Happy Forgings Limited — Q1 FY26

Happy Forgings Ltd Q1 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Kn2n6XqXn5s Published: 9 months ago

0:00 [Music] 0:03 3 seconds Ladies and gentlemen, good day and welcome to the Q1 FY26 earnings conference call of Happy for Jeans 0:11 11 seconds Limited. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions and expectation of the 0:20 20 seconds company as on date of this call. These statements are not the guarantee of future performance and involve risk and 0:27 27 seconds uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listenonly mode and 0:34 34 seconds there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please 0:43 43 seconds signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being 0:51 51 seconds recorded. I now hand the conference over to Mr. Ashish G, managing director from Happy Forgings Limited. Thank you and over to you sir. 1:03 1 minute, 3 seconds Thank you. 1:05 1 minute, 5 seconds Good morning everyone and thank you for joining us today for the quarter 1 FY26 earnings call of Happy Forgings Limited. 1:13 1 minute, 13 seconds FY26 has started on a resilient note with positive growth and sustained margins despite of ongoing industry 1:20 1 minute, 20 seconds headwinds. For the quarter ended June 30, 2025, we achieved a revenue of 350 crores, marking a year-on-year growth of 3.6%. 1:31 1 minute, 31 seconds Despite a raw material price correction of 3%. Driven by our foray into new business segments and onboarding of new business, which helped counter the slowdown in some of our old businesses. 1:42 1 minute, 42 seconds Topline growth of 3.6% was driven primarily by 3.8% year-on-year increase in finished goods volume with total 1:49 1 minute, 49 seconds volume for the quarter reaching 14,457 metric tons. Realizations remained 1:56 1 minute, 56 seconds strong at rupees 245 rupees per kg on year-on-year basis despite of moderation 2:02 2 minutes, 2 seconds in raw material prices supported by higher share of value addition components. Our gross profit margins 2:09 2 minutes, 9 seconds remained healthy at 57.9% while our beta margins stood at 28.6% 2:16 2 minutes, 16 seconds both around peak levels. This performance comes at a time when the industry is facing pressures on both growth and margins. We remain confident 2:25 2 minutes, 25 seconds of sustaining these margins going forward as well. Uncertaintity in export market continues influenced by shift in 2:32 2 minutes, 32 seconds tariff regimes. Our direct exposure to US remains modest. However, there is a possibility of indirect impacts on European market arising from recent 2:40 2 minutes, 40 seconds tariff measures by the US. At present, our business pipeline has not been adversely affected. On the contrary, we 2:48 2 minutes, 48 seconds are working towards securing new orders from customers in Europe. Although tariff related headwinds could temper 2:55 2 minutes, 55 seconds revenue growth trends across the broader industry, our endeavor will be to protect revenue growth by focusing on securing new business, maintaining our 3:03 3 minutes, 3 seconds margins which we are confident of sustaining going forward. These dynamics also reinforce the importance of a diversification strategy and focus on 3:13 3 minutes, 13 seconds higher value added products which help question volatility. We continue to monitor developments closely and await greater clarity on tariff situation. Now 3:22 3 minutes, 22 seconds talking about segmental performance from a reported geographical market segments perspective our domestic business grew 3:28 3 minutes, 28 seconds by almost 7% yearonear while the export segment saw a decline due to continued weakness in commercial vehicle and offway and farm equipment segments as 3:38 3 minutes, 38 seconds well as tariff related uncertaintity from enduser industry segments perspective starting with commercial vehicle this segments contributes 39% to 3:47 3 minutes, 47 seconds the overall revenues for the quarter the global commercial vehicle industry continues to operate in a challenging environment. Several large and several 3:56 3 minutes, 56 seconds large US and European OEMs reported 8 to 10% decline in CV unit sales for April to June quarter marking seven to eight 4:04 4 minutes, 4 seconds consecutive quarters of decline. In India, MSV production was flat while sales declined by 4% in quarter 1 FI26. 4:14 4 minutes, 14 seconds The market outlook for US and European CVs in calendar year 25 remains negative with sales expected to be lower by 8 to 4:21 4 minutes, 21 seconds 10%. Given the negative momentum, our sales in this segment were also impacted and declined by a mid-s singledigit percentage year on year for the quarter. 4:31 4 minutes, 31 seconds Moving to farm equipment sector which cont which accounted for 32% of our revenue. India's rural market continues to show strength. Tractor sales grew by 4:40 4 minutes, 40 seconds about 9% yearon year for the June quarter while production increased by 13%. The outlook for the rest of the year remains positive with forecasted 4:48 4 minutes, 48 seconds tractor volume tractor volume of 4 to 7% growth supported by an above average monsoon and improving rural sentiment. 4:57 4 minutes, 57 seconds However, export markets in US and Europe remain under pressure with high singledigit volume declines. Large OEMs 5:05 5 minutes, 5 seconds in this sector have forecasted a 5 to 15% decline for the calendar year 2025 as our direct exports in this sector are 5:13 5 minutes, 13 seconds limited. We are managed to register better than overall revenue growth here on a year-on-year basis. Now on the off 5:21 5 minutes, 21 seconds highway segment which constitutes 10% of our top line, this segment also experienced softness both domestic as well as globally. In India, the sector 5:29 5 minutes, 29 seconds saw mids singledigit decline during the quarter largely due to the delay in activity in the end user sector such as zones, highway, mining as well as 5:38 5 minutes, 38 seconds regional disparities in project execution. Internationally and more specifically in Europe and US, the offway market declined by further 10 to 5:47 5 minutes, 47 seconds 12%. Unit sales in these geographies are expected to say subdue during 2025. 5:53 5 minutes, 53 seconds However, industry analysts anticipate a recovery beginning in 2026 with a revival in infrastructure spending likely to support medium-term growth. 6:02 6 minutes, 2 seconds Coming to industrials, which made 13% of our revenues in this quarter on a year-on-year basis, this segment reported good growth especially in 6:11 6 minutes, 11 seconds domestic subsegment with growth led by strong demand from wind energy, power generation and oil and gas sectors. We 6:18 6 minutes, 18 seconds are confident that this momentum will continue and we are looking to deepen our presence in these critical areas. 6:25 6 minutes, 25 seconds Finally, let me touch upon the passenger vehicle segment which contributed 6% of our overall revenues in quarter 1 FI26. 6:33 6 minutes, 33 seconds This is a segment where we are seeing a strong traction driven by a successful ramp up of dedicated production lines for key SUV platforms. Our PV business 6:42 6 minutes, 42 seconds is scaling rapidly. We expect this segment to grow 8 to 10% of our total revenues over the next two years with domestic momentum and export 6:49 6 minutes, 49 seconds contributions both acting as growth leaders. To support this growth, we have committed a capital expenditure of 80 crores which will go towards enhancing 6:58 6 minutes, 58 seconds production capacities and strengthening our position in the evolving market. 7:02 7 minutes, 2 seconds In summary, our diverse segment mix contributes to be a key strength enabling us to weather volatility in 7:10 7 minutes, 10 seconds global markets while capitalizing on domestic structural demand themes that are playing out strongly in India. We 7:17 7 minutes, 17 seconds remain confident in our ability to sustain growth across our core verticals in the coming quarters. 7:24 7 minutes, 24 seconds We also remain on track with our 650 crores scapex plan to create a best-in-class forcing infrastructure for heavyweight precision components. This 7:32 7 minutes, 32 seconds facility will position us uniquely to serve complex and high value addition parts for oil and gas, marine, wind and defense sectors. 7:43 7 minutes, 43 seconds During the year, we we expect additional commissioning for 10,000 ton press and 4,000 ton press with annual capacity addition of approximately 20,000 metric tons peranom. 7:53 7 minutes, 53 seconds This with this our total forging capacity will be close to 1 lak 50,000 tons. This capacity expansion elevates our operational strength, accelerates 8:01 8 minutes, 1 second our ability to meet rising demand and cements our position for long-term growth and innovation. To conclude, looking ahead, while my while 8:09 8 minutes, 9 seconds macroeconomic and industry developments are beyond our control, we will stay focused on our endeavor of adding new businesses, maintaining efficiency and 8:16 8 minutes, 16 seconds profitability, and preserving the strength of our balance sheet to build a strong foundation for the future. Our approach to capital allocation will 8:24 8 minutes, 24 seconds remain judicious always guided by a goal of creating long-term value. I will now request our CFO Mr. Pankit Kumar Go to 8:32 8 minutes, 32 seconds walk you through the financial highlights in a more detailed manner. 8:38 8 minutes, 38 seconds Thank you. Uh good morning everyone. Let me take you through the key financial metrics for Q1 FY26. 8:45 8 minutes, 45 seconds Revenue from operation stood at 354 cr and up 3.6% 6% Y basis. A beta was 101 8:53 8 minutes, 53 seconds cr transmitting to and a beta margin of 28.6% up 3.6% 8:59 8 minutes, 59 seconds Y basis. Profit after tax stood at 66 cr reflecting an margin of 18.6% and up 9:07 9 minutes, 7 seconds 3.20 YI. Our volume for the quarter increased to 14,457 metric ton compared 9:14 9 minutes, 14 seconds to 13,933 metric ton in the same quarter last year making a 3.8% increase. 9:21 9 minutes, 21 seconds Importantly, relation per kg held steady at 245 per kg despite softer raw metal prices supporting our gross margin 9:30 9 minutes, 30 seconds performance. The machining share of our revenue remains strong at 88% with focus on value addition and precision engineered components gaining ground. 9:39 9 minutes, 39 seconds This continues to be a key margin lever and a strategic priority going forward. 9:44 9 minutes, 44 seconds During the quarter, HFL has concluded negotiation with some of its customer on payment terms and income terms resulting 9:51 9 minutes, 51 seconds into improved cash flows. Also, on the balance sheet front, we continue to maintain a healthy financial position with strong internal approvals and 10:00 10 minutes adequate liquidity of more than 350 cr to support ongoing investments. Our working capital cycle remains efficient and we have not seen any major stress 10:09 10 minutes, 9 seconds roles receivables or inventory. That concludes our update. The floor is now open for questions. Thank you very much. 10:18 10 minutes, 18 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 10:25 10 minutes, 25 seconds star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 10:34 10 minutes, 34 seconds requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question cube assemble. 11:09 11 minutes, 9 seconds The first question is from the line of Pratik Jen from Solidarity Investment Managers. Please go ahead. 11:19 11 minutes, 19 seconds Hello. I'm audible. Yes sir, you're audible. 11:24 11 minutes, 24 seconds Yeah, you're audible. Please. Thanks for the opportunity. So my first question um actually is on if I see your capacity 11:32 11 minutes, 32 seconds utilization it's been around 57 to 59% in the p since past few quarters right and if I look at your aidenda margin you 11:40 11 minutes, 40 seconds are still able to hold on to your aidenda margin despite you know little lower capacity utilization if you can 11:48 11 minutes, 48 seconds explain what uh you know what helps you to maintain the margin despite low capacity utilization and is there any 11:56 11 minutes, 56 seconds scope of improve improvement once you you know start increasing your utilization. 12:10 12 minutes, 10 seconds Yes, good morning Prasik. Hey. Hi. Good morning. 12:14 12 minutes, 14 seconds Yes. So as I've understood you correctly uh yes the forging utilization right now is around 59%. 12:22 12 minutes, 22 seconds And uh uh uh that's on the in terms of tonnage but in terms of numbers if you see the forging utilization is close to 74%. 12:31 12 minutes, 31 seconds Uh in terms of numbers so we have possibility to increase this utilization by almost 18 20%. As forging 12:40 12 minutes, 40 seconds infrastructure takes a long time to build and we have seen a slowdown in the market for the last four five quarters. 12:48 12 minutes, 48 seconds We expect once the momentum is there definitely the stilization levels will improve because the same uh dis uh will 12:55 12 minutes, 55 seconds be bigger and longer and uh uh we can easily cash on this opportunity 13:02 13 minutes, 2 seconds and definitely some bit of fixed cost will get uh uh uh divided and definitely there is room for further improvement in 13:11 13 minutes, 11 seconds terms of the VA margin as well as we as the operational efficiencies will improve but quantifying it will be very 13:18 13 minutes, 18 seconds difficult but in terms of machining our utilization remains strong and we are adding lines uh uh as is when required 13:25 13 minutes, 25 seconds because the ramp up we can ramp up on the machining within 4 to 6 months time frame got it thank you that's it from my 13:36 13 minutes, 36 seconds thank you our next question is from the line of raka from ICICI securities please go ahead 13:45 13 minutes, 45 seconds yeah yeah hi uh thanks for the opportunity Uh hi Ashish congratulations on a resilient performance despite 13:52 13 minutes, 52 seconds challenging environment. Uh my my question is on the order book. Uh so so you have you used to highlight uh that 14:01 14 minutes, 1 second you have about 600 crores of order book uh in past couple of uh so I think in one of the quarters earlier uh can you 14:09 14 minutes, 9 seconds uh update uh on that what is the status what is the order book right now? Uh also if you can highlight what are the 14:16 14 minutes, 16 seconds orders that are likely to come into execution this year specifically on the CV and the farm side. Uh uh that is my 14:23 14 minutes, 23 seconds first question. Second is uh also if you can highlight uh what is the growth for the India CV business and what is the 14:31 14 minutes, 31 seconds decline in the export CV. So the blended CV growth I think is about uh there's a decline of about 4%. If you can just 14:38 14 minutes, 38 seconds break that down into India growth versus uh uh domestic uh versus exports decline. Yeah, thank you. 14:59 14 minutes, 59 seconds Yes. Hi honor. 15:03 15 minutes, 3 seconds Uh so your first question was with regards to the new order wins uh uh what I have understood yes uh uh in terms of 15:12 15 minutes, 12 seconds our old order books if you see the last 3 to four months passed by HFL has won 15:19 15 minutes, 19 seconds almost uh 250 crores business is one of the largest farm equipment OEMs in Europe uh uh which is close to 50 to 60 15:27 15 minutes, 27 seconds crores perom and uh for which the work has already been started in terms of development. 15:35 15 minutes, 35 seconds There is another farm equipment order a large farm equipment business which is in discussions uh in almost at finalization in Europe. This is because 15:44 15 minutes, 44 seconds of the ongoing prolonged slowdown in global farm equipment sectors where HFL will be directly exporting for farm equipment products in European market. 15:54 15 minutes, 54 seconds Currently we are doing through tier VR tier 2 right now on the US side. uh as well on the wind 16:02 16 minutes, 2 seconds side as well. Uh we have already won uh uh a business close to 300 crores which 16:09 16 minutes, 9 seconds comes out to around 60 to 70 crores peranom which is for one of the wind lines which we company is installing which is getting started uh by January 16:18 16 minutes, 18 seconds uh this financial year which is for the heavy sector for the uh for the wind shafts which are in a range of 150 kg to 300 kg size range. 16:28 16 minutes, 28 seconds Further we are uh in a process uh of uh you know we have quoted several 16:35 16 minutes, 35 seconds businesses on the for our high horsepower line for which OEMs are waiting for us to uh uh uh uh to you 16:43 16 minutes, 43 seconds know speed up on our infrastructure but we see a strong traction over there already a very large order which we have 16:51 16 minutes, 51 seconds signed is close to 180 crores peranom uh which is on the industrial side uh and for for the large requirement of data 16:58 16 minutes, 58 seconds centers which will be for full machined components which is ongoing for which the capex is already planned and which is ongoing. Besides this we have uh we 17:07 17 minutes, 7 seconds are anticipating uh wins coming up in next 3 to four months which is on the PV side or European market which we have 17:17 17 minutes, 17 seconds quoted and negotiating for the last uh couple of months and also for one of the CV clients who setting up their complete 17:24 17 minutes, 24 seconds transmission plant in India. So uh there is a strong business flow, there is a strong pipeline and uh we expect a lot 17:32 17 minutes, 32 seconds of businesses to get converted for European market given the currency situation. Even for the US market we 17:41 17 minutes, 41 seconds have uh uh we have a expected ramp up uh this year from November December for one of the large PV order wins that we have 17:49 17 minutes, 49 seconds achieved which we have recently which we have won in the last one and a half years for which testing is ongoing and 17:56 17 minutes, 56 seconds despite of the tariff situation we expect uh uh you know things to normalize and uh you know ramp up in a 18:04 18 minutes, 4 seconds normal manner even though we we will see some reduction in schedules because of the ongoing slowdown in the domestic PV business but we don't see any shift of 18:13 18 minutes, 13 seconds business in that sector as well at the same time we have also quoted some of the new businesses I think uh once the 18:21 18 minutes, 21 seconds tariff is tariff situation is settled I think we'll get a better clarity on that 18:29 18 minutes, 29 seconds thank you yeah u also on the uh breakup of uh CV 18:37 18 minutes, 37 seconds growth uh TV revenue from India and exports. 18:45 18 minutes, 45 seconds Uh at a moment uh the European CV business has is kind of witnessed almost 18:52 18 minutes, 52 seconds 8 to 10% you know fall in the last quarter and this year if you are looking at most of the commentaries from the 18:59 18 minutes, 59 seconds European OEMs we are looking at you know around kind of a 10% fall in the CV production numbers in Europe. So if you 19:07 19 minutes, 7 seconds look at our growth on the CV side, we have picked up some new businesses on the domestic side as far as crankshafts 19:14 19 minutes, 14 seconds are concerned and for the CV players and we expect this ramp up to be very strong 19:21 19 minutes, 21 seconds uh going forward as well and this will continue. So it's because of the growth that we'll be seeing in the domestic CVS because of the new business picks that 19:30 19 minutes, 30 seconds we have already done in the past one and a half two years which will be ramping up which have already started ramping up and will continue to ramp up going forward as well. 19:40 19 minutes, 40 seconds So is it fair to assume that uh even for this quarter you know CV domestic CV revenue growth was uh higher than the 19:48 19 minutes, 48 seconds industry growth u industry volume growth 19:56 19 minutes, 56 seconds come we were almost at par uh uh Ron for this 20:04 20 minutes, 4 seconds quarter slightly better I can say all Right. Okay. And just last uh uh 20:11 20 minutes, 11 seconds last one uh uh on the heavy component capex side. So last time you indicated one order win of about 180 cr uh uh any 20:20 20 minutes, 20 seconds update on uh more order wins because uh u I believe uh the total uh revenue potential from that facility would be 20:28 20 minutes, 28 seconds somewhere between 500 to 600 cr. Uh and uh so so any update on that? 20:36 20 minutes, 36 seconds Ironic we have quoted to almost all clients on the high horsepower category and in fact the clients are waiting for 20:45 20 minutes, 45 seconds us to you know you know be ready with the infrastructure because right now we are in a phase where it is coming up and 20:53 20 minutes, 53 seconds the the capex uh will get uh uh uh uh finished by say second quarter or third 21:00 21 minutes quarter of next financial year. So we are in midst of you know uh discussing with our all our customers. We remain 21:06 21 minutes, 6 seconds very bullish on this sector and uh at the same time we have one one business of 60 kes peranom on this side on the 21:14 21 minutes, 14 seconds wind side on these lines but at the same time we are in place where we have quoted and lot of customers are waiting for us to get close to the infrastructure. 21:27 21 minutes, 27 seconds All right. Uh just last one uh any uh so what would be the utilization limit of the 14,000 press uh uh right now given 21:36 21 minutes, 36 seconds that your overall utilization is about 58 59%. uh and uh uh the front XLB motor 21:44 21 minutes, 44 seconds is that ramping up well we are at around 21:51 21 minutes, 51 seconds 46 48% uh in terms of you know tonnage basis and in terms of our uh around 55% 21:59 21 minutes, 59 seconds in terms of units on uh because we do a lot of industrial production on these lines. So you look at it we are close to 22:07 22 minutes, 7 seconds 55% in terms of the units in terms of tonnage it is close to 45%. 22:15 22 minutes, 15 seconds And the front axle beam uh business is ramping up because of the ongoing slowdown in the domestic market. The units are little less but we expect to 22:24 22 minutes, 24 seconds deliver close to 35,000 units in this year. All right. Thank you. Thank you so much. 22:32 22 minutes, 32 seconds All the best. Thank you. 22:37 22 minutes, 37 seconds Thank you. Our next question is from the line of Sahil Rohit Sanvi from Monarch Network Capital. Please go ahead. 22:46 22 minutes, 46 seconds Yeah, good morning. Uh thank you for the opportunity and uh well done on holding on to the numbers uh the results. Uh my 22:54 22 minutes, 54 seconds my I have two questions. First um we were expected to um you know start the orders for the precision machine 23:02 23 minutes, 2 seconds components for power sector um uh from 2K 26. So is that is that u on track? 23:09 23 minutes, 9 seconds And secondly um uh we were also looking to commission the 25 megawatt solar CPP 23:16 23 minutes, 16 seconds uh captive power plant. So any updates on that? 23:25 23 minutes, 25 seconds Uh can you uh sorry can you just uh repeat your first question? 23:30 23 minutes, 30 seconds So there was there was a uh 145 cr order that we received for the precision machine components for power sector uh 23:38 23 minutes, 38 seconds roughly some 30 cr annually expected to start in 2f26. 23:43 23 minutes, 43 seconds So just was looking to get some uh timeline or an update for that. 23:50 23 minutes, 50 seconds Okay. This is for uh for the uh uh industrial genet business I think you're talking about. Yes. Yes. 23:57 23 minutes, 57 seconds Which is for the North American market and for which uh uh you know the testing is almost over. The line is ready with 24:04 24 minutes, 4 seconds us and we are expected to start ramp up in this quarter and uh uh we expect the line full utilization to come from uh uh 24:14 24 minutes, 14 seconds fourth quarter and around 50% utilization by third quarter on this line. 24:19 24 minutes, 19 seconds But uh despite of the ongoing tariff situation uh the business is uh uh is 24:26 24 minutes, 26 seconds stable. We see good numbers because the business is kind of shifting from China. Sure. Sure. 24:34 24 minutes, 34 seconds And on the second question regard regards to the solar uh project. Yes, the solar capex is ongoing and uh we 24:43 24 minutes, 43 seconds have already acquired 40 acres of land on this already signed agreement uh for this. We expect uh uh the project to 24:52 24 minutes, 52 seconds commence by the first quarter of next financial year. We are expecting closure by March but to be on a safe side we 24:59 24 minutes, 59 seconds expect it by first quarter of next financial year. 25:03 25 minutes, 3 seconds Sure. Sure. Thank you so much sir and all the best. 25:08 25 minutes, 8 seconds Thank you. Our next question is from the line of Anik Mahatri from Mtilal Oswal securities. Please go ahead. 25:17 25 minutes, 17 seconds Hi sir, uh thank you for the opportunity. Uh just a couple of questions. One was uh could you help us understand uh your contribution from CV 25:26 25 minutes, 26 seconds exports and farm exports to your revenues. 25:46 25 minutes, 46 seconds So CV exports is close to 50% of the total exports which is close to you know 9 to 10%. 25:56 25 minutes, 56 seconds and farm equip farm export farm direct exports are negligible which is close to 1% right now but we do a lot of uh uh 26:06 26 minutes, 6 seconds indirect exports as well as deemed exports for farm equipment products which goes as semi-machined 26:13 26 minutes, 13 seconds but direct exports are close to 1% and this is one area where we are uh we have one new orders which is for farm 26:21 26 minutes, 21 seconds equipment direct exports Right. And sorry uh the deemed exports would you have a number uh in terms of 26:29 26 minutes, 29 seconds the contribution indirect exports for farm? Just a sec. 26:56 26 minutes, 56 seconds Okay. Around 10%. 26:59 26 minutes, 59 seconds Sure. And uh you did mention about the weak outlook for CV exports. Uh anything uh on the farm exports. Uh what is the 27:07 27 minutes, 7 seconds outlook for the industry and how are you looking at the industry for this year and the next based on your audience? 27:17 27 minutes, 17 seconds Soft exports. you know as uh uh we are working you know a lot of uh we working with two large clients uh they have 27:26 27 minutes, 26 seconds plans Europe as well as US lots that we have are from Europe right now and we're working on several projects with them so 27:34 27 minutes, 34 seconds the first order that we are executing is close to 50 crores peranom but we have several projects in pipeline with the same customer at the same time we also 27:42 27 minutes, 42 seconds have another uh large OEM for from Europe where we are working on uh uh developing In some projects already the 27:50 27 minutes, 50 seconds plant approval has taken place everything has gone well. So we expect uh you know farm exports to be a good 27:57 27 minutes, 57 seconds business. It's will be a little early to quantify on the business for next year but definitely the new businesses are 28:04 28 minutes, 4 seconds coming up well from Europe for farm sector. 28:08 28 minutes, 8 seconds So but the but is the industry uh picking up or it continues to be uh weak? Industry industry continues to be weak. 28:17 28 minutes, 17 seconds If you look at some of the large players entry from CN or John Deere or Echo, the industry continues to remain weak to the tune of 10 to 15%. 28:26 28 minutes, 26 seconds But these order wins are uh uh because of the current situation as most of the OEMs are trying to cut on the cost. It's 28:33 28 minutes, 33 seconds an opportunity from the Indian sector plus currency is also playing a better role. 28:39 28 minutes, 39 seconds Sure. And uh and for for the uh farm exports uh the deemed exports uh what how have we delivered uh in terms of our 28:48 28 minutes, 48 seconds uh growth or or performance in this quarter? 28:54 28 minutes, 54 seconds Yes, it's flat flat. It's almost flat. 29:00 29 minutes Understood. Related to the industry decline, right? Yes. Yes. 29:04 29 minutes, 4 seconds Yeah. So just just one other question I had was on the series domestic front. uh uh while uh uh we have you are 29:12 29 minutes, 12 seconds indicating uh our order wins and you also indicate the front axel beam is ramping up uh but at the same time you mentioned uh we have grown in line with 29:20 29 minutes, 20 seconds the industry uh so uh I mean uh what are you missing here I mean we thought we should be outperforming the industry right because of the new orders uh any 29:29 29 minutes, 29 seconds some of our some of our uh customers uh if you look at because uh we are not 29:36 29 minutes, 36 seconds major suppliers for uh you Now we we are large suppliers to one of the OEMs and uh that particular OEM has kind of 29:44 29 minutes, 44 seconds witnessed a sharp fall uh in the month of specifically in the month of June the production levels were really low because of the AC cabin norms overall if 29:52 29 minutes, 52 seconds you see particular OEM has gone down by almost 10 to 12%. So despite of that if you look at uh our 30:01 30 minutes, 1 second growth it was the our numbers it was kind of flattish. Plus uh the some of the new businesses have already started taking place uh in terms of like the 30:10 30 minutes, 10 seconds front axle beams but we have yet to see a big confom coming up from that business. 30:18 30 minutes, 18 seconds Sure. So that that should start ramping up from Q2 and that should help in our Yes. Yes. 30:25 30 minutes, 25 seconds Got it. Thanks. That's it from my say thank you and all the best. 30:30 30 minutes, 30 seconds Thank you. Uh next question is from the line of Vijay Pande from Noama. Please go ahead. 30:39 30 minutes, 39 seconds Uh thank you sir for taking my question. 30:41 30 minutes, 41 seconds Uh I have couple of questions. I wanted to check on the uh what what's the impact from the 30:50 30 minutes, 50 seconds raw material pricing was still inflation in terms of realization uh 31:01 31 minutes, 1 second uh it was close to 4 to 5 rupees a kg okay yes so if you see in the percentage 31:08 31 minutes, 8 seconds terms it's close to 3 three and a half% Okay. 31:15 31 minutes, 15 seconds If that would have not been the case, our prices would have been around 250 per kg. 250 255. 31:23 31 minutes, 23 seconds Yes. So in spite of fall in raw material prices, the realizations remain flat which shows overall improvement in the 31:31 31 minutes, 31 seconds realization despite of falling steel price. 31:35 31 minutes, 35 seconds Okay. Secondly sir uh can can like uh the North America order for the 31:42 31 minutes, 42 seconds industrial business like uh do you have any chance with for interaction like how 31:48 31 minutes, 48 seconds the tariff situation will work like who will be bearing those incremental tariffs? Uh will it be us will be will it be the OEM or how is it going to be? 32:02 32 minutes, 2 seconds Uh so and is there any risk of substitution from like other players or are we 32:10 32 minutes, 10 seconds looking to potentially do a round like 32:17 32 minutes, 17 seconds do an export to another market and then export to US like are we thinking on 32:24 32 minutes, 24 seconds that line or uh how is just no so so our direct exposure to US 32:31 32 minutes, 31 seconds currently is around 3 to 4% where uh at the moment uh uh we are not selling on 32:38 32 minutes, 38 seconds the basis of uh DAP. So uh we are not in discussions for the tariffs at the moment for this business. uh for the new 32:46 32 minutes, 46 seconds businesses where we have we were expecting uh uh you know US exports to be 10 to 12% by next year as uh some of 32:55 32 minutes, 55 seconds the new capex is done around the US market and order wins were already there for those customers as well our income 33:02 33 minutes, 2 seconds terms are not uh uh DDP as uh but if the tariff settles at 25 26% for the 33:09 33 minutes, 9 seconds automotive components I think uh we are in a safe situation because uh if Look 33:16 33 minutes, 16 seconds at the currency has played out well. Uh the steel prices are also uh uh have gone down from the what you know the 33:24 33 minutes, 24 seconds settlement which has happened in the last two years. So we are not looking at sharing these tariffs at all for the 33:31 33 minutes, 31 seconds businesses as we work on a model basis where the model is completely signed off with the OEM. So uh in terms we are not 33:39 33 minutes, 39 seconds uh under we'll be under the pressure to pass on any of the tariff uh you know pleases. But if uh you know if North 33:46 33 minutes, 46 seconds America will see a slowdown on the PV side as well as on the industrial side uh it can impact the numbers but not uh the margins. 33:56 33 minutes, 56 seconds Okay. Okay. We will not be bearing that tariff impact probably it will be bas. 34:05 34 minutes, 5 seconds Yes. 34:06 34 minutes, 6 seconds Okay. Okay. And uh uh just last lastly sir uh one more question I had was on 34:13 34 minutes, 13 seconds the uh how how do you see the utilization moving forward like should we the machining utilization because it 34:22 34 minutes, 22 seconds came at 77% for first quarter should we expect it to return to around 84 85% which was seen 34:31 34 minutes, 31 seconds previously or will it be below 85 yes there is just the capacity addition which has recently happen for which 34:39 34 minutes, 39 seconds we'll be ramping up very soon. So that is the reason it looks slow but as we ramp up on the new projects uh for the 34:47 34 minutes, 47 seconds uh uh which for which already we are just waiting for the green signal these levels will again improve to 84 85% levels because uh we have invested close 34:56 34 minutes, 56 seconds to 110 crores in quarter 1 uh on the new line that is the reason it looks slightly low. 35:05 35 minutes, 5 seconds Okay. Okay. Okay. Thank you. Yes. Thank you. 35:10 35 minutes, 10 seconds Thank you. Our next question is from the line of Akash Vora from Dalal and Brocha. Please go ahead. 35:18 35 minutes, 18 seconds Uh yeah, thank you for the opportunity sir. Uh firstly I'll just like to uh complete the loop on uh one of the questions my earlier participant as uh 35:27 35 minutes, 27 seconds had asked you. So basically I think we have reported a total exports of 16% this quarter. uh out of which you 35:34 35 minutes, 34 seconds mentioned that around 9 to 10% is CV 1% is direct exports for farm equipment. So the balance I can consider for 35:41 35 minutes, 41 seconds industrial is it right that's uh correct to understand right uh balance 5 6%. 35:48 35 minutes, 48 seconds Yes. 35:50 35 minutes, 50 seconds And then again you had mentioned earlier that you all are starting to win quite a few orders on the farm equipment side especially on exports and those are 35:59 35 minutes, 59 seconds direct exports to OEMs and not via the tier 2 tier three players. So uh just wanted to ensure that you know uh so our 36:07 36 minutes, 7 seconds we also have a lot of deemed exports right so uh that it will not be the case now that our deemed exports will go down and our direct exports will increase or 36:15 36 minutes, 15 seconds this is fresh new business uh coming our way right no no no these are all fresh new businesses it has nothing to do with the 36:22 36 minutes, 22 seconds old deemed exports it's not a conversion wow that's great to hear sir yeah now I'll come back to my question sir so two 36:29 36 minutes, 29 seconds questions from my side uh firstly sir uh just wanted to uh ensure that we have a uh uh one new industrial uh program uh 36:39 36 minutes, 39 seconds starting Q2 onwards uh and two new PV program starting from Q3 and Q4 respectively. So you just wanted to ensure that those businesses are on 36:48 36 minutes, 48 seconds track and uh not hampered by the current tariff uncertainties. 36:54 36 minutes, 54 seconds So right now as per the latest announcement PV business stands at 25 the sorry the auto component business to 37:01 37 minutes, 1 second us stands at around 45 26% and with that the last discussions that we had with our customers it's fully protected because we are the only 37:09 37 minutes, 9 seconds company where the testings have been done in the last two years. So we don't see any threat of business on uh you know of ramp up on those only thing is 37:18 37 minutes, 18 seconds that you know we have to see how the volumes will look like in next year in US for these passenger vehicles for these models. 37:26 37 minutes, 26 seconds So otherwise in terms of tariff or in terms of ramper we don't see any threat. 37:34 37 minutes, 34 seconds Uh understood and sir I wanted to understand I mean overall I was just looking at the industry numbers for farm equipment on the domestic side have been 37:42 37 minutes, 42 seconds really strong almost double digit 10 11% kind of a growth uh why are uh farm 37:49 37 minutes, 49 seconds equipment domestic business being slower uh in terms of growth like around 7 8%. 37:58 37 minutes, 58 seconds any specific reason it could be you know depending on customer to customer it will vary by one 38:04 38 minutes, 4 seconds or two% but we are more or less aligned I don't think it depends on the production or some stock levels over 38:11 38 minutes, 11 seconds there more or less it is kind of aligned only okay and if I have to ask the overall 38:19 38 minutes, 19 seconds output for uh uh farm equipment and TV uh on the domestic side for the for FI26 38:27 38 minutes, 27 seconds I mean what kind of growth uh are you looking at for those two segments and domestic 38:34 38 minutes, 34 seconds on the domestic side I think we'll be outing the growth on the CV side in the uh in third and fourth quarter depending 38:41 38 minutes, 41 seconds on the ramp up for the new uh the new products that we have launched on the CV side and uh uh uh should be expecting a 38:50 38 minutes, 50 seconds good singledigit kind of a growth high singledigit kind of a growth on the CV side on The farm side again uh we should 38:57 38 minutes, 57 seconds be looking at high singledigit growth as we have started to uh ramp up uh uh started to see some green shoots and uh 39:05 39 minutes, 5 seconds production levels are improving for each OEM. So it's a it's a positive sign as of now we have to see what happens in 39:14 39 minutes, 14 seconds third quarter but second quarter we are seeing uh till Diwali we are seeing a good production rate from farm equipment sector 39:22 39 minutes, 22 seconds understood sir that's helpful. Uh I'll come back in the queue. 39:28 39 minutes, 28 seconds Thank you. Our next question is from the line of Adita from Oldbridge Mutual Fund. Please go ahead. 39:37 39 minutes, 37 seconds Uh hi, thank you for the opportunity sir and congratulations on a good set of members. Uh so my question is on uh the 39:45 39 minutes, 45 seconds sorry to interrupt your voice is very low. Your audio is very low. Can you Hello. Uh is it okay now sir? Yes sir. Now it's loud and clear. 39:55 39 minutes, 55 seconds Please go ahead. 39:56 39 minutes, 56 seconds Yeah. Yeah. Uh so my question is on uh front axle beams. So you said you are expecting uh 35,000 units of front axle 40:05 40 minutes, 5 seconds beams uh to be delivered this year. So what would be this number for last year in FI25 for FI25? 40:22 40 minutes, 22 seconds We'll just confirm you the number any other question you have. 40:28 40 minutes, 28 seconds Okay. Okay. Uh uh on this on this part only. So uh so we have seen we have seen 40:35 40 minutes, 35 seconds happy for making close to 2A 80 2A 90,000 uh per turn kind of realization 40:42 40 minutes, 42 seconds in crankshafts. So similarly what kind of realizations are we expecting in this new part that we have developed and running. 40:52 40 minutes, 52 seconds So our average realization today stands at almost 250 rupees per kg but our crankshaft realization is much higher. 41:01 41 minutes, 1 second So rank shop being 55 60% of our business realization is higher but we also have a legacy business which is as forced on the front axle beam business 41:10 41 minutes, 10 seconds the realizations will be in a range bound of 180 to 220 rupees a kg 180 41:18 41 minutes, 18 seconds as the machining content yes as the machining content is not the same 41:25 41 minutes, 25 seconds as so last year numbers will be in the range of 3,000 to 4,000 units for the electrical beams as some new launches that we have done. 41:35 41 minutes, 35 seconds So you can and this is basically going to 34,000 35 expecting to do 35,000 kind of units this year, right? 41:43 41 minutes, 43 seconds Yes. Yes. 41:45 41 minutes, 45 seconds All right. All right. Uh good to hear that. And second uh second uh so just just a follow up on that. So going 41:53 41 minutes, 53 seconds forward uh with what are the kind of expectations? How much how much of the revenue can we expect from funaxel beans 42:01 42 minutes, 1 second coming from uh in the next next year can have close to 50 crores of revenue 42:08 42 minutes, 8 seconds uh coming from pontaxel beam business uh this year probably in a range of 30 to 40 cr can ramp to 50 to 60 crores next year. 42:18 42 minutes, 18 seconds Okay. All right. Uh one last question uh on the PV part. So uh in PVs currently we offer uh crankshafts and there are 42:27 42 minutes, 27 seconds two three more other products that that we have. So uh are we are we developing new products to uh to be delivered in 42:35 42 minutes, 35 seconds PV? Are do we see gaps in the market where we can uh deliver such products and have a better market share there. 42:45 42 minutes, 45 seconds Yeah. See we we have seen a lot of uh uh you know working with some of the North American clients that they are not willing to invest on their own facilities with regards to some of the 42:53 42 minutes, 53 seconds suspension components and going forward as well uh once the ter situation is clear I think uh we'll get a lot of 43:01 43 minutes, 1 second clarity we have puted a lot of projects in terms of uh new developments in North America and uh uh uh yes these are again 43:09 43 minutes, 9 seconds suspension components and new product range for us and uh on the electric side as We did uh deliver uh front steering 43:17 43 minutes, 17 seconds across uh which was the new product in the market. Unfortunately, the EV market in US is seeing a significant fall but 43:25 43 minutes, 25 seconds around 40% fall in that business but is still ramping up for us. 43:32 43 minutes, 32 seconds Okay. Okay. Thank you. Thank you so much. 43:36 43 minutes, 36 seconds Thank you. Our next question is from the line of Mul Sha from Dam Capital. Please go ahead. 43:44 43 minutes, 44 seconds Yes sir, thank you for the opportunity and congratulations on a relatively much better performance compared to other porting companies in this environment. 43:53 43 minutes, 53 seconds Sir first clarification as you highlighted roughly about 3 4% is the export revenue direct to USA on that 44:03 44 minutes, 3 seconds part though it's small what was the tariff impact during the quarter whether we were able to pass on or for the time 44:11 44 minutes, 11 seconds we have absorbed it in this and what is the amount uh thanks ML uh for the for the business 44:19 44 minutes, 19 seconds that we do for North America uh for us uh we have not kind of passed on because the the DDP the ino terms that we have 44:28 44 minutes, 28 seconds set the client is not duty paid so so it's like in certain cases CIF or DAP so 44:37 44 minutes, 37 seconds we are protected over there we have not passed on any uh tariff uh uh cost to the customer 44:44 44 minutes, 44 seconds so I'm still not getting clearly that that means we absorbed it for the time no no we are not uh uh it's paid by the 44:53 44 minutes, 53 seconds customer meth because the incot terms for these deliveries are not DDP these 44:59 44 minutes, 59 seconds are CIF in most of the cases so it's not our liability but we are not absorbing 45:07 45 minutes, 7 seconds we are not absorbing anything okay and second question is on your 45:13 45 minutes, 13 seconds future growth plans as in previous call you highlighted that though US is very small but future potential on various 45:22 45 minutes, 22 seconds auto as well as non-auto side including oil and gas all lies in the USA. So that is very important market for us. 45:31 45 minutes, 31 seconds So in case this situation doesn't normalize too much or though tariff may settle down at certain level but if 45:39 45 minutes, 39 seconds still issue persist to some extent what could be our plan B on this side in terms of the export other than USA. 45:50 45 minutes, 50 seconds So Mr. As of now it looks like it's it's it's it is around 25 26%. Uh but if we 45:57 45 minutes, 57 seconds compare with some of the other countries probably it is uh you know 5 to 6% more than that which will not impact exports 46:05 46 minutes, 5 seconds to US uh what I can see because the sourcing will happen and manufacturing for these products as of now is not much within US. 46:14 46 minutes, 14 seconds So we don't see any major impacts uh coming that side only on the PV side certain capacities are available with 46:22 46 minutes, 22 seconds North American OEMs which they can uh uh uh go live once again but uh certainly for our projects 46:30 46 minutes, 30 seconds as a testing is happened with us. I know OEM has invested in the capacity the we expect the business to remain as it is 46:38 46 minutes, 38 seconds but for the newer projects we still have to you know we have to study how the market will react because right now you 46:46 46 minutes, 46 seconds know the discussions are ongoing but everyone every OEM is actually looking at uh clarity on it but the industrial order wins that we 46:55 46 minutes, 55 seconds already have uh in place are uh were from Europe and uh again that is wrapping up the for which already the 47:04 47 minutes, 4 seconds capex is going on well there is no change in any capex plans what I'm asking is that because uh in 47:12 47 minutes, 12 seconds our peer group be it a leader or second third all these players are having sizable export to that you know 40 45% 47:20 47 minutes, 20 seconds and within that uh North America is nearly 60 70%. So in both the cases uh we are uh lacking or I would say it's a 47:30 47 minutes, 30 seconds growth opportunity or area of improvement or focus for us. So export is very key and in that North America 47:37 47 minutes, 37 seconds becomes always is a dominating geography for so no that is okay with but you know so far 47:45 47 minutes, 45 seconds the products we have developed we are not alternate uh to the US manufacturers we are either alternate to a Chinese 47:52 47 minutes, 52 seconds manufacturer for our products or they were doing it uh uh you know inhouse so the plan is for them is not to 48:00 48 minutes manufacture it in house which they have already offloaded And uh that is the reason uh the the projects which is going for the industrial engine side uh 48:09 48 minutes, 9 seconds the line is almost ready. The testing is is kind of about to be over which will be ramping up very soon. The business shifted from China and not only it was 48:18 48 minutes, 18 seconds also a casting to 4G conversion. So we remain strong on the North American business given the current environment. 48:25 48 minutes, 25 seconds It should not be 50 60% on auto components but 20 25% on auto components is still you know digestible. I think 48:33 48 minutes, 33 seconds we'll still be a win-win situation and we can grow business in North America. 48:37 48 minutes, 37 seconds Okay. And last question on this new project of this new capex 650 C for 48:44 48 minutes, 44 seconds heavyweight forging components primarily from non-auto side. So whatever is 48:50 48 minutes, 50 seconds initial discussion any order visibility or based on the discussion with the 48:58 48 minutes, 58 seconds industry within all these subsegments such a defense or railway or aerospace or which segment you are finding is 49:07 49 minutes, 7 seconds getting better traction or in a very first or two initial one or two years which segment will be the larger five of the revenue. 49:18 49 minutes, 18 seconds So we we have already uh uh received the order from the wind sector and these are very large uh components up to the 49:26 49 minutes, 26 seconds weight range of 1.2 tons and also on the uh uh the first order that we have received for large engine families which 49:34 49 minutes, 34 seconds will be ultimately deliver those engines will be delivered for data center application which is a large order of almost 180 crores as a full machine 49:43 49 minutes, 43 seconds order. uh uh so I think these are the two large orders which you know we are starting on a priority for which machine lines are also getting established and 49:52 49 minutes, 52 seconds then subsequent orders coming for large crankshafts as well 180 K is annual or it is over lifetime order of 50:00 50 minutes annual annual annual and 60 crores is also annual order and lastly anything on the defense side 50:07 50 minutes, 7 seconds any visibility or any prototyping we are doing submitted anything we we have quoted uh certain projects 50:15 50 minutes, 15 seconds but yet to receive the green signal but we have started participating in the tenders uh for some of the parts sir and 50:23 50 minutes, 23 seconds we are hopeful that we'll have a breakthrough very soon so that means we have participated in tenders that mean we got initial 50:31 50 minutes, 31 seconds approval right for the on the yes yes all all the initial approvals have been received and uh we have 50:37 50 minutes, 37 seconds started participating in the tenders okay okay sir great and all the best thanks a lot. Thank you. 50:45 50 minutes, 45 seconds Thank you. 50:46 50 minutes, 46 seconds Ladies and gentlemen, we request you to restrict to two questions at a time, please. We'll take our next question from the line of PR from Incred AMC. 50:54 50 minutes, 54 seconds Please go ahead. 50:57 50 minutes, 57 seconds Thank you for the opportunity sir. I would like to ask about the revenue guidance. Last quarter you mentioned that uh you are guiding for around 51:06 51 minutes, 6 seconds revenue growth this year. Uh now considering all these uh headwinds which are happening in the sector are you still positive on these guidance and 51:14 51 minutes, 14 seconds what would be your growth outlook for next 3 years. 51:20 51 minutes, 20 seconds Can you just your repeat your question uh in the beginning but your voice was not very clear. 51:25 51 minutes, 25 seconds Uh pri can you use your handset mode please? 51:28 51 minutes, 28 seconds Yeah. Uh last quarter you divided off around 15% revenue growth in the full year. I would just like to ask uh do you 51:36 51 minutes, 36 seconds still maintain this kind of growth outlooks and also your growth outlook for next three years or five years down the line. Thank you. 51:45 51 minutes, 45 seconds So we expect you know last year as the industry has witnessed a sharp fall even this year if you look at the domestic as 51:52 51 minutes, 52 seconds well as export markets we have seen a sharp fall because of the CV market not performing well even the farm equipment sector uh on top of last year number is down by almost 12 to 15%. 52:04 52 minutes, 4 seconds impacting our domestic as well as uh deemed uh business deemed export business as well as the direct export business. So we we the way we have seen 52:13 52 minutes, 13 seconds is that uh we have just compared our numbers we have lost almost 8% uh business uh of last year in June quarter 52:21 52 minutes, 21 seconds and around the growth was around 3 and a half% in terms of uh numbers and if we exclude the steel price impact it was 52:28 52 minutes, 28 seconds close to uh six 6 and a half% growth for Q1 and so basically the way we have seen 52:35 52 minutes, 35 seconds is that almost 15% growth is there in the company just on account of new products developments that we have done. 52:42 52 minutes, 42 seconds So the way we look at is that you know we are generating 15 to 18% kind of a growth from the new businesses. It is 52:50 52 minutes, 50 seconds just that the markets have to be stable or markets have to start performing well. If the markets are coming back to its uh normal levels, we will definitely 52:58 52 minutes, 58 seconds start seeing a bigger growth. But in terms of the new product acquisition and new development, so we are very clear that you know the company is doing its 53:06 53 minutes, 6 seconds best and is picking up uh uh uh better businesses in terms of realization and profitability which will kind of help us 53:13 53 minutes, 13 seconds help us once the market is back. So we we remain uh bullish on a medium-term basis on kind of 15 to 18% kind of a 53:21 53 minutes, 21 seconds growth which you know we have been doing in the last 10 12 years. 53:30 53 minutes, 30 seconds Uh thank you sir that was helpful. Uh one more question on cex up front. What are you planning to do for this year and how much you have already done in the June quarter till June quarter? 53:41 53 minutes, 41 seconds So this year's plan is close to 300 crores excluding the capex on the solar uh uh uh side. So it'll be close to 300 53:51 53 minutes, 51 seconds crores. In quarter one we have done close to 120 crores in quarter 1. Cumulatively it's close to 300 crores including 53:59 53 minutes, 59 seconds advances for this year excluding the solar capex. If the solar capex happens completely in this year it'll be close to 60 to 70 crores addition to that. 54:12 54 minutes, 12 seconds Thank you sir. I'll join back in the game. 54:15 54 minutes, 15 seconds Thank you. Next question is from the line of Sakit Kapoor from Kapoor company. Please go ahead. 54:28 54 minutes, 28 seconds Namaskar sir and yeah you can hear me now ma'am yeah thank you go ahead namaskar sir and uh thank you for this 54:35 54 minutes, 35 seconds opportunity so to I just joined late so you just alluded to the fact of 15% revenue growth for the current financial 54:42 54 minutes, 42 seconds year or for the ensuing year also if you could just repeat your statement talking about the medium-term outlook not for this because you have already uh 54:51 54 minutes, 51 seconds quarter one is already gone it's a medium-term outlook Look and uh uh if you see if you look at it uh industry 54:58 54 minutes, 58 seconds dynamics plays a major role in this. We are still waiting for the tariffs to settle but yes uh for the new projects which are in place and for the new 55:06 55 minutes, 6 seconds businesses that we are picking up the new businesses uh the are delivering new revenues to the tune of 15 to 18%. It is 55:13 55 minutes, 13 seconds just that the old uh businesses all the industry has to perform. So if that performs well, I think we should be looking at higher kind of a growth 55:21 55 minutes, 21 seconds numbers in the years to you know in you know next year or probably next to next year once the industry is back. So I'm kind of giving you a medium-term outlook 55:30 55 minutes, 30 seconds in your annual uh post your annual results in your uh investor presentation you did alluded to 1600 cr uh new worth 55:39 55 minutes, 39 seconds of orders for the PV and the industrial segment. So you are alluding to this uh getting executed I think. So you 55:46 55 minutes, 46 seconds mentioned about 250 K of FE annual sales revenue. This is what you are alluding will be at the high margin and will be 55:54 55 minutes, 54 seconds uh uh helping us in achieving the 15% uh growth going ahead. 56:02 56 minutes, 2 seconds See our endeavor is to pick on new businesses and as already explained even in quarter one the new businesses have 56:09 56 minutes, 9 seconds delivered close to uh 16% kind of a growth. It is just that the old businesses were down to the tune of uh 7 56:17 56 minutes, 17 seconds to 8%. Which has kind of resulted in on lower growth number. So it is because of the industry trend because if you look 56:24 56 minutes, 24 seconds at uh uh uh the current situation it's uh uh the growth for the quarter one excluding the steel price is close to 6 56:31 56 minutes, 31 seconds and a half% 6 and 1 half to 7% for Q1 if we exclude the steel price and uh uh so 56:38 56 minutes, 38 seconds you know that is for the Q1 and that has come majorly from the new projects majorly from the new businesses that are picked up and industry if we see will 56:47 56 minutes, 47 seconds come back say in next three to four quarters I think the the gross numbers will look a lot better. 56:54 56 minutes, 54 seconds Thank you. We'll take that as the last question for today. I will now hand over to Mr. Ashishkar for closing comments. 57:01 57 minutes, 1 second Over to you sir. 57:05 57 minutes, 5 seconds So to conclude our quarter one performance uh to conclude our quarter 1 performance reflects a resilient business model, a well-c calibrated growth strategy and the collective 57:13 57 minutes, 13 seconds strength of our teams in navigating a complex operating landscape. We are confident that the investments we are making today in capacity, technology and 57:22 57 minutes, 22 seconds customer engagement will lay a foundation for long-term sustainable value creation. Thank you for your continued support and confidence in Happy Forings Limited. I would like to 57:31 57 minutes, 31 seconds thank everyone for joining the call. I hope we have been able to address all your queries. For any further information, kindly get in touch with SGA, our investor relation advisor. 57:40 57 minutes, 40 seconds Thank you once again. 57:42 57 minutes, 42 seconds Thank you. On behalf of Happy Forgings Limited, that concludes this conference. 57:46 57 minutes, 46 seconds Thank you for joining us and you may now disconnect your lights.