HFCL LTD — Q4 FY26

HFCL Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=yEF7LWyJlBY Published: 13 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the HFCL Limited Q4 FY26 0:08 8 seconds earning conference call hosted by Aran Capital Market Limited. As a reminder, 0:15 15 seconds all participant lines will the listen only mode and there will be an opportunity for you to ask question after the presentation concludes. Should 0:24 24 seconds you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that 0:33 33 seconds this conference has been recorded. I now hand the conference over to Mr. Abishek Jen from Arian Capital Markets Limited. 0:41 41 seconds Thank you. And over to you, sir. 0:51 51 seconds But from the man, you are not audible. 1:02 1 minute, 2 seconds Amish. Amish. 1:19 1 minute, 19 seconds operator. Just a moment, sir. Yeah. Hello. Yes, you're audible. 1:27 1 minute, 27 seconds Yeah. Uh from the management side, we have Mr. 1:37 1 minute, 37 seconds Mr. Mahendara promoter and managing director, Mr. VR Jan, CFO, Mr. Manoj Bad, company secretary and Mr. Amit 1:46 1 minute, 46 seconds Agraal head investor relationship. Uh before we begin, I would like also read the disclaimer statement. Statements 1:53 1 minute, 53 seconds manage made by during this call may be forwardl looking in nature based on management current beliefs and expectation. This must be viewed in 2:01 2 minutes, 1 second relation to the risk of HFCL business faces that could cause its future results, performance or achievements to 2:09 2 minutes, 9 seconds differ significantly from what is expressed or implied by such forward-looking statements. Investors are therefore requested to check the 2:18 2 minutes, 18 seconds information independently before making any investment decision. So without making further delay, I'll hand over the call to the management for the opening 2:25 2 minutes, 25 seconds remarks. Over to you sir. Thank you Aishek and um good evening everyone on 2:32 2 minutes, 32 seconds the call. I extend a warm welcome to all of you on HFC's earning call for the fourth quarter and financial year ended 2:40 2 minutes, 40 seconds 31st March 2026. I trust you have had the opportunity to review our financial results, press release and investors 2:49 2 minutes, 49 seconds presentation which are available on our website and the stock exchanges. 2:54 2 minutes, 54 seconds This quarter and financial year mark defining milestone for HFCL as we delivered a neverbefor quarterly as well 3:02 3 minutes, 2 seconds as annual performance reflecting the strength of our strategy improved business mix and consistent execution 3:09 3 minutes, 9 seconds across our core segments. I am pleased to share that we have successfully achieved the commitment of 20% revenue 3:16 3 minutes, 16 seconds growth along with expansion in margins underscoring the structural transformation we have undertaken over the past few 3:25 3 minutes, 25 seconds years. The performance is broad-based supported by strong demand across optical fiber cable telecom defense EPC and exports. 3:36 3 minutes, 36 seconds As we move into the new financial year backed by a very robust all-time high order book of rups 21,200 3:44 3 minutes, 44 seconds crores, favorable industry tailwinds and our continued focus on high value products and global markets. We remain 3:53 3 minutes, 53 seconds confident of sustaining this growth momentum and delivering a similar trajectory in the coming periods. 4:02 4 minutes, 2 seconds I would also like to highlight that HFCL has remained largely insulated from current disruptions due to geopolitical situation. Our supply chain has 4:11 4 minutes, 11 seconds continued to operate seamlessly without any material impact on production or dispatches. 4:17 4 minutes, 17 seconds At the same time, we have taken strategic step towards further strengthening our manufacturing resilience with backward integration by 4:26 4 minutes, 26 seconds establishment of preform manufacturing facility. The project involves an estimated capital outlay of around 580 4:33 4 minutes, 33 seconds crores usually funded through a balanced mix of internal equals debt and equity. 4:40 4 minutes, 40 seconds The facility will be state-of-art based on latest technologies. 4:44 4 minutes, 44 seconds The initiative is not merely about backward integration. It is about strengthening HFCL structural competitiveness. 4:52 4 minutes, 52 seconds Preform will act as a key margin expansion lever and a long-term competitive advantage for HFCL. 4:59 4 minutes, 59 seconds The global optical fiber market is undergoing a structural transformation driven by hypers scale data centers, 5:07 5 minutes, 7 seconds artificial intelligence workloads and cloud infrastructure expansion. This is adding an estimated 100 to 150 million 5:16 5 minutes, 16 seconds fiber kilometers of incremental demand globally over and above traditional telecom sector requirements. 5:24 5 minutes, 24 seconds More importantly, this demand is concentrated in high fiber count, low latency and high performance solutions where supply remains constrained. 5:35 5 minutes, 35 seconds As a result, we are witnessing a significant improvement in realizations for such type of cables. Our average 5:42 5 minutes, 42 seconds realizations have improved significantly and we expect this to be progressively reflected in our margins over the coming quarters. 5:50 5 minutes, 50 seconds We remain confident that this federal pricing environment will sustain over the medium to long term. Currently, the demand momentum is being led by 5:59 5 minutes, 59 seconds hyperscalers in the United States, which we expect to be followed by Europe and Asia, including India, indicating a multi-year growth cycle ahead. 6:09 6 minutes, 9 seconds HFCL has strategically positioned itself to capture this opportunity through it advanced product portfolio including 6:17 6 minutes, 17 seconds high fiber count cables up to 6,912 fibers. I'm proud to inform you that these high technology cables have been 6:26 6 minutes, 26 seconds designed and developed by our in-house R&D team. In addition, we are seeing strong traction in our data center 6:34 6 minutes, 34 seconds interconnect solutions including pre-connectorized systems which are becoming increasingly critical for high density AI infrastructure deployments. 6:45 6 minutes, 45 seconds We have decided to increase on a multiffold basis our managing capacities for data center interconnect solutions in our subsidiary HTL limited. 6:56 6 minutes, 56 seconds Data center interconnected solutions are expected to contribute significantly to our performance going forward. It is 7:03 7 minutes, 3 seconds expected that data center interconnected solution will contribute about rupees 400 cr additional revenue in financial 7:11 7 minutes, 11 seconds year 2627 and about rupees 800 crores in financial year 2728. 7:19 7 minutes, 19 seconds During the period under consideration, we secured a landmark long-term global oper optical fiber cable supply contract 7:28 7 minutes, 28 seconds [clears throat] 7:30 7 minutes, 30 seconds valued at approximately US1.1 billion equivalent rupees 10,159 7:37 7 minutes, 37 seconds cr providing strong multi-year revenue visibility. 7:42 7 minutes, 42 seconds This is probably the highest ever single contract secured by any Indian telecom company. Other multiple export and 7:50 7 minutes, 50 seconds domestic orders being continuously received by us reflect sustained optical fiber cable demand traction across markets. 8:00 8 minutes Friends, the company's order book stands at all-time high at rupees 21,200 crores 8:07 8 minutes, 7 seconds including export orders worth 12 12,250 crores constituting 58% of total order 8:15 8 minutes, 15 seconds book. This sound order book provides strong sustainability and growth momentum in company's revenue and profitability. 8:25 8 minutes, 25 seconds Exports continue to be a key pillar of our strategy. We are witnessing a steady increase in the share of OFC export 8:32 8 minutes, 32 seconds orders and revenues driven by growing acceptance of our products in global markets. Our strategy is clearly focused 8:40 8 minutes, 40 seconds on diversifying geographies, reducing dependence on any single market or customer and building a resilient and 8:48 8 minutes, 48 seconds globally competitive business model. Our focused export strategy has delivered strong results during the year. Today 8:57 8 minutes, 57 seconds more than 70% of our cable production is being exported. Consequently, our export revenues have increased from 41 point 9:06 9 minutes, 6 seconds have increased to 41.36% in financial year 26 compared to 12.23% 9:15 9 minutes, 15 seconds in financial year 25 underscoring the growing contribution of global markets to our overall business. Over the last 9:23 9 minutes, 23 seconds few years, HFC has been steadily building strong capabilities in defense sector. We have already indigenously 9:31 9 minutes, 31 seconds developed and commercialized several land-based defense products including thermal weapon sites, high capacity radio relay systems and multiple variants of surveillance radars. 9:44 9 minutes, 44 seconds In addition, a few more defense products such as multi mode head grenade compact transfer 9:51 9 minutes, 51 seconds horizon communication systems are currently in pipeline. 9:56 9 minutes, 56 seconds Building on this foundation and in line with our long-term growth strategy, board of directors at East meeting held 10:04 10 minutes, 4 seconds on March 25, 2026 approved a major strategic initiative to expand and further strengthen our 10:12 10 minutes, 12 seconds defense business while also enabling HFCL to meaningfully participate in opportunities 10:19 10 minutes, 19 seconds emerging in the defense aerospace segment. The core objective of this proposed transjection is to create a 10:27 10 minutes, 27 seconds focused and scalable and a future ready defense and aerospace platform by consolidating complimentary defense 10:34 10 minutes, 34 seconds capabilities under our subsidiary HFCL advanced systems private limited. 10:40 10 minutes, 40 seconds Strategically, this allows HFCL to operate across both land defense and aerospace defense domains 10:48 10 minutes, 48 seconds creating a comprehensive and integrated portfolio. The aerospace business being acquired operates in a high entry 10:56 10 minutes, 56 seconds barrier segment characterized by stringent qualification requirements, high precision, long approval cycles and a limited global supplier ecosystem. 11:07 11 minutes, 7 seconds Importantly, this business comes with established capability based certifications, longstanding customer relationships and 11:15 11 minutes, 15 seconds a confirmed export oriented order book of approximately 1930 cr rupees providing immediate revenue visibility. 11:26 11 minutes, 26 seconds We believe that the proposed structure will sharpen execution focus, improve capital efficiency and drive sustainable 11:33 11 minutes, 33 seconds growth from defense vertical. The definitive agreements for this proposed transaction are expected to be executed 11:40 11 minutes, 40 seconds on or before May 31st, 2026 and a closing under such transactional documents is expected to be completed within the current calendar year. 11:51 11 minutes, 51 seconds We are also progressing with the expansion of our defense manufacturing capabilities including the establishment 11:58 11 minutes, 58 seconds of an ammunition focused facility in Andhra Pradesh. This facility is proposed to support a range of 12:06 12 minutes, 6 seconds ammunition products such as electronic fuses, multi mode hand grenades and 155 mm art artillery shells. A land of 1,000 12:16 12 minutes, 16 seconds acres has already been allotted to us by Andra Pradesh government for setting up this facility. Once operational, it is 12:25 12 minutes, 25 seconds expected to make a significant contribution to company's overall performance. 12:30 12 minutes, 30 seconds Besides, we have also established capabilities in critical areas such as wire harnesses for defense sectors and 12:38 12 minutes, 38 seconds we have been recognized by Hindustan Aeronautics Limited with the best supplier award. 12:44 12 minutes, 44 seconds In addition, our technology collaborations including technology transfers from DRDO enable us to manufacture several products domestically that were earlier imported. 12:55 12 minutes, 55 seconds Our defense order book currently stands at approximately rupees 300 crores comprising orders across thermal weapon 13:04 13 minutes, 4 seconds sites radar systems technical communication cables and wire harnesses for critical platforms with the addition of aerospace business 13:12 13 minutes, 12 seconds being acquired. This order book expands to approximately rupees 22 2,230 crores 13:20 13 minutes, 20 seconds including a strong export oriented order book of around 1,930 crores. 13:26 13 minutes, 26 seconds We see defense sector as our strong pillar of growth in coming years. 13:32 13 minutes, 32 seconds Products for land systems as well as aerospace segments coupled with strong export base are expected to are expected 13:39 13 minutes, 39 seconds to result in significant growth in our revenue in coming years. In our telecom and networking product segment, we 13:46 13 minutes, 46 seconds continue to invest in innovation and product development aligned with emerging opportunities in 5G, private networks and enterprise connectivity. 13:55 13 minutes, 55 seconds This segment is expected to scale up progressively and contribute meaningfully to our overall growth. 14:02 14 minutes, 2 seconds We are pleased to share that we are firmly on track to expand our optical fiber and optical fiber cable manufacturing capacities. Our current 14:10 14 minutes, 10 seconds optical fiber capacity of 28 million fiber kilometer is expected to increase to 33.9 million fiber kilometer by December 2026. 14:22 14 minutes, 22 seconds In parallel, our optical fiber capital capacity which has optical fiber cable capacity which has been scaling up in 14:30 14 minutes, 30 seconds phases currently stands at 34 million fiber kilometer is expected to reach to 14:36 14 minutes, 36 seconds 39 million fiber kilometer by July 2026 14:43 14 minutes, 43 seconds and to reach 42.36 million fiber kilometer by December 2026. 14:52 14 minutes, 52 seconds In our EPC business, including projects such as Bhatnet, execution continues to progress in a disciplined manner. As 15:00 15 minutes execution accelerates, we expect this segment to contribute more meaningfully while maintaining a sharp focus on 15:06 15 minutes, 6 seconds working capital efficiency and capital discipline. 15:11 15 minutes, 11 seconds Friends, we had articulated a clear set of strategic priorities to expand our global export footprint, rebalance our 15:19 15 minutes, 19 seconds customer mix towards private sector clients and increase the share of productled revenues over EPC with margin 15:26 15 minutes, 26 seconds expansion. I'm pleased to share that we have delivered decisively on each of these fronts. Our export revenues 15:34 15 minutes, 34 seconds increased from 4.54% in FI21 to 41.36% in FI26, 15:42 15 minutes, 42 seconds reflecting a meaningful expansion of our global footprint. 15:46 15 minutes, 46 seconds At the same time, our government order book exposure reduced from 51% in FI21 15:52 15 minutes, 52 seconds to 37% in FI26 with the corresponding increase in private sector participation 15:59 15 minutes, 59 seconds improving the overall composition and resilience of our business. Further, the share of product revenues in our mix 16:07 16 minutes, 7 seconds rose from 27% in FI21 to 62% in FI26, underscoring our successful transition 16:15 16 minutes, 15 seconds towards a more margin accurative productled model. Together, these outcomes mark a significant transformation in our business model, 16:24 16 minutes, 24 seconds positioning us on a stronger and more sustainable and growth oriented trajectory. We are also witnessing 16:31 16 minutes, 31 seconds gradual improvement in working capital cycles supported by better execution discipline and more favorable business 16:38 16 minutes, 38 seconds mix. We also remain committed to our ESG priorities. During the period, HSCL received ESG readings from multiple 16:47 16 minutes, 47 seconds independent agencies and published it first sustainability report reinforcing our commitment to responsible and 16:54 16 minutes, 54 seconds sustainable growth. Importantly during the period the board has approved a preferential issuance of warrants to 17:02 17 minutes, 2 seconds the promoters aggregating to approximately in rupees 555 crores subject to necessary approvals. This 17:10 17 minutes, 10 seconds reflects the promoter's continued confidence in the company's long-term growth strategy and their commitment to supporting the next phase of expansion 17:19 17 minutes, 19 seconds including preform integration, defense scaling and augment long-term working capital resources. 17:26 17 minutes, 26 seconds Let me now quickly take you through the consolidated financial performance for the financial year 2026 and quarter 4 of financial year 2026. 17:37 17 minutes, 37 seconds For the 12 month ended 31st March 2026, the company reported consolidated revenue 4,949.27 17:46 17 minutes, 46 seconds crores adds against 4,64.52 crores in financial year 2025. 17:53 17 minutes, 53 seconds AITA of rupes 826.75 crores as again 56.75 crores in FI25. 18:03 18 minutes, 3 seconds Profit before tax of rupes 427.6 68 crores as against 216.59 18:10 18 minutes, 10 seconds crores in FI25 and profit after tax of 329.44 18:17 18 minutes, 17 seconds crores as against rupees 173.26 26 cr in fi 2025 18:25 18 minutes, 25 seconds revenue for quarter 4 financial year 26 stood at 1824.12 18:32 18 minutes, 32 seconds crores as compared to 1210.79 cr in quarter 3 of fi26 and rups 800.72 cr in 18:41 18 minutes, 41 seconds quarter 4 of fi25a for quarter 426 stood at 336.93 18:49 18 minutes, 49 seconds cr as compared to 243.52 cr in quarter 3 of FI26 and negative 22.33 cr in quarter 4 FI25. 19:01 19 minutes, 1 second Abit margin in Q4 FI26 stood at 18.47% 19:08 19 minutes, 8 seconds as compared to 211 in quarter 3 FI26 and -2.79 for quarter 4 FI25. 19:16 19 minutes, 16 seconds Profit after tax for Q4 FI26 stood at 184.45 19:23 19 minutes, 23 seconds crores as compared to 102.37 crores in quarter 3 FI26 and 83 crores in quarter 4 of FI25. 19:36 19 minutes, 36 seconds P margin of Q4 of FI26 stood at 10.11 10.11% as compared to 8.45% 45% 19:45 19 minutes, 45 seconds in Q3 of FI26 and -10.4 in Q4 FI25. 19:52 19 minutes, 52 seconds Segment revenue for telecom product stood at 66% of total revenue in Q4 FI26 20:00 20 minutes as compared to 57% in Q3 of FI26 and 74% in Q4 of FI24. 20:08 20 minutes, 8 seconds As we look ahead, we believe that SFC is entering a structurally stronger and very predictable growth phase. We are 20:16 20 minutes, 16 seconds not only experiencing a substantial expansion in our order book, but also a meaningful uplift in its business composition reflected in a high share of 20:24 20 minutes, 24 seconds exports, long-term contracts and a greater contribution from high margin products. At the same time, our 20:31 20 minutes, 31 seconds strategic initiatives including backward integration into preform expansion in defense sector includes increasing 20:39 20 minutes, 39 seconds global footprint and focus on productled growth are creating a powerful foundation for sustained margin 20:46 20 minutes, 46 seconds expansion and return improvement. SFCL today is transitioning into a fundamentally stronger business 20:53 20 minutes, 53 seconds enterprise. one that is more global, more technologydriven, more diversified and structurally more profitable. 21:02 21 minutes, 2 seconds Thank you friends for your taking time out to attend this meeting. We are now opening the floor for questions. Thank you. 21:12 21 minutes, 12 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask question may press star 21:19 21 minutes, 19 seconds and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 21:26 21 minutes, 26 seconds two. Participants are requested to use headset while asking a question. 21:33 21 minutes, 33 seconds Ladies and gentlemen, we'll wait for a moment while a question Q assemble. 21:40 21 minutes, 40 seconds The first question is from the line of Aman Sephi from Stalin Asset. Please go ahead. 21:47 21 minutes, 47 seconds Hi sir, I hope I'm audible. 21:50 21 minutes, 50 seconds Yeah, yeah, you are audible. Yeah, thank you so much for the opportunity and congrats on a great set of numbers. Sir, I have two questions. Number one, if I 21:58 21 minutes, 58 seconds look at the current trajectory, we are already having a $1.1 billion of orders from a hyperscaler and along with the 22:06 22 minutes, 6 seconds defense execution of 600 crores lineup for next year. When I triangulate this number from the existing base of 5,000 22:13 22 minutes, 13 seconds crores, it appears that our overall revenue could scale up to 8,000 crores next year with our segment margins already at 30%. Is it fair to assume 22:22 22 minutes, 22 seconds that our profit next year can be north of 800 900 crores even after factoring 100 cr annual loss from project business? 22:31 22 minutes, 31 seconds Well, Aman you I would not like to give such a guidance at this point of time but you know I can definitely say 22:40 22 minutes, 40 seconds that over and above the revenue we have achieved in uh last financial year we should definitely be able to scale it up 22:47 22 minutes, 47 seconds by 20 to 25% at least and uh well you know uh with increase in capacity of 22:56 22 minutes, 56 seconds fiber fiber optic cable defense products there is good possibility that we would 23:04 23 minutes, 4 seconds have a good increase in the numbers but yes I think 22 to 25% is not something which we cannot uh reach to in best of 23:14 23 minutes, 14 seconds my expectation rest I would not like to give guidance at this moment of time yeah yeah but sir are telecom product 23:21 23 minutes, 21 seconds PBT margin should continue even inch up higher with the defense execution and improved margin mix 23:29 23 minutes, 29 seconds well you know But we believe that 3 to 4% increase in margin uh you know on a blended basis on a 23:36 23 minutes, 36 seconds blended basis on a company on an overall basis is quite quite expected 3 to 4% increase. 23:44 23 minutes, 44 seconds Got it. Got it sir. And my second question would be uh we have constituted a strategic restructuring committee 23:52 23 minutes, 52 seconds which we believe is a very positive step. So are we deemerging our project business and if so what is the 23:59 23 minutes, 59 seconds indicative timeline for that? Look, I mean you know we have constituted the committee. Committee will be working and 24:06 24 minutes, 6 seconds making decision what to merge, what to demmerge. But you know we have done so to you know really every business has a 24:14 24 minutes, 14 seconds completely significantly different uh capabilities and you know uh ability of 24:21 24 minutes, 21 seconds execution required different requires different capability different set of people. EPC needs a different set of people and fiber business needs a 24:29 24 minutes, 29 seconds different set of people and in some cases we receive offer from strategic partners also to partner with us. Now 24:36 24 minutes, 36 seconds they cannot any strategic partner cannot come into such a mix of products where defense EPC and cable and telecom all 24:44 24 minutes, 44 seconds are mixed up. So it is a good idea to consider that how this can be rationalized and with that objective we 24:52 24 minutes, 52 seconds have considered this committee as and when any decision is taken to merge the merge any business we'll definitely come back to you. 25:00 25 minutes Got it. Got it. And just one last question if I may is $1.1 billion of orders have started to execute from this quarter itself. 25:09 25 minutes, 9 seconds Yeah. No this is going to start from Q2. 25:13 25 minutes, 13 seconds No no sorry end of Q1. I'm sorry. End of Q1. 25:16 25 minutes, 16 seconds End of Q1. Sir, got it. Got it, sir. Thank you so much and all the best. 25:23 25 minutes, 23 seconds Thank you Aman. Thank you. 25:28 25 minutes, 28 seconds Thank you. A reminder to all participant. Please restrict yourself to two question. 25:34 25 minutes, 34 seconds The next question is from the line of Deepak Podar from Safur Capital. Please go ahead. 25:41 25 minutes, 41 seconds Yeah. Am I am I able sir? Yeah, you are audible. 25:46 25 minutes, 46 seconds Yeah, thank you very much. So, just a clarification first up when you said 3 to 4% increase in epida margin that you're talking about FI27, right? 25:54 25 minutes, 54 seconds Yeah. Yeah, you are right. This is expected. You know, I'm not committing to anything. But as for the current order book prices, raw material prices, 26:02 26 minutes, 2 seconds I expect this. But tomorrow in this geopolitical world, something else happens. You know, you don't know which 26:09 26 minutes, 9 seconds morning, evening, who says what? We do not know. But that is my current expectation based on current raw material prices and current order book where the customer prices are known. 26:20 26 minutes, 20 seconds Understood. And and and and and in terms of defense and data center I think this year you are expecting 5 to 600 crores revenue from defense and data center 26:28 26 minutes, 28 seconds around 400 crores. So so can you throw some more light on the margin profile of the uh this segment. Look you know this 26:35 26 minutes, 35 seconds data center business there are two types. One is cable which is not included in this 400 crores which I 26:41 26 minutes, 41 seconds mentioned that is completely separate uh cable is different this is just the interconnect solutions 400 crores and it 26:50 26 minutes, 50 seconds may even be higher than 400 crores but let's say minimum 400 crores in reality it may be much higher but I'm taking a conservative number of 400 to 500 crores 26:59 26 minutes, 59 seconds margin profile again you know as you I said blended margin profile is 20% wherein this could be little bit higher 27:07 27 minutes, 7 seconds than others because these are going on in small batches and with a more value added this could be a little bit higher but yes blended margin would instead of 27:16 27 minutes, 16 seconds 16 17% we have it would increase by 3 to 4% as expected because of these kind of products coming in in defense 27:25 27 minutes, 25 seconds uh 600 cr of rupees again uh the margin you know because these are very high value high precision products and mostly 27:33 27 minutes, 33 seconds coming out of our proposed execution margin could be a little bit higher little bit higher couple of percentage higher than uh current rate of margins 27:42 27 minutes, 42 seconds or expected rate of margins it can be couple of percentage higher about 20 to 25% margin in defense something like that something like that 27:50 27 minutes, 50 seconds okay okay understood and um on on your backward integration we we are spending around 580 crores right so so so what 27:58 27 minutes, 58 seconds sort of advantage we'll get in terms of uh in terms of your increase in margins or or or or what sort of u I the backward integration that we are doing. 28:09 28 minutes, 9 seconds So by when it is coming on stream as well. Yeah. 28:11 28 minutes, 11 seconds Look you know uh our current requirement of preform is thousand tons per year. 28:18 28 minutes, 18 seconds Now we are setting up this facility only for 300 tons. Now this is just to have some sort of a control on preform 28:26 28 minutes, 26 seconds availability. If our availability goes down then our overall production will go down. Fiber production, cable production. So we want some additional 28:35 28 minutes, 35 seconds control that yes we have adequate availability of our raw material the you know preform that is why this facility 28:43 28 minutes, 43 seconds being set up currently 300 but we have a possibility we might scale up to 500 stage two not now after 300 is 28:52 28 minutes, 52 seconds successful we might take it up to 500 then second point is that of course it is going to be cheaper if you do a make 28:59 28 minutes, 59 seconds versus buy analysis we did a lot we did a lot make you make versus buy analysis and it reduces the cost roughly between 29:08 29 minutes, 8 seconds 15 to 20% of preform 15 to 20%. And by when it is coming? 29:14 29 minutes, 14 seconds Well, you know, it will take at least two years. 29:17 29 minutes, 17 seconds At least two years. Okay. Okay. And just one last thing, if I can squeeze this 21,000 crores order uh book that we have, what would be the average execution timeline? 29:26 29 minutes, 26 seconds Look, you know, these are divided in two parts. Uh order book is divided in two parts. This is one is that products 29:33 29 minutes, 33 seconds which are to be delivered and secondh is you know AMC contracts. So the products which are to be delivered is about 29:42 29 minutes, 42 seconds 18,000 KS and AMC contracts are roughly about 3,500 K. 29:47 29 minutes, 47 seconds Correct. 18,000 crores it's to be delivered in uh two you know depending upon contract to contract within this 29:55 29 minutes, 55 seconds year to about 5 years you know depending upon which you know and this uh 3,500 30:02 30 minutes, 2 seconds cr&m contract are 6 to 7 year time period now 18,000 cr of orders is in 30:09 30 minutes, 9 seconds hand we have but we keep on receiving regular orders you know um you know and next 30:18 30 minutes, 18 seconds five years I I don't know how many thousands of crores of orders would be further received. So that's why I said you know we are very sustainable growth 30:26 30 minutes, 26 seconds with this kind of an order book more orders in pipeline when I talk right now thousands of crores of more orders are 30:34 30 minutes, 34 seconds in pipeline with some of them we are in a you know country whether we should accept or not because of the capacity 30:42 30 minutes, 42 seconds constraint. So there is a very sustainable order book we have at this point of time. 30:47 30 minutes, 47 seconds Okay. Understood. And that would be it from my side and would like to wish you all the very best. That's very help. Thank you very much. Thank you. 30:54 30 minutes, 54 seconds Thank you. The next question is from the line of Rahil Dasani from MAPPL. Please go ahead. 31:02 31 minutes, 2 seconds Yeah, good evening sir. Uh first of all congrats on a short set of numbers. uh starting with the capacity part of our 31:10 31 minutes, 10 seconds total IBR capacity post expansion which I believe is 19 million FKM how much turnover can we achieve from this 31:18 31 minutes, 18 seconds particular 19 million and optimum utilization look Mr. Asan it's very difficult for me to break down the capacity of IBR and 31:26 31 minutes, 26 seconds all that and that is an information you know which is bit you know commercially confidential 31:33 31 minutes, 33 seconds to share but one thing I can say 100% of that capacity will be achieved whatever that capacity is we are in fact 31:40 31 minutes, 40 seconds expanding that capacity uh two new machines are already under installation few more new machines you have already 31:47 31 minutes, 47 seconds ordered which would be installed within this calendar year capacity will further expand and uh you know it is 100% utilized. 31:58 31 minutes, 58 seconds Got it. And can we also use the facility of machines that we have for our telecom optical fiber and convert that to IBR? 32:06 32 minutes, 6 seconds Does that work work or that's not possible? 32:09 32 minutes, 9 seconds It can be done both ways. Some modification in machines are required from telecom IBR which is telecom there 32:16 32 minutes, 16 seconds no IBR in telecom. This is a flat ribbon you know telecom can also IBR they don't use normally but they use 32:23 32 minutes, 23 seconds IVR is intermittently bonded ribbon flat ribbon is a different kind of a ribbon so a driven machine can be converted 32:31 32 minutes, 31 seconds into IVR with some modification and vice versa also you can do it but why would you do it vice versa because IVR 32:39 32 minutes, 39 seconds machines are much here you would do from flat to IBR not IBR to flat got it clear yeah So coming on to our 32:48 32 minutes, 48 seconds EPC business thing Mr. R. Um yeah can I just ask my second question? Yeah go ahead go ahead go ahead. 32:56 32 minutes, 56 seconds Yeah just on our EPC business our EPC business has turned uh bit lossmaking in the last few quarters. So if you can share why has that happened suddenly and 33:04 33 minutes, 4 seconds how will that change and the second part to this question is even with our EPC business dropping our unbuild revenues 33:11 33 minutes, 11 seconds have been increasing a lot year on year from 300 kores to 600 and now maybe even higher uh so why is that happening 33:19 33 minutes, 19 seconds especially since all our offc customers are now primarily global MNC's and our EPC business has been dropping 33:26 33 minutes, 26 seconds I think mixing up two things global offc customers and EPC are completely different EPC business loss was majorly 33:35 33 minutes, 35 seconds due to uh this army's uh network which we constructed and it was undergoing warranty period where we were incurring 33:44 33 minutes, 44 seconds cost but nothing was received from the customer. Now AMC contract is shortly to be signed with army once we start AMC that would be nullified totally. 33:56 33 minutes, 56 seconds Moreover, now we have started executing bhatn net kind of EPC project where there is profitability as the billing starts profitability will keep on 34:04 34 minutes, 4 seconds coming. For your second question of unbuild revenue, my CFO would answer that. 34:10 34 minutes, 10 seconds So see it is not increasing totally in EPC contract. Part of is mean significant part of it is because of 34:17 34 minutes, 17 seconds this OFC supplies and because of some some compliance is pending. It cannot be I mean invoiced. we cannot we could not raise the tax invoice at the year end. 34:28 34 minutes, 28 seconds So those invoices are getting raised in April May and that will convert into it is significant part will get converted 34:35 34 minutes, 35 seconds into formal uh revenue and we'll set off against those uh unbuild revenue which we have booked in uh last financial year 34:45 34 minutes, 45 seconds in EPC also significant part will get converted into uh taxable mean revenue uh during course of this financial year. 34:53 34 minutes, 53 seconds So you will see the um significant change at the end of this current financial year. 34:59 34 minutes, 59 seconds Got it. So next year APC business should be profitable for us. 35:03 35 minutes, 3 seconds Yeah. Yeah. Yeah. Because maybe maybe it means second, third, fourth quarter from this financial year. 35:08 35 minutes, 8 seconds Second year, second quarter from you know because this we expect this AMC contract with army would be signed and 35:15 35 minutes, 15 seconds the sizable expenses coming in that contract because of warranty which are known you know nothing new. So that will 35:22 35 minutes, 22 seconds get converted into AMC and once it is AMC then you will find it you know uh about 170 crores or so AMC being 35:31 35 minutes, 31 seconds received every year. So that would nullify uh this loss and with the EPC 35:39 35 minutes, 39 seconds context of Bhaget or being profitable it would current year should be profitable. 35:45 35 minutes, 45 seconds Got it. I have a few more but I'll get back in the queue. Thank you. Thank you. 35:54 35 minutes, 54 seconds The next question is from the line of to Jen from Sunidi. Please go ahead. 36:03 36 minutes, 3 seconds Am I audible? Yes sir. 36:06 36 minutes, 6 seconds Congratulations sir for the great set of numbers. Um I have two questions. First since you mentioned uh to the previous 36:14 36 minutes, 14 seconds participant that capacities are kind of funible between Telco and IBR. So is there any possibility uh in future for 36:24 36 minutes, 24 seconds another such mega deal following the new capacities that are going to come up by the end of this calendar year? 36:32 36 minutes, 32 seconds Your voice is echoing too much. you know I I really can't understand what you said you know we have to probably take the speaker little bit away from you and 36:40 36 minutes, 40 seconds then speak very uh sir since you mentioned that capacities are kind of funible between 36:48 36 minutes, 48 seconds telco and IVR so is there any possibility uh in future for another such mega deal uh especially we have new 36:57 36 minutes, 57 seconds capacities u you know coming up by the end of this uh here. 37:03 37 minutes, 3 seconds Look, you know, funible in, you know, not in two ways. Funible technically, yes, but IBR machines are very costly 37:13 37 minutes, 13 seconds machines. You would not like them to be used for telecom uh rebon kind of an application to those machines are much 37:21 37 minutes, 21 seconds less costier machines. So you would like to have those machines separate than the IBR cable machines. So you can convert 37:29 37 minutes, 29 seconds it's not funible. We have to have additional equipment put into that telecom kind of a ribbon equipment machine that will convert into IBR 37:37 37 minutes, 37 seconds machine. Now downscaling an IBR machine into flat ribbon is not something which you would like to do. That is converting a bigger machine into a smaller machine. 37:47 37 minutes, 47 seconds You know that is not economically viable. So one would not do that. So we are expanding the capacity of IBR. Uh 37:56 37 minutes, 56 seconds well you know as far as a such mega deal is possible or not. Well, you know, right now we don't have even have the 38:03 38 minutes, 3 seconds capacity to really go for such a mega deal at this point of time because, you know, we can do that. We can do that, 38:12 38 minutes, 12 seconds you know, but we don't want to lose the opportunity of taking spot orders also. 38:17 38 minutes, 17 seconds You know, spot orders are sometime more profitable. So, we don't want to pre-sell 100% of our capacity. We want 38:25 38 minutes, 25 seconds to keep some capacity in hand to be able to uh give it to our regular customers who buy regularly from us maybe in small 38:32 38 minutes, 32 seconds quantities and also to take advantage of spot market you know where you get the higher profitability. 38:39 38 minutes, 39 seconds So why would I book the total capacity of mine when there is a huge demand and 38:46 38 minutes, 46 seconds there are opportunities of spot pricing spot deals which are more profitable. We have done a couple of deal like this in recent past. 38:55 38 minutes, 55 seconds Absolutely sir. That brings me to my second question. Uh since you mentioned that uh uh of course you would like to 39:03 39 minutes, 3 seconds you know keep capacities for spot uh orders also. So sir January to March we 39:10 39 minutes, 10 seconds uh kept on hearing sharp in jumps in fiber prices both standard fiber and of 39:16 39 minutes, 16 seconds course uh this um high uh frequency high fiber cables also. So uh just wanted to understand two things here. How is the 39:25 39 minutes, 25 seconds momentum right now? Is there any cooling off happened uh we saw recently and how it is going to you know how do you 39:34 39 minutes, 34 seconds expect prices to uh play out uh in probably next two three quarters. And secondly, um we saw we heard uh that 39:44 39 minutes, 44 seconds $234 were the price prevailing prices for high fiber high frequency cables. U but 39:53 39 minutes, 53 seconds there were some articles that uh uh that were talking about prices going for $30 39:59 39 minutes, 59 seconds also in uh April to uh June quarter internationally. So I tell you the 40:06 40 minutes, 6 seconds prices have gone up for certain type of applications you know where they are ready to pay any price which is mostly 40:15 40 minutes, 15 seconds for application in drones military drones which is happening in UK s USSR 40:24 40 minutes, 24 seconds uh Ukraine and all those areas. So that is additional demand of roughly about 40:32 40 minutes, 32 seconds 50 to 100 million kilometers has come come in but we are not supplying to those kind of you know what war kind of 40:39 40 minutes, 39 seconds requirement we are not at all supplying not even with meter we have supplied but that is one area where even our 40:45 40 minutes, 45 seconds suppliers of preform don't want us to go in for so we are not supplying in that area so I hope that demand 40:55 40 minutes, 55 seconds is there it is going to continue but may not increase further and there is a you know with the bulk consumers like data 41:03 41 minutes, 3 seconds centers, telecom operators there is a level to which it is economical for them to keep on buying fiber optic cable. So 41:12 41 minutes, 12 seconds I think right now in my personal opinion the prices have reached to their almost the final level. There may be few 41:20 41 minutes, 20 seconds percentage improve increase may be there but there will not be any further increase in the prices in my personal opinion. That's my personal opinion but 41:28 41 minutes, 28 seconds you know opinions may go wrong. I have been thinking of this since last one month but it keeps on going up. So but 41:36 41 minutes, 36 seconds really in my personal opinion it will not go in a in a major way. 41:42 41 minutes, 42 seconds So sir uh in your PPT you have mentioned that uh we are expecting kind of 25% improvement in the realization for FI27. 41:53 41 minutes, 53 seconds So that would be primarily because of the product mix right because of the product mix and because of the high density cable and you know 42:03 42 minutes, 3 seconds uh because this price rise has started from last one or two months. So when you take in the full year of these kind of 42:12 42 minutes, 12 seconds prices then it naturally it will go up on a year to year long basis. 42:16 42 minutes, 16 seconds Right. Sir one last question. What would be the KEX number? 42:22 42 minutes, 22 seconds Just a small small question. Kex number for FI27 and FI28. That's it. That's all from my side. 42:30 42 minutes, 30 seconds Yeah. for you know the total capex for fi uh 26 would be roughly about the 42:39 42 minutes, 39 seconds current fi it's 27 would be roughly about 600 crores uh part of which has already been incurred in fact uh which 42:47 42 minutes, 47 seconds includes for fiber for optical fiber cable defense part of the preform business all put 42:55 42 minutes, 55 seconds together would be roughly about 600 crores and sir for fi28 Right. Uh to 350 crores. 43:04 43 minutes, 4 seconds Okay, that's all sir. Thank you. Wish you all the best. Thank you. 43:11 43 minutes, 11 seconds Thank you. The next question is from the line of Balas Supermanium from Arian Capital. Please go ahead. 43:19 43 minutes, 19 seconds Good evening sir. Uh thank you so much for the opportunity. Congratulations for good set of numbers. Sir, what are what are what is the strategic uh reason 43:27 43 minutes, 27 seconds behind deficits acquisitions and how do you look at defense business next three to five years and you strategic 43:35 43 minutes, 35 seconds restructuring company for evaluating business re I mean so what what is your thought process on that 43:42 43 minutes, 42 seconds look you know uh rational for acquisition of defense business are very simple 43:49 43 minutes, 49 seconds this company is in aeros business and we did not have aerospace space aerosure business. So this really expanded our 43:57 43 minutes, 57 seconds defense business in another area from land systems to aerospace. Now aerospace is much more difficult business to enter 44:06 44 minutes, 6 seconds in from a you know green field situation because the approvals for aerosure is 44:13 44 minutes, 13 seconds very critical. It takes years five to seven years to get any particular component approved for aircrafts you 44:20 44 minutes, 20 seconds know because you know how critical they are for aircraft safety and all those kind of things. So this company already 44:27 44 minutes, 27 seconds had approvals, certifications and export order book of uh almost 2,000 44:35 44 minutes, 35 seconds crores export order book from large uh international companies you know so 44:42 44 minutes, 42 seconds it was very much within our uh realm of our ability uh requirement to acquire 44:50 44 minutes, 50 seconds this business. I think we are fortunate to get into in this aerospace business through an existing acquisition. If we had tried ourselves, it would not have 44:59 44 minutes, 59 seconds been possible for next 5 to 7 years with an order book and with a certificate certified products and with possibility to get more orders. 45:11 45 minutes, 11 seconds Yes sir. So what is the update on electric fuses and uh what are we defense products we tested in Balasur. 45:20 45 minutes, 20 seconds some uh you know shortcomings or uh you know requirements upgrade has been noticed which we have to upgrade that 45:28 45 minutes, 28 seconds upgrade is going on and a couple of months we will give it for testing once again with all those upgrades done 45:38 45 minutes, 38 seconds okay sir thank you thank you the next question is from the 45:44 45 minutes, 44 seconds line of Danmai from 360 please go ahead hi Hi. Uh, can you hear me? 45:51 45 minutes, 51 seconds Yeah, sir. 45:53 45 minutes, 53 seconds Uh, congratulations on a great set of numbers. I just wanted Can I hear uh can you hear me now? 46:03 46 minutes, 3 seconds Yes. 46:04 46 minutes, 4 seconds Can you comment on the capacity utilization uh of the optical fibers, the preform prices and the end product optical fiber prices? 46:14 46 minutes, 14 seconds Look you know as far as capacitization of fiber optic optical fiber is concerned it is 100%. We are trying you 46:22 46 minutes, 22 seconds know we are trying to increase the production by doing various optimal you know 46:30 46 minutes, 30 seconds innovation innovative things that if it can increase by even 5% 10% that would also mean very additional profitability 46:37 46 minutes, 37 seconds but that is not always possible but it is 100% utilization we are trying to make it 110% you know so that is one uh 46:46 46 minutes, 46 seconds as far as the preform prices are concerned I don't have any idea what kind of preform price are existing today. So we are not really buying from 46:53 46 minutes, 53 seconds open market. We have already contracted prices and I don't think preform are being sold in open market in that 47:00 47 minutes quantity because all preform producers are producing their own fibers. I I don't have much idea but probably for D 47:09 47 minutes, 9 seconds fiber preform price could be today $140 $150 per kg. 47:15 47 minutes, 15 seconds This is my rough estimate because there is no such prices I have heard in recent past. as far as a fiber cable price is 47:24 47 minutes, 24 seconds going very difficult you know cables are a different construction different fiber kind you know different density of fiber 47:32 47 minutes, 32 seconds so I I really can't put a finger on how much is a per fiber price because earlier when I used to say price per 47:40 47 minutes, 40 seconds fiber kilometer it's single type of cable was the loose tube cable was there armored or unarmored now there are 100 47:48 47 minutes, 48 seconds different kind of fiber optic cables so you can't really say that this is the price of per kilometer of fiber. It could be 47:56 47 minutes, 56 seconds 1,000 rupees, it could be 2,000 rupees, you know, it's very difficult to put your finger in that way and put it on average would be very wrong. 48:04 48 minutes, 4 seconds Okay. And in defense for FI27, can you tell us what percent of the revenue will come from? 48:12 48 minutes, 12 seconds Which tax will be the highest? 48:14 48 minutes, 14 seconds In which year you talking the current financial year? Yeah, FI 27. 48:19 48 minutes, 19 seconds FI 27. I think you know about 10%, 10 to 12%. 48:26 48 minutes, 26 seconds And which products specifically? It would be a defense. 48:30 48 minutes, 30 seconds Yes, largely aerospace and the lens systems. 48:36 48 minutes, 36 seconds Okay, got it. And do we see margin increases coming from the first quarter itself or will it be towards the quarter third and fourth quarter? 48:44 48 minutes, 44 seconds I think the start would start it would start from the first quarter itself. 48:49 48 minutes, 49 seconds That is what we expect again no guidance please expectation this expectation that it should start from the quarter itself 48:56 48 minutes, 56 seconds because we know the sale prices mostly of the customers and we know the raw material prices also now if something 49:04 49 minutes, 4 seconds catastrophic happens in the world which is none none of our control we can't say anything but this is our best of our 49:11 49 minutes, 11 seconds expect are we keen on demerging the defense business soon well I can't say de merging we 49:19 49 minutes, 19 seconds currently trying to consolidate it under one roof which is HFC advanced systems but uh a restructuring committee has 49:26 49 minutes, 26 seconds been formed uh precisely to look into such aspects whether it is efficient to demerge the businesses into their 49:33 49 minutes, 33 seconds specialized areas so that some strategic tie up or even if that kind of a thing is required can be done. So really let 49:42 49 minutes, 42 seconds this restructuring committee which had been formed today itself uh do the study and come out with this recommendation. 49:50 49 minutes, 50 seconds Okay. Thank you. Thank you so much and all the best. Thank you. 49:54 49 minutes, 54 seconds Thank you. The next question is from the line of Rishab from Insight. Please go ahead. 50:01 50 minutes, 1 second Yeah. Hi sir. Uh congratulations on a good set of uh results. uh so sir I'm basically looking at the next three to 50:09 50 minutes, 9 seconds four three to five years for HFCL. So uh when we look at that kind of a vision uh 50:16 50 minutes, 16 seconds so what are the kind of growth rates which and the margin improvement trajectory which we can you know envy 50:23 50 minutes, 23 seconds such what will be the optimum level of margins which you know we can achieve in the medium term and uh to support this 50:31 50 minutes, 31 seconds what will be the key f focus areas you know to drive this thing. any target mix if you can help us with will be helpful 50:39 50 minutes, 39 seconds because we have various dimensions to our uh this like export versus domestic and product versus services. We have 50:46 50 minutes, 46 seconds already done a lot of uh improvement in terms of product mix, export makes. So is there any more uh firepower left uh 50:54 50 minutes, 54 seconds where we can actually see things moving and what will be the key risk during this period of next three to five year? 51:02 51 minutes, 2 seconds Yeah. Yeah. 51:04 51 minutes, 4 seconds in one question you have asked 10 questions so I don't very difficult so you know as 51:12 51 minutes, 12 seconds for the as I said earlier uh revenue growth in this particular year I can say 51:19 51 minutes, 19 seconds around 20% 25% something like that again no guidance this is just expectation on the base of current run rate I'm talking 51:26 51 minutes, 26 seconds about uh you know we can expect and uh as against the current uh run rate of uh 51:33 51 minutes, 33 seconds you Now the way the margins are acrewing we can expect some 3 to 4% expansion in the margin also. Uh that is the way the 51:42 51 minutes, 42 seconds things are at this point of time unless something unknown happens. As far as four to five years uh you know revenue 51:52 51 minutes, 52 seconds expectation our aspiration is to reach to 10,000 crores. Aspiration is to reach to 10,000 crores. first expiration was 5,000 cr 52:00 52 minutes which this year we have reached 4,900 something you know which is anyway 5,000 crores I hope we would have done some 52:09 52 minutes, 9 seconds billing we would have done on 1st or 2nd April we could have possibly tried to desert it quicker on 31st March so 5,000 52:18 52 minutes, 18 seconds number would have been there but anyway nevertheless so aspiration is to reach to 10,000 and risk factors you know I 52:26 52 minutes, 26 seconds don't see any risk factor as such except some geopolitical event which is out of our control otherwise I don't see 52:34 52 minutes, 34 seconds any risk factor at this point of time because you know data center revenue is going to grow up because every day you hear billions of dollars of data centers 52:43 52 minutes, 43 seconds being announced all across the globe even in India you hear 1 billion this company another billion that company you 52:50 52 minutes, 50 seconds know it's happening on a daily basis so I don't feel that there would be uh any major risk Data centers are being 52:59 52 minutes, 59 seconds announced of cable will be sold, connectivities to solutions would be sold. No doubt about that. Now geopolitical environment has turned this 53:07 53 minutes, 7 seconds way in the world in recent past. Every country is going to increase the defense expenditure. So with defense expenditure 53:14 53 minutes, 14 seconds increasing our defense business becomes more secured export and indigenous requirement also because there is a 53:21 53 minutes, 21 seconds adanir kind of a mantra in our country or every country you know is increasing his defense expenditure. So defense 53:29 53 minutes, 29 seconds business is also quite you know on a progress path similarly business with bhat and all that happening next three 53:37 53 minutes, 37 seconds to four years it is quite secured. So I I don't find any major risk involved in implementing these businesses 53:46 53 minutes, 46 seconds except any unknown you know political geopolitical thing happening. 53:52 53 minutes, 52 seconds Somebody closes Swish canal tomorrow or somebody closes Panama Canal and something like that happening. Somebody 54:00 54 minutes dropping a big bomb somewhere, target going haywire. Yeah, that's not in my control. But otherwise nothing nothing 54:08 54 minutes, 8 seconds big unfortunate is seen at this point of time. 54:11 54 minutes, 11 seconds And uh sir, what will be the optimum margins which we can you know see because we are currently at around 16% odd. We're targeting something around 54:20 54 minutes, 20 seconds 20% by next year. May or may not achieve that is another thing. But the point what I'm trying to make is that uh is 54:28 54 minutes, 28 seconds the margin trajectory like can we can we aspire to have something uh like 25% in the next 5 years or something like that? 54:37 54 minutes, 37 seconds No I don't say is that a possibility? 54:40 54 minutes, 40 seconds No no no I don't say that at this moment of time. I'm just saying that in this year there is a possibility of 3 to 4% 54:48 54 minutes, 48 seconds increase in the margin year next very difficult to say you know every year you cannot have 3 to 4% increase you know that is impossible nobody can do that 54:57 54 minutes, 57 seconds the current year I see there is a possibility 3 to 4% increase okay okay thank you sir 55:05 55 minutes, 5 seconds thank you thank you the next question is from the line of satya an individual investor. 55:14 55 minutes, 14 seconds Please go ahead. 55:17 55 minutes, 17 seconds Hello sir, congratulations on a great set of numbers uh and thank you for the opportunity. Uh sir, I had a question on 55:24 55 minutes, 24 seconds the defense products uh that we've been talking about anything any other progress on the radar side and on the electronic fuser side also we had some 55:33 55 minutes, 33 seconds semi- approval of sorts. Uh any commercialization of that uh and on the BMP upgrade as well. So if you can give 55:40 55 minutes, 40 seconds some color on those products. No, I don't give any color. I will give you plain white truth. Color I don't give. 55:48 55 minutes, 48 seconds So you know on BMP we just received a letter yesterday that by 26th June they 55:55 55 minutes, 55 seconds want us to submit our our upgraded sample for evaluation. So we would be doing that. We have already put our BMP 56:04 56 minutes, 4 seconds which had given it to us. We have already sent it Babina the firing range in Uttar Pradesh near Jasi which is army 56:11 56 minutes, 11 seconds firing range for armored vehicles. It's already sent there 26th June it would be submitted to army for evaluation. We are 56:20 56 minutes, 20 seconds one of the five shortlisted parties. Of course, fuse as I said you know it underwent trial in Balasur in DRU range. 56:27 56 minutes, 27 seconds Some upgradation is required in couple of kind of fuses which is currently being done and another couple of months 56:35 56 minutes, 35 seconds time it will be resubmitted for evaluation because the wanted us to do some upgrades uh as per army's 56:43 56 minutes, 43 seconds requirement which we are doing at this point of time. uh in other defense products. Yes. 56:51 56 minutes, 51 seconds Yes. And I am happy to inform you and that is what is current information and I am informing on that basis. The 56:59 56 minutes, 59 seconds ammunition uh uh you know factory which you are going to set up in Andhra Pradesh where as I said earlier thousand 57:06 57 minutes, 6 seconds acre land has been allotted to us. So honorable defense minister together with Andra Chief Mr. Honorable Defense 57:15 57 minutes, 15 seconds Minister Ain GI and Andra Chief Mr. Sri Chundrau Naidu will be laying foundation 57:22 57 minutes, 22 seconds stone for our factory and another factory for another company on 15th of May. This 15th of May foundation stone 57:31 57 minutes, 31 seconds will be laid down for these two factories and we will start construction for ammunition factory. So for which the first product is going to be multi mode 57:40 57 minutes, 40 seconds hand grenades uh which is a technology from DRDO technology transfer has happened. DRDO has already tried uh this 57:50 57 minutes, 50 seconds lab called TBRL or something by of government. They have already tried the samples. It has been found successful aging certificate which is required you 57:59 57 minutes, 59 seconds know that uh this would not you know this will last for 3 years at least that 58:05 58 minutes, 5 seconds has also been done. So we are now in my opinion qualified for uh participating 58:13 58 minutes, 13 seconds in tenders and I expect a very very large tender to come up in another 1 month or one and a half months time where we will be participating. There are only three licenses at the moment. 58:24 58 minutes, 24 seconds Uh two private companies including us and one government company ML Munition India Limited and uh two out of three will get the order of this large tender. 58:34 58 minutes, 34 seconds So let us see we are first, second or third. We don't know at this point of time but yes we are going to bid and this is going to our first product in 58:43 58 minutes, 43 seconds this new factory which you would put up after honorable Sri Rajnar G and S Chandra Naidu lays the foundation stone on the 15th May of this year. 58:53 58 minutes, 53 seconds Great sir congratulations sir. Uh second question is on the telecom product side. 58:57 58 minutes, 57 seconds uh how is the traction over there and we haven't spoken much about it but uh what are we expecting in the next couple of years 59:05 59 minutes, 5 seconds I tell you you know telecom is a very peculiar uh you know in product business it's very peculiar 59:13 59 minutes, 13 seconds uh segment you know sometime what happens you know a new technology comes then the demand all all of a sudden goes 59:21 59 minutes, 21 seconds up like 4G came suddenly in India for example demand of 1 lakh cr 2 lakh road or something like that. Then 59:30 59 minutes, 30 seconds for some years 4G expansion happens and then it becomes a stable network only wherever there is a holes or where there 59:39 59 minutes, 39 seconds are more subscribers called fill in the gaps are done where demand is low then comes 5G and the demand comes up again 59:45 59 minutes, 45 seconds huge demand comes up again then 5G is spread out all over the country and optimum level of uh rollout happens then 59:54 59 minutes, 54 seconds the demand stabilizes and only fill in the gap demand happens then the situation right now with 5G. 1:00:01 1 hour, 1 second So now big big spot of demand will come when the 6G comes around 2029 2029 I 1:00:08 1 hour, 8 seconds would say lot of work is going on. We are also working. So right now the demand is uh kind of a demand just to fill in the gaps kind of a thing. So not 1:00:17 1 hour, 17 seconds a very big demand is there either India or anywhere else in the world. So big spurt in demand is expected in this 1:00:25 1 hour, 25 seconds sector another two to three years time frame 3 years time frame but by that time data center demand will compensate or more than compassent 1:00:33 1 hour, 33 seconds lower demand of telecom sector which is a normal cycle in telecom so this quarter how much did we do in 1:00:40 1 hour, 40 seconds the telecom product uh telecom you know we I don't have a separate number including 1:00:48 1 hour, 48 seconds including fiber optic cable Well, we did 1 1200 crores. Uh just a second about 150 crores. 1:00:58 1 hour, 58 seconds Correct. Thank you, sir. That's it from my Thank you. The next question is from the 1:01:06 1 hour, 1 minute, 6 seconds line of Ajentia Jadav from Chris Portfolio PMS. Please go ahead. 1:01:13 1 hour, 1 minute, 13 seconds Yeah, thanks for the opportunity. My question is regarding the thousand acre defense plant that we are putting in Andra State. So like uh this is a very 1:01:22 1 hour, 1 minute, 22 seconds big plan. So how much in total capex that we will be spending here and uh and year wise how it will be distributed how and how it will be funded. 1:01:32 1 hour, 1 minute, 32 seconds Look you know we have still not planned the foundation is laid on 15th May. We are in process of preparing uh you know 1:01:41 1 hour, 1 minute, 41 seconds uh DPR and all that depending upon the which products in the initial stage. But if we do just a multi mode hand grenade 1:01:49 1 hour, 1 minute, 49 seconds kind of a product which we are looking at I think total capex would not as I had said you know uh total capex of this 1:01:58 1 hour, 1 minute, 58 seconds year is 600 crores out of which budgeted about 125 crores for this facility including land and building and next two years would be another 250 cr. 1:02:10 1 hour, 2 minutes, 10 seconds Got got it. And it will be like self-funded or like we have to take the debt or some partnership with other player too. 1:02:19 1 hour, 2 minutes, 19 seconds Not partnership could be there no plan of any partnership in this at this point of time you know because partnership 1:02:26 1 hour, 2 minutes, 26 seconds equity partnership cannot be done when you are a mix of a telecom defense and you know fiber optic. That's why this 1:02:33 1 hour, 2 minutes, 33 seconds restructuring committee uh but you know it would be a mixture of that you know equity and uh sorry uh internal approval and debt. 1:02:43 1 hour, 2 minutes, 43 seconds Got it. And the last question is uh like uh in the sense do we want to be a subsystem player or system player like 1:02:50 1 hour, 2 minutes, 50 seconds what will be the sequence of our products to be commercialized like say thermal imaging mm edging electronic fuse. So how will be the how we want to 1:02:59 1 hour, 2 minutes, 59 seconds place ourselves? What do you mean by system and subsystem? 1:03:04 1 hour, 3 minutes, 4 seconds Uh like the the the the final part that will be supplying to the defense platforms. So so we are supplying final parts only. 1:03:13 1 hour, 3 minutes, 13 seconds You know thermal side for example is a full system. Uh the any radio we are 1:03:20 1 hour, 3 minutes, 20 seconds supplying is a full system. Radar we will be supplying is a full system by itself. Of course, it can also be integrated with a larger system also. 1:03:29 1 hour, 3 minutes, 29 seconds Can function as a system. It can be part of a integrated system also. You know, it can work in both ways. So, some kind thermal weapon side is a system itself. 1:03:40 1 hour, 3 minutes, 40 seconds But it has to work with a rifle. I'm not doing but still it's a system. 1:03:46 1 hour, 3 minutes, 46 seconds So, everything can be system or a subsystem. 1:03:50 1 hour, 3 minutes, 50 seconds Got is that in terms of like electronic fuse if you see if you are manufacturing only the fuse then the artillery shell 1:03:56 1 hour, 3 minutes, 56 seconds and then the Yeah. So so that I was thinking of yeah the fuse by itself is a system 1:04:03 1 hour, 4 minutes, 3 seconds because it's a independent equipment but again fuse by itself is not AR arament by itself. It has to be fitted into a 1:04:11 1 hour, 4 minutes, 11 seconds shell. Same is for shell. If I do shell not fuse again I'm not the full system. 1:04:17 1 hour, 4 minutes, 17 seconds So you know everything can be system or subsystem both. Got got it. Got it. Yeah. Thank you. 1:04:27 1 hour, 4 minutes, 27 seconds Thank you. The next question is from the line of Smith Gala from RPN Ventures. Please go ahead. 1:04:35 1 hour, 4 minutes, 35 seconds Yeah, thank you for the opportunity and congratulations on a great set of numbers. My first question uh is a bit of uh is uh our germanmanium which is 1:04:44 1 hour, 4 minutes, 44 seconds our key raw material for our fiber business uh is there a near-term worry around it uh uh regarding its supply? 1:04:52 1 hour, 4 minutes, 52 seconds No no Germanmanium is not a raw material for myself for a fiber business it is raw material for preform. So somebody 1:05:02 1 hour, 5 minutes, 2 seconds who manufactures preform for him german Germanmanium tetrachloride is a issue and uh in shortage but our suppliers of 1:05:10 1 hour, 5 minutes, 10 seconds preform have not raised any such issue and that you know germanmanium tetrachloride is creating a trouble for them. We have not heard anything from 1:05:18 1 hour, 5 minutes, 18 seconds them like that and we are receiving our supply of preform as per their commitment you know. 1:05:26 1 hour, 5 minutes, 26 seconds Okay. uh and uh our margins for this quarter specifically uh dropped a bit. 1:05:33 1 hour, 5 minutes, 33 seconds Uh was there something to do with the ongoing crisis uh uh in the war compared to the last quarter? That's right. 1:05:40 1 hour, 5 minutes, 40 seconds Nothing to worry about margins, blended margins, you know, a cable it would have gone up because of EPC 1:05:47 1 hour, 5 minutes, 47 seconds particularly that uh army contract where we are incurring expenses and not getting revenue which would probably start from this quarter or maybe in the 1:05:55 1 hour, 5 minutes, 55 seconds worst case the next quarter this has you know shown a little bit decrease but that's a very minor and this quarter we believe that margin will go up. 1:06:06 1 hour, 6 minutes, 6 seconds Okay, thank you that was helpful. Thank you. That's all for my sake. Thank you. 1:06:12 1 hour, 6 minutes, 12 seconds Thank you. A reminder to all participants, please restick yourself to one question. 1:06:18 1 hour, 6 minutes, 18 seconds The next question is from the line of stages from Nisha. Please go ahead. 1:06:25 1 hour, 6 minutes, 25 seconds Yeah. Hello. Uh am I audible sir? Yeah. Yeah. 1:06:29 1 hour, 6 minutes, 29 seconds Yeah. Thank you so much for the opportunity and congratulations uh for the results. Since since you said you know you know I think we're operating at 1:06:37 1 hour, 6 minutes, 37 seconds full utilization since last uh quarters is it right to assume the the incremental growth coming for the telecom business apart from you know 1:06:45 1 hour, 6 minutes, 45 seconds little improvement in volumes is all led by price right well it is all led by price but continuous increase in 1:06:52 1 hour, 6 minutes, 52 seconds capacity while we talk capacity increasing two new machines are getting installed you know by the time we do the next call 1:07:01 1 hour, 7 minutes, 1 second there will be another couple of machines getting installed So you know it is 1:07:07 1 hour, 7 minutes, 7 seconds it is going on for both reasons volume increase because of new capacity expansion taking place and also the 1:07:16 1 hour, 7 minutes, 16 seconds price increase both are contributing to it. Hello. 1:07:24 1 hour, 7 minutes, 24 seconds Thank you. The next question is from the line of Deep Sachi from Mayana Finance. 1:07:31 1 hour, 7 minutes, 31 seconds Please go ahead. 1:07:34 1 hour, 7 minutes, 34 seconds s audible. Yep. Yes sir. I just wanted to understand what is the realization of 1:07:41 1 hour, 7 minutes, 41 seconds in this average realization average realization. No, I think I answered this question earlier also 1:07:50 1 hour, 7 minutes, 50 seconds you mentioned that there are different different types of OFC's that's why it's a bit difficult. It can range very difficult to say you know because 1:07:58 1 hour, 7 minutes, 58 seconds there are OFCs of 7,000 fibers per cable and there is the OFC one fiber per cable or two fibers per cable you know how do 1:08:07 1 hour, 8 minutes, 7 seconds I give you average realization you it's very difficult 1:08:20 1 hour, 8 minutes, 20 seconds thank you next question is from the line of Dil Javiri from Crown Capital. Please go ahead. 1:08:28 1 hour, 8 minutes, 28 seconds Hello. Uh good evening sir. Thank you so much for taking my question. So just going for clarification with terms of 1:08:36 1 hour, 8 minutes, 36 seconds our revenue growth we are kind of saying around 20 25% growth but with the data center you're expecting around 500 1:08:43 1 hour, 8 minutes, 43 seconds crores and even if I if I see our Q revenue uh that was also around 1,800 K. 1:08:50 1 hour, 8 minutes, 50 seconds uh are we you know kind of being conservative in our revenue guidance because even if I annualize our you know 1:08:57 1 hour, 8 minutes, 57 seconds Q4 revenue uh we can maybe you know higher revenue uh for the full year so 1:09:04 1 hour, 9 minutes, 4 seconds uh is it possible we can overperform our guidance by like we can do 30 35% revenue given any guidance please avoid our 1:09:14 1 hour, 9 minutes, 14 seconds expectations expectations can we overcome the expectations No no I it's just my estimation first of all that 1:09:21 1 hour, 9 minutes, 21 seconds must be very clear number one. Number two when I say 20 25% I said on the year-to-year basis quarter to quartarter 1:09:29 1 hour, 9 minutes, 29 seconds basis you know yeartoyear basis I expect 20 to 25% increase in the revenue so 1:09:36 1 hour, 9 minutes, 36 seconds this year we had roughly about five 5,000 crores so 20% would mean somewhere 6,000 25% could mean 6250. 1:09:45 1 hour, 9 minutes, 45 seconds So when I give a number of course I try to be on a conservative side uh it would be good that if we can 1:09:52 1 hour, 9 minutes, 52 seconds overperform so conservatively you should take 20%. But yes there is a good possibility of uh you know it becoming 1:10:01 1 hour, 10 minutes, 1 second better but conservatively you can estimate 20 25%. 1:10:11 1 hour, 10 minutes, 11 seconds Thank you. based on today's market conditions. 1:10:15 1 hour, 10 minutes, 15 seconds Thank you. The next question is from the line of Gautam Rajes from Leo Capital. Please go ahead. 1:10:22 1 hour, 10 minutes, 22 seconds Hi. So, thank you for taking my question. So, I wanted to know what was the AIDC linked IBR cable revenue as a percentage of optical fiber segment 1:10:30 1 hour, 10 minutes, 30 seconds revenue in FI26 Q4 FI26 and what is your outlook for it in FI27? 1:10:37 1 hour, 10 minutes, 37 seconds Well, you know, uh I have not got the number of this IBR and that would be a little bit of a commercially 1:10:44 1 hour, 10 minutes, 44 seconds confidential information also to share revenue in that way. But yes, it contributed a major part of revenue of 1:10:52 1 hour, 10 minutes, 52 seconds fiber optic that much I can tell you it contributed a major part and major be plus 50%. 1:11:00 1 hour, 11 minutes You can say that you can say that. And what was your second question? What is your outlook for this percentage to 1:11:07 1 hour, 11 minutes, 7 seconds increase to how much can this go in up in the mix? 1:11:10 1 hour, 11 minutes, 10 seconds Well, you know, it all depends upon kind of customers and all that, but I think it will still consider a major part. 1:11:18 1 hour, 11 minutes, 18 seconds Okay. So, you ideally want expect to maintain the plus 50% mix in your overall OS uh optical fiber cable uh revenue. 1:11:27 1 hour, 11 minutes, 27 seconds Yeah, more than 50%. Sure. Okay. Thank you. Thank you. Congratulations. Thank you. 1:11:37 1 hour, 11 minutes, 37 seconds Thank you. The next question is from the line of Sakit Kapoor from Kapur company. Please go ahead. 1:11:54 1 hour, 11 minutes, 54 seconds your uh got the opportunity. So just to uh uh harpen on the point that when we look at 1:12:01 1 hour, 12 minutes, 1 second our margins for telecom product for this quarter they are uh on a revenue of 900 1:12:08 1 hour, 12 minutes, 8 seconds cr we have done 360 cr that is a 40% uh CBT number for a year as a whole 2930 1:12:17 1 hour, 12 minutes, 17 seconds 765 that that translates into 26 27%. 1:12:23 1 hour, 12 minutes, 23 seconds Let me just wait a second you know note down what you have said and look at my number. Yes. 1:12:32 1 hour, 12 minutes, 32 seconds Yeah. Which number you are talking about sir? I'm talking about firstly this quarter we posted uh revenue uh under 1:12:39 1 hour, 12 minutes, 39 seconds the telecom product uh category at 91 cr and profitability at 361 cr that 1:12:46 1 hour, 12 minutes, 46 seconds translates into a margin PBT margin of 40%. When we look at our annual number, 1:12:54 1 hour, 12 minutes, 54 seconds the telecom products uh category posted revenue of 2931 and profitability of 764 1:13:01 1 hour, 13 minutes, 1 second cr that is a 26% PBT margin. So once once we club the trunky business uh 1:13:09 1 hour, 13 minutes, 9 seconds losses the margins AITA margins are lower to the tune of 16 17%. 1:13:15 1 hour, 13 minutes, 15 seconds Next year. 1:13:20 1 hour, 13 minutes, 20 seconds So if you could give us some color key for this year we have some exceptional uh telecom margin product of 26 27% and 1:13:28 1 hour, 13 minutes, 28 seconds this will go down or up your incremental 14 3 to 4% how will that play out in in 1:13:36 1 hour, 13 minutes, 36 seconds the category s tell you there are two factors one this telecom product margins are expected to continue and maybe with 1:13:45 1 hour, 13 minutes, 45 seconds some improvement may be there second this turnkey losses will go because as I said multiple times in this 1:13:52 1 hour, 13 minutes, 52 seconds call that uh you know NFS has been warranty period where we don't receive any money causes a lot of uh drainage 1:14:01 1 hour, 14 minutes, 1 second into revenue which will still which will seize from current financial year uh maybe Q2 and then uh that loss will be 1:14:10 1 hour, 14 minutes, 10 seconds evened out that will result in increase on uh blended mix of profitability And 1:14:19 1 hour, 14 minutes, 19 seconds uh some percentage is improved expected to improve in the telecom also because on a what you see is a increased which 1:14:28 1 hour, 14 minutes, 28 seconds happened more from the Q3 and four of the last year. Q1 and two was not that that great. So this year from Q1 it has 1:14:37 1 hour, 14 minutes, 37 seconds started. If this continues in the same manner, there would be some margin improvement in the products also on a overall blended average basis and 1:14:46 1 hour, 14 minutes, 46 seconds reduction in the loss of uh uh this turnkey EPC. So all put together I expect 3 to 4% increase. 1:14:57 1 hour, 14 minutes, 57 seconds So you correct on that front. So is one off for this quarter for the telecom product. Say that again please. 1:15:06 1 hour, 15 minutes, 6 seconds your 40% post key for this quarter at 360 profitability in the telecom product owner revenue of 900 this 40% is a 1:15:14 1 hour, 15 minutes, 14 seconds oneoff that we have exhibited because of the product mix only yeah no no gap sa you just have a look at the 1:15:20 1 hour, 15 minutes, 20 seconds consolidated number uh which is 126 cr from telecom products where the margins are 31.75% 1:15:29 1 hour, 15 minutes, 29 seconds during this quarter we have to evaluate it from the consolidated yes so 31% also sir Jan 31% will hold 1:15:37 1 hour, 15 minutes, 37 seconds good uh for the going going quarters also. 1:15:41 1 hour, 15 minutes, 41 seconds No see it depends on the product mix we are having this telecom product also have some telecom product optic fiber 1:15:48 1 hour, 15 minutes, 48 seconds cable a couple of other products also so generally yes generally yes generally yes it will hold good for the 1:15:56 1 hour, 15 minutes, 56 seconds current quarter also generally yes okay sir thank you sir if anything else I'll take offline with Amig and thank 1:16:04 1 hour, 16 minutes, 4 seconds you once again for the elaborate discussion and hope for sustained set of uh improved set of numbers going. All the best to the team sir. 1:16:17 1 hour, 16 minutes, 17 seconds Thank you. The next question is from the large line of Rajas from Bonanza portfolio. Please go ahead. 1:16:25 1 hour, 16 minutes, 25 seconds Yeah. Hi sir, thanks for the opportunity. Um I just wanted clarity with respect to the optical fiber. You said that you are running at 100% 1:16:34 1 hour, 16 minutes, 34 seconds capacity utilization, right? And we have close to 13,483 order book. So like um are we are are we 1:16:44 1 hour, 16 minutes, 44 seconds still taking fresh orders as well because my assumption is that if if you are already running at 100% capacity and 1:16:50 1 hour, 16 minutes, 50 seconds we have uh these kind of order book so if the if you have new orders coming in so are they are they coming into the 1:16:59 1 hour, 16 minutes, 59 seconds backlog or what is the timeline clarity on that new order as I said 100% capacity utilization is there when we are 1:17:08 1 hour, 17 minutes, 8 seconds supplying orders which are existing ing orders. We have not booked our entire capacity. We have left some capacity out 1:17:16 1 hour, 17 minutes, 16 seconds for our regular customers and spot orders, you know. So if I sell my 100% of capacity, I cannot take advantage of 1:17:25 1 hour, 17 minutes, 25 seconds spot prices which are at this point of time kind of a market are better than the long-term prices. So we need to take advantage of that also. And number two, 1:17:33 1 hour, 17 minutes, 33 seconds there are some customer which are my customers since 10 years, 15 years. They give orders in small batches. I can't 1:17:40 1 hour, 17 minutes, 40 seconds forget them that you know and this time I will not supply you. So we supply to them also and we have reserved some quantity vacant for them also. But 1:17:49 1 hour, 17 minutes, 49 seconds mostly for the spot orders. So we are taking new orders. Why not? We are taking new orders but we are very hesitant to take large new orders 1:17:58 1 hour, 17 minutes, 58 seconds because unless we expand our capacity which is happening right now, we will be very hesitant to take large new orders. 1:18:06 1 hour, 18 minutes, 6 seconds Yes, your orders 200 crores, 500 crores, those kind of orders we are taking. 1:18:16 1 hour, 18 minutes, 16 seconds Thank you. The next question is from the line of Pragyam Lada from Omni Securities. Please go ahead. 1:18:25 1 hour, 18 minutes, 25 seconds Good evening sir. Congratulations for a good set of numbers. Sir, we are seeing that preform prices are also 1:18:31 1 hour, 18 minutes, 31 seconds continuously rising. Given a 20 25% increase in the preform prices, what 1:18:38 1 hour, 18 minutes, 38 seconds compression would you see on your AITA margin or your net margin? 1:18:42 1 hour, 18 minutes, 42 seconds Look, you know, as I said, preform price we are already, you know, we have long-term contracts. So, for me, I don't 1:18:51 1 hour, 18 minutes, 51 seconds know what is the increase in preform prices. I have no idea. But yes, preform prices may rise. uh and my future when 1:18:59 1 hour, 18 minutes, 59 seconds the long-term contract finishes I don't think I will get it at the current price but you know with the pre-form rising 1:19:06 1 hour, 19 minutes, 6 seconds you know the price of cable will also rise you know it's not only free form you know every good everything happens in tandem 1:19:13 1 hour, 19 minutes, 13 seconds would would they be able to pass the increase in full oh yes I think yes no doubt 1:19:22 1 hour, 19 minutes, 22 seconds okay okay thank you sir thank Thank you. The next question is from the line of Danmai from 360. Please go ahead. 1:19:33 1 hour, 19 minutes, 33 seconds Uh hi, sorry for letting me ask again. I just wanted to know because the prices of helium and polymers both have been 1:19:40 1 hour, 19 minutes, 40 seconds increasing sharply. What percentage of our cost of goods is from both of these things and do we see disruption coming 1:19:48 1 hour, 19 minutes, 48 seconds in because of that? So there no disruption but I think uh total cost of helium and uh you know polymers all put 1:19:58 1 hour, 19 minutes, 58 seconds together in our final cap you know product of uh cable should be around 20%. So should be around 20%. 1:20:07 1 hour, 20 minutes, 7 seconds And uh we are again and there no disruption but considering we sell in long-term 1:20:16 1 hour, 20 minutes, 16 seconds contracts uh the cost of acquiring these goods must have increased by a lot pushing our margins down or that's not a 1:20:23 1 hour, 20 minutes, 23 seconds problem right now prices have also gone up now our sales prices 1:20:32 1 hour, 20 minutes, 32 seconds okay okay so even for the long-term contracts we able to adjust the prices the contract that was signed before the price hike. 1:20:39 1 hour, 20 minutes, 39 seconds You know, you know, look price hike uh you know and helium has taken place in let's say last one month or some 1:20:47 1 hour, 20 minutes, 47 seconds contracts which signed earlier some have been signed later the margins may be much higher than the earlier ones. So as a mix what you see is the margin is 1:20:56 1 hour, 20 minutes, 56 seconds there you know can't calculate by you know contract to contract you know that's why I say sport contract the 1:21:04 1 hour, 21 minutes, 4 seconds margins are much higher the contract which was signed before this price hike maybe margin goes down by one or 2%. But 1:21:14 1 hour, 21 minutes, 14 seconds these are long fiveyear contracts. So five year contract these prices may again come down. 1:21:23 1 hour, 21 minutes, 23 seconds Thank you. The next question is from the line of Nikki Moanta from Sequin. Please sequin investment. Please go ahead. 1:21:32 1 hour, 21 minutes, 32 seconds Uh hi sir. Good afternoon and thank you for the opportunity. First of all uh congratulations on a great set of numbers. So my question is on the OC 1:21:42 1 hour, 21 minutes, 42 seconds front. So if you could throw some light on realization for optical fiber cable. 1:21:46 1 hour, 21 minutes, 46 seconds I think so in last call we had mentioned that our blended realization is around rupees,55 1:21:53 1 hour, 21 minutes, 53 seconds per SKM how would that have panned out in quarter 4 and what does it look like going forward 1:22:01 1 hour, 22 minutes, 1 second you know look it has gone up definitely but you know again as I said three times on this call that I cannot put a number 1:22:09 1 hour, 22 minutes, 9 seconds now because in the last few months the type of cable has changed so much with hyper scalers and all that buying you 1:22:18 1 hour, 22 minutes, 18 seconds know cable from 800 fiber to 7,000 fiber and telco is buying two fiber to 288 fiber so and different kind of 1:22:27 1 hour, 22 minutes, 27 seconds constructions so I can't put a number to a per fiber cable fiber kilometer price that's not possible now the 1:22:34 1 hour, 22 minutes, 34 seconds constructions are different technology is different density is different so it's very difficult to put a number to per fiber kilometer price but it has 1:22:43 1 hour, 22 minutes, 43 seconds definitely gone up yeah right Understood. But so it would be fair to say that uh the prices would have moved at least by 15 to 20% for us in quarter 4. 1:22:53 1 hour, 22 minutes, 53 seconds More than that more than that okay sir thank you and my second question s so we had uh I think 1:23:01 1 hour, 23 minutes, 1 second we have repeatedly mentioned that we have a long-term contract for the preform that we acquired. So uh given 1:23:09 1 hour, 23 minutes, 9 seconds your guidance of almost 20% uh AIDA margins next year in this segment does 1:23:16 1 hour, 23 minutes, 16 seconds it also account for the increased price of uh this preform and then what is the nature of our contracts like do we do it 1:23:24 1 hour, 23 minutes, 24 seconds for 6 months for annually or how are they repriced from the customer end to answer that question that it is 6 1:23:32 1 hour, 23 minutes, 32 seconds months very commercially confidential but it has taken into account any increase in prices of course. 1:23:39 1 hour, 23 minutes, 39 seconds Okay. Lastly, sir, the receivable number on a balance sheet like two almost uh more than 2,000 crores of receivables. 1:23:47 1 hour, 23 minutes, 47 seconds So, could you give us split how much of these receivables is from the ETC segment and uh how much of the receivables are more than 6 months? 1:23:59 1 hour, 23 minutes, 59 seconds I don't have this detail and this immediately available but uh if you can send the question to me in writing I can answer this right now immediately I 1:24:08 1 hour, 24 minutes, 8 seconds don't have that breakup available with me. Thank you. Thank you sir. 1:24:19 1 hour, 24 minutes, 19 seconds Thank you. 1:24:21 1 hour, 24 minutes, 21 seconds So I think this is enough uh we have taken up all the questions and uh now any further questions that can be sent 1:24:30 1 hour, 24 minutes, 30 seconds to our um you know company secretary or chief uh uh you know investment officer 1:24:39 1 hour, 24 minutes, 39 seconds uh who will reply to them immediately to you. Please send them in writing. 1:24:46 1 hour, 24 minutes, 46 seconds And I thank you. Thank all of you to who have participated in this call today and spared so much time uh to be with us. 1:24:54 1 hour, 24 minutes, 54 seconds And uh I honestly thank you all very much and I can assure you that company is on solid foundation doing well. Uh it has got very diversified product range. 1:25:06 1 hour, 25 minutes, 6 seconds All of which have excellent demand opportunities. Some have higher profitability, some have lower profitability, you know, because all the products cannot have the highest or the 1:25:15 1 hour, 25 minutes, 15 seconds lowest profitability. There is a mix always and but with a very robust order book uh which includes largely from 1:25:24 1 hour, 25 minutes, 24 seconds optical fiber cable which has got a better profitability today and uh uh the demand trajectory which you can see in 1:25:32 1 hour, 25 minutes, 32 seconds data centers and all which is uh going around the world and with this kind of a long-term contracts with a reasonable 1:25:40 1 hour, 25 minutes, 40 seconds profitability and also the different sectors ramping up with acquisition given this opportunity into aerospace 1:25:48 1 hour, 25 minutes, 48 seconds sector that will also increase revenue in data center interconnectivity business which will increase our revenue significantly this year and next year we 1:25:57 1 hour, 25 minutes, 57 seconds have a very robust performance uh in front of us and as I said we 1:26:04 1 hour, 26 minutes, 4 seconds expect that this year again we should be able to have a 20 25% increase in revenue and uh looks like that we can 1:26:13 1 hour, 26 minutes, 13 seconds have a 3 to 4% increase in our profit margin is also predominantly because of one u better realization from products 1:26:21 1 hour, 26 minutes, 21 seconds and second uh our uh turnkey losses getting away because of this NFS contract getting converted to AMC 1:26:30 1 hour, 26 minutes, 30 seconds contract very soon. Thank you very much gentlemen and I really appreciate your participation and any questions you have 1:26:38 1 hour, 26 minutes, 38 seconds any further questions please address us directly uh on our email and you will be immediately given answer. Thank you very much. 1:26:47 1 hour, 26 minutes, 47 seconds Thank you on behalf of Aran Capital Markets Limited. That concludes this conference. Thank you for joining us. 1:26:54 1 hour, 26 minutes, 54 seconds You may now disconnect your lines.