Jinkushal Industries Ltd — Q3 FY26

Jinkushal Industries Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=iirwGGjxA34 Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Jin Kusher Industries Limited Q3 and 9 months FI26 results earnings 0:10 10 seconds conference call hosted by Equidex Advisor Private Limited. As a reminder, all participant lines will be in the 0:18 18 seconds listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this 0:27 27 seconds conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. 0:37 37 seconds Before we begin, a brief disclaimer. 0:40 40 seconds This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the 0:47 47 seconds company as on date of this call. These statements do not guarantee the future performance of the company and may involve risk and uncertainties that are 0:56 56 seconds difficult to predict. I now hand the conference over to Miss Chani from Equid Advisor Private Limited. Thank you and over to you ma'am. 1:06 1 minute, 6 seconds Thank you Palak. A very good evening to everyone. Welcome to the Q3 and 9 months FI26 earnings call of Jin Kushell 1:14 1 minute, 14 seconds Industries Limited. From management team we have with us today Mr. Abinab Jan wholetime director, Mr. Sumit Bria, 1:22 1 minute, 22 seconds executive director and CFO. We will have opening remarks from the management team which we will open the floor for Q&A. 1:29 1 minute, 29 seconds With that, I would like to hand over the call to Mr. Abina Chain for opening remarks. Over to you, sir. 1:39 1 minute, 39 seconds Good evening ladies and gentlemen. The first nine months of FI26 mark an important milestone for Jin Kushan 1:46 1 minute, 46 seconds industry. Standalone revenue grew 27% year on year to around 184 crores 1:54 1 minute, 54 seconds reflecting sustained export demand across our market. During the same period, we strategically positioned our 2:02 2 minutes, 2 seconds 70th of overseas inventory, the highest in our history, strengthening our distribution reach and supporting a 2:09 2 minutes, 9 seconds shift towards deeper customer engagement and improved realization. 2:14 2 minutes, 14 seconds These actions reflect our focus on disciplined expansion, improved revenue quality, and building a globally 2:21 2 minutes, 21 seconds competitive export business. Since our incorporation in 2007, Jin Kushan Industries has steadily evolved into 2:29 2 minutes, 29 seconds India's largest nonom exporter of construction and mining machinery. 2:34 2 minutes, 34 seconds Over the years, we have built a differentiated and asset light business model that integrates sourcing, republishment, customization, logistics, and international distribution. 2:46 2 minutes, 46 seconds Today our presence spans more more than 35 countries supported by a diversified supply network and at in-house 2:54 2 minutes, 54 seconds republishment infrastructure in dry which acts as a hub and spoke model along with a designated partner facilities in India and overseas market. 3:05 3 minutes, 5 seconds Our operating model continues to rest on three complimentary verticles. exports of new and customized equipment, exports 3:12 3 minutes, 12 seconds of used and refurbished machines, and the development of a proprietary brand, Hexel. Each of these verticals reinforce 3:22 3 minutes, 22 seconds the orders, allowing us to provide end-to-end solutions across price points and customer segments. 3:30 3 minutes, 30 seconds During our current quarter, 3:32 3 minutes, 32 seconds [clears throat] 3:32 3 minutes, 32 seconds excuse me, we had to take a deliberate and strategically important step in a revolution. Historically our overseas 3:39 3 minutes, 39 seconds inventory levels were modest around 10 to 15 crores reflecting a predominantly 3:46 3 minutes, 46 seconds wholesale B2B export model. In current period inventory at our overseas subsidiary level has increased 3:54 3 minutes, 54 seconds approximately to around 70 crores the highest level in our history. This was not incidental but it was a conscious 4:02 4 minutes, 2 seconds decision which enabled the enabled the position of the company which strengthen liquidity position of 4:10 4 minutes, 10 seconds of our IPO by positioning inventory closer to end customers. We aim to shorten delivery timeline expand direct end user and 4:18 4 minutes, 18 seconds retail sales increase the share of higher margin refurbished machines and enhance revenue realization over time. 4:26 4 minutes, 26 seconds While this approach involves a relatively longer operating cycle aligned with retailled execution, it represents a structural shift towards 4:34 4 minutes, 34 seconds building a stronger and more resil resilient global brand and global distribution network. 4:41 4 minutes, 41 seconds During early December, certain price related clarification in Mexico, which has historically been one of our most significant export markets, led to 4:50 4 minutes, 50 seconds temporary purchase difference by some importers at the end of the calendar year. It is important to emphasize that 4:58 4 minutes, 58 seconds this was a timing related development alone rather than a structural demand issue. On the contrary, as for our 5:06 5 minutes, 6 seconds insights for the customer engagement in Mexico, the demand this year and the years we follow is supposed to increase 5:14 5 minutes, 14 seconds in Mexico given the promoted strategy of the government for various reasons. 5:23 5 minutes, 23 seconds The inventory we have accumulated remains healthy and high in demand. We expect conversion into revenue and 5:31 5 minutes, 31 seconds profitability in a normal course of business. 5:35 5 minutes, 35 seconds In response, we proactively have strengthened and execute our execution across markets. 5:42 5 minutes, 42 seconds The strengthened presence in markets such as UAE, South Africa, etc. support diversification and reduces concentration risks across geographies 5:50 5 minutes, 50 seconds and have enabled us to grow 27% on a standalone basis uh compared to the same period. 5:59 5 minutes, 59 seconds We have continued to invest in our Excel brand which represents an important long-term growth verticle for the company. Excel products are designed to 6:06 6 minutes, 6 seconds our specifications and supported through our global distribution network enabling us to participate more deeply in branded equipment sales while maintaining our asset light operating philosophy. 6:17 6 minutes, 17 seconds Investments in international exhibition marketing initiatives and distributor partnerships are being undertaken to build durable brand presence and strengthen market access. 6:28 6 minutes, 28 seconds The strengthened capital base following the IPO has enabled us to expand overseas inventory, reinforce export execution and accelerate brand and 6:37 6 minutes, 37 seconds distribution initiatives in a disciplined manner. These investments are directed towards building long-term business strength in 6:45 6 minutes, 45 seconds sustainable growth. The decision to utilize current liquidity towards marketing exhibitions and strengthening 6:52 6 minutes, 52 seconds our global execution has been taken which will reflect in the current period and the quarters to come 7:00 7 minutes which shows and reflects our confidence in emerging business opportunities for our company. 7:06 7 minutes, 6 seconds While these investments are expensive, but they're intended to enhance distribution, depth, brand visibility, 7:14 7 minutes, 14 seconds and long-term profitability along with recurring revenue. 7:18 7 minutes, 18 seconds From an industry perspective, the global used construction equipment market continues to benefit from structural treatment, infrastructure development 7:26 7 minutes, 26 seconds across emerging market, cost advantages of refurbished machinery compared to new equipment, growing rental ecosystems, 7:34 7 minutes, 34 seconds sustainabilitydriven reuse trends all support the long-term demand environment in which we operate. Our positioning 7:41 7 minutes, 41 seconds across reporter export and emerging geographies aligns well with these drivers. Our competitive advantage is 7:48 7 minutes, 48 seconds built on execution ex excellence, a strengthening product mix, scalable export operations and cruel capital discipline. 7:57 7 minutes, 57 seconds These foundations enable us to compete effectively on a global scale while delivering sustainable long-term growth. 8:04 8 minutes, 4 seconds And as we enter the final quarter of FY26, our priorities remain disciplined and focused. We're committed to monetizing overseas inventory 8:12 8 minutes, 12 seconds efficiently, strengthening our margin mix through higher contribution from repurposed equipment and excellence, maintaining prudent working capital 8:19 8 minutes, 19 seconds management and continuing geographic diversification. Our near-term focus remains on maintaining financial prudence while pursuing sustainable and 8:29 8 minutes, 29 seconds most importantly profitable growth. Our aspiration to achieve a multiple time growth on revenue over the next two 8:37 8 minutes, 37 seconds three years remains intact but supported by the expansion of overseas distribution growth of ethics exports and scaling the excellent brand. At the 8:46 8 minutes, 46 seconds same same time our sharpest focus continues to be on improving pattern and revenue quality rather than pursuing the turnover growth alone. Overall the 8:55 8 minutes, 55 seconds strategic steps taken during this period strengthens our global execution capability improves the balance sheet 9:02 9 minutes, 2 seconds strength in improves revenue quality and the position of the company for sustainable and profitable growth over the coming years. I will now request our 9:10 9 minutes, 10 seconds CFO Mr. Sumia to take you through the financial highlights for the quarter. 9:17 9 minutes, 17 seconds Thank you. Good evening everyone. Let me take you through the financial performance for the quarter and 9 months ended December 31, 2025. 9:27 9 minutes, 27 seconds Starting with standalone performance for Q3 F26, total income stood at 9,179 9:34 9 minutes, 34 seconds lakhs as compared to 4,437 lakhs in Q3 of the previous year, reflecting strong year-on-year growth. 9:43 9 minutes, 43 seconds Profit after tax for the quarter was 417 lakhs compared to 311 lakhs in the corresponding quarter last year 9:52 9 minutes, 52 seconds representing healthy growth of approximately 34%. 9:56 9 minutes, 56 seconds For the 9 months period, standalone total income increased to 18,429 lakhs from 14,884 10:04 10 minutes, 4 seconds lakhs in the previous year, marking growth of around 24%. Profit after tax for the 9 months stood at 1,148 lakhs. 10:13 10 minutes, 13 seconds This performance demonstrates continued export execution strength and scalability. 10:20 10 minutes, 20 seconds Moving to consolidated performance for Q3 FY26, total income stood at 4535 10:27 10 minutes, 27 seconds lakhs. The group reported a loss after tax of 987 lakhs for the quarter. It is important to view this consolidated 10:35 10 minutes, 35 seconds number in context. In H1 FY26, the group delivered consolidated pet margins of 10:42 10 minutes, 42 seconds approximately 9%. Reflecting the underlying operating capabilities of the business for the 9 months period ended 10:50 10 minutes, 50 seconds December 31, 2025, consolidated total income stood at 17,094 10:57 10 minutes, 57 seconds lakhs and profit after tax stood at 108 lakhs. The consolidated results reflect 11:04 11 minutes, 4 seconds the impact of strategic overseas inventory positioning and standard intercomp elimination under accounting 11:13 11 minutes, 13 seconds standards. Margins embedded in overseas inventory are recognized upon sales to external customers while associated 11:21 11 minutes, 21 seconds operating cost continue to be expensed as incurred. This results in a timing difference between cost recognition and 11:29 11 minutes, 29 seconds profit realization at the consolidated levels. As overseas inventory is monetized, consolidated revenue and 11:37 11 minutes, 37 seconds profitability will progressively reflect this conversion. 11:41 11 minutes, 41 seconds From a capital structure standpoint, we remain comfortably positioned post IPO with continued focus on working capital 11:49 11 minutes, 49 seconds discipline, margin quality and sustainable growth. With that we conclude our financial review and are happy to take the questions. 11:59 11 minutes, 59 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please 12:07 12 minutes, 7 seconds press star and one on your touchstone telephone. If you wish to remove yourself from the question queue, you 12:14 12 minutes, 14 seconds may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll 12:23 12 minutes, 23 seconds wait for a moment while the question queue assembles. 12:31 12 minutes, 31 seconds The first question is from the line of Anikid Madwani from Step Trade Capital. Please go ahead. 12:40 12 minutes, 40 seconds Yeah. Hello. Are you not able? Yes sir. 12:43 12 minutes, 43 seconds Yes. Yeah. So uh firstly I just want uh clarification on the numbers. So as you 12:52 12 minutes, 52 seconds said you are still intact to achieve around uh 800 crores in uh 3 years. So 12:59 12 minutes, 59 seconds as we see uh the numbers in this quarter you are um uh uh seem to be going in a 13:06 13 minutes, 6 seconds downtrend uh kind of uh uh business. So these quarters have seen a significant dip in top line as well as bottom line. 13:16 13 minutes, 16 seconds So I just want the clarification what what was the major major reason behind it and uh are you facing any challenges 13:23 13 minutes, 23 seconds in uh you know achieving uh uh uh any orders from the uh clients. 13:33 13 minutes, 33 seconds Yeah. Hi. So I would like to clarify a thing that we've not seen a downward trend. In fact, we have seen an upward 13:40 13 minutes, 40 seconds trend of 27% of standalone um export turnover growth right from uh about 140 crores to about uh 13:48 13 minutes, 48 seconds excuse me 185 cr something and on a consolidated level the intercomp profit elimination uh this essentially removes 13:58 13 minutes, 58 seconds your profit of the inventory which has been exported from India however has still had overseas um overseas inventory 14:06 14 minutes, 6 seconds on a books consolidated level is is reflecting the profit and turnover elimination. But 14:13 14 minutes, 13 seconds u if you actually add 185 crores plus let's say we have about 70 cr of inventory where we had 14:21 14 minutes, 21 seconds earlier let's say 10 to 20 cr of inventory. So 185 crores plus around 70 cr of inventory which is at purchase 14:28 14 minutes, 28 seconds cost plus that shipping etc expenses. So motor 80 90 of you know turnover you add it. So we are very much at approximately 14:38 14 minutes, 38 seconds the same numbers where we were earlier and uh 285 to 300 K would could be veryable 14:48 14 minutes, 48 seconds if we just had this inventory right but it was a conscious call of the company to maintain inventory rather than just wholesale may you know we just sell 14:55 14 minutes, 55 seconds machine. Moreover our debt utilization as well has not been um increased as per the increase in the revenue I said. So 15:05 15 minutes, 5 seconds and that is only working in capital as well. So all the parameters if you actually look at it other than you know just mainly looking at the consolidated 15:13 15 minutes, 13 seconds numbers will show you that performance has actually increased as opposed to decrease. Moreover um it has only been 15:21 15 minutes, 21 seconds so it has only been a short period of two or let's say some two odd months where we were able to actually see the 15:29 15 minutes, 29 seconds IP process etc. So there's a whole working cycle for uh our business um which has always been there which can be 15:36 15 minutes, 36 seconds concluded in you know a matter of two or three quarters something like this and um a short time frame of two one quarter 15:44 15 minutes, 44 seconds or two months would and you know calendar cut off date cannot adequately represent what uh you know what is I 15:52 15 minutes, 52 seconds mean it cannot translate into sales conversions because the sales conversion cycle is simply not and that's what inventory is being defected and It can be anyone's guess here. 16:03 16 minutes, 3 seconds So how much would that get realized and that is the whole thing and your other question about the long-term revenue growth we still intact on that we have 16:10 16 minutes, 10 seconds the adequate working capital and um we here for the long term right quarter for 16:18 16 minutes, 18 seconds calendar cut off date we are not here to present numbers but we are here to build a business and we doing so effectively I believe and I don't see anything which 16:26 16 minutes, 26 seconds is u you know stopping us at all especially in the current balance sheet itself with such a strong inventory to achieve that kind of And in fact these steps are aimed 16:34 16 minutes, 34 seconds towards that only to achieve those kind of numbers and especially focused on that. 16:40 16 minutes, 40 seconds Sir 50. Hello. Hello. 16:45 16 minutes, 45 seconds Yes. So 50% the export is attributable to the Mexico right and if you look at the recent news of the Mexico so Mexico 16:54 16 minutes, 54 seconds has also uh uh put 50%age tariff on the Indian export right so how do you see 17:00 17 minutes and what how what will hello 17:08 17 minutes, 8 seconds hello how do you see uh the future outcome that uh uh tariff and uh do you have any diversification strategy from the Mexico. 17:20 17 minutes, 20 seconds A large part of our uh revenue was coming from Mexico in the previous quarter. However, in the current quarter itself, we started diversifying and and 17:28 17 minutes, 28 seconds even forever we have had presence in more than 30 countries selling machines in various countries including UAE, Australia, South Africa, Netherlands, 17:35 17 minutes, 35 seconds Europe, right? Mexico had taken a larger share of uh the revenue in one of the previous years. But uh we still have 17:43 17 minutes, 43 seconds presence in multiple countries across UAE, South Africa etc. And especially uh there are two things. First of all, our product is not explicitly covered and 17:51 17 minutes, 51 seconds it's still not clarified whether our product is covered or not. So far what the news is that our product is not covered in you know the tariff scheme of 17:59 17 minutes, 59 seconds Mexico government. So during the end of that period on 31st of December basically it was not exactly clarified 18:07 18 minutes, 7 seconds whether uh you know our product will be toward or not because the tariff was actually being implemented from the new year. So as on the reporting date the 18:16 18 minutes, 16 seconds the purchasers and importers deferred their purchases to the new but as of date there are no coverage on tariffs and we expecting actually higher demand 18:24 18 minutes, 24 seconds in Mexico because they have long-term schemes where they are promoting sales of commercial equipment and construction machines and agriculture machines 18:31 18 minutes, 31 seconds wherein uh you know the depreciation accelerated depreciation is being allowed by Mexican government to boost the sales of these machines. So actually 18:39 18 minutes, 39 seconds on the contrary it's a positive news for us rather than negative. 18:44 18 minutes, 44 seconds Okay. So noted that 31st of December was a reporting date which is where the numbers are collected. 18:52 18 minutes, 52 seconds Okay. So it means Q3 deep in revenue is not uh on account of the tariff of the Mexico. Correct. 19:00 19 minutes Correct. Exactly. It is just the different of sale. We have a higher inventory. That's what the consolidated revenue is looking at. If the same 19:08 19 minutes, 8 seconds inventory was sold on the exact same date of 31st of December, it would have reflected in the simulator. 19:16 19 minutes, 16 seconds Okay. 19:21 19 minutes, 21 seconds Okay. And uh uh could you just uh uh give me the uh bification of your revenue? I mean uh is any increase in 19:29 19 minutes, 29 seconds your Excel plan in H1 FY26? we have seen around 11% of your revenue uh uh comes 19:37 19 minutes, 37 seconds from hexel. So is there any any increase in this quarter? 19:43 19 minutes, 43 seconds Uh so capital goods and production takes time. So there is no quarter on quarter numbers uh increment like this. We however these orders are for Excel and 19:51 19 minutes, 51 seconds we are getting orders for Excel. There are some new developments as well which we cannot share uh due to compliance purposes. We have not publicly disclosed 19:59 19 minutes, 59 seconds information yet but we are continuing to expand dealers and distributors and um as I said and in this quarter particularly there is no particular 20:06 20 minutes, 6 seconds change in the numbers as which was given in the previous uh period and and same for your new and used 20:15 20 minutes, 15 seconds refurbished the same proportion of yes I mean that is yeah that is I mean the business itself is as such that you 20:23 20 minutes, 23 seconds know it takes as I said to Mexico let's say 60 to the days of shipment time alone then refurbishment time, customization time, procurement time, 20:32 20 minutes, 32 seconds the whole cycle. So there is 120 to 150 days of cycle itself, right? Which cannot be covered in one quarter. So any 20:39 20 minutes, 39 seconds one quarter cannot give you any you know clear picture about what has translated. 20:45 20 minutes, 45 seconds It can show indicators and and record build 20:58 20 minutes, 58 seconds that will take time. So that's why it is 70 inventory as 21:06 21 minutes, 6 seconds reporting next phase of the cycle will go you know 21:12 21 minutes, 12 seconds sales and shipment and realization so all those will start reflecting. 21:20 21 minutes, 20 seconds Okay. Got it. Got it. Yeah. Okay. That promise. Yeah. Thank you. Thank you sir. 21:28 21 minutes, 28 seconds The next question is from the line of Madur Rati from Counter Cyclical Investment. Please go ahead. 21:36 21 minutes, 36 seconds Sir, I'm new to the company. So, if you could just take me through your business model, how do we from where do we buy 21:43 21 minutes, 43 seconds used construction machinery? Is it that we only buy used construction machinery in the country and export them or we buy 21:50 21 minutes, 50 seconds used construction machinery globally and where do we refurbish it and from where do we export it and also uh the uh who 22:00 22 minutes who are our principles in China from whom we are buying and why can't they sell their machinery themselves why do 22:07 22 minutes, 7 seconds do they need Jin Kushell to sell the machinery 22:15 22 minutes, 15 seconds Okay. Um, would you like to answer that question? 22:23 22 minutes, 23 seconds Hello. Hi Mr. Madu. So explaining about the business verticals which we are operating in. We are 22:31 22 minutes, 31 seconds primarily working in three business verticals. One is new and customized accessorized machines of other brand. 22:39 22 minutes, 39 seconds Secondly, refurbished machine, used and refurbished machine. And third is our own hex guide. So the whole business 22:46 22 minutes, 46 seconds model is exports of construction and mining equipment where we are providing a one-stop solution to our customers. Uh 22:53 22 minutes, 53 seconds the use the refurbish machines is our primary uh model and the hexel is our own brand which we are developing now. 23:00 23 minutes So this provides a value addition to the customers in terms of cost savings and readily available of machines to them. 23:07 23 minutes, 7 seconds Whenever project is start they need a complete mix of products. So we intend to become a one-stop solution for global supply. 23:16 23 minutes, 16 seconds So all that I already know that you sell used machine under your own brand and you sell you export new machinery also. 23:23 23 minutes, 23 seconds What I'm asking you from where do you buy used uh machines? 23:30 23 minutes, 30 seconds All right. So we buy used machines all across India and the world. We refurbish them across uh either our own refurbishment center in Raipur in India 23:37 23 minutes, 37 seconds or our partner refurbishment centers elsewhere in India or in our partner refurbishment vendors or contractors elsewhere around 23:45 23 minutes, 45 seconds the world. That is our first vertical where we buy used machines and then refurbish them and sell them. Second vertical is we buy new machines of other 23:53 23 minutes, 53 seconds brands, customize them, add value and then sell them in a similar model in either one of the locations that I have told you about earlier. The third vertical is excel our own brand and u 24:03 24 minutes, 3 seconds the question why can't the Chinese people sell it themselves I mean lies in the same aspect why Apple or Hyundai or 24:12 24 minutes, 12 seconds Caterpillar or you know any other Samsung LG so why do brand in in most engineering companies and engineering 24:21 24 minutes, 21 seconds goods business the design R&D engineering marketing is retained by the brand and the company and the brand And 24:29 24 minutes, 29 seconds manufacturing is always outsourced to either because it's a recurring simple mundane task of assembling products, 24:37 24 minutes, 37 seconds sourcing them from various ancillaries, fabricating, manufacturing some of the things and assembling them. Right? So it is always it's a recurring thing again and again. 24:47 24 minutes, 47 seconds So that is always outsourced to either Chinese or Indian or any other cost advantageous players and that is the predominant global model we work in. Why 24:55 24 minutes, 55 seconds can't all of these manufacturers not start something in their own? I mean that is how the whole global supply chain economy works because some people 25:03 25 minutes, 3 seconds are good in manufacturing, some people are good in marketing, some people are good in design, R&D. So I think that that's how it works right. 25:12 25 minutes, 12 seconds So basically what I understood that we are buying uh secondhand machinery globally and refurbishing uh the 25:20 25 minutes, 20 seconds machines in India as well as in other countries and then do we sell do we have distributors or we send to the sell to like the end customer directly. 25:32 25 minutes, 32 seconds We don't sell to the end customers. We primarily have distributors in various countries and we supply machines in more 25:40 25 minutes, 40 seconds than 30 35 countries and u these distributors are the importers in their countries and then they further supply to end customers in their time zone in 25:48 25 minutes, 48 seconds their language in their uh geography which is easier for them to cater. 25:54 25 minutes, 54 seconds So now for example if you buy a secondhand caterpillar machinery and refurbish it and sell it under our brand or we will sell it under Caterpillar only. 26:04 26 minutes, 4 seconds Our brand is only Hexel and that is our own brand own design machine. Uh we are competing with Caterpillar on that and 26:12 26 minutes, 12 seconds when we are buying other brand machine which has been a historic business model we do not change the brand. It is just like sale of used car or used mobile 26:20 26 minutes, 20 seconds phone. No one changes the brand when they're selling used capital goods or used mobile phone or used car. Right? If you're buying a UM I20, it will still 26:26 26 minutes, 26 seconds remain to be I20 for I20. Right. 26:32 26 minutes, 32 seconds Yes. So will we be able to match last year's revenue of 380 K roughly this year? F26. 26:40 26 minutes, 40 seconds It will be it will remain to be seen and we can comment on the current quarter. 26:45 26 minutes, 45 seconds But as I said, we're confident on you know building a business for us. All the right tick boxes have been set with regard inventory build up in the right 26:53 26 minutes, 53 seconds direction with you know evaluating and assessing of building teams senior leaderships from other OEMs etc to drive 27:01 27 minutes, 1 second growth to you know make our business organized. So rather than quarterly number focus we're really focusing on the next two three years targets that we 27:09 27 minutes, 9 seconds have set for ourselves and we're confident to achieve even I mean it's still early on it's first quarter after IPO roughly two months have passed after 27:17 27 minutes, 17 seconds the IPO on on this date but um I think all the parameters and the initial indicators seem to point in the right 27:25 27 minutes, 25 seconds direction for us right uh sir also our current liabilities have increased from 5.9 27:33 27 minutes, 33 seconds at FI25 went to 26.1 K in H1. So why why was that? 27:41 27 minutes, 41 seconds Mr. Smith, can you answer that? 27:46 27 minutes, 46 seconds Sir, uh can you please repeat the question and from the source which we have refer? 27:50 27 minutes, 50 seconds Yes sir. Yes sir. So so our other current liabilities have increased from 5.9 K to 26.1 K between FI25N and H1 of 28:00 28 minutes FI26. So if you help us understand why health has increased so much. 28:11 28 minutes, 11 seconds Okay. You are to H1 number. Let let me check once and I will yeah please please give me a second. 28:18 28 minutes, 18 seconds Okay. 28:20 28 minutes, 20 seconds Uh yes sir. In the meantime I had another question sir. Uh so what what we understand from some of the component 28:27 28 minutes, 27 seconds manufacturers of these uh off highway uh vehicles and uh construction and mining equipment is these Chinese player are 28:36 28 minutes, 36 seconds like top five out of the top 10 top five would be Chinese in off highway market and the construction market. Uh sir so 28:43 28 minutes, 43 seconds is that why we have introduced this Excel brand where we are just uh assembling these machinery for Chinese 28:51 28 minutes, 51 seconds and selling it in India. Is that understanding correct? 28:55 28 minutes, 55 seconds No, completely wrong. Actually, we are not the contract manufacturers for anyone. We are actually the brand owners of Excel. We are the brand who is 29:04 29 minutes, 4 seconds getting it made from one of the Chinese factories for us as per our design. Our design engineers are from our USA office 29:12 29 minutes, 12 seconds in Florida and we aspire to become one of the top 10 brands in the world for sure in the long run. 29:20 29 minutes, 20 seconds Right. Sir, so my right sir uh got it sir on the other current revenue other current liabilities you could help us 29:27 29 minutes, 27 seconds understand 29:42 29 minutes, 42 seconds hello yes sir hello sir he'll come back up with the question 29:50 29 minutes, 50 seconds in the mobile phone or Meanwhile, we can take up the other questions as well. 29:52 29 minutes, 52 seconds We'll get back to you on the Okay. Okay. So, so what's our total capex uh going forward? 29:59 29 minutes, 59 seconds We are an asset light model. We don't really, you know, have a clear uh in line with the objects of the issue. We don't really have a fixed capex or 30:08 30 minutes, 8 seconds something like that. We an asset light model. That's why we getting, you know, the machines itself manufactured by another company just like B or Samsung 30:15 30 minutes, 15 seconds or LG whatever. And uh I I don't think I mean as of now as on this date we don't have any plans of that. 30:24 30 minutes, 24 seconds And sir what is our working capital cycle like? What is the credit period that we give to our distributors? Do we buy machines on credit from our 30:33 30 minutes, 33 seconds suppliers? And how much inventory on a steady state basis do we keep? So if you could just explain us the steady state working capital days in our business. 30:48 30 minutes, 48 seconds All right. So the inventory question, we have increased our inventory which is the whole you know the the whole uh I 30:57 30 minutes, 57 seconds mean agenda that we have highlighted today. So the inventory has been increased to 70 K. So whatever we did 31:03 31 minutes, 3 seconds earlier has changed. Now the working capital cycle was earlier I believe 120 to 150 days something like that which 31:12 31 minutes, 12 seconds will now again remain to be seen since we have increased our inventory at overseas level and planning retail execution and the credit days is 60 to 31:21 31 minutes, 21 seconds 90 days is the delivery period and logistic cycle uh that we you know have to countries like Mexico and you know probably 60 days to South Africa etc. 31:31 31 minutes, 31 seconds And usually the credit period that we give is you know 30 days or something like this after delivery. So the logistics period gets recorded and in in 31:39 31 minutes, 39 seconds the delivery time and basically even when the control of the BL and the goods are in our hand the logistics period gets recorded as credit period in our books or receivables in our books. 31:49 31 minutes, 49 seconds However in the books of the customer you know they in in a practical basis they would essentially consider credit only 31:56 31 minutes, 56 seconds when the goods have received in their good has been received in their hand. So that is the so even at 120 12 150 days 32:03 32 minutes, 3 seconds of credit in our book essentially 90 days is just the logistics and delivery time it's just like if someone 32:11 32 minutes, 11 seconds is delivering goods from Pune to Bombay that one day of transit time does not count but if someone is delivering goods from Kashmir to Kany you know there'll 32:19 32 minutes, 19 seconds be a considerable transit time so the credit period may not be considered by the customer unless you get the delivery 32:25 32 minutes, 25 seconds approach so this is the essence and I would request you know the I think if you can focus the questions more towards this quarter and this earnings call 32:34 32 minutes, 34 seconds would be more fruitful for everyone's time and we can happily take one-on-one questions from you and connect directly with us of our team or our team you know 32:42 32 minutes, 42 seconds for the basic questions which have been covered in right sir I'll get back in the queue 32:49 32 minutes, 49 seconds thank you sir ladies and gentlemen to ask a question please press star and one now 32:58 32 minutes, 58 seconds participants who wish to ask questions may please press star and one at this time. 33:05 33 minutes, 5 seconds The next question is from the line of Jes from HDFC securityities. Please go ahead. 33:12 33 minutes, 12 seconds Yeah, thank you. Thanks for the opportunity and good. Uh am I audible? Yes. Yes sir. 33:20 33 minutes, 20 seconds Yes. Yes. 33:21 33 minutes, 21 seconds Yeah. So my question is that what is the current order book for revenue visibility for the next 12 months or 18 months maybe. 33:31 33 minutes, 31 seconds Uh hi M. So in usually as you can see in you know OEMs or dealerships or automotive or construction equipment 33:39 33 minutes, 39 seconds rather than a current order book which is predominantly seen in government contracts or something like this. I believe uh inventory and uh other things 33:48 33 minutes, 48 seconds uh like you know the demand in general in the market can be seen uh in in parallel to the revenue visibility. So 33:56 33 minutes, 56 seconds in that aspect like there's no current order book as such. I mean there are some orders in pipeline but we don't maintain that as an order book like you 34:04 34 minutes, 4 seconds know 200 of government order and all but we have commitments from our dealers especially in Excel that um which we disclosed in the news 34:13 34 minutes, 13 seconds as well 100 machines in the next couple of years and u and something like that but they will not meaningfully give you 34:20 34 minutes, 20 seconds the exact revenue stream because as I said but we not dependent on that order we have other marketing efforts sales 34:27 34 minutes, 27 seconds efforts efforts and year on year candle growth which is you know the most measurable performance which we can see 34:35 34 minutes, 35 seconds and measure with in terms of visibility in India sorry we have done in you know December 34:42 34 minutes, 42 seconds period so that can show that we are growing and the inventory has been built up you know that will get converted into 34:49 34 minutes, 49 seconds revenue and turnover so inventory I think you can get a decent idea of revenue visibility going forward 34:57 34 minutes, 57 seconds okay okay sir okay Oh okay. So majorly uh that means dependent on marketing and strategies correctly. 35:12 35 minutes, 12 seconds So that means marketing marketing. 35:19 35 minutes, 19 seconds Yeah. Sales and marketing efforts for the brand building and then that is the basic concept of users. 35:32 35 minutes, 32 seconds Correct. And second one will be that how much of the recent growth is applicable 35:39 35 minutes, 39 seconds to repurpose equipment versus the new or customized machines. 35:46 35 minutes, 46 seconds Okay. I believe uh uh so our numbers I believe 40 so used machmizition 36:22 36 minutes, 22 seconds So that will take time but similarly what is the percentage of mix in terms of value or in terms of units. 36:29 36 minutes, 29 seconds Uh sir in 9 months 2026 the new machines have taken 49% share old machine 42% and 36:36 36 minutes, 36 seconds hexagon 8.6%. So overall the new machines have been uh reduced from 61% to 49% of other grades. The hexel have 36:45 36 minutes, 45 seconds increased from 1% to nearly 9%. And the refurbished machine segment has incre from increased from 38% to 42%. 36:55 36 minutes, 55 seconds In 9 months 26 hello was clear. 37:05 37 minutes, 5 seconds Yeah. Yeah. Yeah. Yeah. Okay. Uh okay. 37:09 37 minutes, 9 seconds Thank you sir and for that uh answer and uh enter and apart from this one more uh that can management quantify the 37:16 37 minutes, 16 seconds contribution from repeat customers consider new client edition regarding the contain 37:27 37 minutes, 27 seconds But it remains same 37:39 37 minutes, 39 seconds and things like that but but uh I believe 70% would be our repeat customers and 30% new but going forward 37:47 37 minutes, 47 seconds we are also to 37:51 37 minutes, 51 seconds [cough] 37:53 37 minutes, 53 seconds excuse Okay. Okay. 38:11 38 minutes, 11 seconds So, entry into the new geography. So, which regions which regions are expected to be the primary growth driver for you? 38:21 38 minutes, 21 seconds We are definitely entering geography and leadership. 38:28 38 minutes, 28 seconds Uh but it is still publicly disclosed information. So I cannot tell that but uh 38:35 38 minutes, 35 seconds yeah I mean I mean see we were in 35 countries in all six continents. Latin America major Mexico major revenue 38:43 38 minutes, 43 seconds growth. I would say the other other Africa, Middle East and European countries will also start to throw in a lot of 38:52 38 minutes, 52 seconds I I I can tell you we are hiring team members. See, I'll be I'll be very honest. We hiring team members from very big brands in our 39:01 39 minutes, 1 second field to grow you know in these various regions that I told you we're dedicatedly hiring creating organization structure, regional sales, regional 39:09 39 minutes, 9 seconds sales manager, global sales head and all these people. So initially 39:18 39 minutes, 18 seconds driver and you know from promoter business to a professionally driven business which is the need of you know for the company to become a truly global 39:25 39 minutes, 25 seconds global brand with excel this is our aim and intention and we are doing it and we are we are spending on that we are spending on marketing exhibition 39:33 39 minutes, 33 seconds manpower and we I you know like 1 k plus manpower a lot so you know we are we going to invest in these they'll be 39:41 39 minutes, 41 seconds expensed out in the PNN initially and it will You know why are these expenses coming up? But we are very happy to take up these expenses investment. 40:09 40 minutes, 9 seconds Sorry to interrupt. There is lot of background noise from outside. Yeah. 40:20 40 minutes, 20 seconds Okay. Now, sorry. Yeah. According 40:44 40 minutes, 44 seconds I'll tell you a simple thing you know 40:55 40 minutes, 55 seconds so I'd like to clarify that very simple logic Right. 41:10 41 minutes, 10 seconds VCP, right? 41:30 41 minutes, 30 seconds already working capital of time. 41:58 41 minutes, 58 seconds customer. 42:12 42 minutes, 12 seconds It is very necessary that we take the strategic found 42:27 42 minutes, 27 seconds and you know globally we become very uh known in the state even more and you know more and team can drive it and you 42:36 42 minutes, 36 seconds know the growth drivers can become these people. 42:45 42 minutes, 45 seconds when there and I understand 42:53 42 minutes, 53 seconds just look at the business from you know books and 42:58 42 minutes, 58 seconds we look at you know the fundamentals we want to build a brand and build a 43:07 43 minutes, 7 seconds business for the long term and uh that is what we're doing and that is what we believe will you know give us the margin 43:16 43 minutes, 16 seconds because investing brand actually may we request you to return to the 43:24 43 minutes, 24 seconds question for followup okay okay no worries thank you thank you sir thank you so much for the answer 43:33 43 minutes, 33 seconds thank you sir ladies and gentlemen to ask a question please press Star and one. Now 43:41 43 minutes, 41 seconds participants who wish to ask questions may please press star and one at this time. 43:47 43 minutes, 47 seconds The next question is from the line of Prrenit and individual investor. Please go ahead. 43:58 43 minutes, 58 seconds Mr. Pranit, your line has been unmuted. Please go ahead. 44:05 44 minutes, 5 seconds Sir, there is no response. Can we go ahead? Hello. So hello can you hear me? Hello? Yes sir. 44:12 44 minutes, 12 seconds Sorry. Uh so thank you for the opportunity. So first I wanted to ask regarding the returns policy. So how does it work in terms of warranty and 44:19 44 minutes, 19 seconds returns for a refurbished and also new equipment? How does it work usually depending on the segment? 44:26 44 minutes, 26 seconds So for our own brand XL we give 2 and 20 2,000 hours warranty. And um usually the 44:34 44 minutes, 34 seconds goods are so big you know that in any return policy usually the shipment is usually covered by the customer right so these are large goods 44:44 44 minutes, 44 seconds right so returns are usually non-existent and off because the cost of returning itself will be much higher than the cost of repair or buying a new 44:52 44 minutes, 52 seconds part and installing a new part on that machine. The entire principle of mechanical engineering or you know machine learning the fact machine can 45:00 45 minutes get repaired again and again again again and again again again and again by either repairing the engine or the transmission or other component or 45:07 45 minutes, 7 seconds hydraulic or whatn not right and these are smaller parts which can be shipped easily by the or anything else or import 45:14 45 minutes, 14 seconds air cargo and it made easier and this is what happens a huge truck or a used machine it can go on and on and on and 45:22 45 minutes, 22 seconds on getting this year and years and And that's why government even imposed laws that 15 years more than the age of 45:29 45 minutes, 29 seconds machines or trucks or not machines trucks after 15 years cannot be used at all because otherwise what was essentially happening in all the 45:37 45 minutes, 37 seconds countries is you know people were just repairing the machine or truck and using it for 50 years or whatever x number of 45:43 45 minutes, 43 seconds years it can go on and on so that is returns are non-existent virtually warranty as I said for our own brand we 45:52 45 minutes, 52 seconds give warranty for used machines and repurposed machines. 45:55 45 minutes, 55 seconds We are the wholesale seller. Warranty is usually covered by the distributors. So the end distributor incorporates and builds it up in their margin and they 46:04 46 minutes, 4 seconds give warranties. And again the concept is the same. They buy spare parts either from us or from the local vendor or from anyone else and and do it. 46:13 46 minutes, 13 seconds So it's basically seller warranty. It's not manufacturer warranty. 46:17 46 minutes, 17 seconds Exactly. For used machines because used machines they're not essentially the manufacturer. 46:22 46 minutes, 22 seconds And for Hexel brand we are the manufacturer. So we give warranty back to that and that is covered by our suppliers and our factory and for 46:29 46 minutes, 29 seconds example we using Cummings engine. So Cummings is given a warranty which we cover back to that coming is a globally established brand service etc 46:38 46 minutes, 38 seconds everywhere. So with the serial number of the engine etc they give the warranty. 46:44 46 minutes, 44 seconds So the basically the producer who's already doing the contract contraction for you covers the warranty across the globe. Yeah. Yeah. 46:52 46 minutes, 52 seconds Understood. And in ter so one more question is regarding what our expansion beyond the mining sector. Is there potential for agri or does how does the 47:01 47 minutes, 1 second management think about expanding the sector to other other segments like agri when it has similar use case and similar. 47:10 47 minutes, 10 seconds Our focus has not been that sharp over there currently. But yes, we are present in a minor level on agri vertical including you know agriculture 47:18 47 minutes, 18 seconds conductors etc as well. It is an ancillary uh I would say uh product segment as well. 47:26 47 minutes, 26 seconds So and one more question regarding the beginning of the just to get some context as an investor. So I understand that in the last con you mentioned that 47:34 47 minutes, 34 seconds your family has been into the mining sector 50 for last 50 years. Could you also explain how I'm sorry how you mean to say how? 47:47 47 minutes, 47 seconds Hello I think I lost you. I'll give you I'll still give a general broad view context that our family have started 47:53 47 minutes, 53 seconds mining contract in part of inc plant which is the flagship unit of student authority of India limited and uh you 48:02 48 minutes, 2 seconds know my father was also into mining contract and contracting. My uncles are into mining contracts. They even execute big contracts right now for BSP or uh participating vendors for WT etc. 48:13 48 minutes, 13 seconds So primarily our family has been users and even our extended tangi cousins etc. 48:17 48 minutes, 17 seconds All have been users of construction in mining machine. We have a very first and overview of uh not not very in detail understanding about how machines work. 48:28 48 minutes, 28 seconds What do the customers want? Because we ourselves our customers on the other side of this and uh how what what problems arise and what can be 48:37 48 minutes, 37 seconds repairable? How do we repair it in a cost effective way and all those impact has really gone into our current business as well where we repurpose 48:44 48 minutes, 44 seconds machines or design machines in you know keeping in mind the requirements and ease and comfort of the customer and then we are trying to make Excel as a customer oriented brand. 48:58 48 minutes, 58 seconds Thank you sir. 48:59 48 minutes, 59 seconds Was it 49:12 49 minutes, 12 seconds ladies and gentlemen uh in order to ensure that management is able to address question from all the participant please limit your questions 49:19 49 minutes, 19 seconds to one per participant. The next question is from the line of Madur Rati from Counter Cyclical Investment. Please go ahead. 49:27 49 minutes, 27 seconds Thank you for the opportunity. Once again sir if you could help us understand what is the margin profile for refurbished equipment versus our own 49:35 49 minutes, 35 seconds branded equipment 12 14% levels uh is what we expect and 49:41 49 minutes, 41 seconds see estimate usually in on pat level for refused machines and uh for our own brand it's early on there are many many 49:50 49 minutes, 50 seconds one time expenses including onboarding of staff paid staff marketing website trademark registration what not right so But going 49:59 49 minutes, 59 seconds going forward in the years to come I expect we expect uh 12 15% on that loan basis or on brand as well without any payback. 50:10 50 minutes, 10 seconds Okay. I'm answer employee expenses have increased I think so so at this level of employee counter how many ref machines can be refurbished? 50:23 50 minutes, 23 seconds I don't think that would be a direct analogy because employees include a lot of white collar and you know senior managers which are probably 50:32 50 minutes, 32 seconds in various sections including accounts or whatn not right so the capacity as of now doesn't change exactly for the repo 50:39 50 minutes, 39 seconds this machine it is primarily restricted by the working capital is available and uh since as we informed earlier that we 50:48 50 minutes, 48 seconds have designated partners and etc for you know refurbishment as So money is the raw material here and I 50:57 50 minutes, 57 seconds mean if you have over capital we can simply as you can see we build up inventory since we have the IP profit. 51:04 51 minutes, 4 seconds So we can increase inventory again and we can repurchase more if you have more money to invest in the information and 51:11 51 minutes, 11 seconds and the cost of goods purchased s so why did we build inventory? Why don't we just uh sell it to our distributors instead? 51:23 51 minutes, 23 seconds So exactly this is I mean let's say 51:40 51 minutes, 40 seconds to do its By 52:05 52 minutes, 5 seconds all meanacting. 52:24 52 minutes, 24 seconds to note over here also that you know but the end of the cycle including that 60 to 90 days period. 52:37 52 minutes, 37 seconds That is a sales cycle which fundamentally understand 52:44 52 minutes, 44 seconds the cycle of 15 days cannot be completed which is what is reflected over 52:53 52 minutes, 53 seconds understood sir and is pun vision equipment our competitor or our customer or supplier? 53:02 53 minutes, 2 seconds No, they're not our customers or supplier. They are in a similar domain in one of the verticals but not exactly same. The primary business is renting of 53:11 53 minutes, 11 seconds machine and uh okay I believe that's where most of their pattern revenue comes from other we are doing I don't 53:19 53 minutes, 19 seconds know what exactly but yeah we are into our own brand and we are new to our core business is in transitional construction 53:26 53 minutes, 26 seconds and we okay sir thank you very much. Thank you sir. 53:34 53 minutes, 34 seconds A request to participant to limit your question to one per participant. 53:39 53 minutes, 39 seconds The next question is from the line of pranit and individual investor. Please go ahead. Uh I'm really sorry the call got cut. 53:48 53 minutes, 48 seconds Thank you for the followup though. Uh just could you re answer my answer my old question of how did the how did your family enter into this business and is the mining option still going on? 54:00 54 minutes All right, I'll ask you that question again. I'll answer it again and if there's still further question queries we can take it oneon one with Mr. Pra 54:07 54 minutes, 7 seconds and our team. Yeah, our family like corporate started mining contracts in south of Satan maybe 505 years ago uh 54:16 54 minutes, 16 seconds for life steel plant which is the flagship unit of the chief authority of Indian and uh ever since mining has been 54:24 54 minutes, 24 seconds coarted business and official my father entered the business he started EP mining 54:31 54 minutes, 31 seconds contracts and other contracts in Raipur for stone quaries etc as well railway and even my cousin and uncles currently 54:40 54 minutes, 40 seconds from our you know same house cousin family are heavily involved in mining contracts in WBS and um other mining companies private or 54:49 54 minutes, 49 seconds public so that is how we are related to mining and contracting and where uh we have firstand insights of how the 54:57 54 minutes, 57 seconds machines are used how they repaired what problems arise what problems do the OEM currently the SN currently the market uh 55:05 55 minutes, 5 seconds you know um give to customers and that's We have been able to have so much of customer insights and solve problems of 55:13 55 minutes, 13 seconds uh customers in the aspect of designing our own brand in Excel and also when you know repairing us machines 55:22 55 minutes, 22 seconds by knowing what lacks in what machine and solving that problem in a cost effective way that has been a USB that 55:29 55 minutes, 29 seconds is why we are a three star export out with the government of India and that's why we have had a such a you know recurring customer base with the same customer buy from us again again and 55:38 55 minutes, 38 seconds again and again and now with more working capital at our hand we're ready to you know tilt this up expand our customer base to our existing customer 55:47 55 minutes, 47 seconds base exactly and you know grow to send from there understood I understand that the the 55:54 55 minutes, 54 seconds company has clearly a proper sorry to interrupt you sir may request you to come back in the follow-up question for 56:01 56 minutes, 1 second question Q sure thank you thank you sir request to all the participants to limit your question to 56:09 56 minutes, 9 seconds one per participant. The next question is from the line of Hmon from Abar Group. Please go ahead. 56:18 56 minutes, 18 seconds Hi, good evening sir. Uh I have a very specific question. When I was going through your consolidated results, I would just like to understand just 56:26 56 minutes, 26 seconds because we have strategically moved our inventory to our overseas subsidiary, the cost of movement of those inventory has impacted consolid profit. That is that the major reason? 56:38 56 minutes, 38 seconds Yes, you got it exactly right because what happens is according to India in very plain English all the expenses are 56:45 56 minutes, 45 seconds recorded for any movement, right? And these are major expenses including shipping, transportation etc. And the 56:52 56 minutes, 52 seconds whatever whatever is the expense it will get recorded but the profit and turnover gets eliminated. 56:58 56 minutes, 58 seconds If there is inventory obviously it got built up and there is a purchase cost intent on it. The other cost is there right which get add which gets added to 57:08 57 minutes, 8 seconds the value and then that will get sold the entire gross profit will become the fact because the expenses are already 57:15 57 minutes, 15 seconds but the same expense is not booked. So this is what shows and this is called inter intergroup elimination or 57:22 57 minutes, 22 seconds something like this and that profit elimination turnover elimination and since we have a such a high level of inventory so all that inventory 57:31 57 minutes, 31 seconds elimination is happening. So which is why it is showing you know a in a satic way like a very high estimate because 57:39 57 minutes, 39 seconds earier we used to have 10 to 15 of inventory now it is 70 cr of inventory. 57:45 57 minutes, 45 seconds So that is why the swing became very large for it. 57:53 57 minutes, 53 seconds Then we can expect a sharp reversal in coming quarters as in when it is sold conditioning like this. I think it will 58:00 58 minutes not be prudent but as I said if anyone gets what will happen and then that gets booked. 58:22 58 minutes, 22 seconds Okay, thank you so much. 58:25 58 minutes, 25 seconds Thank you sir. The next question is from the line of Pranit, an individual investor. Please go ahead. 58:32 58 minutes, 32 seconds Yeah, thank you for the opportunity again. Uh so I was just wondering that uh the management has mentioned money is the uh raw the raw materials. I'm 58:40 58 minutes, 40 seconds wondering why you don't you face any other competition because if capital is the only requirement there can be money other players in the market. So I was 58:48 58 minutes, 48 seconds just wondering I understand the deeper insights on how the machine works and you have the partnerships like could you explain why does J Kushal have a much 58:57 58 minutes, 57 seconds more stronger market presence and why does it continue to have its market share? 59:04 59 minutes, 4 seconds I mean for what? For which vertical of our the refurbishment and the OEM both 59:14 59 minutes, 14 seconds mechanical engineer right I'm a mechanical engineer my father is a mechanical engineer and uh I mean in 59:21 59 minutes, 21 seconds every business there will always be competition competition is healthy and it always gets why can't the other guy or the competitor be better but we are 59:30 59 minutes, 30 seconds the largest exporter in India for non-an construction equipment for a Well, we are we are awarded exposure of the year and whatn not for a reason right and it 59:38 59 minutes, 38 seconds will it will amount to self boasting but we're pretty hard working I would say if if not intelligent as well and this is 59:46 59 minutes, 46 seconds what we've been trying to do we're working around the clock our people who know me or our family they would know 59:54 59 minutes, 54 seconds that you know we we are very hard and one thing the college told is back in college you know whatever 1:00:02 1 hour, 2 seconds industry I I mean whatever what I do I'll definitely outsmart and beat the competition and I am I I hope to have you know moved in that direction 1:00:11 1 hour, 11 seconds somewhat and achieved it at some level and we hope to carry it on as well. I mean that is our intention and goal 1:00:19 1 hour, 19 seconds competition is there but we you know by defeat our competition and be the best in our in our you know league environment. 1:00:29 1 hour, 29 seconds Got it. And one more question. Domestic market. Why don't interrupt you sir? May we request you? 1:00:37 1 hour, 37 seconds Just one last question. Domestic market. 1:00:39 1 hour, 39 seconds I understand that we export more almost all right. I was wondering is there no domestic market available for this particular refurbishment and OEM 1:00:47 1 hour, 47 seconds refitment? I'm pretty sure there is. I'm just wondering why did we stay away from that market? 1:00:53 1 hour, 53 seconds Well, the government of India promotes exports from India. We take pride in the fact that you know we earn valuable foreign elections for the country. We 1:01:00 1 hour, 1 minute are a three star export recommended and awarded by the government of India. So we basically are following the footsteps and guidelines of the government right 1:01:08 1 hour, 1 minute, 8 seconds and if you are catering to the export market the taste different price point difference etc. the dynamics are different for the Indian market. You can 1:01:16 1 hour, 1 minute, 16 seconds limit size of capitals you there's only so there's only so much that you can do it. So the kind of product that we making, the kind of ecosystem and teams 1:01:23 1 hour, 1 minute, 23 seconds we have and the entire kind of uh supply chain model we have is more suitable for the export market. It's giving us fair 1:01:30 1 hour, 1 minute, 30 seconds enough revenue and fair enough profit margin earning in dollars is always better. So that's what we're doing and 1:01:38 1 hour, 1 minute, 38 seconds uh India is all about scale and you know capital then we have the intention and strategy to deploy as much capital to 1:01:47 1 hour, 1 minute, 47 seconds gain volume at lower margin level that as well. 1:01:52 1 hour, 1 minute, 52 seconds Understood. So it was basically capitalation the fact that we wanted to prioritize that then we might come here once we saturate that. 1:02:00 1 hour, 2 minutes Exactly. from our family we run for and we we exchange profits and wherever we got higher profits it's as simple as 1:02:08 1 hour, 2 minutes, 8 seconds that whether it be Mexico in any one year or whether it be South Africa or Dubai in anyone here or Netherlands or UK in anyone here we had historically 1:02:17 1 hour, 2 minutes, 17 seconds placed that with a limited amount of capital pool in a highly intensive capital intensive working capital intensive basically capital growth 1:02:24 1 hour, 2 minutes, 24 seconds industry and rather than optics we really focus in the corner and business develop so customer base in so many countries and 1:02:32 1 hour, 2 minutes, 32 seconds now with incremental capital you can cater to multiple you know geographies and even like Mexico had this tariff 1:02:40 1 hour, 2 minutes, 40 seconds pause and different and temporary uh stage where people were uh you know postponing their order to see next month 1:02:48 1 hour, 2 minutes, 48 seconds or something we had South Africa etc we focused there and we had the customers we pushed machines over there and we were able to immediately pivot so this 1:02:57 1 hour, 2 minutes, 57 seconds is this is the whole point rather than optics or you know putting things on books or numbers or something 1:03:05 1 hour, 3 minutes, 5 seconds you need focus on underlying reason and that's even now understood. Uh thank you so much for 1:03:13 1 hour, 3 minutes, 13 seconds taking us. I just wondering one more thing is regarding who Thank you sir. 1:03:20 1 hour, 3 minutes, 20 seconds As there are no further questions from the participants I now hand the conference over to Miss Chandini from Equidex 1:03:28 1 hour, 3 minutes, 28 seconds Advisor Private Limited for closing comments. 1:03:32 1 hour, 3 minutes, 32 seconds [clears throat] 1:03:33 1 hour, 3 minutes, 33 seconds On behalf of Jin Kushell Industries and Equidex advisers, I thank everyone for taking the time to join today's learning call. If you have any queries you can 1:03:42 1 hour, 3 minutes, 42 seconds connect to us at info@ equipex.com. Once again thank you for joining the conference. Thank you Abhinav. Thank you so much. 1:03:51 1 hour, 3 minutes, 51 seconds Thank you everyone. 1:03:53 1 hour, 3 minutes, 53 seconds Thank you on behalf of Equib Reject Advisor Private Limited. That concludes this conference call. Thank you for joining 1:04:00 1 hour, 4 minutes us and you may now disconnect your lines.