Harsha Engineers International Ltd — Q4 FY26

Harsha Engineers International Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=tn7-uxSlFA8 Published: 6 days ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the Hersha Engineers International Limited conference call. 0:08 8 seconds As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation 0:16 16 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchtone phone. 0:26 26 seconds Please note that this conference is being recorded. I now hand the conference over to Mr. Vishal Ranguala, 0:33 33 seconds CEO of the company. Thank you and over to you Mr. Vishal Rangala. 0:40 40 seconds Thank you. Uh hello uh good afternoon. 0:44 44 seconds Uh welcome uh all of you to our quarter 4 FY26 uh post result update call. 0:53 53 seconds As per the normal practice, uh I'll ask our CFO Mr. Mik who will take us through 1:00 1 minute a detailed key numbers uh for the result. However, I'm assuming most of you would have had a chance to go through this. 1:10 1 minute, 10 seconds Um and uh you know at the outset before I I I talk about you know the uh results and 1:20 1 minute, 20 seconds and everything I just want to kind of quickly summarize you know talk talk about what we are uh as a company and 1:28 1 minute, 28 seconds you know what we do. So uh we are uh you know primarily an engineering company 1:34 1 minute, 34 seconds with a big focus on uh a segment called bearing cages where we are a very unique 1:42 1 minute, 42 seconds player within the market uh with uh having you know competency in steel 1:49 1 minute, 49 seconds brass and uh polyide products within their cages and a very unique position 1:56 1 minute, 56 seconds globally having all these competency and precision level uh catering to um you know very good quality bearing companies and their needs for bearing cables. 2:08 2 minutes, 8 seconds uh and that's that's our primary business and beyond that uh you know we have worked over multiple years with a 2:16 2 minutes, 16 seconds big global uh bearing companies to outsource and supply them uh this 2:24 2 minutes, 24 seconds product uh globally and we have a very strong u market position within India uh 2:32 2 minutes, 32 seconds and across the globe as well. So um you know that that being the uh the 2:39 2 minutes, 39 seconds uh primary product. Beyond that we also operate uh you know in the subsegment of 2:47 2 minutes, 47 seconds you know stamping components using our core competency and uh we also have a bushing as another 2:55 2 minutes, 55 seconds product portfolio uh where where we are uh both both those segments we are growing very well and plan to grow 3:02 3 minutes, 2 seconds further. Um and we we cater to variety of industry through that uh those uh 3:09 3 minutes, 9 seconds segments including uh renewables as well as automotive uh consumer goods and and other industry. 3:19 3 minutes, 19 seconds Um and we are trying to grow um no business. Uh we actually operate three 3:26 3 minutes, 26 seconds facilities in in India. The third one we just commissioned this year uh in Bila 3:33 3 minutes, 33 seconds and uh two of facility one in Romania, one in China and uh through these five 3:40 3 minutes, 40 seconds facilities uh we supply our customer base across the globe. Um and we are you 3:46 3 minutes, 46 seconds know currently working on growing uh business in various uh segment uh uh 3:54 3 minutes, 54 seconds specifically for us growing with Japan based customer growing the large size business uh growing the bushing business 4:03 4 minutes, 3 seconds as well as uh growing the stamping business are some of our big grow uh growth drivers 4:10 4 minutes, 10 seconds uh as we look at uh our future. So this is just to you know get you up to date 4:17 4 minutes, 17 seconds on uh you know how the area we uh operate. Um with that a little bit of you know additional background this time around. 4:28 4 minutes, 28 seconds Um let me jump to you know the results uh uh this quarter. So I'm happy to 4:36 4 minutes, 36 seconds inform our uh stakeholders that in spite of a current global turmoil which we are witnessing and which could have upset 4:45 4 minutes, 45 seconds the rhythm of you know doing business particularly in quarter 4 uh of the current financial uh we have done quite 4:54 4 minutes, 54 seconds satisfactory and have met most of our internal performance expectation on the key front. 5:03 5 minutes, 3 seconds Um I'm happy to note that our India engineering business um 5:10 5 minutes, 10 seconds including all the key verticles have done very well in quarter 4 and financial year 2026. 5:20 5 minutes, 20 seconds Specifically, mushings have also reported a revenue of about 127 cr for the financial year 2026 5:28 5 minutes, 28 seconds in line with our expectation posting about 25% growth in over uh last 5:35 5 minutes, 35 seconds financial year. In the current year also we are having a very aggressive growth plan uh in tune of 25 to 30% in this segment. 5:46 5 minutes, 46 seconds Our uh sale of large size uh cages grew by almost 14% in FY 2026 and stood at 5:55 5 minutes, 55 seconds around 49 cr and sales to Japan based customer grew by almost approximately 6:02 6 minutes, 2 seconds 12% and in 2026 and stood at around about 73 crores. In 6:10 6 minutes, 10 seconds as much as the large size state segment is concerned, we are working very aggressively for increasing our wallet 6:17 6 minutes, 17 seconds share. And lastly, if we talk about Japan based customers, the progress those flow is positive direction and we 6:25 6 minutes, 25 seconds are committed to growing this segment as well. 6:29 6 minutes, 29 seconds Thus uh India engineering business which includes hersa advantage um which is a subsidiary um and has posted a good 6:39 6 minutes, 39 seconds overall so engineering business India has posted a good overall growth of around 14% in 6:47 6 minutes, 47 seconds FY 2026 not withstanding the fact that advantage you know new new unit and it's still 6:55 6 minutes, 55 seconds operating at a lower capacity utilization Thus in FY 2026 7:01 7 minutes, 1 second export from India have also posted a good robust growth almost 17% compared to FY 2025. 7:10 7 minutes, 10 seconds Our export to US have also started picking up uh duly encouraged by fact that recently additional import tariff 7:18 7 minutes, 18 seconds on cases has been reduced to uh zero in US. I'm happy to note that capacity 7:25 7 minutes, 25 seconds utilization in advantage is improving and we should see the sale from this unit growing at least three times in FI27. 7:35 7 minutes, 35 seconds Thus while this in this current finance financial advantage through having 7:42 7 minutes, 42 seconds posted a positive of 4 cr has still reported a combined loss of 11.4 4 cr due to higher depreciation and interest. 7:54 7 minutes, 54 seconds However, the bottom line is also expected to improve considerably in the coming financial year. In spite of this 8:02 8 minutes, 2 seconds drag in the current year, our India engineering business has posted an operating agenda of around 8:10 8 minutes, 10 seconds 22% in FI 2026 which is quite satisfying. Now let me talk of a foreign subsidiary. 8:20 8 minutes, 20 seconds As hinted earlier, China had performed well with a with an overall topline 8:26 8 minutes, 26 seconds growth of about 9.26% in FY26 over FY25 8:33 8 minutes, 33 seconds and has also posted a positive data of around 11%. 8:40 8 minutes, 40 seconds As announced earlier, we have already commenced implementation of uh China brownfield expansion projects 8:48 8 minutes, 48 seconds uh of steel cases. We believe that this will significantly strengthen the business presence in China and we should 8:56 8 minutes, 56 seconds expand our product portfolio from a predominantly brass based cases to a good mix of steel and brass cages. This 9:04 9 minutes, 4 seconds project should come in uh come in operation in H2 FY28 and we should also 9:11 9 minutes, 11 seconds see some improvement in EBIDA in China going forward. 9:17 9 minutes, 17 seconds However, Romania continues to perform below par as it is still having negative AIDA resulting into a combined foreign 9:25 9 minutes, 25 seconds subsidiary losses of about 11 cr in the current financial year or FY 26. 9:33 9 minutes, 33 seconds However, we are trying our best to improve our product mix by focusing more on cases in Romania from current level of around 22% to more than 30 35%. 9:47 9 minutes, 47 seconds Uh and we are also pushing our key customers in Romania to increase their officia. 9:56 9 minutes, 56 seconds We have also started firming up our capex plan for the second phase uh in 10:05 10 minutes, 5 seconds hersa advantage hersa engineers advante where our focus will be to create additional capacity for our key growth driver verticals. 10:17 10 minutes, 17 seconds We will be sharing more details as and when the plans are finalized in next few weeks. 10:24 10 minutes, 24 seconds Now talking about our solar business, you might have seen that it has performed very well achieving top strong 10:32 10 minutes, 32 seconds topline and bottom line growth in financial year 2026 mainly on account of 10:38 10 minutes, 38 seconds continued tailwind due to mix of increasing awareness and a good policy support from the government as well as private sector. 10:51 10 minutes, 51 seconds Excuse me. 10:54 10 minutes, 54 seconds [snorts] 10:56 10 minutes, 56 seconds Lastly, I feel confident that the current financial year by 2026 27, 11:04 11 minutes, 4 seconds we should achieve an overall doubledigit growth in topline though the growth in India engineering would be little bit more aggressive somewhat in machines. 11:16 11 minutes, 16 seconds We are also feeling confident that we should be able to at least maintain our current margin profile through our endeavor though our endeavor is to improve it going forward. 11:28 11 minutes, 28 seconds I would like to thank you for a continued uh confidence in Usha and I uh 11:34 11 minutes, 34 seconds I would like ask Malik to walk us through more detail more detail with numbers. Over you M. 11:44 11 minutes, 44 seconds Thank you. Uh hello everyone and good afternoon. 11:48 11 minutes, 48 seconds I believe you have already seen the numbers and the presentation we uploaded for the investor call for the quarter 11:55 11 minutes, 55 seconds ended March 26. Our engineering segment at consolidated level have achieved top line of rups 382 cr and Iita of 77 cr uh 12:06 12 minutes, 6 seconds in the last quarter against our adjusted IITA of 64.3 cr in previous quarter and adjusted IITA of 66 cr in the last year 12:15 12 minutes, 15 seconds quarter four while for the year ended March 26 the engineering segment has achieved topline 12:21 12 minutes, 21 seconds of 1444 cr at consolidated level against the 1269 9 cr. Last year we have 12:29 12 minutes, 29 seconds reported our consolidated IITA for engineering business at rupes 264 cr. 12:34 12 minutes, 34 seconds However, our adjusted IITA is around 270 cr if we adjust it for new labor code 12:40 12 minutes, 40 seconds impact. While last year adjusted IITA was 227 cr for our engineering segment. 12:49 12 minutes, 49 seconds For the quarter and year end we obser margin has improved uh defined by visal mainly on account of the higher export 12:57 12 minutes, 57 seconds sales and uh strong India demand followed by the better product mix and cost control. We also have a positive 13:04 13 minutes, 4 seconds impact on financial earning as well as EF solar business have achieved revenue of 13:11 13 minutes, 11 seconds 183 cr for the full year with a pack of rupes 10.2 2 cr for the financial year 2526 against the adjusted p of 5 cr last 13:20 13 minutes, 20 seconds year. Our overall working capital cycle at consolidated level remain around 130 days at the year end against the 134 13:29 13 minutes, 29 seconds days in the previous quarter and 127 days in the previous year. We have incurred capex of 120 cr in the full 13:37 13 minutes, 37 seconds year and around 20 cr in the last quarter at a consolidated level. Our busing business has achieved 127 cr as 13:46 13 minutes, 46 seconds mentioned. Just one correction uh our combined loss of subsidiary company uh in the current year is 9 cr not an 11 cr 13:55 13 minutes, 55 seconds which has been said and uh previous year it was 14 cr 11 is on the advantage part 14:03 14 minutes, 3 seconds and with this brief on the financial numbers I request operator to take the Q&A from the participants. Thank you. 14:10 14 minutes, 10 seconds Thank you very much. We will now begin with the question and answer session. 14:16 14 minutes, 16 seconds Anyone who wishes to ask a question may press star and then one on their touchstone phone. 14:22 14 minutes, 22 seconds If you wish to remove yourself from the question cube, you may press star and then two. 14:28 14 minutes, 28 seconds Participants are requested to use handsets while asking a question. 14:33 14 minutes, 33 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 14:37 14 minutes, 37 seconds Again to register for a question, please press star and then one. Now 14:57 14 minutes, 57 seconds our first question comes from the line of web of Sha from Equidius Securities. Please go ahead. 15:04 15 minutes, 4 seconds Uh yeah, hi. Congratulation on a good set of numbers. Uh my first question is on the 27 15:11 15 minutes, 11 seconds my first question is on the 27% revenue growth reported during the quarter. So could you provide some color on the contribution from pricing versus the 15:20 15 minutes, 20 seconds volume growth and were we able to fully pass through the commodity inflation of the previous quarters? 15:31 15 minutes, 31 seconds Yeah. 15:32 15 minutes, 32 seconds Hi thanks for your question. Um and uh first of all 27% growth which you have observed is a consolidated growth and 15:40 15 minutes, 40 seconds the major contributor is uh our solar business over there which has grown uh almost 100% plus 91 cr is the last 15:49 15 minutes, 49 seconds quarter number while our engineering business growth is 15.7% uh while similar year-over-year numbers. 15:58 15 minutes, 58 seconds So just to break down this number for your benefit 27 is including solar and if I remove the solar business it is 15.7%. 16:06 16 minutes, 6 seconds And on your questions for the pass through mechanism yes it is very well established pass through mechanism with the customer. So as per the our agreed 16:15 16 minutes, 15 seconds uh late period uh it automatically passed through to the customers. 16:19 16 minutes, 19 seconds Different customer has a different L period but effectively you can say that on an average uh on four months everything gets passed through. 16:28 16 minutes, 28 seconds Just one clarification by uh our engineering consolidated India business including advante is about 16:36 16 minutes, 36 seconds 16.6% 6% quarter over quarter 28 cr is the Q4 contribution of sales coming from 16:43 16 minutes, 43 seconds advantage was it entirely driven by the volume 16:50 16 minutes, 50 seconds growth or was there some pricing benefit as well majority is driven by volume growth 16:57 16 minutes, 57 seconds considering that uh the last quarter which is September to December if you observe there has not been a significant material movement the movement started 17:05 17 minutes, 5 seconds at the end of December and rain up to around your marks for the metal prizes including brass. 17:14 17 minutes, 14 seconds My second question is on the India engineering business. So uh while we saw the strong performance in FI26 uh and 17:21 17 minutes, 21 seconds primarily driven by the exports while the domestic revenues uh witness relatively modest growth. So could you 17:28 17 minutes, 28 seconds help us understand the key drivers behind the strong export growth as well as the reasons for the softer domestic performance and it would be great if you 17:37 17 minutes, 37 seconds could elaborate in terms of the end user indices and the customer segments. Yeah. 17:46 17 minutes, 46 seconds Yeah. So, so yeah uh 17:57 17 minutes, 57 seconds from our point of view uh the growth in export is driven by know improving uh 18:03 18 minutes, 3 seconds markets uh industrial global markets uh improving uh European markets as well as 18:11 18 minutes, 11 seconds uh US market because of the you know specifically the various impact Uh uh so we that those were the factors 18:20 18 minutes, 20 seconds you know supported um the glo global market growth and and 18:27 18 minutes, 27 seconds and things like that. Uh other factor on the domestic market uh I think uh that 18:35 18 minutes, 35 seconds has also grown very well according to us. Maybe one of the factor 18:41 18 minutes, 41 seconds which is masking that is uh potentially the byproduct sales uh which which might 18:48 18 minutes, 48 seconds be masking that partially uh basis of the numbers uh but uh overall we we we 18:56 18 minutes, 56 seconds are confident you including India growth has been very robust in FI26. 19:02 19 minutes, 2 seconds So just to add India cage business has grown by more than 10% on a pure India to India cage. Okay that's almost 11%. 19:11 19 minutes, 11 seconds And then there is further growth in India level supported by our bushings business and our stamping business. 19:20 19 minutes, 20 seconds These two have properly so it's not kali bushings or stampings have grown. It is cage also have grown a good volume. 19:29 19 minutes, 29 seconds Understood. Uh and so lastly uh could you share your capex plan for the FI27 and FI28? 19:40 19 minutes, 40 seconds So uh we are in in uh so we are in process of um you know fully finalizing 19:49 19 minutes, 49 seconds all the details of our get plan. Uh right now we are already what we have finalized or what we are already looking 19:58 19 minutes, 58 seconds at is uh about uh uh 30 40 K of uh maintenance capex uh in India in this current financial year. 20:10 20 minutes, 10 seconds Uh and my assumption very similar number would be there next year. Also you are 20:17 20 minutes, 17 seconds aware that we are um you know we have we have started the China expansion project 20:24 20 minutes, 24 seconds and uh declared an investment there. So reference to that uh about uh 70 crax is 20:33 20 minutes, 33 seconds expected to be executed in current financial year uh and further 20 cr we 20:41 20 minutes, 41 seconds are expecting uh next financial year. Uh these are some of the things which are already clearly firmed and finalized and 20:50 20 minutes, 50 seconds there are other things which we are still working on. We we would we are expecting that based on uh various uh 20:58 20 minutes, 58 seconds know planning and activity we may we will potentially add to this but it is still under. So predominantly as he said 21:06 21 minutes, 6 seconds in his speech the second phase of advanced we are starting to work on the death and probably in next few weeks the 21:14 21 minutes, 14 seconds plan will be frozen but the work will start this year itself. 21:22 21 minutes, 22 seconds Understood. Understood. Uh thank you very much for answering my question. I will get back in the queue. 21:29 21 minutes, 29 seconds Thank you. Your next question comes from the line of Jason Swans with IDBI Capital. Please go ahead. 21:38 21 minutes, 38 seconds Yes sir. Thank you so much for taking my question. So my first question just uh pertains to the Romania and the China subsidiaries. I just wanted to know uh 21:48 21 minutes, 48 seconds the absolute revenue numbers for whole of FI26 for Romania and China both and if you could also possibly give the PBD numbers as well. 21:59 21 minutes, 59 seconds Okay. So uh we already said that common law is 9 cr for China and Romania but I'm happy to share the independent number also uh which we will definitely 22:08 22 minutes, 8 seconds publish also once the annual report is uploaded. Our hersa China has done turnover of around 120 cr with a profit 22:16 22 minutes, 16 seconds of around 5 cr as a profit after tax and hers has done a turnover of around 247 22:23 22 minutes, 23 seconds cr with a profit after tax around 14 cr loss. 22:27 22 minutes, 27 seconds Los sure sir. So the revenue is 247 crores 22:33 22 minutes, 33 seconds and pro loss is 14 crores for romana and China revenue is 120 cr and pat is 5 cr. 22:40 22 minutes, 40 seconds Correct sir? Yeah, correct. Okay, thank you so much for that. Okay, so and um so 22:47 22 minutes, 47 seconds my next question just pertains to um in terms of the demand situation, you know, if you go back two three quarters, the 22:55 22 minutes, 55 seconds situation in Europe was pretty weak. Now um now just wanted to know and Europe being a key market for us just wanted to 23:02 23 minutes, 2 seconds know how is the demand situation right now in Europe specially specifically uh you know pertaining to the Europe subsidiary. 23:12 23 minutes, 12 seconds So uh [clears throat] last whole year we are seeing the know demand has uh slowly improved over the years. Um and 23:22 23 minutes, 22 seconds specifically for the European subsidiary also but the demand is continuing to improve. Um right now the indication are 23:31 23 minutes, 31 seconds that it is all positive growing and uh um we need to how we turn around the 23:38 23 minutes, 38 seconds situation from uh cost as well as pricing and uh you know all those 23:45 23 minutes, 45 seconds profitability point of view is our main concern. Uh overall we see very positive indication uh from our customer uh for 23:55 23 minutes, 55 seconds our subsidiary in the Sure. Sure. So uh things definitely have 24:03 24 minutes, 3 seconds improved from what it was. That's that's heartening to know. Sir, actually I just missed out on one question. I mean uh regarding the Romania and China subsidy. 24:12 24 minutes, 12 seconds So combined of course now Adventic Advantic also is in the mix. So I understand that. So a combined uh when you look at the loss uh on a combined 24:22 24 minutes, 22 seconds level subsidiary it's around 21.6 crores to be precise. Of course it will be a combination of advante as well as the 24:30 24 minutes, 30 seconds China and the Romania uh entities. Now just wanted to know sir when you look going ahead 27 28 I would definitely on 24:37 24 minutes, 37 seconds a trajectory to basically reduce this losses going ahead because we have done lot of work on the Romanian uh subsidiary as well you know in terms of 24:46 24 minutes, 46 seconds restructuring and China is doing well advantage also will ramp up. So understanding is probably there should be a quick ramp up a decent ramp up of 24:54 24 minutes, 54 seconds all these things and probably losses will get to reduce considerably going ahead 27 28. Yeah Jason I think it's 25:02 25 minutes, 2 seconds covered by Visard in his introductory speech also that this advantage has a loss of around 11 and a half cr or more 25:10 25 minutes, 10 seconds because of the first year of operations and mainly despite of positive IA there is a loss on account of higher 25:16 25 minutes, 16 seconds depreciation and interest on the loan we have taken over there uh gradually this will reduce because uh utilization will 25:24 25 minutes, 24 seconds increase in this year we expect it to be more positive trend this year uh at advantage While China is already in a positive 25:33 25 minutes, 33 seconds territory and will increase over there and Romania our our discussion is already on with customer and we are hopeful this year to reduce this loss 25:42 25 minutes, 42 seconds further compared to what we we already this year compared to last year and further we will reduce in the coming period. 25:49 25 minutes, 49 seconds So exact quantification may be difficult but definitely there will be reduction significantly for sure significant reduction. 25:56 25 minutes, 56 seconds That's that's okay. Okay that's very hard thing to do. So that's good and sir uh again when I so I spoke to you about 26:03 26 minutes, 3 seconds the uh this the situation now I just want to talk to the situation domestically you know the likes of our big three in terms of the uh bearing 26:11 26 minutes, 11 seconds manufacturers localization kex how do you see demand for that on the ground 26:18 26 minutes, 18 seconds uh we we see very positive picture uh there our customers have now 26:26 26 minutes, 26 seconds significantly ramped up their demand and capacity in India. 26:31 26 minutes, 31 seconds Um responding to probably all the you know signals from automotive as well as 26:37 26 minutes, 37 seconds industrial markets. Um and further we feel that uh they will there will be 26:45 26 minutes, 45 seconds another round of uh investment uh to cater to the know existing or upcoming demand from our customer are the 26:54 26 minutes, 54 seconds indications we see. So uh we are very bullish. Uh there could be impact of you 27:04 27 minutes, 4 seconds know current war and in and petroleum prices and all that that could have some impact from a short-term point of view. 27:13 27 minutes, 13 seconds uh we don't know that yet but uh overall they are very bullish and working towards growth and we are you know we 27:20 27 minutes, 20 seconds are banking on that to um continue our growth journey in the investing market. 27:27 27 minutes, 27 seconds Okay. So things seem to improve uh in the midterm it was looking a little slow you know with all the restructuring particularly one customer one entity and 27:36 27 minutes, 36 seconds all those. So now it is that it's picked up the demand and all you're seeing good good demand trends going ahead right now we see good traction. 27:44 27 minutes, 44 seconds Yeah yeah sure and just finally I'll just join back the queue. Uh uh sir just wanted to know in terms of as per 27:51 27 minutes, 51 seconds geography how do we now of course uh in the presentation you can see that on a console level 58% of revenue is outside 27:58 27 minutes, 58 seconds India. So 42% uh is basically I'm just talking about 26 for the year 26. So 42% 28:06 28 minutes, 6 seconds stays within India and how is the other breakups or how do you just wanted a break up of the geographies what what contributes to the total revenue? 28:16 28 minutes, 16 seconds Uh we already spoken in past on this Jason. Our majority geography outside India is Europe followed by China, 28:24 28 minutes, 24 seconds America, Japan and others. uh Europe usually contribute on a larger scale uh because there is a casting cell also 28:31 28 minutes, 31 seconds from Romania uh in Europe and that also part of our overall topline usually Europe in this bifurcation is in total 28:40 28 minutes, 40 seconds cells is around 19%. in the total sales and uh China and America will be around 28:48 28 minutes, 48 seconds 10% plus and others will be there. This is sorry my bad my bad. Uh Europe is 28:55 28 minutes, 55 seconds around 30%. My bad. I'm just correcting myself. Europe is around 30% in the total sense and China and America China is more than 10% America is around 6%. 29:06 29 minutes, 6 seconds And followed by Japan and others. 29:09 29 minutes, 9 seconds Okay. Sorry. So China and US are 10% each and uh Europe is 30% we said 29:16 29 minutes, 16 seconds yeah China is little little higher than 10 and uh US is around 67%. 29:25 29 minutes, 25 seconds And Japan is Japan is the most significant around 2% plus 2%. Okay. Sure. Thanks for that. 29:32 29 minutes, 32 seconds Thank you. Thank you so much. I'll join my Okay. Thank you. 29:39 29 minutes, 39 seconds The next question comes from the line of Jam from ADO Asset Management. Please go ahead. 29:46 29 minutes, 46 seconds Thanks for taking my question. Uh the first question is on can you break down the 4 year export growth into the three 29:53 29 minutes, 53 seconds buckets. One is going on the recovery in the end market Europe or US side gains uh within existing customers or geography and any new commercial. 30:07 30 minutes, 7 seconds Hello can you hear me? Hello sounding a bit muffled right now. 30:14 30 minutes, 14 seconds Can you hear me now? 30:18 30 minutes, 18 seconds It is slightly better. Sir, if you're using any other mode, may I request you use the handset mode, please? Sure. Now, it is better. 30:27 30 minutes, 27 seconds Sure. Just give me one moment, sir. Yeah. 30:44 30 minutes, 44 seconds Hello. Can you hear me? Uh yes jam sir please go ahead. 30:50 30 minutes, 50 seconds Yeah hi hi sir uh can you break down your export growth into three buckets. 30:56 30 minutes, 56 seconds One is going to be recovering and market that is euro or the US second is the wallet gain within existing customer or 31:03 31 minutes, 3 seconds the geography and any new commercialization in new program for the geography. 31:10 31 minutes, 10 seconds No, I mean we do not serve this data uh to the investors and basically we already given a good amount of breakdown of our export sales in the previous question itself. 31:21 31 minutes, 21 seconds I just wanted to understand I mean the growth we have seen for school year is it more led to the recovery or I mean we grow I mean break into new geography 31:30 31 minutes, 30 seconds program it's a mix of both it's a mix of both all three items are there you are right but we cannot give further breakdown to 31:38 31 minutes, 38 seconds it okay and when we are seeing any kind of growth or coming in business for 27 how 31:46 31 minutes, 46 seconds did we I mean how should we think about the contribution from export advantage ramp up on domestic demand. 31:53 31 minutes, 53 seconds I think Vishan has already covered in his speech uh we expect India to continue to grow in a higher team uh or 32:01 32 minutes, 1 second mid to higher team and uh that will be contributed by both India growth as well as our export growth will continue that's the expectation 32:10 32 minutes, 10 seconds okay okay and one thing on your customers performance right now they are using the pricing to offset the 32:18 32 minutes, 18 seconds inflation pressure uh in their respective geographies Have you seen any change in the coaching behavior or the localization that is 32:27 32 minutes, 27 seconds benefiting you that is going to benefit you from the near to medium term? So Jamine um I think what you're trying to 32:35 32 minutes, 35 seconds say that our customers are looking at us only to offset their pricing actually that's not correct because through our 32:43 32 minutes, 43 seconds competencies we have now become an indispensable partner with them because we play a very important role in helping 32:51 32 minutes, 51 seconds them grow their product portfolio by making sure that KGS are always available. So as you know cage is about 32:57 32 minutes, 57 seconds 5% of the total bearing cost in terms of value. Now the problem here is that the 33:04 33 minutes, 4 seconds customer the big players has stopped investing in new facilities or upgradation of their facilities over a 33:12 33 minutes, 12 seconds period of last many years. Whereas we have a massive advantage of volume accumulation. So we have done absolutely 33:20 33 minutes, 20 seconds uh up to date up upgradation of technology skill sets manufacturing capacities everything. So it is not only 33:28 33 minutes, 28 seconds the cost part but it is the speed the development at which if they want to develop a tool they might take much 33:36 33 minutes, 36 seconds longer time we do very quickly. The cost at which we are able to develop that new tool. I think all these factors become 33:44 33 minutes, 44 seconds very critical and you know this is one product where a customer does not do any further processing if you look at innering outering 33:52 33 minutes, 52 seconds anything they do grinding but a page they directly put it in the bearing is a very important component so I think cost 33:59 33 minutes, 59 seconds is a very very I would say today cost is important but not the parameter for them 34:07 34 minutes, 7 seconds to consider no I understand I presented this uh my question was part of the customer 34:15 34 minutes, 15 seconds they are facing inflation in the cost front and right now they are offsetting cost inflation to the pricing piece we are not I mean doing lot of I mean uh 34:24 34 minutes, 24 seconds vendor consolidation or any change in the sourcing piece anything you are seeing from your side that will benefit you in terms of your vendor 34:31 34 minutes, 31 seconds consolidation or increasing outsourcing so that's an ongoing project J as we 34:39 34 minutes, 39 seconds already informed you know outsourcing is the areas which is more beneficial to them whenever there is a global scenario or global challenges and it's an ongoing 34:47 34 minutes, 47 seconds thing there is nothing specific which we have to uh announce today but yeah new product development and outsourcing activities and ongoing activities 34:55 34 minutes, 55 seconds enterprising reasons are in our favor okay yeah thank you so much 35:02 35 minutes, 2 seconds thank you thank you next question comes from the line of Jesuit Capital please go ahead 35:12 35 minutes, 12 seconds Hi uh congratulations for a good set of numbers. I had two questions sir. Uh one was on the advantage subsidiary. Uh what 35:20 35 minutes, 20 seconds in your estimate would be the timeline to ramp it up to you know the maximum capacity and what is the ballpark figure 35:27 35 minutes, 27 seconds uh in terms of topline that advantage can contribute. And second question is sir this is a bit longer term over the 35:35 35 minutes, 35 seconds next 2 three years. I mean keeping aside the current volatility but uh since you know we are into precision components also and apart from that bearing cages 35:45 35 minutes, 45 seconds the kick cycle that you know we are seeing locally and even globally uh what do you feel is going to drive Harsha's 35:53 35 minutes, 53 seconds growth as a company you know for over a 2 three year period what components or rather what end sectors do you think are 36:00 36 minutes going to help Harsha you know achieve the long-term goals okay let me Take a first question J uh 36:08 36 minutes, 8 seconds about the advantage uh optimum capacities. So advantage is still in a growing and uh fixed asset spending 36:16 36 minutes, 16 seconds stage. But what I can say you is based on the current installation capacity we expect it to reach to the peak in next two years uh the current install 36:25 36 minutes, 25 seconds capacity but we also expect it to get into the next phase of expansion also. 36:29 36 minutes, 29 seconds Meanwhile, henceh it is difficult to give you precise answers but with the current install capacity we expect it 36:37 36 minutes, 37 seconds can give us around 250 to 300 cr turnover and as I just said this will 36:43 36 minutes, 43 seconds further enhance uh as as we further go for expansion in our advantage subsidiary and on your second questions 36:50 36 minutes, 50 seconds about uh growth and area where we can uh uh we can grow better I asked Vishan to 36:57 36 minutes, 57 seconds give you more insight. Yeah. So for for us uh um the uh you know kids is 37:06 37 minutes, 6 seconds important growth driver and within that uh we have identified um uh that uh you 37:14 37 minutes, 14 seconds know out in increasing the outsourcing or wallet share through insourcing to outsourcing is a very big growth driver 37:24 37 minutes, 24 seconds for hersa. Um and within that you know large size cages is there. Uh we we see 37:32 37 minutes, 32 seconds that lot of uh uh manufacturing is moving to India which should also additionally benefit Russia bearing 37:41 37 minutes, 41 seconds manufacturing moving to India. So uh you know we are also bullish on uh knowing 37:49 37 minutes, 49 seconds industry growth uh and within that you know additional growth coming through based on the outsourcing 37:57 37 minutes, 57 seconds as well as resourcing as well as you know uh India so more India manufacturing and and us having a big 38:05 38 minutes, 5 seconds share of market in India and so on. So uh cage is a big uh u growth driver for 38:12 38 minutes, 12 seconds us including you know even uh we consider Japan based customer doing growing wallet share with them. Uh 38:19 38 minutes, 19 seconds beyond the bearing cages we expect uh at least stamping component and pushing business to also uh grow uh much faster. 38:32 38 minutes, 32 seconds Um we are expecting or from a midterm wages at least uh 15% to 20% uh growth 38:42 38 minutes, 42 seconds in these two segments. Um we are expecting because you know we are investing in new capacity additional 38:49 38 minutes, 49 seconds product portfolio uh even in these uh two product lines. 38:55 38 minutes, 55 seconds So um we right now we expect that u all all three established currently 39:02 39 minutes, 2 seconds established product lines uh should give us deliver a good growth numbers and then further we are looking at uh 39:11 39 minutes, 11 seconds expanding this portfolio beyond but um in a short to midterm though these are all good growth drivers for us. So just 39:18 39 minutes, 18 seconds to quickly add to complete the story as you would have seen in the presentation we have given the data of SKUs that are 39:27 39 minutes, 27 seconds being developed every year about 5 600 new SKUs. One SKU is the one particular type of product which has strengthened 39:35 39 minutes, 35 seconds my SKUs to beyond 8,000. Now these are the new products which are the pipeline for 39:43 39 minutes, 43 seconds come to us going forward and that is an indicator that how the pipeline is quite robust on the bushings also and 39:52 39 minutes, 52 seconds samplings we are developing new in new product new variations multiple variations so we are fitting 40:00 40 minutes the pipeline there also I think the serviceable market is much bigger and uh we should continuously see at least at 40:08 40 minutes, 8 seconds the Indian engineering level a minimum 15% growth year over year in a normalized situation we don't find any problem whereas the bearing industry per 40:18 40 minutes, 18 seconds say globally doesn't grow more than maybe 7 8%. This is where we are. 40:23 40 minutes, 23 seconds Understood. Understood. So, thank you so much for the detailed answer. Just one more follow up on the same s since you said that you know insourcing is a big 40:31 40 minutes, 31 seconds strategy and a lot of manufacturing is moving to India and Sasha is already you know engaged with all the bushing 40:38 40 minutes, 38 seconds bearing majors of the world. Is there any discussions uh with all these bearing majors to you know uh given hersa's capabilities that more and more 40:47 40 minutes, 47 seconds parts apart from bushings and even cings and other components that they are looking at more parts to give to hersa 40:55 40 minutes, 55 seconds given your capabilities and your relationship. 40:59 40 minutes, 59 seconds So we uh you know we are not really going beyond you know stamping products 41:06 41 minutes, 6 seconds with our customers. So at times we expand our portfolio with our customer uh beyond bearing cages and we have 41:14 41 minutes, 14 seconds successfully done that but primarily they they mean stamped product uh beyond 41:21 41 minutes, 21 seconds bearing cages and few other products. We do not really intend to uh majorly 41:29 41 minutes, 29 seconds as as we speak today, you know, we are not we are not having a strategy to go into any other specific bearing 41:36 41 minutes, 36 seconds components beyond your cages and you know related stamping and other components. Uh this may change but right now that's our you know stated and 41:45 41 minutes, 45 seconds there's a reason I have a very big headroom for growth. So if in India my wallet share is say 70 80 90%. overseas 41:54 41 minutes, 54 seconds within all these big customers the wallet share varies from 10 to 20% on the three established old relations and 42:02 42 minutes, 2 seconds maybe 2 3% with Japanese based customers share 42:11 42 minutes, 11 seconds at this point in time of course we have diversified into pushings and stamping which are related but focus by maximum 42:21 42 minutes, 21 seconds bullet share we should take going forward. 42:25 42 minutes, 25 seconds Understood. So, so sir uh what was the reason if I may ask that uh over the last few years that we couldn't ramp up 42:32 42 minutes, 32 seconds the wallet shave? Are they looking for facilities outside India? I mean basically closer to their end customer or factories and was that the reason 42:41 42 minutes, 41 seconds that we couldn't scale up and that's why we are putting more money now in Romania and China. 42:47 42 minutes, 47 seconds So uh I think primarily the markets uh we last few years we faced this big 42:54 42 minutes, 54 seconds challenge of degrowth in our biggest market uh of Europe. Uh and a little bit 43:02 43 minutes, 2 seconds in uh China side specifically and and even little bit US last year. Uh 43:09 43 minutes, 9 seconds now having said that uh um you know they they have come started coming back. So partially our growth is driven by that 43:18 43 minutes, 18 seconds and also our growth currently is driven by all the new additional wallet share we won during that time but realization 43:26 43 minutes, 26 seconds got delayed and now they are into execution. So uh we we don't see as that 43:34 43 minutes, 34 seconds as a challenge uh but uh as a as a wallet share degrowth uh but more of uh 43:42 43 minutes, 42 seconds we couldn't move the wallet share and the market uh softened over a you know make our biggest market softened over 43:50 43 minutes, 50 seconds last couple of years. So uh sir would it be fair to assume uh in Europe like it has happened in chemicals and even in 43:59 43 minutes, 59 seconds some cases casting forgings a lot of big players have gone out of business. Has our sector also seen some consolidation and that's why we are now more confident to get incremental wallet share. 44:11 44 minutes, 11 seconds Yes you're right. See I can't uh share any specific names but yes there is some consolidation uh and that is also driving uh our 44:20 44 minutes, 20 seconds endeavor to you know increase our wallet share. You're right. 44:24 44 minutes, 24 seconds Understood. Thank you. And just as the last question if you could throw some light on sectors that are really doing well in India and Europe sectors as you 44:31 44 minutes, 31 seconds would be speaking to your customers and their customers over medium to long term. 44:39 44 minutes, 39 seconds So uh you know we are seeing as I said overall also uh across uh I mean without 44:46 44 minutes, 46 seconds going into sub sector industrial has been doing very well last 6 months uh 44:53 44 minutes, 53 seconds plus and uh current indication is that that should continue. Um and we are 45:01 45 minutes, 1 second seeing good growth on the automotive side specifically India and uh some 45:08 45 minutes, 8 seconds potential uh you know uh green shoots on the automotive across the globe but not 45:14 45 minutes, 14 seconds not very clear about that one. Um in general uh as yet wind has not picked 45:23 45 minutes, 23 seconds up in Europe which we are you know one of the factor of you know uh that the 45:30 45 minutes, 30 seconds plant and Romania facility is quite focused on was quite focused on wind as 45:36 45 minutes, 36 seconds a primary market. Uh so uh that is not yet a great news but beyond that we are 45:44 45 minutes, 44 seconds seeing industrial sector across the world growing uh and supporting uh even 45:50 45 minutes, 50 seconds we are seeing positive signs of railway in India uh and across the globe some 45:57 45 minutes, 57 seconds orders coming in specific to that um and so on. But I we again we we would not 46:04 46 minutes, 4 seconds have a very sharp insight into a sub sector uh because at the end of the day we supply to um know customer who 46:13 46 minutes, 13 seconds assembles it and gives it to a sector or industrial or automotive. So that that's a little bit of limitation from our side 46:22 46 minutes, 22 seconds be able to clearly tell you that sir thank you so much for answering all the questions in detail. All the best for the future. 46:30 46 minutes, 30 seconds Thanks J. 46:33 46 minutes, 33 seconds Thank you. The next question comes from the line of Sak Kapoor from Kapor company. Please go ahead. 46:40 46 minutes, 40 seconds Yeah. Namaskar sir. Hope I'm audible. 46:43 46 minutes, 43 seconds Yeah. Uh if you look at our two uh last two financial years uh we have done 46:50 46 minutes, 50 seconds capex to the tune of closer to 210 cr for fi 25 and 120 for fi 26. And now uh 47:00 47 minutes the plant and prop uh the property plant and equipment closing balance is at 615. 47:06 47 minutes, 6 seconds So at at peak utilization level sir uh what should be the likelihood number I 47:12 47 minutes, 12 seconds think so now with the inflationary trend uh what should be the revenue trajectory uh that we are anticipating or how 47:20 47 minutes, 20 seconds should we look at this number of 300 k translating into the the business opportunities going right 47:29 47 minutes, 29 seconds so before knowledge by gives you specific answer one thing the new capex of advantage also includes the fundament mental infrastructure 47:37 47 minutes, 37 seconds development which will not immediately translate into a fixed asset multiple as a revenue multiple but yeah yeah that's right and uh that's why Mr. 47:48 47 minutes, 48 seconds started. If you see our uh overall plant and machinery is obviously the network we have said but considering the capability and followed by our 47:57 47 minutes, 57 seconds maintenance steps we expect the current three set of business can easily reach us uh at India level around uh 2,400 to 48:06 48 minutes, 6 seconds 2,500 and console level can be around uh 2,700 to 3,000 cr uh depend on what kind 48:13 48 minutes, 13 seconds of capacity we look into because at console we also have a casting capacity which is independent capacity from the cage. Uh this is the input to your questions Mr. S. 48:25 48 minutes, 25 seconds Last year we we did around I think so more than 100 cr for the bushing segment. So uh what have we outlined for 48:33 48 minutes, 33 seconds the current year how are the order books uh for for the bushing uh segment in particular. Yeah, Vali has already 48:41 48 minutes, 41 seconds covered in his introduction and the expectation this year Musen is also to continue similar growth uh trajectory of around 25 to 30%. 48:49 48 minutes, 49 seconds We did 127 crores in FI26. Huh? Yeah. 48:53 48 minutes, 53 seconds In bushings right and and in the caging part also s I think the large cages we were finding 49:01 49 minutes, 1 second it uh uh more headwinds going going ahead. Correct me there. So in terms of the product profile uh which segment are 49:10 49 minutes, 10 seconds you seeing the better opportunities and uh how should the the the category perform 49:18 49 minutes, 18 seconds last cages have done about 50 cr 14% growth this year we expect at least this segment to keep on growing in mid teens 49:28 49 minutes, 28 seconds without any problem 15 to 20% no issue lot of things are in pipeline 49:35 49 minutes, 35 seconds Okay sir, as you alluded to the earlier reply that we are anticipating mid team growth for the uh for the current financial year. So uh and what should be the AIA margin trajectory? 49:47 49 minutes, 47 seconds AITA recruitment. Here we we continue to sell sake uh the blended iita only but we extract our iita as you must have 49:55 49 minutes, 55 seconds seen in last few quarters it has improved and uh we expect it to continue to improve marginally and over the 50:03 50 minutes, 3 seconds period of two to three years our expectation is overall increase of uh 100 to 200 basis point in our data 50:10 50 minutes, 10 seconds at a con at a console India has been consistently doing about 20% as you You already given this book before. 50:22 50 minutes, 22 seconds Okay sir. Sir all the best uh to the team sir and this time also we are coming up with our AGM also earlier. So 50:29 50 minutes, 29 seconds lot of insight and annual report would be at our disposal much early uh than than what it used to be. So thank you 50:36 50 minutes, 36 seconds for the team for looking into the report. 50:39 50 minutes, 39 seconds Appreciate appreciate your all the best. Thank you. No, thank you. 50:50 50 minutes, 50 seconds Your next follow-up question comes from the line of Jason Swans with IDBI Capital. Please go ahead. So, thanks for taking my question again. 50:59 50 minutes, 59 seconds So, I just wanted to know the absolute value of the stamping revenue for F26. 51:08 51 minutes, 8 seconds Stamping absolute value 60 cr 60. Yeah. 60% 60 crores. And this 51:15 51 minutes, 15 seconds is also expected to grow uh by 20% at least next year. Yeah. Yeah. It will grow better. Yeah. Yeah. 51:23 51 minutes, 23 seconds Okay. Okay. Sure. Okay. And also just um for 51:31 51 minutes, 31 seconds followup question just wanted to know I mean [clears throat] again when I go to the past you know I I spoke about this the Europe demand was weak now we are 51:38 51 minutes, 38 seconds seeing situation improving on the ground. Just wanted to know sir what is your thought on because it's a very important market for us what is your thought on the sustainability of this 51:46 51 minutes, 46 seconds demand has something changed on the ground that you know demand trends are coming back just wanted some color you've done a lot of restructuring etc 51:54 51 minutes, 54 seconds as well is that working out well or has the macro situation improved just just give us some color of the demand situation in Europe and how sustainable 52:01 52 minutes, 1 second this can be so as I said earlier Europe is slowly improving there is no like a definite 52:10 52 minutes, 10 seconds know like a big uh stroke of uh improvement. Uh we are seeing a uh slow 52:17 52 minutes, 17 seconds sustained improvement uh happening in Europe uh from a demand point of view. 52:22 52 minutes, 22 seconds uh on the you know some improvement and structuring we still see that there is an ongoing work we don't have you know 52:31 52 minutes, 31 seconds uh completely we are not done yet and there is lot of still pending work within that in terms of uh creating a 52:39 52 minutes, 39 seconds right cost structure uh in Europe we are continuing to face massive inflationary 52:46 52 minutes, 46 seconds pressure in Europe uh which is also adding to this uh whole uh challenge Uh so from a overall outlook we are bullish 52:55 52 minutes, 55 seconds on the uh demand side of it. Um we are we are seeing uh I think someone was 53:02 53 minutes, 2 seconds mentioning about you know uh there are because of the downturn and the inflationary challenges lot of uh 53:10 53 minutes, 10 seconds companies have you know has a impact and uh you know we are hopefully so far surviving but uh uh we are also 53:19 53 minutes, 19 seconds evaluating can how long we can do with this kind of negative um margins. So how we can quickly improve on the 53:27 53 minutes, 27 seconds operational side further and uh uh also we are looking to improve on the top line uh faster that's the intent uh 53:37 53 minutes, 37 seconds having said that I don't have a very clear um direction or like a input from our 53:44 53 minutes, 44 seconds customer on on that uh demand improving to the level needed uh immediately uh 53:54 53 minutes, 54 seconds and uh we are continuing to work on the cost side of it. So again a very hazy picture but that's what we are working with right now but very hopeful and positive. 54:04 54 minutes, 4 seconds Okay sure and so just wanted to know in terms of bushings you have seen very good growth and expectations of also for good growth ahead as well. So what is 54:12 54 minutes, 12 seconds driving this growth in the bushing space 25 30% is very healthy. So I just wanted to know what is driving this growth sir on this point. So this is a u uh 54:21 54 minutes, 21 seconds primarily there is a conversion uh for design. So in in the wind market 54:28 54 minutes, 28 seconds wind gearbox uh there is a conversion happening uh on earth. So uh if you look at a planetary 54:38 54 minutes, 38 seconds gearbox uh the planets which were earlier using bearings are now using bushings and that 54:46 54 minutes, 46 seconds is driving this uh drastic growth. So the underlying market is uh roughly the 54:53 54 minutes, 53 seconds same uh or maybe growing the wind market specifically in India. Um but uh it's 55:00 55 minutes the growth is driven by more and more design coming under the pushing uh concept or vo the earlier design of bearing concept. 55:12 55 minutes, 12 seconds Okay. Sure. So that's more driven through a design change which is good. Okay. Okay. Sure. Substitute market. 55:18 55 minutes, 18 seconds Yeah. Yeah. Yeah. Yeah. Okay. Sure. And sir just uh uh in terms of stampings I would just assume that uh in terms of 55:26 55 minutes, 26 seconds end user markets it'll be again varied uh between automotive and industrial is my understanding correct 55:32 55 minutes, 32 seconds correct? Uh it's a whole lot of automotive industrial railway 55:39 55 minutes, 39 seconds uh as well as uh uh we we work with one big chunk is going into consumer goods 55:46 55 minutes, 46 seconds and white goods. So we are making um you know big growth driver for us. One of the big growth driver for us is uh air 55:55 55 minutes, 55 seconds conditioning compressor components as well as uh white goods like a home appliance some of the stamping 56:03 56 minutes, 3 seconds components for that and that is uh you know driving that okay white goods is okay so it goes into white goods as well 56:11 56 minutes, 11 seconds which is pretty good. Okay market also going to expand. Okay that's good sir. 56:16 56 minutes, 16 seconds And just finally I wanted to know I mean in terms of the Middle East crisis we have seen this of course now just wanted to know any issue during the quarter in 56:24 56 minutes, 24 seconds terms of any logistical issues shipping or any raw material price increases or going ahead do you enrage anything impacting us adversely? 56:35 56 minutes, 35 seconds Um I think there's definitely a impact on the cost side of it uh which we are 56:43 56 minutes, 43 seconds trying to mitigate. I don't have a clear answer on that to what extent and where 56:50 56 minutes, 50 seconds but it is we are seeing the impact across the board uh on the input side of 56:57 56 minutes, 57 seconds uh you know specifically when we use uh some of the oils uh lubrication things 57:03 57 minutes, 3 seconds in the in our production that that all cost has has a cost impact. uh our 57:11 57 minutes, 11 seconds plastic cage material obviously has gone up. Uh that is also an issue which we are dealing with or addressing it, 57:19 57 minutes, 19 seconds countering it or passing on working on passing on. Uh but on the logistics 57:26 57 minutes, 26 seconds front so far we have not seen any impact specifically because if you remember this uh whole sewage canal uh crisis 57:35 57 minutes, 35 seconds happened about two three quarters back and anyway had taken the hit and impact a few 57:44 57 minutes, 44 seconds quarters back. So uh that that route uh shipping route has remained clear of uh 57:51 57 minutes, 51 seconds current immediate crisis for us at least. 57:57 57 minutes, 57 seconds Okay. Okay. So considering that also sir I mean you see margins you can basically improve from here on I understand there is this is going to be a near-term 58:05 58 minutes, 5 seconds pressure but even considering this you can expect uh going ahead we can basically improve margin or at least maintain margins current margins 58:15 58 minutes, 15 seconds our intention is that there is definitely pressure on other yeah on on 58:21 58 minutes, 21 seconds the input material for sure thank you so much thank you so Thank you. 58:30 58 minutes, 30 seconds Thank you. The next question comes from the line of Hen Boricha from Sequent Investments. Please go ahead. 58:38 58 minutes, 38 seconds Thank you for the opportunity. So mostly my questions has been answered. So uh you mentioned uh growth will be around 58:45 58 minutes, 45 seconds uh in mid tunks for India as well as for overseas business. So I just wanted to know how much 58:53 58 minutes, 53 seconds did a very good growth on the solar segments from 140 140 to around 185 K. So can you share the number on that? 59:02 59 minutes, 2 seconds Solar growth. 59:04 59 minutes, 4 seconds So we expect solar also to continue grow. Well I think you are asking for the solar growth estimates right? 59:12 59 minutes, 12 seconds Huh? So it's I think it's grown around 30 30 35 W. In fact, Solar is also in the tailwind sides and solar will 59:20 59 minutes, 20 seconds continue to grow because the government policies are much favorable especially in Gujarat territory and we expect it to grow more than 25% also uh going forward. 59:31 59 minutes, 31 seconds Okay. And with that group margin should improve from current level right it has seen a very good operating leverage from 59:39 59 minutes, 39 seconds 4 and a half% to 8% level in 26. So it should there as well. We expect solar to 59:47 59 minutes, 47 seconds maintain the last year reported beta margin maybe marginal improvement over unders. Yeah. Yeah. Thank you. 59:57 59 minutes, 57 seconds Thank you. Thank you. 1:00:03 1 hour, 3 seconds Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to Mr. Vishal Ranguala for closing comments. 1:00:13 1 hour, 13 seconds Great. Um so thank you very much everyone for attending this conference. 1:00:18 1 hour, 18 seconds Uh appreciate your time uh so late in the day and uh thank you uh and have a good evening. 1:00:27 1 hour, 27 seconds Thank you. Thank you. 1:00:30 1 hour, 30 seconds Thank you on behalf of Harsha Engineers International Limited. That concludes this conference. Thank you everyone for 1:00:37 1 hour, 37 seconds joining us and you may now disconnect your lines.