Goodluck India Ltd — Q3 FY26

Goodluck India Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=1rtB4cTbQgQ Published: 2 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Good Luck India Limited Q3 and 9 months FI26 earnings conference 0:08 8 seconds call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:18 18 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that 0:25 25 seconds this call is being recorded. I now hand the conference over to Mr. Vin Pandit from Captify. Thank you and over to you. 0:33 33 seconds Thank you. Uh on behalf of Captify Consulting investor relations team, I welcome you all to the earnings conference call of good luck India. 0:42 42 seconds Today on the call from the management team, we have with us Mr. MC G chairman, Mr. Ram Agarwal, CEO and Mr. Sanjay 0:50 50 seconds Bansil, CFO. I would now request the management to brief us about the business performance highlights for the period ended December 2025. 0:58 58 seconds their growth and vision for the coming year post which we will get into the Q&A. I'll now hand over to the management team. Over to you sir. 1:08 1 minute, 8 seconds Good afternoon everybody. 1:10 1 minute, 10 seconds It's a pleasure to welcome all our investor analyst estate holder to good luck Q3 F26 earning call. 1:22 1 minute, 22 seconds The steel and engineering sector showed signs of strengthening in the later part of the quarter 1:32 1 minute, 32 seconds and improved sentiments, rising stability and business activity during December. 1:39 1 minute, 39 seconds Of course, the whole of the year had been very volatile due to geopolitical tension 1:46 1 minute, 46 seconds which all of us must have been tested due to the trumpet Trump 1:55 1 minute, 55 seconds makes which they played with the play heaven with the business. We were part of it. 2:04 2 minutes, 4 seconds However, in the month of December, steel market witness a notable recovery 2:10 2 minutes, 10 seconds setting a strong foundation for momentum into the new calendar year. 2:19 2 minutes, 19 seconds Prices across most products have strengthened led by restocking 2:28 2 minutes, 28 seconds in ant ination of further price rights and improve buying sentiment across dealer ecosystem 2:36 2 minutes, 36 seconds imposition of 12% safeguard duty on certain flip products 2:43 2 minutes, 43 seconds and effectively expected applied imbalance ced by chief inflows and provided lower support to domestic producer. 2:55 2 minutes, 55 seconds In January 2026 alone, price of hot road coil and crude oil coil improved by almost 4%. 3:04 3 minutes, 4 seconds reflecting positive impact of these major revival of post demand in construction 3:11 3 minutes, 11 seconds in budget of 2026 and 27 budget reaffirm government strong commitment in 3:20 3 minutes, 20 seconds 5% land growth government 3:30 3 minutes, 30 seconds has kept aside 12.2 Trula CR the Divide growth 3:38 3 minutes, 38 seconds really speed corridor industrial clusters urban development and water infrastructure 3:45 3 minutes, 45 seconds reducing dependence on any single ministry's capex cycle and ensure Australian demand utilization over 3:54 3 minutes, 54 seconds expanded precision and hydraulic tube capabilities in the coming years. 4:01 4 minutes, 1 second We also welcome nearly 15% increase 4:09 4 minutes, 9 seconds in defense allocation to defense location 4:16 4 minutes, 16 seconds capital outlay to defense forces rising sharply by over 21%. 4:23 4 minutes, 23 seconds Look into the situation on our borders and with our neighbors. It is a very positive step and we must be prepared for any event coming. 4:48 4 minutes, 48 seconds I'm sorry sir, you're not audible. 4:55 4 minutes, 55 seconds Domestic procurement readiness by 1.3 lakh crar for indigenous industries extend the demand 5:04 5 minutes, 4 seconds and way for supplier of components forging precision tube fabricated structure used in artillery armor system 5:11 5 minutes, 11 seconds and space platform. These align perfectly with our advanced capabilities. How good are defense and 5:18 5 minutes, 18 seconds airspace in steady rebuilding including our ongoing production for 150 viable 5:26 5 minutes, 26 seconds artillery shells and secured export orders. 5:30 5 minutes, 30 seconds From a global perspective, operating environment remains fixed with geopolitical uncertaintities fluctuating 5:39 5 minutes, 39 seconds governmental prices continue to flow. 5:50 5 minutes, 50 seconds and create volatility in global benchmark. However, there are structural positive emerging in India. A highly 5:59 5 minutes, 59 seconds controlling framework of an interim trade agreement with USA announced in February 6:05 6 minutes, 5 seconds 2013. Reset tariff, improve market access and remove certain duties on key Indian export like aircraft. placing 6:15 6 minutes, 15 seconds Indian industrial and engineering products on a more competitive footing. 6:19 6 minutes, 19 seconds Likewise, the successful of India youth free trade agreement opens a more predictable driver pathway for added manufacturing exports. 6:29 6 minutes, 29 seconds In modern depreciation or we have played a dual role by Nancy of export competitive in global market we are 6:36 6 minutes, 36 seconds export company. We are already an export of almost more than thousand cr in last 3 years. 6:45 6 minutes, 45 seconds Across our key markets, demand drivers remain intact led by infrastructure engineering, fast growing energy transition segment including solar, metro, broader urban infrastructure. 6:57 6 minutes, 57 seconds These together will healthy fiscal support, recovering market sentiment, our focus exhibition in value added and 7:05 7 minutes, 5 seconds defense segments. Please good luck on our footing to capture emerging opportunity opportunities in both domestic and export. We are trying to 7:14 7 minutes, 14 seconds ramp up our capabilities in large amal heavy wall thickness pipes for having a 7:22 7 minutes, 22 seconds trying to planning sales of 48,000 ton annually. We are delighted with the 7:28 7 minutes, 28 seconds response of our customer on quality. Our product 7:35 7 minutes, 35 seconds has finished. Hydraulic tube, airlines can commute pipe and front two wheeler will be added to we are planning to add 7:44 7 minutes, 44 seconds these products to our product market. We all the product mentioned are the high 7:51 7 minutes, 51 seconds value item and with a very substantial immed. 8:01 8 minutes, 1 second We are bullish on air space and defense and production which we start in the third quarter. 8:07 8 minutes, 7 seconds We have 8 months order in hand and two years all with us. 8:14 8 minutes, 14 seconds We are confident that this plan what I am which is now will have a bright 8:20 8 minutes, 20 seconds future for us and we are bullish on defense and space and all of the 8:27 8 minutes, 27 seconds planning and on behalf of the board and the management I thank all our shareholders 8:36 8 minutes, 36 seconds and customers employees and partners for their continued trust and confidence in our company. 8:43 8 minutes, 43 seconds I will hand over now to my CEO Mr. Raarwan to briefly follow. 8:50 8 minutes, 50 seconds Thank you sir and good afternoon to everybody on this call or as Mr. G has told our growth led by 8:58 8 minutes, 58 seconds volume and margin margin expansion was driven primarily by better product mix operational efficiencies and higher 9:06 9 minutes, 6 seconds share of value added products. Increased depreciation during the period due to the expansion in autotune business uh 9:14 9 minutes, 14 seconds which we call LDP business and investments in our defense subsidiary reflects our growth oriented capital expenditure strategy. 9:23 9 minutes, 23 seconds The commencement of production at Goodluck Defense and Aerospace Limited is a major inflection point. The facility currently has an annual 9:31 9 minutes, 31 seconds capacity of 1 lakh 50,000 shells and it is being augmented to four lakh shells perm. We see a strong structural demand 9:41 9 minutes, 41 seconds driven by the increasing indigenization and defense modernization initiatives in India. 9:47 9 minutes, 47 seconds Order visibility for the next financial year remains strong and we expect this segment to meaningfully contribute to 9:54 9 minutes, 54 seconds the margins going forward and uh as we all will agree that energy and defense are the two main areas where global attention is today. 10:04 10 minutes, 4 seconds Infrastructure is the need of today to achieve this energy and defense goal. GI budget allocation shows our intention to 10:11 10 minutes, 11 seconds align with the goal of work. your company has perfect alignment with this goal in moving ahead and our defense 10:19 10 minutes, 19 seconds perspective. It is one of our uh endeavor to get into this space and uh we see a very strong defense market for 10:28 10 minutes, 28 seconds us for our products as in the second line of expansion we are also putting for aerospace 10:35 10 minutes, 35 seconds uh aerospace critical posing parts. So we hope with the current with the current 10:44 10 minutes, 44 seconds expansion of 1 lakh 50,000 to 4 lakh along with the defense and aerospace along with the aerospace parts 10:51 10 minutes, 51 seconds manufacturing uh it will be a gamecher for the company and order visibility as Mr. Gaga has already told we are booked 10:59 10 minutes, 59 seconds for next one year and all for next two years is available to us. The second sector which we are bullish that is the 11:08 11 minutes, 8 seconds automo tube segments continue to perform steadily with easing US trials and improving export sentiment. We 11:15 11 minutes, 15 seconds anticipate a strong order flows. Our focus remains on expanding OEM relationship improving realization 11:23 11 minutes, 23 seconds through value added products and enhancing operational leways. Our main aim is to be ahead of the curve. Value 11:31 11 minutes, 31 seconds addition is our main motive. So whatever product we have started or whatever we want to start we will be moving ahead 11:39 11 minutes, 39 seconds with the value addition point of view only a strong government infrastructure investment continues to drive engineering structures and 11:47 11 minutes, 47 seconds infrastructure segment government has given seven bullet trains as you all know that we have participated in the first bullet train from Ahmedabad to 11:55 11 minutes, 55 seconds Mumbai and we have almost completed the 90% order the rest will be completed by March and this new OPO of is seven new 12:03 12 minutes, 3 seconds bullet trains. It is we we expect that we will be in the front line to be benefited by this and the railway 12:10 12 minutes, 10 seconds infrastructure what government has put in today even the today's newspaper also says so we are in the front we are in the front row if there is any 12:18 12 minutes, 18 seconds opportunity we will catch it your company will catch it our experience in executing complex time bound projects including highspeed rail infrastructure 12:27 12 minutes, 27 seconds positions us well for the participating in other corridors our annually cap capacity utilization remains strong at 12:35 12 minutes, 35 seconds 92% reflecting demand resilience and efficiency production planning with 5 lakh t installed capacity across six 12:43 12 minutes, 43 seconds facilities and increasing share of high margin product we are steadily strengthening profitability 12:50 12 minutes, 50 seconds going forward our priorities remain clear scaling defense operation increasing share of high margin valued 12:58 12 minutes, 58 seconds products maintaining a strict cost discipline working towards improving the margins with a diversified 13:05 13 minutes, 5 seconds business model, expanding presence in sunrise sectors, strong balance sheet and healthy cash pockets. We are confident of delivering sustainable 13:14 13 minutes, 14 seconds growth in the coming quarter. As you all know that we have already crossed this solar emission 267 gawatt we have added 13:23 13 minutes, 23 seconds till till today 52.7 gawatt only in this year. So your company is in that sector also. We are supplying the transmission 13:31 13 minutes, 31 seconds tubes as well as the solar structures for them. And this year we have done almost a very good business and next year we hope we should cost 600 to 700 13:40 13 minutes, 40 seconds cr business in this sunrise sector of the solar structures. And uh as far as order booking is concerned for our infrastructure division we are booked 13:49 13 minutes, 49 seconds for next 1 one and a half year and in our automo division we are having a visibility as we already told we are 13:56 13 minutes, 56 seconds having visibility quarter wide. So we are having visibilities of next two quarters and the uh final two quarters 14:03 14 minutes, 3 seconds they are always good. So from automo infrastructure and defense these are the three areas where your company will be 14:11 14 minutes, 11 seconds putting more all of the efforts all of the capital and we hope you all will appreciate this. Thank you. 14:19 14 minutes, 19 seconds Good morning everybody. I Sanjay CFO on behalf of good luck welcome you all for joining us for the conference on 14:27 14 minutes, 27 seconds performance of the company Q3 and 9 months of financial year 2026. Regarding 14:34 14 minutes, 34 seconds Q3 performance standalone the sales was increased to rupees 1031.58 14:41 14 minutes, 41 seconds K as against 941.98 K during Q3 of previous year registering a growth of about 10%. However sales 14:51 14 minutes, 51 seconds volume have have increased by 8% during Q Q3 of current fiscal as compared to Q3 14:58 14 minutes, 58 seconds of previous year. IATA for the quarter stood at 9.7% of sales at rupees 99.72 15:08 15 minutes, 8 seconds KES as against 82.48 Kores during Q3 of previous year that before exceptional 15:17 15 minutes, 17 seconds item net of tax stood at 43.47 Kores registering a growth of 8.4% 4% on 15:24 15 minutes, 24 seconds year or year basis. However, patent Q2 of current fiscal was 41.30 crores. 15:33 15 minutes, 33 seconds There was a growth of 5.25% Q basis. The performance of the company 15:40 15 minutes, 40 seconds in 9 months of current financial year sales has been increased by 6% about 15:47 15 minutes, 47 seconds IITA margins have improved 2 rupees 291.61 61 cr with uh 9.7% 15:58 15 minutes, 58 seconds of sales as against 8.74% during 9 months of previous year. 16:04 16 minutes, 4 seconds However, pet margins have increased to rupees 124.91 crores as against 119.61 Kores during 9 months of previous year. 16:16 16 minutes, 16 seconds Consolidated sales of 9 months of current financial year has been at 16:22 16 minutes, 22 seconds rupees 301.82 crores and pet was at rupees 126.47 K. 16:31 16 minutes, 31 seconds The earning per share has been at for standalone at rupees 12.83 16:39 16 minutes, 39 seconds per share in Q3 as against 11.85 85 rupees per share during Q3 of previous year. 16:49 16 minutes, 49 seconds However, the EPS of the company in 9 months of current fiscal year stood uh 9 16:57 16 minutes, 57 seconds years for standalone was at rupees 37.40 per share. 17:07 17 minutes, 7 seconds On financial front, our interest cost have marginally gone up due to increase in current assets 17:17 17 minutes, 17 seconds as compared to 9 months of uh 9 months period of previous year 17:26 17 minutes, 26 seconds expenses, salary expenses and other expenses as marginally increased due to increase in turnover of the company. 17:35 17 minutes, 35 seconds Thank you very much. Now we are open to Q&A. 17:41 17 minutes, 41 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchdown telephone. 17:51 17 minutes, 51 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies 18:00 18 minutes and gentlemen, we will wait for a moment while the question Q assembles. 18:10 18 minutes, 10 seconds We'll take our first question from the line of Hersh Vasa from SBI Cap Securities. Please go ahead. 18:17 18 minutes, 17 seconds Yeah. Uh thank you sir for the opportunity and congratulations on a decent set of results. So my first question was that s could you provide us 18:24 18 minutes, 24 seconds the segment wise break up for the segments for third quarter and 9 months and uh the second question is that so 18:32 18 minutes, 32 seconds regarding the capex like the new capex should be doing for the defense by increasing the capacity of uh of art shares from 1 lakh 50,000 to 4 lakh so 18:40 18 minutes, 40 seconds what would be the inter across is to debt mix second question is that answer the revenues will be starting from from 18:48 18 minutes, 48 seconds like fi7 or fi8 and sir The last question is that what is the capacity expansion of hydraulic fuse in this third quarter? 18:59 18 minutes, 59 seconds I request you you put the question one by one then it will be more easy for us to answer for you. 19:09 19 minutes, 9 seconds Sure. Sure sir. So my first question could you provide us the segment twice breakup of volumes for the third quarter and 9 months of all the uh of all the divisions that is the first question. 19:22 19 minutes, 22 seconds We will we will provide you not an issue. We will say we will send you a mail because it's a lengthy part. We will send you. 19:31 19 minutes, 31 seconds Okay sir. So the next question is that so you are doing a capex of 500 crores for increasing the capacity of defense artillery shells from 1 lakh 50 to 400. 19:39 19 minutes, 39 seconds So could you just provide what will be the mix of internal acres just to debt financing? 19:46 19 minutes, 46 seconds So for this uh uh for this augmentation of capacity from 1.5 lakh to 4 lakh we will be incurring expense of almost a 19:54 19 minutes, 54 seconds capital expenditure of almost 400 crores out of that that part will be financed through some equity and some u uh some 20:04 20 minutes, 4 seconds bank loans. So for the and the as far as the internal acose are concerned that will be the part of the equity at that time. 20:14 20 minutes, 14 seconds Okay. But uh any percentage of how much will be loan like out of 200 crores how much should be the loan percentage like 50%, 30% example? 20:24 20 minutes, 24 seconds It will be 60% it will be equity and 40% it will be loan. 20:30 20 minutes, 30 seconds Okay sir and sir this uh the revenues from the incremental defense artillery shares will start flowing from FI28 or FIU 7. 20:40 20 minutes, 40 seconds Sir it will take almost a year's time. 20:42 20 minutes, 42 seconds So you can expect from the uh first quarter of uh say April 27 it will be started. 20:51 20 minutes, 51 seconds Okay. And sir what will be the capacity utilization of hydraulic tubes in this third quarter? 20:58 20 minutes, 58 seconds What will be the what is the capacity utilization of the hydraulic tubes? 21:04 21 minutes, 4 seconds capacity utilization of hydraulic tubes it is running around 21:11 21 minutes, 11 seconds 40 to 45% right now but in the coming two quarters as this US tariffs has eased so we hope that in the next two 21:19 21 minutes, 19 seconds quarters it should go almost 60 to 65% because this what easiness that Trump 21:26 21 minutes, 26 seconds has given it will pervade in the system it will take some time two quarters or three quarters then this First this will be improve to 65%. 21:37 21 minutes, 37 seconds Okay sir. Okay sir that's it sir. Thank you. Thank you. 21:42 21 minutes, 42 seconds Thank you. Next question is from the line of Pratik Talwatkar from Smith Institutional Research. Please go ahead. 21:51 21 minutes, 51 seconds Uh yeah thanks for the opportunity. So in the last quarter you uh guided for the 15 to 20% uh revenue growth for the FY26. 22:01 22 minutes, 1 second So uh now the steel price has started to move up. Uh so are you revising it upwards uh for the FI26 and what will the guidance for the FI27 if possible? 22:14 22 minutes, 14 seconds Uh Pratik, can you please mute your line? There's some background disturbance coming on your line. Thank you. 22:22 22 minutes, 22 seconds Hello. No, now it is good. Uh yeah. Hello. 22:30 22 minutes, 30 seconds Hello. Hello. Uh Pratik, can you use your handset please? Hello. Uh now it's a clear ma'am. 22:38 22 minutes, 38 seconds Yes. And please mute it once your question is done. Yeah. Thank you. 22:41 22 minutes, 41 seconds Yeah. Yeah. Sure. Thanks for the opportunity sir. Uh so uh last quarter you guided for the 15 to 20% uh revenue 22:49 22 minutes, 49 seconds uh growth for the FY26. So now the steel projects have started to move up uh and so are you revising it upwards uh the 22:57 22 minutes, 57 seconds for 26 and if possible can you provide the guidance for the FY27 as well? Yeah thanks that was my first question. 23:06 23 minutes, 6 seconds My our perception towards the market is that our prediction for the 15 to 20% 23:13 23 minutes, 13 seconds growth it remains the same as in this year it could not be because the prices were downside but as you have rightly 23:20 23 minutes, 20 seconds said that now the prices have started increasing and the markets from this December uh December second part markets 23:28 23 minutes, 28 seconds have also improved. So we remain hopeful that we will be achieving 15 to 20% growth for this year and it will be better in the FY27. 23:42 23 minutes, 42 seconds Yeah. And my second question was uh about can you tell me about the AITA pattern uh that uh which was clocked in uh the Q3 FI26 and 9 month FI26? 23:55 23 minutes, 55 seconds Yes, definitely 8,200. 23:58 23 minutes, 58 seconds It is for this quarter it is 8,200 approximately and for the 9 month 24:06 24 minutes, 6 seconds it is 8,200 it is it remains the same 8,120 and 8,240. 24:13 24 minutes, 13 seconds So it remains in the range of 8,200. 24:18 24 minutes, 18 seconds Yeah. Okay. Thanks sir. And my uh last question was what is the value added mix in the Q3 and the 9 month FYI 26 and 24:26 24 minutes, 26 seconds what do you expect in the near future uh the uh mix uh in the future? 24:33 24 minutes, 33 seconds Right now it is it extends from 56 to 60%. And in the coming year we hope it should go from 60 to 65%. 24:45 24 minutes, 45 seconds Okay. Thanks. Thank you. 24:50 24 minutes, 50 seconds Next question is from the line of Yog Rajani from Omega Portfolio Advisor. 24:55 24 minutes, 55 seconds Please go ahead. Hi, thank you for taking my question. My question is regarding the good luck defense and aerospace business. So as I understand 25:03 25 minutes, 3 seconds um we are increasing our production by around 250,000 um shells. By that estimate we should I 25:10 25 minutes, 10 seconds assume that we are trying to fully utilize a 150,000 um shellpa capacity in the first year is that a proper 25:19 25 minutes, 19 seconds understanding yes uh by the next quarter we will be using our almost 90% capacity uh say 1 25:28 25 minutes, 28 seconds lakh 50,000 is the installed capacity and we will be using almost 1 lakh 35,000 and when the augmented capacity 25:35 25 minutes, 35 seconds is executed it will be almost 350,000 shares for now. 25:40 25 minutes, 40 seconds Okay, that's brilliant. On that, could you just tell us what our expected revenue and margina margin would be? 25:48 25 minutes, 48 seconds Expected revenue right now what is this 1 lakh 50,000 capacity expected revenue is 300 crores and with the augmented 25:57 25 minutes, 57 seconds capacity the revenue will be almost 900 coursees and the AITA margins will be 26:03 26 minutes, 3 seconds almost 30% right now and we hope it will go in the range of 30 to 35% in the coming year as well. 26:12 26 minutes, 12 seconds Okay, that's brilliant. Thank you so much. Thank you. 26:19 26 minutes, 19 seconds Next question is from the line of Neil from Rockwell. Please go ahead. 26:25 26 minutes, 25 seconds Uh thank everyone. Uh also my question is so like since we are investing around 500 CR capex for the artillery shells 26:34 26 minutes, 34 seconds project. So once it reaches full capacity of manufacturing four lakh shells peranom, what can be the revenue 26:42 26 minutes, 42 seconds potential we can expect from that project? 26:46 26 minutes, 46 seconds As I have told this augmented capacity with the present capacity of 1 lakh 50,000 there is one more uh there is one 26:54 26 minutes, 54 seconds more line that is the aerospace and defense that is the aerospace line in there. So a combined a combined uh 27:04 27 minutes, 4 seconds combined top line will be 92,000 crores. 27:10 27 minutes, 10 seconds Okay. And what about the individual topline for the artillery project? 27:15 27 minutes, 15 seconds Artillery project it will be almost 800 crores for the artline product and 200 score for the aerospace products. 27:22 27 minutes, 22 seconds All right. Thank you sir. Thank you. 27:28 27 minutes, 28 seconds We'll take our next question from the line of Dil Zeri from Crown Capital. Please go ahead. 27:36 27 minutes, 36 seconds Hello. Uh uh good afternoon sir. Thank you so much for taking my question. 27:40 27 minutes, 40 seconds Firstly, congratulations on a good set of results sir. S just wanted to know sir uh the defense is going to start 27:48 27 minutes, 48 seconds contributing from Q1 right but will there be any contribution in Q4 sir from the artillery space sir? 27:57 27 minutes, 57 seconds Yes, it is likely to be and we hope almost 60 70 crores will be contributed 28:03 28 minutes, 3 seconds uh in in Q4 as well but from Q1 it will be it will be contributing fully. 28:10 28 minutes, 10 seconds Okay. Okay. Okay. 60 40 crores you can expect. So that will also be uh integrative right because the depreciation we are already taking in so 28:19 28 minutes, 19 seconds our pad should you know uh you know get very positively impacted because of this right sir like is that the right 28:25 28 minutes, 25 seconds understanding so this 60 40 crores we'll get the 30% limit that we are saying 28:34 28 minutes, 34 seconds yes you what your understanding is perfect the only issue is we are just production is already on we are just 28:41 28 minutes, 41 seconds awaiting for the final permission for dispatch which now which comes from the government of India. So if it comes so what I have committed you it will be done. 28:51 28 minutes, 51 seconds Okay. Okay. Okay. Uh so uh that's a great news sir. And sir the aerospace division that we talking about that will come in the financial year FI28 right? 29:01 29 minutes, 1 second It's not something going to contribute currently right sir. Yes, you are very correct because it will take from the one financial year it will take to get 29:11 29 minutes, 11 seconds everything on track for the aerospace and the augmented capacity of shells. 29:17 29 minutes, 17 seconds Okay. Okay sir. Okay. As I just wanted you to know right right now we are at nearly 92% you know capacity utilization 29:24 29 minutes, 24 seconds and on that like we are doing around 10% ITA right. So this is the prea we can do right because whatever operating le 29:33 29 minutes, 33 seconds leverage we are supposed to have that's uh you know uh factor in right or like in the you know like if I separate good 29:41 29 minutes, 41 seconds luck into two divisions and our current and one defense and aerospace so in good luck standalone what is the you know 29:48 29 minutes, 48 seconds iita margin we can expect sir for next year iita margin because whatever you are seeing it is from the standalone 29:57 29 minutes, 57 seconds basically So the IITA margins which we are operating they we expect they will also increase because we are doing 30:06 30 minutes, 6 seconds continuously product as well as market uh market mixing. We are going for the new markets. We are going for the new 30:14 30 minutes, 14 seconds product mix. So we hope this margin should also increase but how much it time will tell and when this defense 30:21 30 minutes, 21 seconds will add then a then a jump in beta margins will come in the consolidated unit. 30:27 30 minutes, 27 seconds Okay. Okay, fair enough. So, so last question from my answer. So, so overall like for FY27 what we are saying is that 30:35 30 minutes, 35 seconds 15 to 20% growth in our normal uh thing and then on that addition defense 30:42 30 minutes, 42 seconds revenue comes in right of 300 cr or that 15 to 20% growth is including the defense sir it will be included it will be included 30:52 30 minutes, 52 seconds okay so FI7 15 to 20% growth is including uh yeah it will 30:59 30 minutes, 59 seconds okay so then s in the standard loans are we planning any KEX because it's already at 92%. So sir we are bound to run out 31:06 31 minutes, 6 seconds of the you know uh capacity and already kind of running out of capacity. So the growth from standalone will uh you know 31:14 31 minutes, 14 seconds uh come only due to you know value mix right. So any plans for capeex out there sir? 31:22 31 minutes, 22 seconds So basically I have told you we are interested not in the volumes we are interested in the bottom line. So okay 31:30 31 minutes, 30 seconds it has gone to 92%. But our product and market which are our two which we will be using which we are we have been using 31:39 31 minutes, 39 seconds and we will be using so maybe it may be 15% but the profit side your site it 31:46 31 minutes, 46 seconds will increase significantly okay okay fair and this last sorry question from my answer so we just 31:54 31 minutes, 54 seconds declared right now sir but with such a heavy capeex coming in you know we are planning to raise debt and some equity then why are we you know giving giving 32:02 32 minutes, 2 seconds dividend like just wanted to know the rational behind that sir. 32:08 32 minutes, 8 seconds You mean to say that we should not give dividend? 32:11 32 minutes, 11 seconds Sir, if we company can earn more than us then why not sir we are is getting taxed more on dividend company share price increases are more happy than the 32:19 32 minutes, 19 seconds dividend sir. Actually you are you are very correct. We should think but our management view is that our shareholders 32:27 32 minutes, 27 seconds uh yes they are getting the they are getting the benefit of the uh improvement they are getting the improve in our capacity expansion but at the 32:34 32 minutes, 34 seconds same time they should get something whatever is possible we should give in the dividend that the management use. Okay. Okay. Fair enough. So fair enough. 32:43 32 minutes, 43 seconds Yeah that's good from my side. So thank you. Thank you. 32:49 32 minutes, 49 seconds Next question is from the line of Sukinder Singh from BB Capital Markets. Please go ahead. Yeah, thanks for the opportunity sir. 32:57 32 minutes, 57 seconds Sir, my question is on the input cost with the uh if you look at the last two months the steel prices have moved up. 33:04 33 minutes, 4 seconds So I just want to understand how this is going to impact in terms of input cost for you in the primarily for the three 33:11 33 minutes, 11 seconds segments of this uh forgings and then um auto tubes and se coils uh these three 33:19 33 minutes, 19 seconds segments and will do you have the pass on ability with the lag so just I wanted to understand that thing 33:27 33 minutes, 27 seconds you're very your question is very very intelligent question sir so basically whenever the Prices go up it definitely 33:35 33 minutes, 35 seconds impacts our input c bust but as you have said we are in the value addition sector so if you go for the automo tubes there 33:42 33 minutes, 42 seconds is a pass through but it comes with a time lag suppose in the third fourth quarter it has increase so we will have to wait for another two quarters to have 33:50 33 minutes, 50 seconds it but we will get it as far as our infrastructure sector is connected there it is a complete pass through because we 33:57 33 minutes, 57 seconds have a declared price policy and in terms of defense raw material uh governmental contribution is less so it 34:05 34 minutes, 5 seconds will not affect much. So in all if you see uh is in our conventional business it may impact something but in our value 34:14 34 minutes, 14 seconds addition business it will not impact us significantly. 34:19 34 minutes, 19 seconds Okay. And second um a question on the defense part uh just to understand more 34:26 34 minutes, 26 seconds like you said that the combined revenue from uh ammunition cells and the defense 34:34 34 minutes, 34 seconds subsidiary would be about 900 to 1,000 cr. Okay. So uh separating that 800 cr for artillery shells and 200 cr for 34:42 34 minutes, 42 seconds defense. So I just want to understand this 200 cr uh what is the timeline by when you'll be achieving that and what 34:50 34 minutes, 50 seconds is the I beta margin in that 200 part in which you supply parts to these missiles rockets that I wanted to understand 34:58 34 minutes, 58 seconds okay your second question is for the aerospace for aerospace it will be done with the as I have told in April 27 it 35:07 35 minutes, 7 seconds will be executed uh production will come as far as beta margins are concerned they 28 to 32% they are what we expect 35:16 35 minutes, 16 seconds right now because India is more and more pressing on the air and all the like this MAR 125 plane order is there our 35:24 35 minutes, 24 seconds civil part there is 5,000 planes have to come so India is spending more and more 35:30 35 minutes, 30 seconds on the capability so that sector right now I said that is 28 to 30% but in near 35:37 35 minutes, 37 seconds future it can improve it should improve and uh the First question I forgot can you repeat? 35:45 35 minutes, 45 seconds So I just uh yeah I wanted to understand for this only bit so but my question is 35:52 35 minutes, 52 seconds that going forward uh with number of suppliers uh I think it's more than must be more than two or three is it the risk 36:00 36 minutes that a beta margin can come down uh say over 3 to 5 years in aerospace part from 20 30%. 36:09 36 minutes, 9 seconds Sir aerospace part I will not agree with you because India is doing nothing. HL is having a order line of almost 9 lakh 36:16 36 minutes, 16 seconds 50,000 coursees. ADA is coming with this MAR 125 planes. Now Adani is coming. So 36:25 36 minutes, 25 seconds India is doing nothing in the aerospace sector. Now this is the time when the demand will increase. A more knitted 36:33 36 minutes, 33 seconds value chain system. A more nitted vendor system is required where the vendor partners contribution will increase in 36:41 36 minutes, 41 seconds this aerospace sector. Now India has put the condition minimum 60% valuation should be there. Even in the coming tenders I understand they can say even 36:50 36 minutes, 50 seconds 100%. You have to make in India. So India has no supplier system right now. 36:55 36 minutes, 55 seconds So a strong supplier network is required and I hope this is a sector this is a 37:01 37 minutes, 1 second sunrise sector which will we are saying 200 crores but I'm sure we will have to put another machineries to take it to 37:10 37 minutes, 10 seconds further height India needs it there is no hurry and wor on this 37:16 37 minutes, 16 seconds okay so uh so broadly uh as I say your blended I beta margin from 9.9% should 37:25 37 minutes, 25 seconds go up with these two primary beta margin from defense coming at a higher level right? 37:33 37 minutes, 33 seconds Yes. Yes. Yes. 37:34 37 minutes, 34 seconds Okay. And one last question the investment in defense uh last year was about 39 crores. So till 9 month any 37:41 37 minutes, 41 seconds incremental investment has been put up in defense. 39 crores. No. 37:46 37 minutes, 46 seconds Yeah. I suppose you you have to correct the data because we are huh you please correct it because we have put almost uh 300 coursees in this defense division. 37:58 37 minutes, 58 seconds So just maybe in the in a month or over here and there there may be some data correction. 38:04 38 minutes, 4 seconds Sure. Okay. That's it from my side. 38:09 38 minutes, 9 seconds Thank you. Next question is from the line of Judith Malu from HNI. Please go ahead. 38:16 38 minutes, 16 seconds Hi, am I audible? Yes. Yes, you are. 38:21 38 minutes, 21 seconds Hi. Actually, I'm in the company. So, my question is regarding the defense business. So, what was the revenue contribution from the shell business in this quarter like Q3? 38:34 38 minutes, 34 seconds Please repeat your question. It is not clear. 38:40 38 minutes, 40 seconds Can I use your handset and repeat the question please? Sir I was asking what was the revenue that we have clocked from the shell business in Q3 of 26. 38:50 38 minutes, 50 seconds In Q3 it is not significant because only production has started. It has not started selling. So the contribution 38:57 38 minutes, 57 seconds will come in this Q4 and the Q1 full contribution will come in the Q1 of next financial year. This year it is insignificant in this quarter. 39:07 39 minutes, 7 seconds So like earlier I think we had a target of 100 crores from the shell weakness. So are we in line with that for F52? 39:15 39 minutes, 15 seconds We are very much in the line but the issue is because it needs some permission to dispatch. So we are waiting for the dispatch permission and 39:24 39 minutes, 24 seconds as I have already told that even it comes delayed so we will be doing almost 60 60 crores this financial year. 39:32 39 minutes, 32 seconds Okay I have just a booking bookkeeping question. So our other operating expense has increased by like uh from 14% to 16%. So what was that specifically? 39:44 39 minutes, 44 seconds You see expenses overall expenses there is no increase but if you go in further 39:51 39 minutes, 51 seconds details some expenses increased some expenses uh decreased. So overall 39:57 39 minutes, 57 seconds percentage of expenses same 94.4% and earlier it was 94.5%. 40:06 40 minutes, 6 seconds Okay. Thank you. 40:10 40 minutes, 10 seconds Thank you. Next question is from the line of Mirage Sha from Chem9 LLP. Please go ahead. 40:18 40 minutes, 18 seconds Thank you so much for the opportunity. 40:20 40 minutes, 20 seconds Uh sir, I had uh questions regarding the shell business only. Uh apologies if uh this question was asked before I I 40:27 40 minutes, 27 seconds recently just joined the call. Um sir, I wanted to understand the industry size over here particularly for India and 40:35 40 minutes, 35 seconds globally. So I just wanted to understand what is the requirement for 155 mm shells in India and the same for glo 40:43 40 minutes, 43 seconds globally as well. That is my first question. 40:46 40 minutes, 46 seconds So as you know this 155 mm shell this is the one version all the world demand has conversed to 155 mm in last one one and 40:55 40 minutes, 55 seconds a half year since the inception of this Israel Gaza war or this Russia Ukraine war because otherwise ear more versions 41:04 41 minutes, 4 seconds were there 92 mm 125 mm 132 mm but now it was a uh it was a pressure on the 41:11 41 minutes, 11 seconds country that you have to put more of the guns more types of the shell else. So it just converts to 155 mm. Now as far as 41:19 41 minutes, 19 seconds demand is concerned, we don't have any any any data but as from the internet 41:26 41 minutes, 26 seconds you can also study. It shows that the word is right now word is having a capacity of almost 3 to 3.5 million and 41:35 41 minutes, 35 seconds that capacity is not today. It will come in next 3 years it is a combined capacity which will be 3.5 million. But 41:42 41 minutes, 42 seconds if you see the world demand today it is almost 7.5 to 8 million. Reason being 41:48 41 minutes, 48 seconds there is a initiative rearm because Europe has given a um given a 41:55 41 minutes, 55 seconds budget allocation of 815 billion euro because NATO US has virtually withdrawn. 42:02 42 minutes, 2 seconds So all the 27 countries have to ramp up their production facilities. They don't have they have nothing whatever they had in the stock that has been consumed in 42:10 42 minutes, 10 seconds these two walls and many other more are going in India India across Africa or many other small countries. So stock is 42:19 42 minutes, 19 seconds not available and moreover the most important thing is demand is outstripping the production. So the way 42:27 42 minutes, 27 seconds uh if you can see the gradient the the gradient by which production will increase that is much much lesser than 42:35 42 minutes, 35 seconds with the gradient if the demand will increase. So there is clearly a gap of uh this arms and ammunition particularly 42:44 42 minutes, 44 seconds 155 mm. So I see no d of demand in next four five years. 42:52 42 minutes, 52 seconds Understood. For the next four five years you see a lot of demand. Okay. Uh my next question sir uh since you you have mentioned that the demand is increasing 42:59 42 minutes, 59 seconds over here. If you can just explain uh how the pricing is currently moving at the moment because uh if I'm not wrong the pricing is uh is the pricing is 43:09 43 minutes, 9 seconds determined with the international players globally the pricing is determined. So what is the current pricing for this and also in India which 43:16 43 minutes, 16 seconds other players have received the approval like you the license approval like you? 43:21 43 minutes, 21 seconds Sir I can explain you the pricing will be divided decided by demand at present demand is outstroing the supply 43:31 43 minutes, 31 seconds and there is no reason for us to doubt even many players coming into the field 43:38 43 minutes, 38 seconds will be able to fulfill the demand as per my information India needs 48 lakh 43:46 43 minutes, 46 seconds per year these 155 mm gun nobody can supply India nobody can supply in India 43:53 43 minutes, 53 seconds even many players even 10 players coming will not be able to fulfill that demand 44:00 44 minutes so rate will be decided by the supply constraint right but so you would have you would have signed some contracts right now or 44:09 44 minutes, 9 seconds you would have you you might have some visibility you know what the pricing currently is going on basically what you are talking it is a 44:17 44 minutes, 17 seconds price concept the price concept as gals has said it is always decided by demand and supply. But in this case because 44:25 44 minutes, 25 seconds demand is outshipping the supply. So price will be price will be decided by only the pressing needs. Suppose however 44:34 44 minutes, 34 seconds it should not be on the operation one on the operations we were out of the calibers on the second day. So suppose 44:41 44 minutes, 41 seconds as India is now bounded by all the three and they all are not at good relations with India. So if if such happens so 44:50 44 minutes, 50 seconds there will be a exotic demand there will be unprecedented demand. So price will be decided at that time. Moreover there are more versions coming on the shelves. 45:01 45 minutes, 1 second We are already investing. We are our R&D team is involved for the advanced version of this because this is the basic version. You you know I know but 45:10 45 minutes, 10 seconds market is moving ahead with the demand with the uh more versions and those more versions will attract more price. So 45:18 45 minutes, 18 seconds don't worry about the prices. We are on the right track on the technology as well as the market. 45:25 45 minutes, 25 seconds Understood. Okay. At least uh sir if you can just help me with what are the margin going forward? What do we expect the margins to be going forward for the 45:33 45 minutes, 33 seconds sales part? Is it 30% or more more than that or lower than that? So putting a figure of 30% is imaginary. 45:42 45 minutes, 42 seconds It can be more than 30%. 45:49 45 minutes, 49 seconds Got it. Okay. Thanks a lot. That's it from my side. Thank you so much. Thank you. 45:56 45 minutes, 56 seconds Next question is from the line of Kesha from Rakan Investors. Please go ahead. 46:02 46 minutes, 2 seconds Uh hi sir. Uh in the shells and aerospace business uh would the customer only be government of India or would we be selling to other customers as well? 46:13 46 minutes, 13 seconds It is a total world. It is a global demand. It is not only government of India. The total world has total world is looking for it. 46:23 46 minutes, 23 seconds And sir, so when it when the business goes to full scale of 900 to 1,000 cr, uh how much working capital do we 46:31 46 minutes, 31 seconds foresee we'll require to fund that business? 46:35 46 minutes, 35 seconds We expect we expect almost 200 250 crores working capital will be required at the time when we reach the peak. 46:44 46 minutes, 44 seconds Okay. All right sir. That's all for my side. Thank you. Thank you. 46:50 46 minutes, 50 seconds Next question is from the line of Hersh Vasa from SBI cap securities. Please go ahead. 46:56 46 minutes, 56 seconds Yeah, thank you for the followup question. So I just I just had one question. So what was the cape which we incurred during 9 months FI26 and what 47:04 47 minutes, 4 seconds will be the capeex for this remaining uh 3 months that is for FI26 and KEX for FI27 and FI28. 47:13 47 minutes, 13 seconds uh total capex already done till uh 31st December was rupees 186 kores and uh in 47:22 47 minutes, 22 seconds fourth quarter we expect about 30 kores capex okay answer so fi 27 and 28 any ballpark 47:30 47 minutes, 30 seconds figure the 27 28 is still is working because 47:36 47 minutes, 36 seconds the the natural maintenance capex it will go as for the schedule. However, as 47:43 47 minutes, 43 seconds for our new plans to introduce our capacity augmentation and interfere, it is still in the working stage. We will let you know. 47:52 47 minutes, 52 seconds Okay, sir. Thank you. 47:55 47 minutes, 55 seconds Thank you. We'll take our next question from the line of Samyam Sha from Solidarity Investment Managers. Please go ahead. 48:03 48 minutes, 3 seconds Hi sir, thank you for the opportunity. Uh am I audible? Yes, please go ahead. Yeah. 48:13 48 minutes, 13 seconds Sorry in the background there was some but now it is audible. Please go ahead. 48:19 48 minutes, 19 seconds Yeah sir within the CR sheets and pipe segment uh which is our you know conventional business. How much revenue 48:26 48 minutes, 26 seconds is today contributed by solar tracker tubes and you know uh how much was this 2 years back? Can you just give a ballpark range? 48:36 48 minutes, 36 seconds Right. Right now this year it should remain almost 400 coursees and uh as you are talking over the last 2 years it was 48:43 48 minutes, 43 seconds almost 250 coursees and in the coming years we hope it should be 650 coursees 48:50 48 minutes, 50 seconds 600 to 650 coursees for the next financial year transmission tube and the solar structures. 49:02 49 minutes, 2 seconds Thank you. Uh yes sir his line is disconnected. 49:06 49 minutes, 6 seconds Ladies and gentlemen, to ask a question, please press star and one on your phone. 49:22 49 minutes, 22 seconds As there are no further questions, I now hand over the conference to the management for closing comments. Over to you, sir. 49:29 49 minutes, 29 seconds Thank you for all the for all the people who participated in this phone call. We we express our gratitude for our 49:38 49 minutes, 38 seconds shareholders, for our viewers, for our listeners. Thank you. 49:45 49 minutes, 45 seconds Thank you. On behalf of Good Luck India Limited, we conclude this conference. 49:49 49 minutes, 49 seconds Thank you for joining us and you may now disconnect your