutes, 51 seconds So we got to collaborate with perhaps a Korean company who has built. So there would there would definitely be a need 37:59 37 minutes, 59 seconds to collaborate for the design of a VGC and there again the the positive aspect 38:07 38 minutes, 7 seconds is that naturally it cannot go on forever. That could be for the first project. For the next project, the Indian company, Indian shipyard, whoever is doing it will have competency. 38:15 38 minutes, 15 seconds Similarly, for the LPD project because it's a complex project, there would be a need for a design partner which 38:24 38 minutes, 24 seconds we we have identified together along with our partners. 38:28 38 minutes, 28 seconds Okay. Thank you sir. Thanks for answering all the questions. 38:31 38 minutes, 31 seconds Thank you sir. Assoc from sir we have done two tie up with Hindustan CPR and Swan. 38:41 38 minutes, 41 seconds So are we through the requirement of next five years with two tie up or still 38:47 38 minutes, 47 seconds we are prospecting much bigger than this. 38:53 38 minutes, 53 seconds See uh these tie-ups are with the specific intent. The intent of 39:02 39 minutes, 2 seconds having a tie up with swan cintent is because it is still active is to handle large size commercial vessels 39:11 39 minutes, 11 seconds which we cannot physically handle purely because of infrastructure constraints. I I mentioned that a couple of foreign projects are still in liquid form discussions are in progress. 39:22 39 minutes, 22 seconds As far as HSL is concerned, it is with an intent to qualify us and use their 39:28 39 minutes, 28 seconds our expertise their facilities for the LPD project. 39:33 39 minutes, 33 seconds There would be a time I had more or less stated our expansion plan though I had not given the the the the capacity in 39:41 39 minutes, 41 seconds terms of size of dock and all this stuff but with once we develop this capacity which will take a finite amount of time 39:47 39 minutes, 47 seconds let us say 3 years for a full-fledged uh operational readiness 5 years then we 39:55 39 minutes, 55 seconds would use these partnerships only to supplement them we may not need them because of capacity constraints but if 40:02 40 minutes, 2 seconds you get excess load We can utilize spare capacity of other shipyards. Right now these are specific to one for a swan for 40:10 40 minutes, 10 seconds large size commercial vessels and with HSL for LPD and similar platforms. Are we looking at still some tie up? 40:20 40 minutes, 20 seconds At this juncture no not bigger size no at this juncture. No big talking about bigger size only. See in India 40:29 40 minutes, 29 seconds there are shipyards which capacity infrastructure capacity one. Swan has got the biggest dry dock available. It's 40:35 40 minutes, 35 seconds around 650 m. L&D has got certain capacity which is slightly more than us with respect to size or ships not number 40:43 40 minutes, 43 seconds of platforms. I'm only speaking about size and of course HSL. So we already have t one active with L&T which we have 40:52 40 minutes, 52 seconds not tapped so far. One with SWAN and of course with HSL would be mentioned. So nothing NCLT partially or something like 40:59 40 minutes, 59 seconds nothing nothing like that NCT any projects no no no no nothing because what is available in the yards which have either 41:06 41 minutes, 6 seconds undergone NCT or which is still see they are just not adequate to meet the expectations or the requirements no 41:15 41 minutes, 15 seconds absolutely no thank you thank you hi sir here uh Amitani from PL Capital 41:22 41 minutes, 22 seconds so first question on on the capacities uh which you fed uh from 24 to 28 and 32 41:30 41 minutes, 30 seconds and by end of this cy uh 35 uh plus the two 41:38 41 minutes, 38 seconds uh uh capacities you said uh probably in Gujarat. So first question is uh uh in 41:45 41 minutes, 45 seconds uh the will the Gujarat capacities will be jointly developed and with that capacities uh plus 35 what would be the 41:54 41 minutes, 54 seconds number of uh vessels we'll be able to produce and uh you said 3 years I think for Gujarat at least 3 years I it's a 42:04 42 minutes, 4 seconds it's a very optimistic uh figure in again for creating a ship building facility one is putting it to operation we can 42:12 42 minutes, 12 seconds start manufacturing but for a full-fledged facility which has got end to end capability which means starting from plate cutting to ship launching to 42:20 42 minutes, 20 seconds delivery last I'm talking about large size platforms it takes 3 to 5 years I have gone this side of the 3 to 5 years 42:27 42 minutes, 27 seconds band so that the production can commence there so if you take a midpath of four years 42:35 42 minutes, 35 seconds let us say four years for both these facilities to come up then in that case we would be having a capacity to build 42:43 42 minutes, 43 seconds around 12 ships in these facilities large size ships that is the aim ultimate aim is large size ship VGC or 42:51 42 minutes, 51 seconds above I mean 300 m around 300 m length vessels 12 of them between these two facilities while utilizing the existing 42:59 42 minutes, 59 seconds facilities for the weapon that is defense platforms and the smaller multi-purpose vessels and so on. So 12 43:06 43 minutes, 6 seconds vessels is what we are targeting in these two facilities large size vessels in a span of I put a band of 3 to 5 43:14 43 minutes, 14 seconds years that's all I can say at this moment because the DPR is still not confirmed I mean it's not a doubt so we don't know the real timelines but it on 43:22 43 minutes, 22 seconds based on our experience it could be between 3 to 5 years so in terms of pipeline which you 43:28 43 minutes, 28 seconds highlighted 1.5 lakh for defense and uh about one lakh for non-defense what is the number you're looking for uh 43:37 43 minutes, 37 seconds yourself uh uh in line with the capacities you're creating. So cumulatively what is 43:44 43 minutes, 44 seconds broad number or conversions you're looking for in next 2 3 years. 43:50 43 minutes, 50 seconds See uh this mix of uh seven projects what I uh I don't think I mentioned the seven projects I just 43:58 43 minutes, 58 seconds highlighted three of them big ticket items these seven projects alone comes to 1 lakh 55,000 crores to be exact 52.5 44:07 44 minutes, 7 seconds or something so these comprise large platforms like P7 Bravo the LPD and uh 44:14 44 minutes, 14 seconds the minec counter measure vessels plus smaller platforms like interceptor boards and um in uh fast interceptor 44:23 44 minutes, 23 seconds board FIC fast interceptor crafts and wage at FIC are very small platforms maybe 50 m 35 m 44:32 44 minutes, 32 seconds and so on. So these can easily be handled with the existing facilities or through a partnership. 44:40 44 minutes, 40 seconds in in a nutshell with the current capacity what we have or what we are going to have by end of this year the 44:48 44 minutes, 48 seconds projects which I'm only speaking about this 1 lakh 55,000 of defense alone we will be able to handle if we get P7 44:56 44 minutes, 56 seconds alpha and around 20% only of the balance projects coming to the other segment that 45:04 45 minutes, 4 seconds non-defense segment which I mentioned approximately about one lakh plus uh crores they contain large size platforms 45:14 45 minutes, 14 seconds for that at this juncture we may not be able to handle them within our premises. 45:18 45 minutes, 18 seconds It is with that intent that we are getting into partnership with a couple of uh shipyards. When our facilities 45:25 45 minutes, 25 seconds come up let us say in 3 to 5 years again around 15% because here the pool of competitors is large unlike uh defense 45:34 45 minutes, 34 seconds manufacturing here the pool of competitors it could range from the public sector shipyards to three or four private shipyards. So considering that 45:42 45 minutes, 42 seconds I'm keeping a very conservative figure of around 15% of these orders at this stage directly and baky through the uh collaboration with others. Sure. 45:55 45 minutes, 55 seconds So you mentioned about the outsourcing models. I just wanted to understand uh in terms of capability building for you 46:03 46 minutes, 3 seconds and the volumes of orders you're looking for uh what is the indigenous component now and with the new book massive orders 46:12 46 minutes, 12 seconds coming in uh will it require some imports or uh you can highlight on all this aspect in terms of capability building uh for the upcoming book. Yeah. 46:23 46 minutes, 23 seconds See as ship builders we are primarily platform integrators. 46:29 46 minutes, 29 seconds uh the the customer be it a private customer domestic abroad or a defense 46:35 46 minutes, 35 seconds customer in 90% of the cases 95% of the cases they indicate they say I need a 46:43 46 minutes, 43 seconds platform let us say a frigate or if you go to the commercial ship building segment they say a multi-purpose vessel 46:50 46 minutes, 50 seconds they indicate the equipment to the extent private players they say I want so and so engine from so and so 46:57 46 minutes, 57 seconds manufacturer in case of a defense systeming they say I want so and so engine from one two three manufacturers one of the three manufacturers a weapon 47:06 47 minutes, 6 seconds system from so and so so and so therefore as platform integrators our responsibility is to get the best 47:14 47 minutes, 14 seconds commercially beneficial for us and also meeting the customer requirements one but the government trust is very much on 47:22 47 minutes, 22 seconds indigenization so we play a major role in promoting Indian entities ities who are into indigenous manufacturing. 47:30 47 minutes, 30 seconds Having said all this, the indigenous content of the three projects that we completed in the last 5 years completed 47:38 47 minutes, 38 seconds completed mean done and dusted it's plus 85%. 47:42 47 minutes, 42 seconds The balanced 50% so far is coming is comprising mostly of the propulsion 47:49 47 minutes, 49 seconds package where India still does not have the maturity yet technological maturity yet to do a fully indigenously developed 47:58 47 minutes, 58 seconds marine diesel engine, marine gas turbine and weapon systems to an extent. So this 48:05 48 minutes, 5 seconds is where that 15% gap is coming. Now again on a positive note the government is very serious about indigenization. 48:13 48 minutes, 13 seconds Already you must be aware about the schemes called make one make two make three and so on. So a make one mean is a 48:20 48 minutes, 20 seconds government funded project to incentivize the indigenous manufacturers. The propulsion engines are getting indigenous but we as a nation must have 48:28 48 minutes, 28 seconds patience because it takes a finite amount. It doesn't come like a switch on. It will take 3 to 5 years for a product to get developed. when that gets 48:36 48 minutes, 36 seconds developed naturally the indigenous content will increase as our weapon systems are concerned there's a tremendous improvement in the indigenous content in the weapon systems I mean 48:45 48 minutes, 45 seconds I'll just give you an example like when we got into this naval surface guns we got into the naval surface gun project about an year and a half project year 48:53 48 minutes, 53 seconds and a half back we had to collaborate with a foreign partner that is to make entry into the market and an Indian firm around 10 Indian 49:02 49 minutes, 2 seconds companies are involved in the component manufacturing as of now it is a success 60% plus indigenization indigenization 49:11 49 minutes, 11 seconds has been achieved but we had the patience and so had our customer that the navy had the patience so that's 49:19 49 minutes, 19 seconds where we stand today so lastly on the recently released draft DAP 2026 uh what 49:27 49 minutes, 27 seconds is your understanding in terms of implication for GRSC and the ship building industry versus uh DAP 2020. 49:36 49 minutes, 36 seconds DAP 2026 as would be it would be called uh yes they have uh after a lot of 49:43 49 minutes, 43 seconds consultative uh discussions over the last one year. Finally the draft is now open for all of us. It is they've sought 49:50 49 minutes, 50 seconds comments from all of us including the general public and uh it focuses definitely I'm just carrying this point 49:57 49 minutes, 57 seconds what you mentioned on indigenization indigenization and indigenization incentivization would be a a major part 50:04 50 minutes, 4 seconds of this uh uh DAP and little more flexibility for public private uh private industry entry into defense 50:13 50 minutes, 13 seconds manufacturing and also for public private partnership. So let us see how it finally pans out because now that it is open for everybody to comment. So 50:22 50 minutes, 22 seconds India being a democratic country it will take a finite time for it to get finalized. 50:27 50 minutes, 27 seconds Hello. Hi sir Vikas from ISAC. So just one question do we run a risk of 50:34 50 minutes, 34 seconds commodity price inflation eating up our margins? 50:39 50 minutes, 39 seconds Commodity price increase has got minimal uh impact on our margins because in in our case uh 50:48 50 minutes, 48 seconds in a in a project uh if you take uh 100% as a project cost around 65% come out of 50:56 50 minutes, 56 seconds equipment most of this equipment being customer nominated or or in a pool of 51:03 51 minutes, 3 seconds customer nominated uh band so fluctuations really don't affect because they were all would have been finalized at the commencement of the contract. 51:12 51 minutes, 12 seconds Then comes uh the yard material like steel. 51:17 51 minutes, 17 seconds So in case of steel which is a major component of our ship building industry. 51:21 51 minutes, 21 seconds So we have tie-ups with most of the major steel manufacturers including uh with the biggest manufacturer in India 51:29 51 minutes, 29 seconds sale. So the impact is minimal. Yes, there is an impact but the impact is very minimal and logically should not have any impact on the margins. 51:40 51 minutes, 40 seconds Hi sir, uh here to your right. Yeah, this is Raj Sha from Nam asset management. Sir, my question is uh a few 51:47 51 minutes, 47 seconds months ago we uh disclosed an MOU with Andhra Pradesh Maritime Board for another green field facility. So can you please help? 51:56 51 minutes, 56 seconds We are fishing. We were fishing. Okay. Okay. Thank you. 52:01 52 minutes, 1 second what I meant see we were fishing at that point of time we were uh touching base with Gujarat we were touching base with 52:09 52 minutes, 9 seconds Andhra Pradesh so finally we homeed the first action was to show our intent that's why we concluded uh the it was 52:16 52 minutes, 16 seconds only to show intent yes we are there then we backtracked because we found it was not required having identified two other locations that is that is the 52:25 52 minutes, 25 seconds reason hi so uh deepen you're from Philip Capital uh sir My question is uh we spoke about that FI27 could likely be a 52:34 52 minutes, 34 seconds peak revenue recognition year for us. So what are we looking at? So do we think that FI28 would more like be a plateau year and then growth can continue one 52:42 52 minutes, 42 seconds NGC comes in as to how we can look so or there are chances that the revenue can come down a little bit before we start accelerating again. 52:52 52 minutes, 52 seconds It's an interesting question. Yes. uh with uh 27 being a good year a peak 52:59 52 minutes, 59 seconds year. See when when I had somebody had asked about the order book balance position so like for example uh P7 alpha 53:09 53 minutes, 9 seconds had mentioned that the order book balance 8,200 and odd crores in this 8,200 and odd crores a x percentage a 53:18 53 minutes, 18 seconds small percentage not not so small it's 10 plus percentages for the basin depos which are required for 53:26 53 minutes, 26 seconds sustenance of the ship uh through the life cycle. So and similar fact figure is factored in every project. So when we 53:34 53 minutes, 34 seconds complete a project the revenue approval would be limited to the amount balance order book minus the basin depot. Basin 53:41 53 minutes, 41 seconds depo runs independently. Independently as in we have concluded contracts with most of them. But these deliveries could be after the delivery is completed which 53:50 53 minutes, 50 seconds means the revenue acroal from a particular project would continue beyond the delivery date. that will give us 53:58 53 minutes, 58 seconds some cushion in FI28 plus all these platforms like uh that's why we why we decided to 54:07 54 minutes, 7 seconds take one-off projects we had no reason because when we had the big projects in hand it is with a strategic intent that 54:14 54 minutes, 14 seconds we went in for one-off project like they're technically very challenging and it gives us a lot of uh national hype by the way this research vessels why we 54:23 54 minutes, 23 seconds took them is with an intent that all these guys will come for delivery during FI28. Most of them are coming up for delivery. 54:32 54 minutes, 32 seconds Multi-purpose vessels, a series of them will get delivered. At least four of them should three of them should get delivered there. And yes, we need to pull back the revenue acral of uh NGC. 54:46 54 minutes, 46 seconds What uh there was a question which was asked to me when will the NGC start uh giving us revenue? What stops us from moving faster? 54:55 54 minutes, 55 seconds So we will try and avoid a plateauing out in uh 27 but 20 FY28 that is the intent of the management. 55:03 55 minutes, 3 seconds Maybe I'll be able to give you a better clarity on this next time when we meet. 55:07 55 minutes, 7 seconds I think that would be the right. Sure sir. So a second question is on our export. So considering the geopolitical situation evolving now and we are 55:15 55 minutes, 15 seconds looking at a lot more procurement happening globally. So what kind of opportunities that you foresee coming in and some opportunities that may currently be under discussion or in 55:23 55 minutes, 23 seconds pipeline. Okay, if you can throw some light on that. 55:25 55 minutes, 25 seconds See, international uh business uh you can just uh segregate into two buckets. One is defense and one is non-defense. 55:33 55 minutes, 33 seconds In defense, uh it is mostly government-driven. It'll be either to a line of credit or a G2G grant. So I'm just keeping that aside and say if it 55:41 55 minutes, 41 seconds comes it is bonus. Coming to the non-defense segments today the opportunities are phenomenal. We are not 55:48 55 minutes, 48 seconds able to take the orders because of collective capacity constraint. If if I did not have the capacity, if somebody else had the capacity, I would have 55:56 55 minutes, 56 seconds pushed it to him and partnered. The potential is huge. Most of the European countries, be it Netherlands, be it Germany, be it Sweden, be it Norway, 56:05 56 minutes, 5 seconds they're actually looking at India. Most of the customers who have approached us and whom with and Belgium, most of them 56:12 56 minutes, 12 seconds whom we are engaging are all European customers. They were going to China, Korea. They're no longer taking orders 56:20 56 minutes, 20 seconds for the kind of platforms which they approached us. The numbers are large. The the order value is good. 56:27 56 minutes, 27 seconds I see huge potential in this not only for me but for all not only for GRC but for all the Indian shipyards and certain middle countries are also 56:36 56 minutes, 36 seconds approached though we have not been able to break the ice so far but once that uh break is made I feel but right now we are focusing on Europe. 56:50 56 minutes, 50 seconds So can you hear me? Thanks for the opportunity. Uh so I just wanted to know when you start the next generation corporate signing will you get advanced 56:57 56 minutes, 57 seconds payments for that or how how the past we had advanced payments you know very interesting to see uh 57:05 57 minutes, 5 seconds whenever we interact with uh the finance uh people in various ministries they ask advance I say I don't want any advance 57:13 57 minutes, 13 seconds don't give me any advance I want a stage payment it is as per the DAP there's a stage payment I don't get any advance I get a stage payment 57:22 57 minutes, 22 seconds So to answer your question, yes, we'll get a stage payment as soon as we sign the contract. There is a first stage payment with an intent to facilitate the 57:30 57 minutes, 30 seconds pre-production activities which involves uh design commitment uh certain OEM commitment and so on. Yes. Yes. 57:39 57 minutes, 39 seconds So just to sorry just on the numbers I'm talking about here. So current order book 18,000 kores 57:48 57 minutes, 48 seconds plus next generation co 33,000 kores which is there in front of us going forward next financial year the 57:55 57 minutes, 55 seconds potential opportunity the P7 brow which is maybe at least 30 or 40,000 either which ways then we are talking about one 58:03 58 minutes, 3 seconds lakh kes of potential order book from the non-defense of which maybe a possibility of a 20% which translates to 58:13 58 minutes, 13 seconds about 20,000 crores Then again if we take the uh defense order which is 1 lak 58:19 58 minutes, 19 seconds 55,000 minus the P17 brow which is the 70,000 crores which keeps about 85,000 58:26 58 minutes, 26 seconds crores and again 20% possibility over there gives me another additional 17,000 crores. If I add all these numbers, it 58:35 58 minutes, 35 seconds gives a potential of about 1 lak 15,000 plus kind of an order book uh over a 58:42 58 minutes, 42 seconds period of time purely for GC is the thought process in the right direction. How I mean how I wish what is 58:50 58 minutes, 50 seconds I'll also pray in the same lines. No but on a serious note sir 58:56 58 minutes, 56 seconds see uh there was a time when uh before we were listed of course we used to take the system for granted that 59:04 59 minutes, 4 seconds orders used to come at plenty on nomination that now every order every I repeat every order is on competition 59:12 59 minutes, 12 seconds except what we work and get from the foreign clients all all these what you talked about they are all on competition 59:20 59 minutes, 20 seconds and today the the the field has expanded. So uh we are there plus along 59:28 59 minutes, 28 seconds with us my four sisters it is MDL, GSL, coaching shipyard and HSL plus comes uh Lasser and Tubro shipyard now they have 59:37 59 minutes, 37 seconds mature and Swan Fledgling I mean they're coming up plus a couple of small shipyards like Sha 59:45 59 minutes, 45 seconds Chlay Chlay of course maybe to limited action plus there is a shipyard in this place in my city Kolkata Chitag shipyard 59:52 59 minutes, 52 seconds so the field has expanded Theoretically what you're telling is perfect sir like if out of 1 lakh 55,000 1:00:01 1 hour, 1 second and if navy gives the RFPs as what we are we understand that they should be giving because their intent is very much 1:00:09 1 hour, 9 seconds there 1 lak 55,000 minus 70,000 the other of the balance 85,000 there are two major 1:00:18 1 hour, 18 seconds projects LPD project plus the mine countermeasure vessel project in the mine counter measure vessel project it is 8 and four. So theoretically what 1:00:27 1 hour, 27 seconds you're telling is correct. It is purely depend on the the our bid strategy at that time. I can only assure you that we 1:00:34 1 hour, 34 seconds would be bidding to win the P7 Bravo because that is what will keep the company moving for another 10 years, 1:00:43 1 hour, 43 seconds 8 years. So that is a project which will go all out to win without compromising at all on the 1:00:51 1 hour, 51 seconds margins. So it's a big project and with our experience in P7 alpha I feel we are good to go in that commercial ship 1:00:58 1 hour, 58 seconds building this one lakh crores again it's a very conservative investment because we actually do not have the the the cost of some of these platforms which are 1:01:07 1 hour, 1 minute, 7 seconds going to be built in India for the first time there I suggest we just wait and watch for 1:01:13 1 hour, 1 minute, 13 seconds maybe another 6 months. Uh the stocks on uh RFPs coming out has been going on for the last one year. So far only two RFPs 1:01:22 1 hour, 1 minute, 22 seconds have come out in the last uh one year plus one EUI. So let us just wait a bit and watch for the non-defense. Defense segment is more or less streamlined. 1:01:30 1 hour, 1 minute, 30 seconds Non-defense segment I suggest just wait and watch. Maybe 6 months we'll have better clarity. 1:01:35 1 hour, 1 minute, 35 seconds Sure sir. Again the numbers on the other side in terms of the capacity 35 is what we are targeting by the end of the 1:01:42 1 hour, 1 minute, 42 seconds current calendar year. 35 from 32 since we are refurbishing the other two locations there. Apart from that once 1:01:50 1 hour, 1 minute, 50 seconds after four year period maybe when Bhoungar and Kandla comes into play that will give us another capacity of another 12. Yeah. Then we're looking at HSL 1:02:00 1 hour, 2 minutes which is for perhaps the two LPD plus the very large gas carriers. Now that is nine in number which is there from uh 1:02:08 1 hour, 2 minutes, 8 seconds shipping corporation. So there 9 is what is also the potential capacity at HSL also apart from the LPD. That's is the 1:02:16 1 hour, 2 minutes, 16 seconds understanding correct? Yeah. Uh I would like to clarify this because HS HSL if you are aware they already building the fleet support ships large ships though 1:02:25 1 hour, 2 minutes, 25 seconds they have like us they have partnered uh shipyard three of these vessels are being constructed at at HSL again I 1:02:32 1 hour, 2 minutes, 32 seconds again would like to go back to my previous statement that as far as this uh not regarding the capacity capacity what we have said we will meet but as 1:02:39 1 hour, 2 minutes, 39 seconds far as the inflow is concerned for the non-defense segment we should just wait and watch for a 1:02:47 1 hour, 2 minutes, 47 seconds Sir, I think waiting and watching is right from the IPO days that we are all here. So that's not a problem. It's just about you know the conversion of all 1:02:55 1 hour, 2 minutes, 55 seconds this potential into numbers. Waiting is something which maybe majority of us can easily wait. 1:03:00 1 hour, 3 minutes So for uh as you rightly said from the IPO days you have been waiting but you are seeing the results today. 1:03:05 1 hour, 3 minutes, 5 seconds Undoubtedly that's not the point. The point is about the patience. That's I cannot comment on what comes from the non-defense segment at this juncture. 1:03:11 1 hour, 3 minutes, 11 seconds Sir, it'll take a finite amount of time. 1:03:14 1 hour, 3 minutes, 14 seconds Defense segment I can tell you straight away because their system is streamlined as far as non-defense segment is sir I would wait you can add advice on 1:03:22 1 hour, 3 minutes, 22 seconds absolutely thank you sir thank you so much for all this pleasure sir hers from again thanks for the opportunity uh just on the margin front 1:03:30 1 hour, 3 minutes, 30 seconds since you now have the uh NGC order which will be given in March I know you don't like to discuss on margin but just 1:03:37 1 hour, 3 minutes, 37 seconds uh wanted to just check uh what the I try and sidestep the margin 1:03:44 1 hour, 3 minutes, 44 seconds So uh would the margin of NGC will be similar to P7 alpha? That's the first question. 1:03:54 1 hour, 3 minutes, 54 seconds So P7 alpha was a nominated project. NGC is a competitive project but what sir 1:04:01 1 hour, 4 minutes, 1 second had asked earlier that we are not compromised on the margins. Similar again is a perspective term. 1:04:09 1 hour, 4 minutes, 9 seconds Yes, it'll be similar if you take it in and assuming that you bid for and win the LPD and the MIMCV order since it's 1:04:18 1 hour, 4 minutes, 18 seconds in the collaboration mode so their margins will be similar to what we are right now having would that be a correct if it is a if it is a collaboration mode 1:04:25 1 hour, 4 minutes, 25 seconds naturally the overall margin will be good but when we share the when we share the profit there would 1:04:32 1 hour, 4 minutes, 32 seconds definitely be a an impact P7 in Bravo definitely we we are not partnering anybody we going independent 1:04:39 1 hour, 4 minutes, 39 seconds I thought you asked about P and Brah we are going independent right okay yeah thank you we'll we'll look after the 1:04:58 1 hour, 4 minutes, 58 seconds ma'am uh could you uh sir I'm Krishna Dshi from Ashika 1:05:06 1 hour, 5 minutes, 6 seconds Institutional Equities I'm so sorry But my question again happens to be with respect to the margins. So between the 1:05:12 1 hour, 5 minutes, 12 seconds P7 alpha completion in FY27 and meaningful NGC revenue which flows in 1:05:18 1 hour, 5 minutes, 18 seconds from Q4 FY28 onwards um which will also so there is also a risk of execution tapering while we do say that you know 1:05:27 1 hour, 5 minutes, 27 seconds there'll be some sort of a cushion which will be provided by the other orders but then what about the margins in uh those times 1:05:36 1 hour, 5 minutes, 36 seconds in uh FI28 I partially answered a question uh on an earlier And based on an earlier query that all 1:05:45 1 hour, 5 minutes, 45 seconds the projects what we had uh indicated as a cushion for this financial year would have adequate margin to maintain I mean 1:05:54 1 hour, 5 minutes, 54 seconds to sustain the margins we are giving now the P7 not P7 the NGC our endeavor would be to 1:06:02 1 hour, 6 minutes, 2 seconds pull back the pull back means pull ahead the revenue approval uh that that's all I can 1:06:09 1 hour, 6 minutes, 9 seconds promise and we also have other verticals like uh ship repair to be frank we have not gone all out we have taken 1:06:18 1 hour, 6 minutes, 18 seconds facilities we tested waters for a couple of years where the margins are high so we have not yet executed a very big 1:06:25 1 hour, 6 minutes, 25 seconds order on ship repair so we have time we will take on ship repair orders also in a bigger way than what we are currently 1:06:34 1 hour, 6 minutes, 34 seconds doing to push up our margins and revenue uh so my second question happens to be with regards to the 30 mm guns that we 1:06:42 1 hour, 6 minutes, 42 seconds are doing. Can you give us some outlook on the same with regards to the manufacturing capacity margins and how is the segment supposed to grow in the next 3 to 5 years? 1:06:51 1 hour, 6 minutes, 51 seconds 30 mm gun project started about an year and a half. We had a collaborator from abroad and an Indian partner and as I 1:06:59 1 hour, 6 minutes, 59 seconds mentioned earlier around 10 uh local manufacturers getting various components made here. The margins are good. margins 1:07:07 1 hour, 7 minutes, 7 seconds are let us say healthy margins are there. Currently we got order for 17 guns and uh all from the Indian Navy and 1:07:15 1 hour, 7 minutes, 15 seconds of these 17 guns four guns have already been installed on board the various platforms and the seat trials and so on 1:07:23 1 hour, 7 minutes, 23 seconds so have been completed. uh what we uh as far as the execution of these 17 guns 1:07:30 1 hour, 7 minutes, 30 seconds are concerned, we intend completing this project by mid of uh 207. 1:07:39 1 hour, 7 minutes, 39 seconds I mean all the 17 guns will be supplied. 1:07:42 1 hour, 7 minutes, 42 seconds In addition, Coast Guard has shown interest. We are having a discussion with Coast Guard for 49 more naval 1:07:49 1 hour, 7 minutes, 49 seconds surface guns. We expect the contract to be concluded by mid of this year. the pins in the first quarter of uh FI27. 1:07:57 1 hour, 7 minutes, 57 seconds We intend concluding the contract. In addition, uh these guns effectively used as primary guns on board small platforms 1:08:05 1 hour, 8 minutes, 5 seconds and secondary guns on board the larger platform. So, opportunities are huge and we also got an agreement with our partner that uh we can export these 1:08:14 1 hour, 8 minutes, 14 seconds guns. So what we intend doing is once the naval product stabilizes once they 1:08:22 1 hour, 8 minutes, 22 seconds run in operation for more once they run at sea for more than 6 months then we'll start our export process the potential 1:08:29 1 hour, 8 minutes, 29 seconds is huge here and so far there is no competition in the Indian so far so far there in this segment there is no 1:08:36 1 hour, 8 minutes, 36 seconds competition so the we we see uh this business picking up in the coming years 1:08:44 1 hour, 8 minutes, 44 seconds thank Yes ma'am. 1:08:52 1 hour, 8 minutes, 52 seconds Hello sir. This is Shweta from Equilon. 1:08:55 1 hour, 8 minutes, 55 seconds I wanted to know about the non-defense uh platforms that we are making or we'll make. How long it takes to get the order 1:09:05 1 hour, 9 minutes, 5 seconds means the two and fro till the final order we get and how means uh are the is 1:09:13 1 hour, 9 minutes, 13 seconds the time like because there's no um flow in that so is there more 1:09:22 1 hour, 9 minutes, 22 seconds time given in the two and fro with the clients if you can explain that process okay ma'am uh non-defense orders again 1:09:30 1 hour, 9 minutes, 30 seconds I'll put it in two buckets one is the non-defense orders coming from government uh entities like the research 1:09:38 1 hour, 9 minutes, 38 seconds vessels they're all coming from government entities and second is the orders which are coming from non government entities like uh the German client 1:09:46 1 hour, 9 minutes, 46 seconds yeah I'm talking of non-government non-government so the uh the overall non-defense uh order book uh composition 1:09:56 1 hour, 9 minutes, 56 seconds contribution is about 20% as 18%. In this the export content is almost about 1:10:03 1 hour, 10 minutes, 3 seconds 8%. So here uh we it takes it takes time the time is not taken for the contract 1:10:11 1 hour, 10 minutes, 11 seconds conclusion time is actually taken for establishing a a relationship. We took nearly 6 months to get into the more 1:10:19 1 hour, 10 minutes, 19 seconds than 6 months to get into the first contract for the four vessels of the German clan. Then the next four and the next four came almost back to back. So 1:10:27 1 hour, 10 minutes, 27 seconds it is just question of making the break and I mentioned that one project uh where we wanted a collaboration with another shipyard for because of the size 1:10:36 1 hour, 10 minutes, 36 seconds of the ship there the discussions have been going on for almost one year one year but when it happens then the flow becomes 1:10:43 1 hour, 10 minutes, 43 seconds so after that one year the approvals again and again we have to go there is no approval involved ma'am it is a owner and the the shipyard there is 1:10:53 1 hour, 10 minutes, 53 seconds they are the ones who are giving the approval. Okay. 1:10:55 1 hour, 10 minutes, 55 seconds The the one year or one year I'm exaggerating but let us say in the first project of NPV it took 6 months. The 6 months was not for any it was only for 1:11:04 1 hour, 11 minutes, 4 seconds the negotiations to close because some of the conditions what they demand and expect are not acceptable to us. So we reach a midpath which is financially 1:11:12 1 hour, 11 minutes, 12 seconds viable for both the parties. So once that relationship and the contractual terms are established then it's a question of concluding the contract. So 1:11:22 1 hour, 11 minutes, 22 seconds as I said it's a question of the first break. We already got it and now one we are not able to handle because of the 1:11:29 1 hour, 11 minutes, 29 seconds capacity constraints. Second thing is in the major project what I discuss it's a question of concluding the the 1:11:36 1 hour, 11 minutes, 36 seconds negotiations. Approval is between us and them. There's no government involved in this. Thank you so much. 1:11:46 1 hour, 11 minutes, 46 seconds Yeah please. Yes. Hi sir this is Hardik from Capital. Thank you so much for the opportunity. 1:11:53 1 hour, 11 minutes, 53 seconds Uh sir my first question would be with regards to the NGC pack uh NGC order. Uh just wanted to understand that we're expecting the order finalization by the 1:12:01 1 hour, 12 minutes, 1 second end of this financial year. Could you say as to when you know the orders for the equipment uh especially electronic equipment that goes onto that platform 1:12:10 1 hour, 12 minutes, 10 seconds by when if if we are able to receive that order by the end of this financial year would the order for the equipment be placed right away or could that spill over to the next financial year that is FI27? 1:12:20 1 hour, 12 minutes, 20 seconds the order for the equipment builds below to the next financial year. Uh the contract signing is the kickoff for the 1:12:28 1 hour, 12 minutes, 28 seconds the the equipment decision finalization and the decision. But on a proactive uh note we have already commenced 1:12:35 1 hour, 12 minutes, 35 seconds discussion with most of the major OEM because now we know who are the OEMs. Uh in some of the cases the technical requirements have been already frozen 1:12:44 1 hour, 12 minutes, 44 seconds because here we need to take the concurrence of the customer also. This process commenced almost from the time we became we were known that we were the 1:12:51 1 hour, 12 minutes, 51 seconds L1 shipyard and uh we expect to sign the contract with our 1:12:59 1 hour, 12 minutes, 59 seconds OEMs within first 6 months of uh placement of I mean receipt of contract which means in the first half of uh the 1:13:06 1 hour, 13 minutes, 6 seconds next financial day we'll be able to place and that is what is a realistic uh time and we also would like to maintain because if you we cannot place too early 1:13:14 1 hour, 13 minutes, 14 seconds also we also need to ensure that the deliveries are just in time I mean when we need the production team that's the reason that is helpful sir but one last 1:13:22 1 hour, 13 minutes, 22 seconds question with regards to the NGC execution uh now you know we appreciate the fact that you know you're looking at uh the fact that you know 27 is going to 1:13:30 1 hour, 13 minutes, 30 seconds be a peak year in terms of revenue and there's no not a lot of plateauing of growth in FI28 which is why you know an 1:13:37 1 hour, 13 minutes, 37 seconds NGC related revenues being booked in 4Q uh but since that revenue will only come in 4Q it would be safe to assume that at 1:13:44 1 hour, 13 minutes, 44 seconds least on a 9-month basis for FI20 28 growth could slow down on a year-to-year on a Y basis 1:13:51 1 hour, 13 minutes, 51 seconds not necessarily not necessarily because what I had mentioned was that almost 10 to 15 percentage of project cost is from 1:13:59 1 hour, 13 minutes, 59 seconds the spares so these will start coming in we contractually are supposed to provide them after the within X period after the 1:14:07 1 hour, 14 minutes, 7 seconds contract I mean ship delivery last ship delivery completes so we will be able to pad up FI28 with adequate uh cushion 1:14:17 1 hour, 14 minutes, 17 seconds at this juncture no concern that's all I can say got it sir thank you so much u good evening sir so thank you for your very detailed answers to all the 1:14:25 1 hour, 14 minutes, 25 seconds questions uh I had a question around people and um automation mechanization given that in the next 3 to 5 years the 1:14:33 1 hour, 14 minutes, 33 seconds scale is going to be very different uh could you talk us about any initiatives you are doing to train people attract 1:14:40 1 hour, 14 minutes, 40 seconds more people uh number one and secondly investments in mechanization and automation uh from from a perspective that the execution excellence is maintained. Thank you. 1:14:50 1 hour, 14 minutes, 50 seconds A very interesting question. Yes. Uh people first uh I'll cover both the people as well as the you may be 1:14:58 1 hour, 14 minutes, 58 seconds tracking uh our uh induction plants. We have we are actually indicting uh see ours is a manufacturing company but as 1:15:06 1 hour, 15 minutes, 6 seconds our permanent strength we intend maintaining a reasonably lean strength where the the non 1:15:14 1 hour, 15 minutes, 14 seconds let us say the blue collar force is limited to handling core activities so we maintaining a lean strength which means the white collar strength would 1:15:23 1 hour, 15 minutes, 23 seconds increase so as recently there's a live I think it is concluded we just concluded as in the window is concluded we are 1:15:30 1 hour, 15 minutes, 30 seconds protecting another 150 executives 137 executives so and all of them I can assure you come from top institutions of 1:15:37 1 hour, 15 minutes, 37 seconds the country the best that's what we pick up this is for the in addition as the the skilled workforce uh depletes we are 1:15:46 1 hour, 15 minutes, 46 seconds inducting for the core jobs we have an excellent uh vendor base uh subcontracted vendor base in Kolkata 1:15:54 1 hour, 15 minutes, 54 seconds some of the best in India from various companies handling some handling block fabrication the welding specialized 1:16:01 1 hour, 16 minutes, 1 second welding and so at this juncture uh skill the resources wise not a red flag as of 1:16:09 1 hour, 16 minutes, 9 seconds now as far as automation is concerned yes this is an imperative and we already started in investing and uh should you 1:16:17 1 hour, 16 minutes, 17 seconds visit our facilities we have some of the best uh in terms of uh the the welding machines the plasma cutting machines or 1:16:24 1 hour, 16 minutes, 24 seconds robotic welding machines and so on and we'll continue investing in that it it naturally It will be need based because we don't want to unnecessarily pump in 1:16:32 1 hour, 16 minutes, 32 seconds capital but yes there is a need and we are investing we ceased of this responsibility. Uh robotics is also been brought in. We have a robotic building 1:16:40 1 hour, 16 minutes, 40 seconds mission which is being almost used to sentum capacity so there is no issue with that. 1:16:44 1 hour, 16 minutes, 44 seconds Thank you very much for your detailed thoughts and all the best to the entire team. Thank you sir. 1:16:49 1 hour, 16 minutes, 49 seconds Thank you sir. Thank you. We'll take that as the last question and conclude the conference. I would now like to hand over the floor to Commodore PR Haris sir for his closing remarks. Thank you sir. 1:16:59 1 hour, 16 minutes, 59 seconds Uh thank you ladies and gentlemen for an interesting session. As I said I personally I look forward to this particular uh session where interesting 1:17:07 1 hour, 17 minutes, 7 seconds questions come. Sometimes you answer state sometimes uh you sidestep it just an occupational asset but uh believe you 1:17:16 1 hour, 17 minutes, 16 seconds me 100% efforts is being put in by the company and the results are here for you to see. On a positive proud note I mentioned that this is the 13th quarter 1:17:25 1 hour, 17 minutes, 25 seconds that on a trot that and we would like to maintain it as long as we can and the visibility is very much there. Thank you. Thank you. Thank you so much sir. I 1:17:33 1 hour, 17 minutes, 33 seconds would request everyone to join us for a group photo please and then we can proceed to the high tea. Thank you. Standing group four.