Harsha Engineers International Limited — Q3 FY26

Harsha Engineers International Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=LUC6akyQkuw Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the QG FYI26 Hersa Engineers International Limited earnings 0:08 8 seconds conference call. As a reminder, all participant lines will in the listen only mode and there will be an opportunity for you to ask questions 0:16 16 seconds after the presentation concludes. Should you need assistant during the conference call, please signal an operator by pressing star then zero on a dash phone. 0:26 26 seconds Please note that this conference has been recorded. I would now hand the conference over to Mr. Mishal Rangala, 0:33 33 seconds CEO of Hersa Engineers International Limited. Thank you and over to you sir. 0:43 43 seconds Hello all uh warm welcome uh to our quarter 3 FI26 investor call. 0:50 50 seconds As usual uh uh I will ask M uh Mr. Mik Jasani of CFO 0:58 58 seconds to take us through numbers in greater details uh later on. However, I'm assuming that 1:06 1 minute, 6 seconds you would have had a chance to look at uh that already. 1:12 1 minute, 12 seconds First and foremost, let me start with you know uh overall uh I'm really happy to note that you know macro level uh 1:22 1 minute, 22 seconds quite a few positive events have happened uh which has definitely improved overall market sentiments. 1:29 1 minute, 29 seconds This would include India, UK, FDA followed by FDA's 52 other countries and 1:36 1 minute, 36 seconds a very positive India EU FDA recently concluded. 1:41 1 minute, 41 seconds And to top it all, much awaited India US trade agreement. Again with some strong directional push in capex plus long-term 1:49 1 minute, 49 seconds tax holidays announced in certain key segments in the last budget we are all fairly confident that India can sustain 1:58 1 minute, 58 seconds a good GDP growth rate of around 7% in coming years as you would have observed from our 2:06 2 minutes, 6 seconds numbers at the outset I'm happy to report that quarter 3 FY26 performance 2:13 2 minutes, 13 seconds is broadly in line with our expectation except for a slight blip in in the form 2:20 2 minutes, 20 seconds of below par performance in Romania. Our India engineering business comprising of 2:26 2 minutes, 26 seconds our um company plus our wholly owned subsidiary Hersa Advantic has continued 2:33 2 minutes, 33 seconds to show a strong performance both in top line as well as bottom line. Not withstanding the fact that Harsha 2:41 2 minutes, 41 seconds Advante uh which has a which has commissioned its Greenfield facility in current financial year uh year has reported 2:50 2 minutes, 50 seconds losses at the pet level primarily only to impact of higher interest and depreciation. 2:59 2 minutes, 59 seconds Further as you would have seen we had we had to make a one-time provision of around 5.97 cr in quarter 3 in India for 3:08 3 minutes, 8 seconds additional gratuty and leave and engagement uh uh to to give effect of the changes made by the new labor code 3:18 3 minutes, 18 seconds made effective by the government in quarter 3 FY26. 3:22 3 minutes, 22 seconds This is a one-time exceptional provision required to be made retrospectively in quarter 3. 3:30 3 minutes, 30 seconds Our India engineering business has reported a 17.4% revenue growth uh in Q3 3:37 3 minutes, 37 seconds on a Y basis and if we normalize the effect of one exceptional provision then 3:43 3 minutes, 43 seconds our India engineering business uh operating margin has shown a healthy 23.8%. 3:51 3 minutes, 51 seconds Though the reported epida is at 217%. 3:58 3 minutes, 58 seconds As mentioned earlier this is after absorbing net loss of rupees 3.7 cr in hersa 4:06 4 minutes, 6 seconds advante in quarter 3. We expect a much stronger revenue performance in hersa 4:13 4 minutes, 13 seconds advantage subsidiary in quarter 4 which should increase the data reduce the Q4 loss in uh advantage subsidiary. 4:24 4 minutes, 24 seconds Talking of outsourcing of cages uh in our India engineering business we are steadily growing in this segment owing to a combination of favorable factors. 4:36 4 minutes, 36 seconds If I talk of a cage demand in India, uh the same is on rise and we continue to have a dominant market share across 4:44 4 minutes, 44 seconds variety of customers. Um uh and we have started supplies to uh a lot of our 4:51 4 minutes, 51 seconds customers new facility in India u which caters to various world market. 4:58 4 minutes, 58 seconds Our export from India are also gradually going up uh with in EU continuing to show revival in industrial demand for 5:07 5 minutes, 7 seconds cages though wind demand is still not picking up in Europe. I believe that with the favorable FTAs the demand 5:15 5 minutes, 15 seconds should go up in Europe in coming quarters. 5:20 5 minutes, 20 seconds In this regard, uh large price cages have have continued to show strong performance having achieved sales of 5:28 5 minutes, 28 seconds around 39 cr in 9 months period uh to December 25 as against 31 cr achieved in 5:37 5 minutes, 37 seconds the corresponding previous year 9 months. uh pace of new product development continues to be strong at 5:45 5 minutes, 45 seconds around 123 SKU up to quarter uh uh quarter 3 or only in quarter 3 uh 5:52 5 minutes, 52 seconds resulting at 382 SKUs for the 9 month uh for the period ending December 25. Again 6:00 6 minutes if you see our other growth drivers I'm happy to report that bronze bushing business has continued its strong growth 6:09 6 minutes, 9 seconds trajectory reaching a sales revenue figure of about 92 crores in 9 months uh 6:17 6 minutes, 17 seconds ending in uh December 25. Thus as per our earlier estimate we are on track to achieve about 30% plus growth YI bases in this segment. 6:28 6 minutes, 28 seconds If I talk stampings, while there are there was a blip in Q2 um due to some seasonal impact on consumer goods 6:37 6 minutes, 37 seconds segment, uh they are again catching up uh in uh Q3 and stood at uh the overall 6:45 6 minutes, 45 seconds revenue uh for 9 months stood at 41 uh crores um up to December. I expect 6:53 6 minutes, 53 seconds stamping sale to further grow in coming quarter uh due to few new stem components which are under development 7:00 7 minutes which are likely to be commercialized in next financial year. Lastly, while sales growth to Japanese customer is slow, it 7:07 7 minutes, 7 seconds is still a positive direction. We are confident that though this is taking longer time, there is no dilution in our 7:14 7 minutes, 14 seconds efforts as well as the opportunity for a significant growth in our market share with our Japanese customers. 7:24 7 minutes, 24 seconds Talking about overseas uh subsidiaries, I'm glad to state that 7:31 7 minutes, 31 seconds hersa China has continued to report a consistent steady performance resulting into maintaining a decent profitability 7:39 7 minutes, 39 seconds and a growth trajectory. In fact, you would have seen in our disclosure made 7:45 7 minutes, 45 seconds uh by us in the to the stock exchanges, we have firmed up a brownfield expansion 7:52 7 minutes, 52 seconds plan in China. at the outlay of approximately 9.94 7:58 7 minutes, 58 seconds million uh US dollars uh for expanding cage manufacturing capacity in China with primary focus of steel cages. 8:09 8 minutes, 9 seconds The logic of this expansion is that we are there is a good demand for steel cages in China primarily in industrial 8:17 8 minutes, 17 seconds segment. We believe that we can significantly improve our market penetration in this segment in China if 8:24 8 minutes, 24 seconds we increase our cage manufacturing capacity in China as a local player which is essential not only for our 8:31 8 minutes, 31 seconds existing key MNC customer present in China but also for a local Chinese bearing manufacturers who can be 8:39 8 minutes, 39 seconds serviced if we have adequate steel crate capacity in China. We will fund this expansion primarily 8:48 8 minutes, 48 seconds uh uh through um not debt uh and and then uh up to maybe 70 to 80%. And uh 8:58 8 minutes, 58 seconds uh or rather we will uh fund this uh by borrowing locally and balance of it will be funded uh through equity contribution from Hersha India. 9:10 9 minutes, 10 seconds The expansion will be implemented at our existing site uh in a as a brownfield expansion and we intend to make this 9:18 9 minutes, 18 seconds operational before uh end of financial year 28. 9:25 9 minutes, 25 seconds In this quarter, we again saw Romania's performance coming under uh pressure primarily to only to steep increase in 9:35 9 minutes, 35 seconds copper prices globally which could not be passed on to the customer immediately as the variable. 9:43 9 minutes, 43 seconds uh this has resulted into an operating loss at Romania and the combined net loss of our foreign subsidiary stood at 9:51 9 minutes, 51 seconds around 3.98 uh lakhs uh or 3.98 crores uh in quarter 3 and for 9 months it 9:59 9 minutes, 59 seconds stood at uh 6.09 uh cr in 9 months or year to date. 10:06 10 minutes, 6 seconds However, we still remain confident about Romania likely Romania likely to do better in coming quarter because of our 10:14 10 minutes, 14 seconds consistent uh and conscious shift uh and focus on the finish cage uh business uh 10:22 10 minutes, 22 seconds customer diversification as well as cost control strategies uh under implementation. 10:30 10 minutes, 30 seconds Talking of our uh solar uh business uh the solar division has reported a strong performance in quarter 3 with reporting 10:39 10 minutes, 39 seconds a topline revenue of around 59 crores uh and a data uh of around 9%. 10:48 10 minutes, 48 seconds However, I mentioned earlier this is a orderdriven business. Uh and the overall performance in the 10:55 10 minutes, 55 seconds current financial year will be um you know it it's good and continuous positive contribution uh this division 11:04 11 minutes, 4 seconds is continuing the positive contribution to overall business. Um 11:11 11 minutes, 11 seconds uh lastly I I feel very confident that we'll continue to perform uh well in quarter 4 in this segment as well and we 11:20 11 minutes, 20 seconds should be able to achieve overall guidance uh given in uh for financial year 2026. 11:28 11 minutes, 28 seconds Um more importantly we feel that we are on a good trajectory for next financial year and hope to continue this uh 11:36 11 minutes, 36 seconds direction. However, we would prefer to give over overall guidance uh for FY27 11:43 11 minutes, 43 seconds at the time of quarter 4 uh FY26 annual result. 11:49 11 minutes, 49 seconds Uh now I transfer over to Mik uh who will take us through numbers in a little bit more detail. Over to you Mo. 11:58 11 minutes, 58 seconds Thank you for the overall business overview. Uh good afternoon everyone. As you would have noticed uh for the quarter ended December 25, our 12:06 12 minutes, 6 seconds engineering business at consolidated level have achieved a top line of rupes 350 cr against the 363 cr topline in the 12:15 12 minutes, 15 seconds immediate previous quarter and 32 cr topline in the same quarter last year. 12:21 12 minutes, 21 seconds We have achieved consolidated IITA for engineering segment of rupees 58.6 cr against the reported eita of 63 cr in 12:29 12 minutes, 29 seconds the last quarter and 48.2 2 K in the previous quarter. But however adjusted IITA is of rupees for 64.3 cr in this 12:39 12 minutes, 39 seconds quarter after adjusting the one time provision impact of the new labor code. 12:44 12 minutes, 44 seconds Increasing trend in metal prices especially copper and lag in raw metal pass through has impacted our IBITA margin and pet compared to last quarter 12:52 12 minutes, 52 seconds and also our new green field sites BA uh at BA has reported a net loss as Lisa has mentioned due to the first year 13:00 13 minutes operations and the capital uh and we also capitalized the second building in our BA size in the last quarter. 13:08 13 minutes, 8 seconds Both foreign subsidiaries have jointly contributed beta loss also of around rupees 51 lakhs at a uh total level of both foreign subsidiaries. 13:18 13 minutes, 18 seconds Solar business as mentioned has achieved a revenue of 59.7 cr with a bit of 5.5 cr. Overall working capital cycle at 13:26 13 minutes, 26 seconds consolidated level is around 140 days against 146 days in the previous quarter and 40 145 days in the last same 13:34 13 minutes, 34 seconds quarter. We have incurred capex of rups 32 cr in the last quarter and cumulative capex of around 100 cr in the last three quarter in the current financial year. 13:44 13 minutes, 44 seconds Take this brief brief note on the financial numbers. I request operator to take the Q&A from the participants. Thank you. 13:52 13 minutes, 52 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press 14:00 14 minutes star and one on the touchstone telephone. If you wish to remove yourself from question Q, you may press star in tool. Participants are requested to use handsets for locking a question. 14:12 14 minutes, 12 seconds Ladies and gentlemen, we'll wait for a moment while the question Q assembles. 14:26 14 minutes, 26 seconds The first question is from the line of Hashid Patil from Aquarius Securities. Please go ahead. 14:32 14 minutes, 32 seconds Hi. Uh thank you very much for the opportunity. 14:35 14 minutes, 35 seconds Uh firstly uh on the uh India engineering business uh this was the second consecutive quarter of a very 14:43 14 minutes, 43 seconds strong growth uh wherein we have done a mid double digit to a high double digit kind of a growth in this business. Could 14:50 14 minutes, 50 seconds you highlight uh uh which are the factors some of the end user industries which which have drove this performance 14:58 14 minutes, 58 seconds also if you could give us a flavor on uh pricing versus volume growth lick within this 17% growth that we have posted in this quarter that will be very helpful. 15:12 15 minutes, 12 seconds Um so one harsh from our point of view uh for for us the 15:20 15 minutes, 20 seconds geography point of view uh India is doing very well um as well as Europe uh 15:28 15 minutes, 28 seconds as I mentioned earlier and both are driving uh overall growth uh for us 15:34 15 minutes, 34 seconds being a very big segment for us. Um 15:41 15 minutes, 41 seconds this this growth is uh primarily um uh we are seeing the it's purely quantitydriven growth um and and we are 15:50 15 minutes, 50 seconds seeing a volume growth um as yet I think in the last I mean quarter three uh we don't see any uh you know material 15:59 15 minutes, 59 seconds impact or pass through which which has materialized so which will happen uh in the current quarter um And uh overall we 16:09 16 minutes, 9 seconds are seeing India we are seeing uh you know strong demand across all segments industrial as well as uh um 16:19 16 minutes, 19 seconds automotive and uh overall globally we are seeing industrial segment uh slowly 16:27 16 minutes, 27 seconds improving which which was in a negative cycle over the last year and a half too. 16:32 16 minutes, 32 seconds So which is uh recovering uh is how we look at it and uh so that's that's how we are seeing it. Um 16:42 16 minutes, 42 seconds and for us uh also positive is bushing uh wishing growth and and uh stamping uh 16:51 16 minutes, 51 seconds business growth which are largely domestic focus. uh so that also supports 16:58 16 minutes, 58 seconds uh India India growing overall very well so that is also supported 17:05 17 minutes, 5 seconds just to quickly add one thing this year if you see there is also a growth in 17:11 17 minutes, 11 seconds exports so the last couple of years that India was growing domestically but exports were pulling us down a bit now 17:19 17 minutes, 19 seconds export is also showing about 10% growth so that is helping us uh you not showing a much better growth number at India level. 17:30 17 minutes, 30 seconds Understood. Uh secondly, uh on the case that you have announced in China, uh we have announced a capeex worth about $10 17:38 17 minutes, 38 seconds million, it is a pretty uh significant number. Now given that we are still operating at about 55% capacity 17:47 17 minutes, 47 seconds utilization over there. So do you see that the demand is going to be very strong in the near term and that is why 17:56 17 minutes, 56 seconds uh we are expanding uh we are sort of trying to preempt the demand over here. 18:02 18 minutes, 2 seconds So also if you could give some flavor on uh when we would have expanded this capacity. So on that you know scale and 18:10 18 minutes, 10 seconds size of the plant what would be the maximum revenues we can do uh at the China level maybe in FI29 because FI28 18:20 18 minutes, 20 seconds is where uh your expansion get completed. So at that scale what kind of revenues and the margin we are aiming to 18:28 18 minutes, 28 seconds do slightly longerterm broader question but any outlook on that will be very helpful. 18:37 18 minutes, 37 seconds Yeah. So uh again uh we are uh in in in China um there are a couple of things 18:44 18 minutes, 44 seconds happening as I mentioned u we have a significant brass capacity uh located locally in China. However, 18:53 18 minutes, 53 seconds when it comes to industrial steel cages, we don't have any local capacity and we are trying to we are seeing industrial 19:02 19 minutes, 2 seconds segment grow uh and our ability to participate and and get some share of business uh significantly changes when 19:11 19 minutes, 11 seconds we are a local manufacturer there. So that's the what is primarily driving this capacity expansion 19:20 19 minutes, 20 seconds um within within China what what we are doing is uh so there is some amount of 19:26 19 minutes, 26 seconds brass capacity also expansion u part of this uh expansion uh plan. 19:33 19 minutes, 33 seconds Now um uh in this uh uh this uh investment a big chunk about 40% plus is 19:42 19 minutes, 42 seconds uh you know infrastructure uh which includes building and and a few basic infrastructure we need to build uh 19:50 19 minutes, 50 seconds to to actually house a lot of our dedicated capacity there. Um so that is a big chunk of this uh investment and 19:59 19 minutes, 59 seconds then we are adding uh no cage capacity uh as I mentioned primarily in the steel industrial side where we are seeing a 20:09 20 minutes, 9 seconds good demand and growth and opportunity to penetrate local markets. So that's the rational u from a number point of 20:18 20 minutes, 18 seconds view um it will be very difficult to give you a very precise number. Uh 20:24 20 minutes, 24 seconds Having said that uh we are looking at uh uh for for the piece uh for for the 20:32 20 minutes, 32 seconds equipment uh what which are we are going to install uh we are expecting at full maturity it should uh it should give um 20:42 20 minutes, 42 seconds round 2x yeah round 2x turnover current revenues will be double and yeah 20:50 20 minutes, 50 seconds correct so uh we are looking at the 2x uh overall revenue uh in China when the 20:58 20 minutes, 58 seconds full maturity of all this capacity uh takes place. Now that that still leaves us with additional infrastructure for 21:07 21 minutes, 7 seconds further expansion uh because we are doing a full infrastructure expansion right now. uh so and we are kind of 21:14 21 minutes, 14 seconds keeping space to uh accommodate uh any any growth opportunity comes our way in a different segment and so on. 21:25 21 minutes, 25 seconds That's good sir. Uh thank you very much for answering my question. I'll come back in. Thank you. 21:33 21 minutes, 33 seconds Thank you. 21:37 21 minutes, 37 seconds The next question is from the line of Ahmed from PL Capital. Please go ahead. Hi sir, thank you for the opportunity. 21:46 21 minutes, 46 seconds Sir, my question again on China. What is the like kind of understanding the rationality to expand? So, uh will it be 21:56 21 minutes, 56 seconds you're penetrating completely local this 2x sales which which you're trying to achieve by F29 F30? 22:06 22 minutes, 6 seconds Uh so it's it's a combination of our existing customer 22:13 22 minutes, 13 seconds uh as well as local. Um we are seeing a opportunity to 22:20 22 minutes, 20 seconds get better market share through localization. 22:24 22 minutes, 24 seconds uh even in our existing uh customer base as well as uh some of the access to 22:31 22 minutes, 31 seconds customer is not available if we are you know supplying out of India. So we are kind of uh uh creating that. So it's a 22:39 22 minutes, 39 seconds combination of both uh local local customer as well as our uh global MNC customer increasing the wallet share with them. 22:48 22 minutes, 48 seconds Yeah. And just to add there uh Amit that in the specific industrial segments there are areas where there there are 22:55 22 minutes, 55 seconds where in China there is only one or two local suppliers and there is no major suppliers available and hence even the local bearing manufacturers need a 23:04 23 minutes, 4 seconds reliable and consistent suppliers as alternate suppliers and there where we have a great opportunity to even capture the local manufacturing bearing 23:12 23 minutes, 12 seconds companies in the industrial segment of the steel areas. 23:18 23 minutes, 18 seconds Right. But is there anything like with the existing customer you'll be able to utilize maybe 50 60% of what you're 23:25 23 minutes, 25 seconds installing any any ballpark or it is still open that once the factory definitely there is definitely great 23:31 23 minutes, 31 seconds dialogues. So no, we don't have a clear uh commitment. Uh however, we have a we 23:39 23 minutes, 39 seconds we have a good engagement and discussion going on and we are uh some portion of 23:46 23 minutes, 46 seconds capacity will definitely go towards supporting our existing customer and a bigger wallet share of their their demand. 23:58 23 minutes, 58 seconds Right. And are we like kind of confident of uh margins uh having uh you know from the past experience in 24:06 24 minutes, 6 seconds China. So what what is we are looking for in terms of margins or something uh with this expansion uh uh probably 24:16 24 minutes, 16 seconds looking at the past we have seen challenges with our international subsidiaries anyways. Yeah. 24:23 24 minutes, 23 seconds Yeah. So we um we will definitely we are confident that at the right 24:30 24 minutes, 30 seconds revenue level we will improve our existing aida in China we we definitely 24:37 24 minutes, 37 seconds we are definitely trying to we we see a better margins possibility here and and 24:44 24 minutes, 44 seconds that's also one of the incentive for you know ush to go there also there is a 24:50 24 minutes, 50 seconds scale need of scale at uh China level um uh which which will also help us uh operating leverage 24:59 24 minutes, 59 seconds create operating leverage improve our margin even on the existing portfolio as well. So 25:06 25 minutes, 6 seconds all right sir [clears throat] again on uh this thing uh you said somewhere in the country uh wind demand is not picking up 25:14 25 minutes, 14 seconds in Europe. So uh I think uh is there any implication for bushings business that 25:21 25 minutes, 21 seconds there might be some challenge or because I think you have written it is going strong but I am just trying to 25:29 25 minutes, 29 seconds understand from what you mean to say by when demand. 25:32 25 minutes, 32 seconds Yeah. So yeah. Yeah. So uh I think our bushing 25:38 25 minutes, 38 seconds business is uh focused on replacement uh driven uh fun. So that's why that is 25:46 25 minutes, 46 seconds continuing to grow in spite of uh you know Europe wind not doing as well as we 25:52 25 minutes, 52 seconds expect. However, we are uh some significant portion of our Romania 25:59 25 minutes, 59 seconds facility is supporting wind market. So, which is not as a wind market overall in uh Europe is not doing that great and 26:08 26 minutes, 8 seconds that's the reference I was uh kind of mentioning there. So, uh we don't see that as a correlated 26:15 26 minutes, 15 seconds uh at at a full conversion majority the pushing business will follow the um wind market. what is going on in wind market. 26:25 26 minutes, 25 seconds But having said that, right now we are in a very different phase when it comes to bush where the focus is on whatever 26:31 26 minutes, 31 seconds is the existing uh um wind application converting into bushing uh and and that 26:38 26 minutes, 38 seconds will drive the All right. So lastly on Romania, you said uh this quarter was impacted by 26:46 26 minutes, 46 seconds commodity prices and probably that might continue in pok. So what is that we are looking at now? Roman last time I think 26:53 26 minutes, 53 seconds there was some recovery there and you highlighted uh that time. So now with this challenge uh what's the outlook for 27:01 27 minutes, 1 second next uh one or two quarters in Romania. 27:07 27 minutes, 7 seconds So uh I think I will not be able to exactly uh say how it is going. There is 27:13 27 minutes, 13 seconds a lot of volatility uh in the commodity market. We do have a pass through mechanism. So we have a quartertoquarter 27:22 27 minutes, 22 seconds impact and correction but uh as uh I mean not knowing future but what we have seen so so there's a significant 27:31 27 minutes, 31 seconds volatility so that that is a risk and a concern remains having said that uh as I 27:38 27 minutes, 38 seconds mentioned earlier that our improvement uh program is going on we are uh 27:46 27 minutes, 46 seconds improving the revenue and the of product portfolio doing more cages and so on 27:54 27 minutes, 54 seconds which is uh taking traction. So um apart from this uh specific challenge I think 28:01 28 minutes, 1 second if you look at uh comparison on the revenue side over uh last year similar quarter we have grown and and uh we have 28:11 28 minutes, 11 seconds improved our uh product portfolio. We are not at all where we need to be. Uh so we are continuing to work on that and 28:18 28 minutes, 18 seconds and evaluate the situation, engage with customer and and uh see where we what's the right path going forward on this. 28:30 28 minutes, 30 seconds Thank you sir. Thank you so much. Thank you. Thank you. 28:38 28 minutes, 38 seconds The next question is from the line of sake Kapoor from Kapoor and Company. Please go ahead. 28:46 28 minutes, 46 seconds Yeah. Namaskar sir. Hope I'm audible. Yes sir. 28:52 28 minutes, 52 seconds Yeah. Thank you sir. Sir firstly if you could just reiterate for the sake of repetition also uh on the on the guidance front on what is the likelihood 29:00 29 minutes for us to exit FY 26. Firstly, 29:08 29 minutes, 8 seconds so we had sake said that we will be in terms of growth a little over 10% 29:14 29 minutes, 14 seconds overall. So this Q4 should also continue the same run rate with a maybe a little bit marginal improvement. So let's see. 29:23 29 minutes, 23 seconds So that's what the guidance was. So we are I think on track we should be okay. 29:28 29 minutes, 28 seconds And on the margin front also the on the standalone business reported completely be better, margin will be better and we 29:37 29 minutes, 37 seconds should we are aiming at you know in the AITA range as we had talked about uh and 29:44 29 minutes, 44 seconds the PAT range reaching taking the last Q3 run rate and then slightly improving our 29:52 29 minutes, 52 seconds Q4 we should have a much better bottom line growth in FI26 as compared to FI25. 30:02 30 minutes, 2 seconds Uh no sir the AITA margin we have for the standalone business part as 23% 23.4 uh that is what we have reported. So, so 30:10 30 minutes, 10 seconds we are confident on maintaining. 30:14 30 minutes, 14 seconds No, no, see what happens. There is always a quarterly lag between the commodity prices and the selling prices. 30:23 30 minutes, 23 seconds At India level consistently we should be in the range of 20 to 23 by stage range 30:30 30 minutes, 30 seconds and then a little bit of impact of advant as compared to Q3 this year in terms of 30:39 30 minutes, 39 seconds loss to loss advant even from next year. 30:45 30 minutes, 45 seconds The turnover is steadily increasing as we shall say. Uh there are quite a 30:53 30 minutes, 53 seconds bit of moving pieces but we should be reaching the targeted P 31:00 31 minutes level in the range of around five or so. Let us see. Okay. 31:08 31 minutes, 8 seconds split if you could just give the 9 monthly performance for uh sales and profitability for Romania, China as well 31:17 31 minutes, 17 seconds as Advante uh separately just if you could give the number and uh uh then sir on the Romania part of the story if if I 31:24 31 minutes, 24 seconds correct if I remember correctly we were about to discuss and articulate the strategy or restructuring for the unit 31:32 31 minutes, 32 seconds wherein uh better deliverables from the the same can be derived. So where are we sir in terms of uh that 31:42 31 minutes, 42 seconds on the on the numbers we have already given numbers in our investor presentation for India engineering business and foreign subsidiaries performance. So you may refer our 31:51 31 minutes, 51 seconds investor presentations there you will find the numbers and on the Romania story. Yes our focus is still on the same side on enhancing our cage 31:59 31 minutes, 59 seconds proportions compared to our current casting proportions and the dialogues is already on with the customer. 32:05 32 minutes, 5 seconds Sir, I was looking for the split between the China and the Romanian business separately and the advantage. Can you have that all three separate numbers? 32:16 32 minutes, 16 seconds So I tell you as a matter of strategy in the past we are always giving a combined number at the foreign subsidiary level. 32:24 32 minutes, 24 seconds So you will see that the loss was about 6 crores in the 9 month period at the foreign subsidiary level. uh 32:34 32 minutes, 34 seconds there could be a little reduction in Q4 in terms of combined loss but you may take a combined loss in the range of 32:41 32 minutes, 41 seconds maybe around 8 crores for the year end for the foreign subsidiaries advant 32:50 32 minutes, 50 seconds we have already given it was 370 lakhs in the Q3 it should reduce in Q4 32:58 32 minutes, 58 seconds but it will still be at a loss level So I think exact number we will not be able to give but this is already given the 33:08 33 minutes, 8 seconds way we have explained actually two small points. So in your uh presentation you have mentioned about 33:16 33 minutes, 16 seconds and earlier also about this lower uptake from your Japanese uh customer. So uh but if you could just allude to us uh 33:25 33 minutes, 25 seconds where are we in terms of the deliverables and the order booking from the Japanese concern and uh then s when 33:33 33 minutes, 33 seconds we uh in the slide we have mentioned about this diversification in precision stamped and brushing component. So this stamping is also attributed to this 33:42 33 minutes, 42 seconds brushing part of the story or we are separately doing stamping uh of other uh tools also. 33:52 33 minutes, 52 seconds So u yeah uh we are doing the beyond the bearing cages and bushing we also 34:00 34 minutes supply stamping components to our customer which are automotive uh as well 34:06 34 minutes, 6 seconds as uh uh consumer goods um and and some industrial goods and and so on. Um and 34:16 34 minutes, 16 seconds uh it was about So stamping is separate than bushing. 34:23 34 minutes, 23 seconds Yeah. Stamping is a very different uh uh yeah it is an extension of our uh 34:30 34 minutes, 30 seconds capability for manufacturing steel cages which is a stamping process. But we have developed some very special components 34:36 34 minutes, 36 seconds like you know railway in steels or compressor special type of compression 34:43 34 minutes, 43 seconds stampings etc. which is extension of our technology skill set into a little diversified field but keeping the same value addition in mind. 34:56 34 minutes, 56 seconds So we are not doing me to kind of a situation but bushing is a replacement for bearings in uh the gearbox windmill 35:05 35 minutes, 5 seconds gearbox. So it's a very different application. 35:10 35 minutes, 10 seconds Okay sir. Just just to over the stamping part this will be in the advantage unit we are doing or it is in the older comp 35:19 35 minutes, 19 seconds plants both both we have existing maybe here or advantage maybe we have created additional capacity for bushings and large size cages. 35:31 35 minutes, 31 seconds Okay. And lastly, uh uh sir, lastly, if you could just give us your message for your investors. Man, we got listed in 35:39 35 minutes, 39 seconds 2022. So, uh we were scared from what happened in COVID in terms of valuation. 35:45 35 minutes, 45 seconds But even even if it had taken into account uh the varies of the market, the business environment, geopolitical 35:51 35 minutes, 51 seconds issues, every aspect, shareholder uh have have no value creation has not happened for your investors. that is 35:59 35 minutes, 59 seconds including the promoter who hold 3/4 of the equity. So uh uh we have seen uh we 36:06 36 minutes, 6 seconds have seen on the deliverable front what what else and uh how how quickly would this translate into value creation for 36:15 36 minutes, 15 seconds us in terms of consistent profitable predictable growth for the organization. 36:20 36 minutes, 20 seconds So uh uh if if sir would uh just uh throw some insight on the same 36:28 36 minutes, 28 seconds you are right in what you have observed but also please appreciate that macrolevel factors are beyond our 36:36 36 minutes, 36 seconds control at every single point in time we have been very transparently communicating with the shareholders and 36:43 36 minutes, 43 seconds investors that what is the current status with 35% of my business coming from Europe globally 36:50 36 minutes, 50 seconds and Europe going down and then the geopolitical tensions. With all this, I think we have done very well in terms of 36:59 36 minutes, 59 seconds quickly, you know, going to the drawing board, reworking our strategies and trying to grow and trying to maintain a 37:07 37 minutes, 7 seconds decent growth. I think I don't want to speak more but it seems that this year was much better than last year and now 37:15 37 minutes, 15 seconds next year will still be better. Our job is to be transparent about what the current state of affairs is. What is our 37:23 37 minutes, 23 seconds strategy and how we want to keep the company on the growth path market is something which nobody knows and we 37:30 37 minutes, 30 seconds can't control that's all and we'll be very communicative about what we want to always transparently feel as correct. 37:42 37 minutes, 42 seconds Very sin the queue sir. Yeah. 37:45 37 minutes, 45 seconds Yeah. Yes. for joining with you. Thank you. Thank you. Thank you. 37:50 37 minutes, 50 seconds The next question is from the line of Manish Guyel from Think Wise Wealth Managers. Please go ahead. 37:58 37 minutes, 58 seconds Yeah. Uh thank you so much and congratulations on very good set of numbers sir. Uh sir couple of questions. 38:03 38 minutes, 3 seconds Uh first uh if you can give us the revenue breakup for your uh new businesses bronze bushing stamping part 38:11 38 minutes, 11 seconds size and Japan based customers uh for uh 9 months current year and comparable numbers of last year. 38:21 38 minutes, 21 seconds Yeah I think money that was covered in Visal's commentary. Let me repeat it for your easy reference. Yes, last cages we 38:30 38 minutes, 30 seconds did 9 months 39 cr around versus last year same 9 months it was around 31 cran 38:38 38 minutes, 38 seconds customers is around 51.5 cr or 50 uh against 50 cr rough in the last year so almost stagnant stamping we did around 38:47 38 minutes, 47 seconds 39 cr and 412 cr in this year while the busing around 74 75 cr last year versus 92 cr this 38:56 38 minutes, 56 seconds year for 9 months Okay. And uh how and so related question is that uh roughly 39:04 39 minutes, 4 seconds if I do the math it is contributing 21% of uh your revenue or these three four 39:11 39 minutes, 11 seconds categories. Uh so how do we see this going forward over a period of next uh two years and 3 years or maybe uh what 39:20 39 minutes, 20 seconds kind of visibility we have uh uh can it probably this business can develop in two years? Uh that was first question 39:28 39 minutes, 28 seconds and second also question is on the uh KG's business that independently how do we see growth rate in the uh KG's business. 39:40 39 minutes, 40 seconds Yeah. So um I I don't have a very precise double up number like that but 39:47 39 minutes, 47 seconds uh all we are these are our focused growth drivers where we see good opportunity and that's why we keep on 39:56 39 minutes, 56 seconds mentioning the numbers and sometimes we don't do as well as we expect. Uh having said that we see we expect a very good 40:05 40 minutes, 5 seconds growth in all this segment. It may happen that one segment may kind of falter for a while or something like 40:12 40 minutes, 12 seconds that. Uh but uh you know across all these segment we have uh signed lot of 40:19 40 minutes, 19 seconds uh uh new supply agreements with our customers and we feel that uh they are 40:26 40 minutes, 26 seconds they are on a good growth trajectory and realization will will happen soon. Um 40:34 40 minutes, 34 seconds and on the case side uh we see that as a product very strong growth um continuing 40:43 40 minutes, 43 seconds it uh it's basically what we what we offer to our customer in terms of cages 40:51 40 minutes, 51 seconds is a very unique proposition and we are fairly confident that what what we bring to the table will bring us that 40:58 40 minutes, 58 seconds additional growth. Um we are seeing uh also that is also driven by existing 41:06 41 minutes, 6 seconds business um which was supplied into Europe or uh US or other location how 41:13 41 minutes, 13 seconds those uh you know are doing um however in India it is doing very well continues 41:21 41 minutes, 21 seconds to grow and we feel fairly confident of overall about cage business as well. So just to add large size K actually is a 41:31 41 minutes, 31 seconds subset of our cage outsourcing for the simple reason it's cowed out separately because it was a relatively low wallet 41:38 41 minutes, 38 seconds share before five years just to half a percent 1% now we are targeting at maybe at least 5 to 7% and that's one area 41:46 41 minutes, 46 seconds which is growing very well so that's very much a part of outsourcing and I think overall all the Japanese customers 41:54 41 minutes, 54 seconds also our wallet share with them was 1 or 2% we are targeting at least 5 to 10% in next 2 three years. So you know these 42:03 42 minutes, 3 seconds are within the subset of outsourcing these are the cow out subsets get specific focus. 42:12 42 minutes, 12 seconds Sure. Uh uh and sir so like uh you you did mention that uh the new product developments is gaining phase. So would 42:21 42 minutes, 21 seconds like to get a perspective as to are we gaining market share with your customers and and and the resourcing uh like you 42:29 42 minutes, 29 seconds said uh started supplies to the customers new facilities in India. So how should we look at it that probably 42:37 42 minutes, 37 seconds next year we can look for a double digit growth uh overall for the company. 42:45 42 minutes, 45 seconds So uh see for us uh uh product under development or development is a leading indicator. 42:56 42 minutes, 56 seconds Uh what that means is that customer is continuing to give us uh product which uh we will develop and commercialization 43:05 43 minutes, 5 seconds of such product may take anywhere between 6 months to two to three years 43:12 43 minutes, 12 seconds uh depending on how customer is approaching. In case customer will decide sometimes that only when you 43:20 43 minutes, 20 seconds complete the complete portfolio um that we will start commercialization and so on. So uh basically we mentioned 43:30 43 minutes, 30 seconds that as kind of an indicator that you know our pipeline is strong um and uh that's the case. Now in terms of you 43:40 43 minutes, 40 seconds know doubling the growth I think it depends on variety of factors. uh it depends on how the industry is doing as 43:47 43 minutes, 47 seconds well as uh how the new projects come online and uh we are very hopeful and confident that good good revenue growth 43:57 43 minutes, 57 seconds is in pipeline but it depends on all those factors so it's difficult to exactly put a number to all that no sir on the market 44:05 44 minutes, 5 seconds your question was whether next year we will go for a double digit growth correct so as I said definitely that is the target but we want to give you a 44:14 44 minutes, 14 seconds little more precise guidance based on certain new developments. We'll come back to you at the end of Q4. 44:23 44 minutes, 23 seconds Okay. And sir, particularly on the margins like what uh India standalone engineering margins what we have seen for engineering business at roughly 25%. 44:34 44 minutes, 34 seconds for this quarter. Is this sustainable? 44:37 44 minutes, 37 seconds Uh going forward uh uh also in context with now that steel prices have started inching up, copper prices are inching 44:46 44 minutes, 46 seconds up. So how should we look into it? 44:52 44 minutes, 52 seconds So usually Jamine uh sorry Manish we have said that our margins should be tracked on the absolute front considering there is a material path 45:00 45 minutes impact uh impacting the percentage either on the upward side or downward sides as the case may be or according to increase cycles we are going into. So 45:09 45 minutes, 9 seconds what our suggestion is the same please stress our absolute margin improvement and we are confident to improve that margin uh definitely year over year as well as quarter over quarter. 45:20 45 minutes, 20 seconds So Mik sir like what is the time like for you to pass on the cost? Is it on monthly revis? 45:29 45 minutes, 29 seconds 3 months is the period and with a 1 month as a lag in so 4 months total lag. 45:34 45 minutes, 34 seconds Uh but again customer to customer it varies. So and on an average you can consider as a four months 45:42 45 minutes, 42 seconds right sir and uh uh are we seeing any uh immediate benefits from the the FDA what 45:50 45 minutes, 50 seconds India has signed with UK and EU EU and also now with tariff coming down uh in 45:57 45 minutes, 57 seconds US how should we see the prospects going forward obviously the export demand will pick up 46:06 46 minutes, 6 seconds that's our expectations. There is no direct linkages but definitely there is a linkages and considering that our product is a multi-userage product and 46:14 46 minutes, 14 seconds multi-industries usage product we can't identify exit end to end benefit but yes we see that as a positive outcome for 46:21 46 minutes, 21 seconds our business line okay last US our share was not very big 46:28 46 minutes, 28 seconds anyway in US around 8 9%. So to that extent we were rather you know sort of neutral or agnostic to that. 46:36 46 minutes, 36 seconds Yeah sure. Last question sir on the new facility now we have started the second building capitalize the second building 46:44 46 minutes, 44 seconds as well. So uh what kind of ramp up we see what kind of uh utilization visibility we see from it uh next year 46:53 46 minutes, 53 seconds and uh can it revert to a company level margins uh next full year 47:02 47 minutes, 2 seconds our anticipation is to do it early but as we have committed uh any new capex usually takes two years to reach to the 47:09 47 minutes, 9 seconds peak and we are on the same track we don't see anything lagging Sure. 47:18 47 minutes, 18 seconds Uh thank you so much for all the Hello. Thank you. Yes. 47:26 47 minutes, 26 seconds Uh no just one question. Uh just want a clarification. This Q3 presentation uh the international revenue share uh 47:34 47 minutes, 34 seconds has been restated for the quarter 2 FI26. So any reason for that? Uh was there a typo earlier? 47:43 47 minutes, 43 seconds Yeah, we observed some arithmetical error in the last quarter. We made some arithmetical error. We have just corrected it. 47:49 47 minutes, 49 seconds Okay. Because even Q1 has a very higher share of international revenue. So maybe if you can provide that clarification. 47:59 47 minutes, 59 seconds See that's what Q1 and Q2 there was an arithmetical error. The base number has been uh corrected now and that's the 48:07 48 minutes, 7 seconds there's the reason the previous years were correct. 48:10 48 minutes, 10 seconds Okay, fine. Molly, I'll get the numbers from you. Yeah, I'll get the numbers from you. Thank you so much. 48:17 48 minutes, 17 seconds Thank you. 48:18 48 minutes, 18 seconds Thank you. The next question is from Lion Chairman from AR Deco Asset Manager. Please go ahead. 48:28 48 minutes, 28 seconds Yeah, thanks for taking my question. One is in your European demand phase. How you I mean how does the current inquiry 48:34 48 minutes, 34 seconds pattern look like in European advancing to all the 48:43 48 minutes, 43 seconds I'm sorry to interrupt my voice is not audible properly. Hello. Can you hear me now? Yes sir. 48:50 48 minutes, 50 seconds Yes sir. Uh so just just wanted to understand on the European uh demand front any new programs what RSQ 48:59 48 minutes, 59 seconds advancing towards the prototype for the validation stage or any new program brings uh for the global sourcing mandates 49:06 49 minutes, 6 seconds which provides comfort for I mean our sustainable double digit growth for the near term 49:14 49 minutes, 14 seconds on Europe. Yeah. So u we from a u customer engagement and all those point 49:22 49 minutes, 22 seconds of view I mean uh we continue to respond to RFQ but uh for us the RFQ2 through uh 49:30 49 minutes, 30 seconds you know realization cycle is pretty long. Uh what we see is uh what our 49:36 49 minutes, 36 seconds customer is asking is to develop which becomes a more better benchmark 49:43 49 minutes, 43 seconds um in terms of how um you know how growth is coming, how things look like and that has remained strong uh in spite 49:52 49 minutes, 52 seconds of uh uh you know whatever we have seen last one to to one and a half year uh that part of it has remained strong. uh 50:01 50 minutes, 1 second we are engaged on few additional RFQS, additional opportunities uh but uh there depends on you know 50:10 50 minutes, 10 seconds those projects get decided based on variety of factors and it's not just in our hand or our competitiveness 50:17 50 minutes, 17 seconds um it it's a macro big level big projects which uh depends on how our customers are approaching variety of uh 50:26 50 minutes, 26 seconds things u but uh overall I would say it remains positive uh uh without you know saying that no that's not a very 50:33 50 minutes, 33 seconds accurate indication for us go on and so on from a sales to your Japanese customer I mean it should be 10 50:41 50 minutes, 41 seconds minutes on a YTD basis so is it more of a mean or slower program rampo from the customer or is it like a technical delay 50:49 50 minutes, 49 seconds from R5 it's a little bit of both 50:56 50 minutes, 56 seconds u as I was mentioning that there were last quarter I mentioned But know there were some programs which got delayed at 51:04 51 minutes, 4 seconds our end um and then some of it was a demand uh and delay from customer and so 51:12 51 minutes, 12 seconds on. So it was combination and we are very hopeful that we'll come back on track and also adding I mean there are also the global cues had over that because of 51:21 51 minutes, 21 seconds the global uncertaintity customer was also delaying the their long-term calls of uh transferring or enhancing their supply chain outside their comfort zone. 51:31 51 minutes, 31 seconds So we see that the things are settling down in global side these things will ramp up up now. 51:37 51 minutes, 37 seconds Got it sir. Got it. And we understand I mean you know advantage front I mean it going to take two years to reach an optimum mix of help I mean how your 51:46 51 minutes, 46 seconds scale up looks like for the next year I mean your for the next year itself how should we think about that and if there's any delay on a customer 51:54 51 minutes, 54 seconds validation front anything on that color front no things are online uh I mean but uh 52:03 52 minutes, 3 seconds considering this is a new plant and at an early stage give us a quarter or two quarters more where we will be able to give you a better guidelines considering 52:11 52 minutes, 11 seconds the the customer's acceptance and approval stage over there. But yes, as we said, we see that we are on the same 52:18 52 minutes, 18 seconds track of achieving the optimum level within two years or around in two years from our capitalization. Uh and uh we 52:27 52 minutes, 27 seconds see that ramp up will comes and it will comes faster stage once we get the approvals. 52:32 52 minutes, 32 seconds Got it sir. Got it. Yeah, that's it from my friend. Thank you so much. Thanks. 52:40 52 minutes, 40 seconds Thank you. 52:42 52 minutes, 42 seconds The next question is from the line of Jen from IDBI Capital. Please go ahead. 52:50 52 minutes, 50 seconds Yeah. Uh [clears throat] so thank you for taking my question. I'm audible, right? Yeah. Yeah. Yeah. 52:57 52 minutes, 57 seconds Yeah. Yeah. Yes. Sure. So, so first question just pertains to you know when I just take uh this the console minus 53:05 53 minutes, 5 seconds standalone. So you get the subsidiary numbers. So when you look at it the loss is around 157 million. Now I understand 53:12 53 minutes, 12 seconds even this quarter 4 cr loss is from the advantage and 4 cr losses from the overseas subsidies. That is how it is panning out. So sir just in light of the 53:21 53 minutes, 21 seconds same just wanted some color on 26 is almost done. So 27 how should it look when you look at you know even you look 53:29 53 minutes, 29 seconds at advantage and you look at the OC subsidies how do you look at it? How does this loss thing should go ahead or some profitability just some color on 53:38 53 minutes, 38 seconds these these two aspects you wanted I wanted from you. 53:43 53 minutes, 43 seconds So Jason I think some arithmetic I want to clarify beforeh moves on. So at the subsidiary level as 53:51 53 minutes, 51 seconds I said the loss for 9 months is about 6 crores correct and advant as you could see 54:01 54 minutes, 1 second we have already given the figure that that advantage was around 9 crores that is how you are looking at 15 right for 9 54:09 54 minutes, 9 seconds months 15 crores right? No, no, no. So, see when you look at the complete subsidiary 54:17 54 minutes, 17 seconds loss, okay, uh just for so my number what I said was 157 million was for 9 months. Okay. So, that's a PAT number. 54:26 54 minutes, 26 seconds I'm looking at 157 loss. Okay. Simple console minus standard. Huh. Yeah. Yeah. So, correct. 54:33 54 minutes, 33 seconds Yeah. Yeah. Reported PAT. Yeah. So, now this this quad now let's not confuse but I understand it's a combination of advantage loss and the sub OC 54:42 54 minutes, 42 seconds subsidiaries loss. This is what predominantly is 80 90% of the thing. 54:46 54 minutes, 46 seconds Yeah. So just wanted to know how this should go to 26 and 20 26 is almost done. 27 how do you look at these two 54:54 54 minutes, 54 seconds factors playing out? How should it how should we look at it? 54:59 54 minutes, 59 seconds So u that's what we said we will give a better guidelines on 26 in the quarter four year end. But just to give you some 55:07 55 minutes, 7 seconds heads up uh yeah is that obviously advantage turn positive and uh China continues to grow in the same 55:14 55 minutes, 14 seconds territory with a better margin and Roman our intention is to make it break even first at I beta level followed by at a 55:22 55 minutes, 22 seconds profit level that's that's the major intent okay sure sir so I'll look forward to 55:28 55 minutes, 28 seconds the Q4 guidance uh sure and uh sir on in terms of the standalone revenue uh we 55:37 55 minutes, 37 seconds should be able to track I mean you did mention standalone engineering revenue um just would want to know 10% revenue growth should be a fair assumption for 55:45 55 minutes, 45 seconds 26 27 going ahead we should be able to do this uh 10% revenue growth at least yes and same answer wait for Q4 55:54 55 minutes, 54 seconds yeah but yeah I mean correct you may yeah yes yes yes yes okay okay and sir just in terms of this ramp up you 56:02 56 minutes, 2 seconds mentioned advantage will take two years okay to ramp up I understand so peak revenue again probably 2x is a fair assumption so uh how much of investments 56:11 56 minutes, 11 seconds are in advantage Just wanted to know so I mean just a calculation of peak revenue. 56:18 56 minutes, 18 seconds So uh on the plant and machinery investment yes you can consider 2x. Yeah 2x. So how much would that infrastructure and land and building? 56:26 56 minutes, 26 seconds Yeah yeah yeah correct. 56:26 56 minutes, 26 seconds Currently investment is around currently investment is around 210 K plus uh I don't have precise numbers on hand. 56:35 56 minutes, 35 seconds Okay. uh but uh majority of that is also infrastructure and land and building while machinery is around 100 cr plus 56:43 56 minutes, 43 seconds 150 cr some something is machinery that will be 2x okay so we have to take the 2x on the 56:50 56 minutes, 50 seconds machinery right okay fine right right sir okay okay and the main products are from advance I agree 56:57 56 minutes, 57 seconds sorry Jason we will also incremental machineries coming up and that will be still in the pipeline and we will give that also in guidelines 57:04 57 minutes, 4 seconds sure s of Of course it has to be on the plant and machinery only. The other infrastructure is common infra. Get it sir. And so the main products from Advantic you have mentioned before but 57:13 57 minutes, 13 seconds just wanted to clarify the bushings stampings and the large size caring large-sized cages. These are the main products from Advantic. Is that right? 57:23 57 minutes, 23 seconds You're right. The incremental growth and new businesses of these three lines. Right. Sure. 57:29 57 minutes, 29 seconds Sure sir. That's that's all from my side. Thank you. Thank you so much for answering my questions. Thank you. Thank you. 57:36 57 minutes, 36 seconds The next question is from the line of sake Kapoor from Kapoor and Company. Please go ahead. 57:42 57 minutes, 42 seconds Just a follow up on what the participant just mentioned. So for advantage, the product profile would be uh skewed towards uh bushing and large size cages. 57:55 57 minutes, 55 seconds Correct. Yes. And a little bit. 58:00 58 minutes Okay. I think so for the large size cases you did alluded earlier about the the market and there were some deterrence uh which we were trying to 58:09 58 minutes, 9 seconds resolve correctly there what's the business environment or the demand uh pertaining to the last five 58:16 58 minutes, 16 seconds cases I think a couple of quarters of few quarters back we did mention that you 58:25 58 minutes, 25 seconds know market uh for industrial product was very sluggish And that was uh the 58:32 58 minutes, 32 seconds reason for very moderate or not much growth in large size. We might have mentioned that uh I think we we are 58:40 58 minutes, 40 seconds seeing that uh turning around um over and above the fact that we we are looking at more additional product 58:49 58 minutes, 49 seconds development and orders uh for future in this. So um yeah with those factors are 58:56 58 minutes, 56 seconds somewhat improving what we had mentioned earlier. 59:01 59 minutes, 1 second Okay. And uh total investment uh for advantage are we done with the entire cap and also for the commercialization 59:09 59 minutes, 9 seconds part what is any closing uh capital work in progress is there? No in the previous question. 59:18 59 minutes, 18 seconds I already said in the previous question s the incremental plant and machinery will continue in advantage considering that wherever there is a requirement of 59:27 59 minutes, 27 seconds additional capacity and wherever we see the incremental growth can come we will continue to have a plant and machinery spending there. 59:34 59 minutes, 34 seconds Thank you sir. But uh still sir we have some something to commercialize or if you could give that as a date how much can be invested uh including the land uh 59:43 59 minutes, 43 seconds for for this unit or if you could give the bifurcation. 59:48 59 minutes, 48 seconds No as for to answer your question. Yes there are few uh working progress in capex side also including on the 59:56 59 minutes, 56 seconds including on the building side there are some other buildings like admin and others are under capitalization yet to be capitalized and some plant and 1:00:03 1 hour, 3 seconds machinery under installation. So around 40 K is the rough numbers top on my head. 1:00:09 1 hour, 9 seconds Okay. And what should be the then the total investment for this unit as a whole? 1:00:14 1 hour, 14 seconds Around as on date at the first. So it's an ongoing thing but yes we expect it to end this year 1:00:21 1 hour, 21 seconds around 250 K plus 250 K plus and and the peak revenue for this also will be 2x or will be 1:00:30 1 hour, 30 seconds different to uh assume today because of the the large size uh cages and the bushing part what should be the peak 1:00:37 1 hour, 37 seconds turnover uh that we may expect or or the asset turnover ratio 2x of the plant and machineries uh and 1:00:46 1 hour, 46 seconds but you also have to Keep in mind the incremental plant and machineries to be to be in pipeline but yes 2x of the plant and machinery not of the full capex. 1:00:57 1 hour, 57 seconds Okay sir. 1:00:59 1 hour, 59 seconds Right sir thank you for all the elaborate answers sir and all the best to the team. Thank you sir. 1:01:08 1 hour, 1 minute, 8 seconds Thank you. 1:01:14 1 hour, 1 minute, 14 seconds The next question is from the line of Jen from IDBI Capital. Please go ahead. 1:01:19 1 hour, 1 minute, 19 seconds Yes sir. Thanks for taking my question again. Sir, just one uh last question. 1:01:23 1 hour, 1 minute, 23 seconds We just wanted to know uh sir in terms of capeex what we are uh guiding for 26 and 27 on a console level. 1:01:34 1 hour, 1 minute, 34 seconds Wait wait wait for Q for JSON. Same answer. Okay. Sure. Sure. Sure sir. Okay. Okay. 1:01:44 1 hour, 1 minute, 44 seconds Thank you. Thank you. 1:01:46 1 hour, 1 minute, 46 seconds As there are no further questions from the participants, I would now hand the conference over to Mr. Vasha for closing comments. Over to you, sir. 1:01:56 1 hour, 1 minute, 56 seconds Um, thank you. And uh, today I would like to thank you all for you know continued confidence and support um, for 1:02:06 1 hour, 2 minutes, 6 seconds our engineers and then I wish you all very good evening. Thank you very much. Thank you. Thank you everyone. 1:02:14 1 hour, 2 minutes, 14 seconds Thank you on behalf of Harsha Engineers International Limited. That concludes this conference. Thank you for joining us and your winner Disconnect Airlines. 1:02:23 1 hour, 2 minutes, 23 seconds Thank you.