GNG Electronics Limited — Q3 FY26

GNG Electronics Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=qB-aoSi5d4A Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the G&G Electronics Limited Q3 and 9month FY26 earnings conference call. 0:11 11 seconds This call may contain forward-looking statements about the company that are based on the beliefs, opinions, and expectations of the company as on date 0:18 18 seconds of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. 0:27 27 seconds As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation 0:34 34 seconds concludes. Should you need assistance during this conference, please signal an operator by pressing star and then zero on your touchstone phone. Please note that this conference is being recorded. 0:47 47 seconds I now hand the conference over to Mr. 0:49 49 seconds Avin Karumani from Motila Losal. Thank you and over to you sir. Thank you Darwin. Good evening everyone. 0:58 58 seconds On behalf of Motil Ospal Financial Services, I welcome you to Q3 SA26 earnings call of G&G Electronics. 1:05 1 minute, 5 seconds Joining us on the call today are Mr. 1:08 1 minute, 8 seconds Shir Kandal, founder and managing director, Mr. Ajay Pancholi, director, Mr. Pak Junwala, CFO and Mr. Rohit 1:17 1 minute, 17 seconds Agarwal from MD office. I'll now hand over the call to Sharaj for his opening remarks. Over to you sir. 1:39 1 minute, 39 seconds Thank you everyone. I welcome you to the third earnings call of G&G Electronics. 1:45 1 minute, 45 seconds 23 FI26 has been another strong quarter for us. The business delivered robust growth along with a clear improvement in 1:52 1 minute, 52 seconds profitability. Revenue grew by 40.3% yearonear and profit after tax more than double compared to the same period last 2:00 2 minutes year. This performance reflects consist consistent execution across sourcing, refurbishment and sales and it builds m 2:08 2 minutes, 8 seconds on the momentum we have been seeing over the last past several quarters. 2:13 2 minutes, 13 seconds What's particular particularly encouraging is not just how fast we are growing but how well we are growing. As 2:21 2 minutes, 21 seconds volumes have scaled, margins have improved and profitability has grown faster than revenues. 2:27 2 minutes, 27 seconds This clearly demonstrates the operating leverage inherent in our business models. Let me now share a few updates on the broader industry. 2:36 2 minutes, 36 seconds The global techn technology landscape continues to evolve in a way that is increasingly favor favorable for the refer PC segment. Over the past few 2:45 2 minutes, 45 seconds quarters, rising memory and storage prices have begun to materially impact both the cost structure and availability of new PCs. Some of you may recall that 2:55 2 minutes, 55 seconds during our road source in July last year, I mentioned that by the end of 2025, AI adoption and real world use cases would be meaningfully higher. 3:05 3 minutes, 5 seconds That expectation has clearly played out. 3:08 3 minutes, 8 seconds As AI adoption accelerates, investments in AI infrastructure have surged. A growing share of global memory 3:15 3 minutes, 15 seconds manufacturing capacity, especially high bandwidth memory, HBM is now being diverted towards AI and data centers. 3:24 3 minutes, 24 seconds This shift has tightened supply for conventional DAM and storage used in new PCs and prices have risen sharply as a 3:32 3 minutes, 32 seconds result. To put this into perspective, as DDR5 8GB RAM prices increased from $23.35 3:41 3 minutes, 41 seconds on 1st October 2025 to $86.61 by 1st January 2026, nearly a 270 percentage increase. 3:52 3 minutes, 52 seconds Similarly, DDR 560 GB RAM prices rose from $54.85 to $189.99 4:00 4 minutes over the same period. A 3.4 and four times increase. These are substantial increases. 4:08 4 minutes, 8 seconds These are these increases inevitably will flow through to the pricing of brand new pieces globally. 4:19 4 minutes, 19 seconds Also, according to IDC, global UPC shipments stood at about 284.7 million units in 2025. 4:27 4 minutes, 27 seconds Against this backdrop, IDC estimates that shipments in 2026 could decline by up to 8.9%age due to 4:36 4 minutes, 36 seconds memory shortages and rising prices. This environment is naturally driving higher acceptance and penetration of refer 4:43 4 minutes, 43 seconds pieces driven by affordability and availability. 4:47 4 minutes, 47 seconds Adding to this, IDC also notes that nearly a quarter of global TC shipments come from manufacturers outside the top five brands. 4:55 4 minutes, 55 seconds Many of these players are likely to face significant challenges in accessing memories even at elevated prices. This 5:03 5 minutes, 3 seconds could lead not only to higher prices but also to outright supply shortages in new PCs further accelerating demand for repurposed systems. 5:14 5 minutes, 14 seconds We are already seeing the impact. New PCs have increased by new PC prices have increased by roughly 20% so far and we 5:21 5 minutes, 21 seconds expect further increases ahead. This is clearly shifting customer preference towards refurbished species and expanding the total addressable market 5:29 5 minutes, 29 seconds for our industry. We fully intend to capitalize on these favorable trenments. 5:35 5 minutes, 35 seconds As a result, refer pieces are playing an important increasing role in meeting global computing demand especially for 5:42 5 minutes, 42 seconds enterprises and institutions that value faster deployment, reliable performance and cost efficiency. Customers are 5:49 5 minutes, 49 seconds increasingly rec recognizing that refurbish systems can meet the needs without compromise. 5:56 5 minutes, 56 seconds We have seen similar transitions in other industries as well. In mature automotive markets, used car sales are more than twice the volume volume of new 6:03 6 minutes, 3 seconds car sales. In smartphones, refurbished devices have grown from a niche segment to a meaningful share of global 6:11 6 minutes, 11 seconds shipments. The PC market is now following a similar trajectory as devices become more expensive, technological stable and longerlasting. 6:20 6 minutes, 20 seconds Again this backdrop, our focus at G&G has remained very clear. Secure supplies well in advance, execute refurbishment efficiently and ensure continuity for 6:29 6 minutes, 29 seconds customers across geographies. This disciplined execution has enabled us to consistently meet demand even as market dynamics continue to evolve. 6:39 6 minutes, 39 seconds Overall, our quarterfree performance reflects the strength of our execution in a changing industry landscape and positions as well as customer demand patterns continue to shift. 6:50 6 minutes, 50 seconds Let me now turn to some company specific updates. 6:53 6 minutes, 53 seconds One of our most important development has been the continued validation of our model. Devices referred by G&G deliver an experience that is as good as new 7:02 7 minutes, 2 seconds both in terms of performance and aesthetics at roughly one/ird the price of a new device. This is backed by a credible and proven warranty of up to 7:09 7 minutes, 9 seconds three years. This powerful combination of quality assurance and affordability continues to resonate strongly with customers and is driving both topline growth and margin expansion. 7:20 7 minutes, 20 seconds Our warranty framework in well established and remains unparalleled in the industry. 3 years in India and one 7:27 7 minutes, 27 seconds years across international markets. This has significantly strengthened customer confidence which is reflected in higher 7:34 7 minutes, 34 seconds repeat orders and wider deployment of refurbish systems for long-term use. I would like to mention that we initiated 7:41 7 minutes, 41 seconds this warranty. We pioneered this concept of warranty to increase reliability in refurbished computers 7:49 7 minutes, 49 seconds computers refurbished by us. On the international front we continue to expand both geographically and in terms of depth. Today we supply to 44 7:57 7 minutes, 57 seconds countries supported by more than 4,745 customer touch points across enterprises, institutions, distributors 8:05 8 minutes, 5 seconds and channel partners. As this footprint grows, repeat business is increasing, reinforcing the grow growing acceptance 8:11 8 minutes, 11 seconds of both reper computing and electronics brand globally. 8:17 8 minutes, 17 seconds We have also initiated targeted digital outreach programs particularly in the US and are extending similar efforts in India. These initiatives are helping 8:25 8 minutes, 25 seconds improve brand visibility, deepen customer engagement and strengthen our sales pipeline. To support this growth, we have continued to invest in our 8:33 8 minutes, 33 seconds people. During the quarter, we strengthen our senior leadership, middle management and engineer engineering teams, ensuring that the organization 8:41 8 minutes, 41 seconds remains well equipped to scale sustainably. 8:44 8 minutes, 44 seconds I would also like to highlight that nearly 100% of our sales are now under our own brand electronics bazar. 8:52 8 minutes, 52 seconds This reduced dependence on external brands, strengthen customer recall, reinforces trust and supports long-term value creation. I'm happy to report that 9:00 9 minutes devices refer by electronic bazar carries specific premium and distinct positioning in the market. 9:08 9 minutes, 8 seconds Finally, given the ongoing memory shortages and rising prices of new PCs, we believe it is critical to maintain elevated inventory levels. This ensures 9:17 9 minutes, 17 seconds continuity of supply for our customers and is essential for sustaining both sales growth and margin expansion during this period of structural supply constraints. 9:26 9 minutes, 26 seconds In summary, we believe we are well positioned to navigate the current environment and to continue delivering strong highquality growth in the 9:34 9 minutes, 34 seconds quarters ahead. I would like to hand over now to our CFO RKG to speak on the performance of quarter 3. Thank you very Thank you all very much. 9:43 9 minutes, 43 seconds Thank you Sergi. Good evening everyone. 9:45 9 minutes, 45 seconds Happy to inform you all we have had a reflects another quarter of consistent execution and disciplined growth of G&G 9:54 9 minutes, 54 seconds electronics with a clear improvement in profitability alongside strong revenue expansion during the during the quarter. 10:05 10 minutes, 5 seconds Consolidated revenue increased to rups 4,872.2 million representing a year-on-year growth of 40.3%. 10:13 10 minutes, 13 seconds Growth remained broad-based driven by steady demand and continued traction across both domestic and international 10:21 10 minutes, 21 seconds markets particularly Middle East, the United States and Europe. Operating performance continued to improve as a 10:28 10 minutes, 28 seconds beta for the quarter stood at rupees 545.7 million with aa margin expansion 10:36 10 minutes, 36 seconds to 11.2% from 9.2% 2% in Q3 of I25, translating into a strong 200 bs 10:43 10 minutes, 43 seconds increase. This improvement reflects efficient cost absorption and disciplined execution as the business scaled. 10:54 10 minutes, 54 seconds Profit after tax has more than doubled to rupees 386.9 million in Q3 F26 11:02 11 minutes, 2 seconds while revenues grew by 40.3% yearonear supported by margin expansion and operating leverage 11:10 11 minutes, 10 seconds margin for the quarter stood at 7.9% compared to 5.5% in Q3 FY25 11:19 11 minutes, 19 seconds on a YTD basis we have delivered 30% year-on-year revenue growth grow along with 157 bips improvement impact 11:28 11 minutes, 28 seconds reflecting the strength and scalability of our business model. Thank you. 11:39 11 minutes, 39 seconds Thank you. I now hand the conference over to Mr. AJ Panchcholi. Over to you sir. 11:45 11 minutes, 45 seconds Hi, good evening everyone. Uh thanks once again and welcome to the conference call. uh for this quarter update. I would want to highlight a few important 11:54 11 minutes, 54 seconds uh points uh for your consideration. Uh first being that today we supply to over 44 countries which was about 38 12:02 12 minutes, 2 seconds countries at the beginning of last year and uh has in fact moved from 35 countries to 45 countries in the last 12 months. So that that has expanded our 12:11 12 minutes, 11 seconds outreach and acceptability of our products across uh uh different geographies. Uh second uh aspect worth 12:19 12 minutes, 19 seconds highlighting is on the distribution front. We are now supported by over 4,745 customer touch points across enterprises, institutions, distributors 12:28 12 minutes, 28 seconds and channel partners which was about 4,150 at the beginning of the year. 12:36 12 minutes, 36 seconds uh just from a capacity perspective or our throughput perspective it's important to highlight our employee strength has increased to over 19 just 12:45 12 minutes, 45 seconds about 1,900 which was about 1194 at the beginning of uh the year and which was 12:51 12 minutes, 51 seconds 1500 at the beginning of the quarter. Uh uh so importantly it's worthwhile to highlight that we have added over 600 engineers uh and also substantial 13:01 13 minutes, 1 second strength has been added to the sales and marketing team. uh so this uh this lays the foundation for the growth that we 13:08 13 minutes, 8 seconds have delivered and which we env to deliver over the next couple of quarters and going forward. The third import the 13:16 13 minutes, 16 seconds fourth important point I would want to highlight is as relates related party transactions. Uh we currently have no 13:23 13 minutes, 23 seconds related party transactions uh within uh the group other than the uh sales that happens to our 100% subsidiary. So there 13:30 13 minutes, 30 seconds is no uh the reason why I'm highlighting this is that this was one of the important points at the during the time of our IPO and hence for your 13:38 13 minutes, 38 seconds consideration I'm highlighting this aspect and the fifth point uh which I would want to add is on the warranty 13:44 13 minutes, 44 seconds cost the treatment and uh uh uh provisioning norm that we are thinking the way forward. The warranty cost is 13:52 13 minutes, 52 seconds accounted for as part of cost of goods sold and is therefore already factored in our reported gross margins. As indicated earlier, the warranty cost has 14:00 14 minutes been in the range of 10 to 12 basis points and which uh we account for on an on a regular basis and into through our 14:07 14 minutes, 7 seconds P&L. Warranty costs continue to remain structurally low supported by our in-house refurbishment processes, quality controls and post sales service 14:15 14 minutes, 15 seconds framework. Additionally, as a matter of prudence and conservative accounting approach, the company has made a cumulative provision of 1.3 crores over 14:24 14 minutes, 24 seconds and above actual warranty costs incurred to date. uh through our uh P&L. So this is an incremental provision that we are 14:32 14 minutes, 32 seconds taking and we will continue to uh uh enhance this provision uh over a period of time as the scale continues to grow. 14:42 14 minutes, 42 seconds Uh on this note I would want to hand it over to uh Sharaji who want to make few incremental important updates for your consideration. Over to you Sharaj. 15:00 15 minutes Uh Shahed sir, your line is unmuted. You may proceed. 15:15 15 minutes, 15 seconds Shir, if you are speaking right now, you are not audible. 15:29 15 minutes, 29 seconds Ladies and gentlemen, please stay with us while we determine the issue with the line. 15:44 15 minutes, 44 seconds Am I now? Yes. Am I audible now? 15:53 15 minutes, 53 seconds Hello. 15:56 15 minutes, 56 seconds Hello. I'm audible now. Yeah. So, I would like to make a state 16:06 16 minutes, 6 seconds I would like to make a statement on Am I audible? Yeah. So, I would like to make a statement on our sales channel. 16:15 16 minutes, 15 seconds Can Can the operator confirm please? Can the operator confirm if Shaj and I am I am live? 16:29 16 minutes, 29 seconds Can the operator confirm please? 17:10 17 minutes, 10 seconds Ladies and gentlemen, we thank you for your patience. We have reconnected with Shahhat, sir. Uh sir, you may proceed. 17:17 17 minutes, 17 seconds Yeah, thank you. I would like to make a statement on our sales channel augmentation in further furtherance our objective to strengthen distribution 17:25 17 minutes, 25 seconds reach and make our products available across the land and breadth of India include in including tier 2 tier three cities and emerging towns. We have 17:33 17 minutes, 33 seconds entered into two separate strategic partners partnerships with leading techn technology distributors. 17:40 17 minutes, 40 seconds We have partnered with one of the world's largest technology distributors and the second largest distributor in India and separately partnered with fifth largest technology distributor in 17:48 17 minutes, 48 seconds India in India. While we continue to scale our existing channels, these partnerships significantly enhance our ability to 17:56 17 minutes, 56 seconds address the growing demand for valuedriven and eco-conscious techn technology solutions from large enterprises, SMMES, educational institutions and other consumer 18:04 18 minutes, 4 seconds segments. Importantly, the fact that these two distributors who have traditionally been focused primarily on the distribution of brand new computers will now also distribute our refurbished 18:13 18 minutes, 13 seconds products demonstrates the increasing acceptance, scalability and long-term potential of the refurbishment industry in general and electronics bazar 18:20 18 minutes, 20 seconds electronics in particular. We have consistently maintained a strategy of non-dependence on any single customer or channel and these additions further strengthen the resilience of a 18:29 18 minutes, 29 seconds distribution model while enabling deeper market penetration. 18:33 18 minutes, 33 seconds As you can imagine, distributors of this these these scale and reputation partner only with the companies that have strong credibility processes and an established 18:42 18 minutes, 42 seconds track record. We believe the decision to partner with us independently is a strong validation of our product quality warranty framework and overall overall 18:50 18 minutes, 50 seconds value proposition. We are honored to partner with both these large distributors and look forward to scaling these relationships meaningfully 18:58 18 minutes, 58 seconds meaningfully over the coming over the coming years. The secondary reuse market including refurbished market is growing 19:05 19 minutes, 5 seconds rapidly across the globe and reliable good quality devices are much in demand and will continue to keep increasing. I 19:13 19 minutes, 13 seconds would like to speak on the guidance as a result of the industry dynamics that I spoke in the beginning of this call and the execution momentum we are seeing the company has strong visibility and 19:22 19 minutes, 22 seconds growth. While we had earlier guided for approximately 25% year-on-year revenue growth, we are revising it upward to 28 to 30%. Along with an improvement in 19:30 19 minutes, 30 seconds profit profitability of around 150 to 200 basis points compared to the earlier guidance of approximately 75 basis points for the whole year, we remain 19:38 19 minutes, 38 seconds focused on discipline execution, prudent decision- making and closely monitoring market conditions as they evolve. Our objective continues to be building a 19:47 19 minutes, 47 seconds resilient business that can deliver consistent growth and profitability across cycles. Thank you all very much. 19:57 19 minutes, 57 seconds Thank you. 19:59 19 minutes, 59 seconds We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish 20:07 20 minutes, 7 seconds to withdraw yourself from the question queue, you may press star and two. 20:11 20 minutes, 11 seconds Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question Q assembles. 20:19 20 minutes, 19 seconds Our first question comes from the line of Manish Ostal from Nirmal Bank Securities Private Limited. Please go ahead. 20:31 20 minutes, 31 seconds Yes sir. Thank you for the opportunity and consolation on good set of numbers. Very strong set of numbers. 20:37 20 minutes, 37 seconds So sir, can you tell us the total volume growth in the business in 9 month versus last year 9 month? 20:47 20 minutes, 47 seconds Yes sure. So, so the volume for this quarter was about 1 lakh 86,000 units 20:55 20 minutes, 55 seconds which was spread across laptops and others in the proportion of 83% and 17%. 21:01 21 minutes, 1 second So to be precise the number was 140,000 laptops and other products being about 45,000 odd. This was for the quarterly 21:10 21 minutes, 10 seconds ended uh just quarter ended December 31st. The same for the nine months is uh a number of 4 lakh 87,500 all units 21:19 21 minutes, 19 seconds which is a break up of about five 3 lakh 58,000 laptops and others being 1 lakh 29,000 odd uh the proportion being about 21:28 21 minutes, 28 seconds 81% and 19 odd%. uh in terms of uh the same in terms of u uh uh revenue share 21:36 21 minutes, 36 seconds uh the same as the breakup is in terms of uh revenue so long as it pertains to number of units the break up is about 21:43 21 minutes, 43 seconds 76% and 24% for the quarter ended and the same being 73% and 27% for the 9 months ended period 21:52 21 minutes, 52 seconds and same period last month data the volume growth in the business uh man sorry to interrupt but your line 21:59 21 minutes, 59 seconds wasn't clear may I request ask you to please repeat your question. 22:03 22 minutes, 3 seconds I'm saying what is uh sorry sir you're breaking up in between. We are not able to hear 22:11 22 minutes, 11 seconds anything at the moment. Please check the audible. Am I audible? Yes, this is better. Please go ahead. Am I audible? 22:20 22 minutes, 20 seconds Am I audible? 22:21 22 minutes, 21 seconds Yes, you are audible sir. Please go ahead. 22:23 22 minutes, 23 seconds Yes. My question is what is the volume growth in 9 months? The volume growth in the business 22:31 22 minutes, 31 seconds volume growth has increased from 4 lakh 1,000 to 4 lak 888,000 in terms of total units in the 9 month 22:38 22 minutes, 38 seconds period. Okay. At least uh uh 22:45 22 minutes, 45 seconds is there any impact of the labor code labor in our business because I have seen in there's no provision. So there's no impact in our business. 22:56 22 minutes, 56 seconds No, there is no impact of labor code in our business. Is the net figure December 2020 culture? 23:05 23 minutes, 5 seconds Let's see. Thank you. 23:14 23 minutes, 14 seconds Yeah, the net debt number for 31st December is about uh average uh the net debt is about 456 crores. 23:25 23 minutes, 25 seconds Yes sir. Thank you. 23:28 23 minutes, 28 seconds Thank you. Our next question is from the line of Praesh from Lucky Investments. Please go ahead. 23:34 23 minutes, 34 seconds Yeah. Hello sir. Uh sir this uh rising inventory and memory prices now is it a part of your margin or there is scope for further improvement in margin? 23:47 23 minutes, 47 seconds Then uh in your opening comments you mentioned that there will be a continuously elevated inventory level. 23:54 23 minutes, 54 seconds So what should be then the interest cost assumption that one should take while forecasting because uh you initially had a plan of 24:03 24 minutes, 3 seconds repayment of debt but I think you have continuously maintained higher inventory so maybe some thoughts there on the 24:09 24 minutes, 9 seconds interest cost uh should be uh guided for and third is the distributor partnership that you're 24:18 24 minutes, 18 seconds referring to my guess is the number one and the number two names we know so What happens to your uh revenue or volume 24:26 24 minutes, 26 seconds growth incrementally based on these partnerships? Do we see acceleration from this 30% topline growth that you 24:33 24 minutes, 33 seconds have uh guided for this year uh or otherwise? You know these are my three questions. 24:40 24 minutes, 40 seconds Uh thank you Pat. Your first question was on the margin expansion. As uh you must have noted that we have revised 24:47 24 minutes, 47 seconds upward our margin guidance for this year from 75 basis points to 150 200 basis points. This is on the back of superior 24:56 24 minutes, 56 seconds execution longtail to longtail strategy also strategic stock position that elevated stock position and higher 25:04 25 minutes, 4 seconds inventory is the need of the earth because we have to secure supplies in anticipation of demand. prices are going to rise or uh for an extended period of 25:12 25 minutes, 12 seconds time as we have seen and uh there is no clear indication that this situation will abate anytime sooner. The AI 25:21 25 minutes, 21 seconds investments are for real and there are long-term around 7 trillion investments are going in data center and AI 25:28 25 minutes, 28 seconds infrastructure across the world. Um we all know that we are using AI in our daily lives and multiple AIs are being 25:36 25 minutes, 36 seconds used for multiple task while one search engine will give in a similar IP setting same result the AI will give different 25:43 25 minutes, 43 seconds set of queries for in the same setting for different people. So personalized uh queries personalized results require 25:50 25 minutes, 50 seconds bigger processing longer processing and this will continue to grow. uh so that means we will have to keep higher 25:57 25 minutes, 57 seconds inventory and this the uh this strategic position of inventory is also going to help us in increasing our margins apart 26:05 26 minutes, 5 seconds from stock positioning. Uh your question was around the no so sir so so on the first question uh 26:14 26 minutes, 14 seconds do you see margins further expanding from this 11 11 and a half I'm taking 11 and a half because I think you said 1 26:22 26 minutes, 22 seconds and a2 cr was extra warranty cost provided in the quarter my guess is so I'm just taking 11 and a half as a 26:29 26 minutes, 29 seconds reference so do you see a case where these memory prices and you know whatever price hikes that you are 26:36 26 minutes, 36 seconds talking out takes up your margins further based on the inventory positioning that you take. So 11 and a half rises further as we move next year. 26:44 26 minutes, 44 seconds That's that's the assumption we should take. 26:47 26 minutes, 47 seconds Yeah, we as a prudence we have given conservative I would like to me mention that we have again given uh conservative 26:54 26 minutes, 54 seconds guidance and we remain fully rooted in the business on the ground where we are on the job and uh our goal is to 27:02 27 minutes, 2 seconds increase margins. If your question is around is there a possibility and we have the environment available for the same the answer is positive. Yes. 27:12 27 minutes, 12 seconds Okay. So directionally the margins can go up further that's the conclusion. Okay. 27:18 27 minutes, 18 seconds Yeah. But I would like to be conservative at this point of Okay. Okay. Okay. Yeah. 27:23 27 minutes, 23 seconds Then on the interest cost side things things look good overall. Things look good overall. Yeah. 27:31 27 minutes, 31 seconds On the interest cost side, do you see reduction or do you see with the growth the debt on your balance sheet uh continues to stay what it is? 27:45 27 minutes, 45 seconds Because of our our vendor network across the world, we are able to secure good quality of uh material that is required 27:53 27 minutes, 53 seconds for refurbishment and sales. But during the current situation it makes business sense to keep higher inventory which require higher investment. Hence the 28:01 28 minutes, 1 second interest cost will be there and likely to be there. But the interest cost will be more than offset by the expanded 28:08 28 minutes, 8 seconds margins. So we are mindful of that that around 10 9 10% in peranom interest cost the better marginalization is more than 28:16 28 minutes, 16 seconds offsetting that interest cost. And you had asked the third question was around the distribution partnerships. 28:23 28 minutes, 23 seconds distributor partnership and growth. So does it mean that you grow faster than this 30% now because of this distributor partnership? 28:31 28 minutes, 31 seconds Well, uh let me tell you this 30% growth is uh not on the back of the new relationships that we are we have just 28:38 28 minutes, 38 seconds announced. Uh this will be on top of that. 28:42 28 minutes, 42 seconds Ah that's what my question which which means which means it can go further but as you know us we always try to give conservative guidance. 28:52 28 minutes, 52 seconds Correct. Uh AJ was trying to ask answer on interest. So absolute interest is what it is when you grow or absolute interest rises from this number. Yeah. 29:04 29 minutes, 4 seconds Sure. Hi I I'll address that question in detail. Right. 29:08 29 minutes, 8 seconds So last year our total total interest cost of finance cost was about 38.35 W crores. In our Q2 guidance quarterly, we 29:16 29 minutes, 16 seconds had indicated a total interest cost saving of about 10 to 12 crores for this year on account of the repayment. As the 29:23 29 minutes, 23 seconds opportunity has unfolded in Q3, our finance cost is about 9 crores as against what we had estimated it is higher by about 4 and a2 crores in this 29:32 29 minutes, 32 seconds quarter. How has this played out? This has played out is basically uh we have had an IIDA increase of about 22.57 odd crores, right? 29:43 29 minutes, 43 seconds uh and uh uh in in in the three months. 29:45 29 minutes, 45 seconds So I'll rather focus on three months as against uh the the six month period. So as against uh the four to four and a half cr of increment interest that we 29:53 29 minutes, 53 seconds have paid we've seen a significant enhancement in our eida contribution. So we should look at it from that perspective. From an overall throughout 30:02 30 minutes, 2 seconds the full year perspective as well as we mentioned that our inventories and working capital has been elevated on account of the overall opportunity that 30:11 30 minutes, 11 seconds has been provided by the markets. We anticipate that uh in the current quarter as well interest levels are going to be uh will not there won't be a 30:19 30 minutes, 19 seconds reduction but that having said from where we stand we anticipate that the full year finance cost will remain more or less same as was in the last financial year. 30:30 30 minutes, 30 seconds But when you grow on this particular no my question was when you grow on this base next year and maybe year after so 30:38 30 minutes, 38 seconds what happens to your debt and the interest cost? 30:41 30 minutes, 41 seconds So I think it would be important to highlight that uh see this the the the industry is dynamic the underground 30:49 30 minutes, 49 seconds dynamics are quite uh uh positive at this point of time for us I think we'll be we would want to be guarded in terms 30:58 30 minutes, 58 seconds of how we take this forward in terms of our inventory levels in terms of our overall working capital in terms of how our partnerships have scaled up what 31:05 31 minutes, 5 seconds they provide as an opportunity going forward so we'll be guided so the guidance also which has given is for the current year, right? We would want to 31:14 31 minutes, 14 seconds actually come back to the wider audience including you at the end of next quarter or at the end of the full year and give you a guidance for the full year as 31:21 31 minutes, 21 seconds well. Please bear in mind that the markets have been increasingly dynamic and the opportunity is continuing to unfold and that uh that is a very live 31:31 31 minutes, 31 seconds situation. So while Shaji mentioned the aspect of prices prices going going up 31:37 31 minutes, 37 seconds by almost 250 to 300 basis 300 uh 350% uh this is actually a week over week 31:45 31 minutes, 45 seconds there's been a transformational change in terms of how memory prices have changed and the way we would want to uh guide you on the growth going forward we 31:54 31 minutes, 54 seconds would want to restrain ourselves on giving guidance for the next year at this point of time we would want to address that at the end of next quarter we want to 32:02 32 minutes, 2 seconds what has happened to the memory prices over the last we have actually seen what has happened in the last 3 months. You actually see the results uh which have 32:10 32 minutes, 10 seconds which have turned out to be way positive than what we ourselves have estimated. 32:13 32 minutes, 13 seconds We would want to actually continue to uh perform and give you incremental guidance at the end of next quarter and full year. 32:23 32 minutes, 23 seconds Okay sir. Thank you very much and all the best. Thank you very much. Thank you sir. Thank you Pratesh. Thank you sir. 32:30 32 minutes, 30 seconds Thank you ladies and gentlemen to ask a question you may press star and one. 32:36 32 minutes, 36 seconds Our next question is from the line of sunil Jen from Nirmal Bank securities. Please go ahead. 32:44 32 minutes, 44 seconds We have uh am I audible? Congratulations sir on good set of numbers. 32:49 32 minutes, 49 seconds Uh sir my question is uh more related to one data question that is how much is your gross debt and uh second question related to more of a memory uh prices. 33:03 33 minutes, 3 seconds Uh you had seen uh uh lot many years when the memory prices may be going up. 33:09 33 minutes, 9 seconds Uh you said that this time uh it is more uh sustainable and higher. So uh any uh 33:17 33 minutes, 17 seconds what would be the factor which uh can influence these memory prices coming back to a normal level? 33:26 33 minutes, 26 seconds Sure. Thanks. Uh I'll address the first part of the question. I'll request to address the second part of the question. 33:31 33 minutes, 31 seconds uh the gross debt is 557 crores and the net debt is uh the the year the 33:38 33 minutes, 38 seconds quarterly net debt is 480 uh 466 o that's the first part of your answer to 33:46 33 minutes, 46 seconds the first part of your question uh shi go to you yeah hi there is a question around 33:54 33 minutes, 54 seconds memory prices uh I have seen in the past but they were more event based like in 1999 when 34:01 34 minutes, 1 second uh earthquake happened in Taiwan. The memory prices went up. But when the section stabilized and the production the factories came back to shape, the 34:10 34 minutes, 10 seconds memory prices came back to the normal levels. This time across it is more fundamental. It is driven by heavy AI 34:17 34 minutes, 17 seconds investments and that is not a bubble uh that is AI we all are using. It is being used across the spectrum. It is being 34:26 34 minutes, 26 seconds used in the organizations and in our day-to-day lives. So investments are going continuously there and we have 34:33 34 minutes, 33 seconds just spoken about memory but the processing speed is not just function of memory it is a function of storage and also the processors uh that those are also likely to rise going forward. 34:45 34 minutes, 45 seconds Secondly uh when these prices will stabilize obviously the enhanced demand will lead to enhanced production 34:52 34 minutes, 52 seconds capacities but this do not as you now know don't happen overnight. We see the primary prices coming back to shape by end of 2027. 35:03 35 minutes, 3 seconds Yeah. But in this current situation as we have seen the brand new prices have already gone up by from 8th December to 35:11 35 minutes, 11 seconds 7th of January we have done the plotting the brand new computer prices have gone up by 20%age 20% across across the board across the 35:20 35 minutes, 20 seconds this thing. This is uh creating a bigger space for uh refurbished industry. Now in case of u meaningful computer I core 35:30 35 minutes, 30 seconds 33 in sometime will not be available less than 35 37,000 or 40,000 maybe international market around $375. So 35:37 35 minutes, 37 seconds anything less than 40,000 or 37,000 will be available in refurbish uh segment only and in international 35:45 35 minutes, 45 seconds anything less than 375 will only come in refurbished and we want to deliver a product which is like new and with a warranty. So we remain in a very very 35:53 35 minutes, 53 seconds good space to give our alternative solution to all kinds of customers and we have seen that uh we are getting large orders of desktops and laptops 36:02 36 minutes, 2 seconds from very large institutional customers across India and international markets. 36:08 36 minutes, 8 seconds Yeah. Uh one more question relate to uh USC experiencing very good growth uh at current point of time and uh maybe 36:16 36 minutes, 16 seconds continuing in the coming period but uh how about the capacity to meet this demand mean uh uh what are all your plan 36:24 36 minutes, 24 seconds you had not mentioned anything uh in your opening remark about the capacity expansion you have sufficient 36:33 36 minutes, 33 seconds capacity uh we made public announcement some time back we have taken and more space in India uh and the UAE everywhere 36:43 36 minutes, 43 seconds and we are continue to hire skilled manite uh skilled people and we are working in advance for uh our uh the goals the business goals that we have. 36:54 36 minutes, 54 seconds So capacity expansion is happening. We have now around uh it's eight facilities in the UAE from uh three what we had 37:01 37 minutes, 1 second earlier and we have now taken one bigger facility adjacent to our uh existing facility in in Mumbai in Mumbai and we 37:10 37 minutes, 10 seconds are increasing our space in the US market as well and I've already highlighted uh I've already highlighted the aspect around 37:18 37 minutes, 18 seconds the uh the manpower growth and the cap uh and the buildout which was about 1194 at the beginning of the year which has 37:27 37 minutes, 27 seconds gone to about 1,900 all and a substantial part of this is in terms of engineers uh which essentially leads to 37:34 37 minutes, 34 seconds the operating uh performance being uh the capacity being put in place for the group that we have already uh achieved 37:42 37 minutes, 42 seconds as well as the future growth that we have research thank you very much 37:51 37 minutes, 51 seconds thank you our next question comes from the line of Atula from Modila Close asset management. Please go ahead. 37:59 37 minutes, 59 seconds Yeah. Hi sir, good evening and uh congratulations on the result. Uh so my question is on uh working capital. Can you confirm the number of days of 38:07 38 minutes, 7 seconds working capital that we have uh as of the quarter end and how does it compare versus the same time last year and the previous quarter? 38:17 38 minutes, 17 seconds Yeah sure. So uh hi uh thanks for your question. So the working capitals has been in line with 38:25 38 minutes, 25 seconds Sorry, there's a lot of background noise. 38:28 38 minutes, 28 seconds Uh yeah, thank you. So at to your question on working capital days, the working capital days are in the 120 to 130day 38:38 38 minutes, 38 seconds odd range on an overall basis. This is there's actually been a cure uh uh sequential quarter wise 38:46 38 minutes, 46 seconds there's actually been an improvement of a couple of days in the working capital cycle. And in terms of comparable 38:53 38 minutes, 53 seconds uh quarter it's been identical right uh so there's no no out of whack uh this in 38:59 38 minutes, 59 seconds terms of the number of uh days in terms of working capital on an overall basis whether it be inventory or the overall working capital it's in the 120 to 130 39:08 39 minutes, 8 seconds day range it thanks that's helpful. Secondly, in terms of um given the potential and 39:16 39 minutes, 16 seconds obviously we tap in global markets. So um so in terms of uh like given the new 39:25 39 minutes, 25 seconds distribution tie-ups etc that they have done what is the what is the potential to grow business uh in the next say 12 39:35 39 minutes, 35 seconds to 24 months time uh from the perspective of the balance sheet and uh also if you can talk about any initiatives we are taking to reduce the 39:43 39 minutes, 43 seconds working capital because as the proportion of global business grows maybe there is an opportunity to reduce working capital days. So maybe if you can talk about both these elements. 39:53 39 minutes, 53 seconds Thank you. 39:56 39 minutes, 56 seconds uh structurally in terms of growth u meaning that remains robust. Our goals 40:03 40 minutes, 3 seconds are very robust and proposition product and warranty has become even more relevant than it was it was 6 months ago 40:12 40 minutes, 12 seconds and in good me from our execution standpoint uh we have seen that even in the car market the referment 40:21 40 minutes, 21 seconds has grown grown significantly during this period and continues to grow. So uh our goal will be to continue to grow at 40:29 40 minutes, 29 seconds similar or higher levels in coming years, coming quarters and coming years. 40:33 40 minutes, 33 seconds With respect to our working capital question in international India market, the intensity of working capital is high at this point of time because of the 40:41 40 minutes, 41 seconds situation and it is it makes sort of business sense to keep higher elevated levels of inventory for our margin expansion and servicing our customers. 40:52 40 minutes, 52 seconds Another point to note is that we are converting people who are here to go selling new computers and there's a large amount of credit that is available 40:59 40 minutes, 59 seconds in that that segment. The people who provide the solution providers, value added resellers, system integrators and 41:07 41 minutes, 7 seconds corporate resellers enjoy large credits on the brand new segment. Now when we have to sell refund these devices and they have to give it to further their 41:14 41 minutes, 14 seconds corporates in India and international markets uh obviously we cannot be less competitive because we are pushing and 41:21 41 minutes, 21 seconds this will have long-term advantages. It has to be seen more in terms of ROE and ROCE that will remain strong. Working 41:29 41 minutes, 29 seconds capital intensity is very high in this business because there is no fixed capital or capital expenditure that working capital or stock and AR is the main growth driver and business driver. 41:40 41 minutes, 40 seconds Absolutely. Thank you sir. And just one final question is as we approach Q4 in terms of uh dividend and capital uh 41:47 41 minutes, 47 seconds returns is there any thought process or dividend uh policy that we have framed so far or any thinking towards that 41:56 41 minutes, 56 seconds we'll come back to you on this uh and dividend policy and something uh at this point of time uh business requires fuel 42:05 42 minutes, 5 seconds and we I guess uh we remain fluid in this and uh We will keep sharing our thoughts on this. 42:14 42 minutes, 14 seconds Sure. Thank you very much and we wish you the very best. Thank you. Thank you very much. 42:20 42 minutes, 20 seconds Thank you ladies and gentlemen. In order that the management is able to address questions from all participants in the queue, you are requested to please limit yourselves 42:28 42 minutes, 28 seconds to two questions only. You may rejoin the queue for follow-up questions. 42:32 42 minutes, 32 seconds Our next question comes from the line of Nikil Perohit from Fidant Asset Management Company. Please go ahead. 42:41 42 minutes, 41 seconds Hi sir, am I audible? Yes, you are. 42:46 42 minutes, 46 seconds Yes. Uh, thanks for the opportunity and congrats on a great great set of numbers. Uh, so firstly, thank uh, so our our average prices in laptops were 42:54 42 minutes, 54 seconds around 26 27,000 and nonic non-laptops were ranging from 18 to 22,000 based on uh, the volumes and sales break up of 43:02 43 minutes, 2 seconds the past three quarters. So considering the steep rise that has happened in SSDs and RAMs, could you tell us the uh any any revised average prices for the two segments? 43:14 43 minutes, 14 seconds Yeah, sure. So for this quarter, our uh our average selling price for ASP for 43:20 43 minutes, 20 seconds laptops is is almost 28,800 odd rupees. Now the same in the previous quarter was about 1,000 rupees lower. So 43:30 43 minutes, 30 seconds there's been an enhancement of almost 1,000 odd rupees. Uh the same thing if you look at uh others uh other than laptops that enhancement has moved from about 17 thou 17,900 to about 18,200. 43:43 43 minutes, 43 seconds The same number if you were to compare on a 9 month basis also there's been almost a,000 odd rupee uh jump in terms of uh the realization. It's important to 43:52 43 minutes, 52 seconds look at uh I would want to highlight that this number should be looked at in terms of what's the underlying configuration right but I'm giving a a 44:00 44 minutes sense on an overall basis. So the on an overall basis including laptops and others our average realization is about 44:08 44 minutes, 8 seconds 26,200 for the cotton which was about 25,200 in the corresponding cotton. 44:15 44 minutes, 15 seconds So we have we have actually seen the richness of goodness realized uh as well. Uh I think that's uh that may be worth highlighting. 44:23 44 minutes, 23 seconds Got it. But AJ what I'm trying to understand is if our prices ramp they're up uh% 44:30 44 minutes, 30 seconds I'm not about the number but are we completely passing on the prices to the or how how is it working? What I I 44:38 44 minutes, 38 seconds realized I think Shaji mentioned that by FI27 end we are expecting the prices to uh like the uh the increase in cost to 44:46 44 minutes, 46 seconds sustain. So how are we uh going to pass on these prices to the customers and how will how do you see volume getting 44:53 44 minutes, 53 seconds impacted because of this uh these elevated prices? 44:58 44 minutes, 58 seconds Uh in terms of uh pricing uh being passed on to the customer obviously our pricing is uh uh on the old prices and 45:06 45 minutes, 6 seconds we are getting advantage of the climate where the prices have gone up in case of brand new and the current used inventory 45:13 45 minutes, 13 seconds is coming at a higher prices. So our margins has increased. That's number one. Second, uh uh your question was 45:22 45 minutes, 22 seconds around how do we see the growth coming in due to the elevated prices. If if I if I understood it correctly, I think 45:29 45 minutes, 29 seconds it's a very positive development for us because uh the brand new computer prices have increased also I mentioned before that 45:36 45 minutes, 36 seconds around 25% market 20 25% is unorganized market not covered by top five brands where the even availability not only the 45:45 45 minutes, 45 seconds price even availability of memory is an issue. So overall supply is going down and the prices are going up that creates 45:52 45 minutes, 52 seconds a huge scope and space for us to sell the product. So people will be buying more refurbished devices. Anything not less than 370 or $400 will not be 46:00 46 minutes available in brand new assignment in India. A meaningful computer will not be available less than 3740,000 rupees. And 46:07 46 minutes, 7 seconds we are seeing that happening playing out in last 45 days. We are keeping a very close track on these brand new prices. This is giving us much bigger space. 46:16 46 minutes, 16 seconds Even the institutions in India and across India have started buying refer devices which they were not buying it earlier. It's a net net very very positive development for us. 46:29 46 minutes, 29 seconds Understood. Understood sir. Thanks. And so sorry to interrupt Nikl. We request you to please uh rejoin the queue if you have any further questions. 46:36 46 minutes, 36 seconds Sure. Sure. Sure. Right. Sure. Thank you. 46:40 46 minutes, 40 seconds Our next question comes from the line of Nitan Sha an individual investor. Please go ahead. Yeah. Thank you. Am I audible? 46:48 46 minutes, 48 seconds You are audible. So sir you may proceed. 46:50 46 minutes, 50 seconds Yeah. So thank you for giving the opportunity. So I would like to know like percentage wise you know what will be the volumes geography wise like we 46:59 46 minutes, 59 seconds have we have facility in India we have three facility in Shara and one facility in US. So what would the uh you know 47:06 47 minutes, 6 seconds percentage of products from each of these geography uh from uh international market our 47:16 47 minutes, 16 seconds major markets are from our UA major markets are US and Europe they are totally contribute around 40% US 40% 47:24 47 minutes, 24 seconds Europe and 20% is Middle East the primary product segments are obviously uh laptops and desktops and who would be at Just to highlight. 47:35 47 minutes, 35 seconds Yeah. Nothing. 47:35 47 minutes, 35 seconds Sorry. Just to highlight, just to highlight uh the proportion that Sherji mentioned is of our international business. 47:42 47 minutes, 42 seconds Right. And to your subsequent question which I believe was in terms of sorry I not want to go back to your question. 47:49 47 minutes, 49 seconds Yeah. Yeah. The overall product wise I mean uh from where does it but which uh territory? I mean India, U. US or UAE. 48:00 48 minutes As Shaji mentioned, 40% of our sales of international sales is in the US, 40% in the European region and 20% in the uh Middle Eastern region. 48:12 48 minutes, 12 seconds Which which which facility which facility cater I mean I mean which is the largest facility. 48:17 48 minutes, 17 seconds Okay. So okay so the largest facility the largest facility as Shaji mentioned we have enhanced our facilities is the UAE. Everything that happens 48:25 48 minutes, 25 seconds internationally gets processed in the UAE right. So all the international operations you should look at it that almost a substantial part of it is in the UAE followed by India. 48:36 48 minutes, 36 seconds How much how much would that contribute in terms of percentage? 48:41 48 minutes, 41 seconds So if you look at our international uh proportion is about almost 60% of our total revenues. So broadly that should give you guidance. 48:50 48 minutes, 50 seconds Okay. UEIE would contribute 60% of the total shares is it international would contribute 60%. 49:00 49 minutes Okay. India is about 40 odd% India about 40 odd%. 49:05 49 minutes, 5 seconds No I understood in terms of say if I'm talking in terms of geography wise which is contributing the most is it the UE facility is it the US facility UAE facility. Yes yes yes you are right. 49:17 49 minutes, 17 seconds Yes it is it. Yeah. And who would be a comparable? 49:20 49 minutes, 20 seconds Sorry to interrupt. We request you to please rejoin the queue if you have further questions. 49:25 49 minutes, 25 seconds Sure. It was the first question itself only which was repeated. Fine. Not an issue. 49:30 49 minutes, 30 seconds All right. Thank you sir. Our next question comes from the line of Ajay Nandalwal an individual investor. Please go ahead. 49:38 49 minutes, 38 seconds U thank you for the opportunity and congrats on a great quarter. I have a couple of questions. uh you know uh in this environment with higher memory 49:46 49 minutes, 46 seconds prices and higher new laptop prices uh how is the the availability and cost of what we procure? How how is that changing? 49:59 49 minutes, 59 seconds Yeah. Uh the availability because of our relationships we are able to procure material because we buy from plethora of 50:06 50 minutes, 6 seconds customers which are like leasing companies, corporates, IT asset disposition partners, recyclers. So we continue to get good supplies and we are 50:14 50 minutes, 14 seconds taking steps proactively to secure uh large supplies and that is leading to elevated stock positions. At this point 50:22 50 minutes, 22 seconds of time we are still uh enjoying pricing advantages but the b the broad trend is 50:28 50 minutes, 28 seconds on the rising side but we will we are we will we are step ahead of the same. So we are buying uh stocks ahead of price increases at every level. 50:41 50 minutes, 41 seconds Understood. Uh so second question is on the realizations right so you said the end market laptop price increase are high of around 20%. 50:50 50 minutes, 50 seconds How does that translate into like what's the sensitivity of you know uh new laptop prices versus your ability to 50:58 50 minutes, 58 seconds price and how do you think of the trade-off between price versus volume? 51:03 51 minutes, 3 seconds No good question. uh see uh because IDC has also estimated if the prices 51:09 51 minutes, 9 seconds increase on the brand new side uh there is an expectation that companies and people will defer their purchases that 51:18 51 minutes, 18 seconds will lead to the demand shift coming in favor of refurbished devices. So for our case we remain even more competitive 51:25 51 minutes, 25 seconds when compared to brand new computers and since we are an organized care we give an experience which is like equal to new and with warranty reliable warranty and 51:34 51 minutes, 34 seconds that is why large distributors in India internationally have uh joined with us is on the back of credibility uh they 51:42 51 minutes, 42 seconds will not join with anybody else because they also have their reputation promoted so it's a very very good upside good tails available for us the refurbish 51:51 51 minutes, 51 seconds segment per will grow and we intend to grow faster than the refer segment growth. 51:56 51 minutes, 56 seconds Understood. So sir, am I am I correct in if I hear you right? Are you saying that you uh you want to drive higher volumes 52:06 52 minutes, 6 seconds and not necessarily use the opportunity to get higher margins like you're you're much more driven by volumes or margins. 52:13 52 minutes, 13 seconds Uh no no I am we are saying we are going to try both higher volumes and higher margins. 52:21 52 minutes, 21 seconds We are not going to margin. We are not going to encounter a situation where we have to compress our margin to deliver numbers. So you're not compressing your 52:30 52 minutes, 30 seconds margin. But right now you're making 5,400 rupees per device in a I don't hear you sir. 52:37 52 minutes, 37 seconds Right now your gross margins right now gross margins are on 5,400 rupees per device. uh coming up obviously the end 52:45 52 minutes, 45 seconds laptop prices are new laptop prices are increasing by probably 10,000 rupees $100 or more so how is you know so that 52:54 52 minutes, 54 seconds opens up more uh is the market competitive are there like competitive pricing where there is pricing limit or I'm trying to understand that part you 53:02 53 minutes, 2 seconds know like there is there's clearly a demand pull because of what's happening does that give you slightly higher 53:09 53 minutes, 9 seconds pricing power uh or you choose exercise. It just you know gives some color on that. 53:15 53 minutes, 15 seconds Yes, it does. So we will have to choose a right mix between growth and margin both and we intend to drive both volume and margin growth. 53:22 53 minutes, 22 seconds Understood. So just one last question I any any updates on IT business. 53:31 53 minutes, 31 seconds Uh see we are mostly in the refurbishment segment where we procure and give product. Well it's just not a product it's a warranty and a service 53:39 53 minutes, 39 seconds and a commitment that the product is reliable. and works for good three years. So that's a promise that we give. 53:46 53 minutes, 46 seconds It is just one portion of uh recycling business, refurbishment business, but we want to remain on the refurbishment piece where we think we have a very 53:54 53 minutes, 54 seconds clear advantage and distinct positioning. 53:58 53 minutes, 58 seconds Thank you. Participants are requested to please limit yourselves to one question only. Our next question is from the line of Pratik Chri from Samaria Capital. 54:08 54 minutes, 8 seconds Please go ahead. 54:11 54 minutes, 11 seconds Uh sir in this scenario you know where uh uh no sale uh uh sales for uh new 54:20 54 minutes, 20 seconds laptops will you know some of the customers will defer uh in terms of us having uh I mean do we see a scenario 54:28 54 minutes, 28 seconds where we would see something similar playing out in our suppliers and our sourcing as well where you know there 54:36 54 minutes, 36 seconds may be a situation that uh reduced uh supply is available to us uh in terms of procurement. 54:45 54 minutes, 45 seconds See we buy from very large uh range of suppliers and across the world. So we are hedging ourselves against a 54:54 54 minutes, 54 seconds situation where the deferment of new computer sales uh can lead to lower 55:02 55 minutes, 2 seconds disposition but we are protecting us from buying more and from long uh list of suppliers. That's that's very number 55:09 55 minutes, 9 seconds one and that is why we are keeping elevated uh stock. 55:17 55 minutes, 17 seconds Okay. So last what was your uh you said one uh in Q3 FI26 your volume was 1 lak 55:23 55 minutes, 23 seconds 86,000 what was the same number in Q3 FI25? 55:31 55 minutes, 31 seconds Sorry in Q3 FI25 it was 1 lakh 43,000. 55:35 55 minutes, 35 seconds Okay. And why were were your margins so low in Q4 FI25 almost 6.8%. Any was 55:43 55 minutes, 43 seconds there any one-off in that the last quarter is always uh there's always a trade-off between uh revenue 55:52 55 minutes, 52 seconds sorry uh margin and volume right so it's a function so we need to a lot of purchases happen in the last quarter 55:59 55 minutes, 59 seconds there are pricing dynamics etc that play. So we also are in the growth business right so we at times want to uh 56:08 56 minutes, 8 seconds there's always a compromise between volume and growth right so we take a fun a call on that basis but that having 56:16 56 minutes, 16 seconds said I think this time I would just want to uh uh limit myself to say that 56:23 56 minutes, 23 seconds hopefully this time we should have a better uh proposition given the specific backdrop which we've discussed at length 56:30 56 minutes, 30 seconds especially Okay, thanks a lot. Thank you. 56:36 56 minutes, 36 seconds Thank you ladies and gentlemen. We will take that as a last question for today. 56:41 56 minutes, 41 seconds I would now like to hand the conference over to Mr. Shhat Kandelwal for closing comments. Over to you sir. 56:52 56 minutes, 52 seconds Uh so uh thank you all very much for joining this call. Uh this has been very exciting time after our IPO and the 57:01 57 minutes, 1 second situation uh we have had uh good execution across the world. We have enhanced our team. We have enhanced our 57:09 57 minutes, 9 seconds customers and as you can uh see for yourself the largest distribu with us and we are honored by that. The situation is very very positive for us. 57:20 57 minutes, 20 seconds This is a good tailwind that is available with us and we are on our toes and want to take full advantage of the same. 57:27 57 minutes, 27 seconds Um we do not see any compression of margin like like last year in the Q4 this year because of better execution 57:34 57 minutes, 34 seconds and better environment and this business is very exciting business going to grow. 57:40 57 minutes, 40 seconds It has a both product element as well as service element and lot very strong credibility. So that presents a very high barriers of entry. We are not 57:48 57 minutes, 48 seconds channel dependent. We are not country or geography dependent and our company we are quite humbled by the fact that we 57:55 57 minutes, 55 seconds started in India and we thought this proposition is valid across the world and we had the audacity to go to the US 58:02 58 minutes, 2 seconds and European market which not many people did and we are thankful to the god that uh it has got good validation 58:10 58 minutes, 10 seconds and we continue to build more upon the same. 58:14 58 minutes, 14 seconds Thank you all very much. Thank you for joining this call. Really appreciate it. 58:19 58 minutes, 19 seconds Thank you. On behalf of G&G Electronics Limited, that concludes this conference. Thank you all for joining us.