Kaynes Technology India Ltd — Q4 FY26

Kaynes Technology India Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=VgXNpUWaDTU Published: 3 hours ago

0:00 Ladies and gentlemen, good day and welcome to the Kane's Technology India Limited Q4 and Fulier 26 earnings 0:09 9 seconds conference call hosted by Access Capital Limited. As a reminder, all participant lines will be in the listen only mode 0:17 17 seconds and there will be an opportunity for you to ask questions after the presentation concludes. 0:23 23 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on 0:30 30 seconds your touchstone board. Please note that this conference has been recorded. I now hand the conference over to Mr. Nikil 0:38 38 seconds Kandui from Access Capital. Thank you and over to you sir. Thank you Sadi. Good morning everyone. 0:45 45 seconds On behalf of Access Capital, I would like to welcome you all to the Q4 and fullear FI26 earnings fund of Kes Technology India Limited. We have with us management today represented by Mrs. 0:56 56 seconds Savvita Romesh Chairperson, Mr. Romesh Kunan, executive vice chairman, Mr. 1:02 1 minute, 2 seconds Muttakumar, Naran Swami, planning director participants are requested to note that Mr. Jaram Sutton director and chief financial officer would not be 1:11 1 minute, 11 seconds available for the call due to health concerns. Now I'll hand hand over the floor to the management for the opening remarks. Will open the floor for Q& thank you and over to you sir. 1:23 1 minute, 23 seconds Good morning everyone. On behalf of Kane's technology team I would like to welcome everyone to the earnings call of Q4 FI26. 1:36 1 minute, 36 seconds Mrs. Sabita Romesh chairperson of our board. Our managing director Dr. Mutumar Naran Swami, 1:45 1 minute, 45 seconds Mr. Sumit WHMA from our investor relationship and MUSG 1:51 1 minute, 51 seconds our investor relation partner are with us today. 1:57 1 minute, 57 seconds Let me begin this with a brief of overview of our financial performance for the consolidated year FI26 period. 2:07 2 minutes, 7 seconds Our total revenue stood at 3,620 uh 3,00 2:16 2 minutes, 16 seconds say 3,62 26.4 2:23 2 minutes, 23 seconds cr reflecting a yearon-year growth of 33.2%. 2:28 2 minutes, 28 seconds Our EITA for the period FI26 was 5,741 2:35 2 minutes, 35 seconds million registering a growth of 39.8% over the same period last year. 2:43 2 minutes, 43 seconds This translates into an AITA margin of 15.8% 8% for FY26 2:50 2 minutes, 50 seconds while profit after tax came in at INR 3,639 million representing a fat margin of 10% for year FY26. 3:04 3 minutes, 4 seconds I am also pleased to share that during FY26 our More facility achieved a significant 3:12 3 minutes, 12 seconds milestone by crossing ILR 10,000 million in revenue. 3:19 3 minutes, 19 seconds This achievement reflects not only the scale and maturity that the unit has attained over the years 3:28 3 minutes, 28 seconds but also strong customer confidence, execution capability and manufacturing that has built across its operations. 3:40 3 minutes, 40 seconds This quarter and the full year reflect a period of consolidation as we continue to strengthen execution capabilities and 3:49 3 minutes, 49 seconds prepare the company for the next phase of growth. 3:53 3 minutes, 53 seconds Over the last few quarters, our focus has remained on driving consistent improvement in topline growth while maintaining healthy bottom line. 4:06 4 minutes, 6 seconds That said, our near term topline performance did not fully meet market expectation primarily due to 4:15 4 minutes, 15 seconds sorry to interrupt it again sir uh your voice a little bit 4:22 4 minutes, 22 seconds uh near-term topline performance did not fully meet market expectations 4:28 4 minutes, 28 seconds primarily due to geopolitical disruptions 4:34 4 minutes, 34 seconds especially the West Asia conflict which led to lastm minute customer deferment, 4:43 4 minutes, 43 seconds supply chain delays and project timing shift. 4:47 4 minutes, 47 seconds Similar to the earlier Russia Ukraine situation, these events created temporally uncertainity 4:56 4 minutes, 56 seconds in execution timelines. Even though the underlying demand environment remains strong 5:05 5 minutes, 5 seconds since our revenue are closely linked to customer project readiness and approval cycles, some revenue recognition has 5:13 5 minutes, 13 seconds shifted despite the orders remaining valid and executable. 5:19 5 minutes, 19 seconds While these factors have had a temporary impact on near-term revenue timing, our strategic direction, 5:28 5 minutes, 28 seconds customer engagement and long-term growth road map remains firmly aligned and HS 5:35 5 minutes, 35 seconds has continued to demonstrate resilence and execution strength through this period. 5:44 5 minutes, 44 seconds The company has not seen a structural deterioration in demand, order book quality or customer 5:52 5 minutes, 52 seconds relevance. Our order book remains healthy, diversified and non-cancellable in 6:00 6 minutes nature and we continue to see strong engagement across multiple strategic sectors. 6:10 6 minutes, 10 seconds Over the last few years, gains has grown rapidly and in a relatively short period 6:17 6 minutes, 17 seconds of time, that growth has created significant expectations from investors, customers, partners and suppliers. 6:28 6 minutes, 28 seconds We respect those expectations. 6:32 6 minutes, 32 seconds We are conscious that when a company scales at the pace we have scaled, execution has to mature equally fast. 6:43 6 minutes, 43 seconds That journey of institutional strengthening is underway and we remain fully committed to improving consistency, 6:52 6 minutes, 52 seconds predictability and delivery against the confidence placed in us. 6:58 6 minutes, 58 seconds There has been some top management restructuring and role realignment in 7:05 7 minutes, 5 seconds this phase. Such transactions naturally take some time to settle particularly in an organization that is expanding across 7:15 7 minutes, 15 seconds multiple technologies manufacturing and strategic platform simultaneously. 7:23 7 minutes, 23 seconds However, these changes are indented that to sharpen accountability, 7:30 7 minutes, 30 seconds deepen execution ownership and build a resilient operating architecture for the next phase of 7:44 7 minutes, 44 seconds next phase of scale. The organization is adapting quickly and the leadership team 7:52 7 minutes, 52 seconds is fully aligned to match with the market expectation 7:58 7 minutes, 58 seconds in core EMS as well. Our diversification strategy continues to hold strong as discussed in the earnings call. 8:09 8 minutes, 9 seconds growth is increasingly broad-based across automotive, EV, industrial, 8:16 8 minutes, 16 seconds aerospace and railway related segments with lower dependence on any single business line. 8:25 8 minutes, 25 seconds This diversified vertical mix gives us confidence that near-term 8:32 8 minutes, 32 seconds volatility is one area will not define the long-term trajectory of the company. 8:41 8 minutes, 41 seconds I am pleased by the trajectory of our two new growth engines in OSAT. 8:49 8 minutes, 49 seconds Unit one is fully operational and unit 2 is in commercialization by Q226. 8:59 8 minutes, 59 seconds These business strengthens gains further by deepening backward integration adding technology depth and expanding our 9:08 9 minutes, 8 seconds presence in high value manufacturing in Os. Order outlook for both the 9:17 9 minutes, 17 seconds current year and the medium-term remains strong with revenue visibility of for 9:23 9 minutes, 23 seconds over INR 25,000 million over the next 5 years. 9:32 9 minutes, 32 seconds Similarly, in PCB, we continue to see a robust and confirmed demand pipeline for the next five years with several 9:40 9 minutes, 40 seconds customers already indicating requirement for additional capacity expansion. 9:48 9 minutes, 48 seconds One important point that defers acknowledgement is that certain areas 9:55 9 minutes, 55 seconds where market expectations moved ahead of actual delivery were driven not only by 10:02 10 minutes, 2 seconds execution facing but also by the border operational complexities associated with 10:09 10 minutes, 9 seconds managing the core EMS business. amid global uncertaintities while 10:17 10 minutes, 17 seconds simultaneously scaling new strategic platforms such as OSET and PCB. 10:24 10 minutes, 24 seconds Going forward, our focus remains clear. 10:28 10 minutes, 28 seconds Improving execution in EMS, moving towards product revenues, ramping up PCB 10:35 10 minutes, 35 seconds and OSAT with discipline and delivering growth with stronger topline and bottom 10:43 10 minutes, 43 seconds line growth and capital efficiencies. 10:49 10 minutes, 49 seconds We value the trust placed in us and recognize that credibility is built through consistent delivery. 10:58 10 minutes, 58 seconds With that, I would like to hand over the call to Dr. Mutkumar, managing director of over to you Mutumar. Um, thank you Mr. 11:11 11 minutes, 11 seconds Romesh. Um, good morning ladies and gentlemen and uh, thank you for taking time to join with us today. It's 11:18 11 minutes, 18 seconds privilege to address all of you as we continue our journey of building Kes into a globally recognized technologydriven manufacturing 11:26 11 minutes, 26 seconds enterprise. Under the leadership and vision of our executive vice chairman, Mr. Ahsh Karnan, Kes has built a strong foundation of customer trust, execution 11:35 11 minutes, 35 seconds excellence and sustainable growth. Over the last few quarters, the company has continued to deliver strong financial 11:42 11 minutes, 42 seconds and operational performance supported by a healthy order book, increasing the customer engagement and growing presence 11:50 11 minutes, 50 seconds across all the high value sectors. For Q4 FI26, our total revenue stood at 11:57 11 minutes, 57 seconds 12,426 million, reflecting a year-on-year growth of 26% for this quarter. And you know, on overall for 12:05 12 minutes, 5 seconds the year, we grown at 33%. While the operational EIA for Q426 came up to,937 million translating it in EITA margin of 12:14 12 minutes, 14 seconds 15.6% reflecting our continued operational resilience and scale expansion. The profit after tax for the quarter stood at 912 million. 12:25 12 minutes, 25 seconds Our debt to equity ratio stood at approximately 02 in FI26 reflecting a prudent disciplined capital structure even during the face of significant expansion. 12:35 12 minutes, 35 seconds The same time our organization is able to give earning per share basic has 12:40 12 minutes, 40 seconds grown from INR30 in FI24 to 54.9 in FI26 reflecting the company's consistent 12:48 12 minutes, 48 seconds growth trajectory and long-term value creation for our all stakeholders. 12:54 12 minutes, 54 seconds We realize our working capital days stood at around 122 days in FI26 primarily reflecting the business model requirements of the smart meter segment 13:02 13 minutes, 2 seconds which has different working capital cycle when compared to the core EMS business. On a like to like basis we would like to bring it to your attention that the core EMS business has 13:10 13 minutes, 10 seconds demonstrated a significant improvement in the efficiency as committed earlier with the working capital days reducing from 83 days in FI24 to 53 days in FI26. 13:20 13 minutes, 20 seconds We remain focused on further strengthening the operational efficiencies and improving project execution cycles and optimizing working 13:27 13 minutes, 27 seconds capital and we continue to scale the business. One of the defining milestones in the journey has been the integration of the OSAT facility at SAS by our honorable prime minister Sharendra Modi. 13:38 13 minutes, 38 seconds This is not only the matter of pride for kes but also a strong validation of our company's growing role in India semiconductors and electronic manufacturing ecosystem. 13:49 13 minutes, 49 seconds What Kanes has achieved in relatively a short span of time reflects the strength of our vision, execution capability and the commitment to our teams across the 13:57 13 minutes, 57 seconds organization at the as we enter the next phase of our 14:04 14 minutes, 4 seconds uh evolution. Our focus will continue to be on strengthening the foundation and scaling the organization with a greater speed, agility, innovation and 14:14 14 minutes, 14 seconds operational excellence. Change today stands at a very important inflection point. The industry is evolving rapidly. 14:20 14 minutes, 20 seconds Customer expectations are keeping more demanding and our global manufacturing landscape is increasingly shifting toward high value technology intensive 14:29 14 minutes, 29 seconds solution. The environment of aspiration is not only to grow in scale but also significantly enhance quality and value of our business. One of our key 14:38 14 minutes, 38 seconds strategic priorities in the next few years will be to accelerate the transition from a traditional EMSled organization to a differentiated ESDM 14:46 14 minutes, 46 seconds and productdriven enterprise. A critical pillar for this transformation will be centering our new product development capabilities. We believe that innovation 14:54 14 minutes, 54 seconds manufacturing will define our future of the industry and our goal is to steadily increase the contribution of NPDLE and value added solutions to nearly 30% of the total revenue in the coming years. 15:04 15 minutes, 4 seconds To achieve this, we are investing on our engineering capabilities, customer core development model, a digital infrastructure and an R&D infrastructure 15:13 15 minutes, 13 seconds and an integrated product realization platform that allows us to engage in the early phases of the customer product development. This will not only improve 15:22 15 minutes, 22 seconds the margins of the company but also the customer's confidence and position kes as a strategic technology partner and a 15:30 15 minutes, 30 seconds original design manufacturing company rather than a manufacturing service provider. At the same time, operational excellence will remain at the core of 15:38 15 minutes, 38 seconds our execution philosophy. As we scale consistently in quality, delivery, productivity, and reliability becomes even more critical. Our focus will 15:46 15 minutes, 46 seconds therefore be on building deeply a process-driven organization powered by enterprisewide digital systems, 15:53 15 minutes, 53 seconds automation and datadriven decision making. Quality in particular will be defining theme for us going forward. As we all know that quality is no more a differentiator the basic expectation. 16:04 16 minutes, 4 seconds What differentiates the companies now is the ability to deliver superior quality consistently with the speed at a competitive cost and reliability and of 16:13 16 minutes, 13 seconds course intelligence. With artificial intelligence coming in, we are introducing artificial intelligence in various processes to make sure that we 16:21 16 minutes, 21 seconds are ahead of the market. At Kes, we are committed to building a culture where quality is embedded into every process, every product and every decision across the organization. 16:31 16 minutes, 31 seconds We're also driving the company initiative with total protective maintenance, advanced quality systems, industry 4.0 integration and two of our 16:39 16 minutes, 39 seconds plans have already done the kickoff and moving into the next phase of implementation. 16:44 16 minutes, 44 seconds These initiatives um across the organization are not just about improving the manufacturing metrics. These are about 16:52 16 minutes, 52 seconds creating a culture of ownership, discipline, a continuous improvement and a customer centric across all our facilities. As the manufacturing 17:01 17 minutes, 1 second ecosystem become more competitive globally, automation and digital transformation will become essential enablers in long-term competitiveness. 17:07 17 minutes, 7 seconds Our focus will therefore continue to be on improving productivity, reducing process variability, centering supply chain integration, and enhancing 17:15 17 minutes, 15 seconds execution. Another important thing change is the quality and diversity of experience we continue to bring in our leadership and governing structure. Our 17:24 17 minutes, 24 seconds board today brings together an expertise across technology, finance, law, engineering, manufacturing, automotive and electronic and strategic operations. 17:35 17 minutes, 35 seconds Leaders such as Mr. Muri who brings deep financial leadership experience including his tenure at the group CFO and TS motor company. Mr. Koshi 17:43 17 minutes, 43 seconds Alexander who have extensive experience in finance and public sector electronics including serving as director of finance at barat electronics limited brings 17:51 17 minutes, 51 seconds significant strategic and operational depth in the organization with pimaranganad with extensive legal and governance experience the guiding 17:58 17 minutes, 58 seconds philosophy principles in people development and in our legal framework Dr. Manaduray with a deep experience 18:05 18 minutes, 5 seconds from India space and technology missions is joining our board will sent us to take it to the next levels of technological upgradation. Mr. Rajesh 18:14 18 minutes, 14 seconds Mittel with a strong expertise in engineering and automotive operations is joining our board and I'm sure that it will strengthen our supply chain 18:22 18 minutes, 22 seconds capabilities and penetrating and uh getting into the more into an automotive operation. Their guidance along with 18:29 18 minutes, 29 seconds addition of strong leadership in various functions in the Kes continues his journey towards becoming a stronger design technology focused and a box 18:38 18 minutes, 38 seconds build solution company. Most importantly, none of this is possible without our people. At Kes, we strongly believe that people define our strength 18:46 18 minutes, 46 seconds and future of the organization. We continue to invest in leadership development, capability building and creating opportunities for our team to 18:53 18 minutes, 53 seconds innovate, grow and lead. At the same time, we are consciously building a strong pipeline of future leaders who can carry forward their values, culture 19:01 19 minutes, 1 second and long-term mission of the organization. As we continue to scale in the Vikit bar era, our focus remains very clear. A customer focus, innovation 19:10 19 minutes, 10 seconds and quality and people. These four pillars continues to guide our K's journey as we build Kes into a world-class manufacturing organization 19:18 19 minutes, 18 seconds that will be the new benchmark for the industry. With this commitment from our teams, the trust from our customers and 19:26 19 minutes, 26 seconds strength of our strategic direction, I'm confident that Kes will continue to play a defining role in shaping the future of Indian manufacturing in the global 19:34 19 minutes, 34 seconds stage. With this, I complete my initial remarks and would like to thank Access Capital for hosting this call. Would also like to thank all the participants 19:42 19 minutes, 42 seconds for joining us today and I'll hand it over to the access capital and looking forward to answer your queries. Once again thank you very much for joining 19:51 19 minutes, 51 seconds taking time to join this call. Um over to you access capital team. 19:59 19 minutes, 59 seconds Uh shall we open the floor for question and answer sir? Yes. Yes please. 20:05 20 minutes, 5 seconds Thank you very much. We will now begin with the question and answer session. 20:09 20 minutes, 9 seconds Anyone who wishes to ask a question may press star then one on the touchstone teleport. If you wish to remove yourself 20:18 20 minutes, 18 seconds from the question queue, you may press star and two. Participants, you are requested to use hands while asking a question. 20:28 20 minutes, 28 seconds Ladies and gentlemen, we will wait for a moment while the question assembles. 20:36 20 minutes, 36 seconds A reminder to all, you may press star N1 to ask a question. 20:42 20 minutes, 42 seconds We will take the first question from the line of Mel Sha from Enam Holdings. Please go ahead. 20:49 20 minutes, 49 seconds Yes, thank you for the opportunity sir. So my first question is on guidance sir. 20:53 20 minutes, 53 seconds At the start at the start of the year sir we we had guided that uh we are looking to close the year with revenues 21:00 21 minutes of 4,500 Kores which was sub uh subsequently torn down to 4,000 crores and we end the year with close to 3,600 21:08 21 minutes, 8 seconds crores of revenue. Sir, so how should as investors we look at uh this guidance and uh what is the sanctity of the 21:15 21 minutes, 15 seconds guidance that we are providing sir because there is a very vast variance between what was uh expected versus what is delivered sir. 21:25 21 minutes, 25 seconds Um thank you very much for asking this question. We fully understand and appreciate your question. We did an 21:32 21 minutes, 32 seconds aggressive uh offline growth in the year based on the order book and we thought um the electrification of the vehicle 21:40 21 minutes, 40 seconds and of course uh the government projects where we are working is going to be at the fast pace. Um you know uh taking a 21:48 21 minutes, 48 seconds giving a guidance of 4500 crores is almost 55% growth over the previous year. um in the third quarter I think we 21:56 21 minutes, 56 seconds have uh turned out to saying about 4,000 because of the few delays and one of the largest um electric vehicle OEM 22:03 22 minutes, 3 seconds manufacturers has completely dropped by about 90% of the revenue wherein we were the single supplier which has dropped our numbers but we were quite confident 22:12 22 minutes, 12 seconds in the last quarter of getting to government orders where the products have been done and the product testings have been approved is going to be done 22:20 22 minutes, 20 seconds but there is a delayed project I think these are the two things that has put us while we have delivered about 33% growth 22:27 22 minutes, 27 seconds in revenue and 39% growth in um the bottom line we sincerely understand and appreciate that the guidance what we 22:33 22 minutes, 33 seconds have given uh we could not meet having said that um I think while we are looking at strengthening our execution 22:42 22 minutes, 42 seconds capability agility in manufacturing and delivering the product on time there are certain cases where it's a beyond our 22:49 22 minutes, 49 seconds situation where the customers pull and the I it makes us to hit the numbers and that is one of the reason that why we 22:57 22 minutes, 57 seconds chose to say this time that we'll be outgrowing the market and we'll be doubling the market growth so that our penetration will be much more. um hope 23:05 23 minutes, 5 seconds they have answered your questions but we fully understand and uh we are we are uh aware of the questions what you're asking and the implications of that. 23:16 23 minutes, 16 seconds Sir uh I appreciate uh this answer but sir 75 days into the quarter we would be aware of how the quarter would be looking like but um the management comes 23:25 23 minutes, 25 seconds on the television and gives uh holds on to the guidance. Additionally even apart from the P&L side the guidance was also 23:32 23 minutes, 32 seconds that we would should be just about marginal negative on the OCF side. Sir both of these guidance um 75 days into 23:40 23 minutes, 40 seconds the quarter is actually a bit concerning when the actual numbers reported um would be way off sir. How do you look at 23:47 23 minutes, 47 seconds that sir? I um I think um uh the intent behind committing those numbers in the 23:54 23 minutes, 54 seconds last quarter stating that is uh we have based on the product sample which has been approved. We went ahead and started 24:01 24 minutes, 1 second our hello sorry for the interruption. Uh can you hear me well? 24:15 24 minutes, 15 seconds Yes sir. 24:16 24 minutes, 16 seconds Yeah. See what happened is while we have got the uh indications of the envoy from the customer we started making the 24:23 24 minutes, 23 seconds ordering the material and in fact if you ask us we have started even the manufacturing pre-manufacturing activities of this which gave us a 24:31 24 minutes, 31 seconds confident that yes we'll be able to deliver uh if you see more than 50% of the manufacturing of those activities also has been on the pipeline as I said 24:38 24 minutes, 38 seconds it is not a denied order it is a delayed order we sincerely apology for that this has happened but uh I'm sure that we 24:46 24 minutes, 46 seconds Trust with me that it is beyond our control and going forward uh we will we will take this input in terms of committing for the future numbers. We 24:55 24 minutes, 55 seconds are committing for our growth um based on what market can pull in and one of the reasons that you will see that going forward B&B will be better is like when 25:04 25 minutes, 4 seconds our executive vice chairman said our dependency on every vertical we are bringing it down. So we are taking into many other verticals so that the impact 25:12 25 minutes, 12 seconds on one business will not have an overall impact but we will definitely keep this in mind and make sure that in future we will be better prepared for um mitigating these risk. 25:23 25 minutes, 23 seconds Fair enough your sir yeah please. 25:27 25 minutes, 27 seconds Our type of business we also depend on customer inspection accepting it. I hope you all appreciate that. 25:36 25 minutes, 36 seconds Sure sir. Sir, which is a fair enough point for the P&L side of view. But sir, OCF 600 crores of negative. Um I think 25:44 25 minutes, 44 seconds that is a bigger disappointment especially uh when you you kind of guide that you will be um just about neutral or slightly negative sir. 25:54 25 minutes, 54 seconds So you would have known that sir why have we not been able to turn that around sir? 25:58 25 minutes, 58 seconds Uh okay I think uh it's a fair question the operational cash flow I think there was a little u maybe u misunderstanding. 26:06 26 minutes, 6 seconds I was also in the call during that time. 26:08 26 minutes, 8 seconds Uh the two cash flow that we are talking as a standalone EMS business I wanted to bring it to all your notice that in a standalone EMS business our cash flow 26:17 26 minutes, 17 seconds was 250 cr positive when compared to 66 crores last year. However, as a consolidation entry see 65% of our 26:25 26 minutes, 25 seconds revenue today comes from EMS business where we are cash flow positive. the metering business which is a specific model. This is the first to full year we 26:33 26 minutes, 33 seconds have taken and we are getting matured into this business. One of the things that happens is you know this business model is a strategic acquisition for 26:41 26 minutes, 41 seconds gain in order to make ourselves getting matured towards a product based company rather than an EMS assembly company. I 26:49 26 minutes, 49 seconds just want to bring it to all your notice that prioring metering company we have been supplying them the EMS business. So the entire revenue is not new to us. at 26:57 26 minutes, 57 seconds least 50% of the revenue as an EMS business we have been supplying there but when we this is a unique acquisition where it is not only making the meter 27:06 27 minutes, 6 seconds but also installing the meter and also maintaining the uh operation maintenance of providing the software we are the only company which has got a unique 27:14 27 minutes, 14 seconds combination of all the three and that's the reason for why has committed and moved into this acquisition which has definitely bring back brought back the 27:22 27 minutes, 22 seconds good amount of insights on product development as a converting ourself Kes into a product company and putting it maturing into launching no more new 27:29 27 minutes, 29 seconds products in that segment like whether it be a water meter or gas meter we are on the pipeline. Having said that, we should have anticipated this well. There 27:37 27 minutes, 37 seconds were lot of government delays and the payment sums based on the inflation with various um activities that the various 27:44 27 minutes, 44 seconds state governments releasing the tender for supplying the meter, installing the meter, going to those houses and installing there was a little delay. Um 27:54 27 minutes, 54 seconds I would request you all to appreciate that as a standalone chain EMS business our networking capital has come from 28:01 28 minutes, 1 second from 64 days to 64 days. However, the total number has gone up because of this. 20 65% of our revenue comes from 28:09 28 minutes, 9 seconds EMS business where our receivables is only 35%. Whereas 25% of the business come from EMS where the receivables is 28:17 28 minutes, 17 seconds 67%. We have worked out a strategy as a management team on how to mitigate this. 28:21 28 minutes, 21 seconds We've been working with various organization to see that how this business model can be mitigated. Um rest assured ladies and gentlemen we'll be 28:29 28 minutes, 29 seconds able to bring it back at least to a level of u reduction. I think the influx point has stopped and we'll come into the reduction and we will come back in 28:38 28 minutes, 38 seconds three quarters with a positive results on specific this entity. But on EMS business we are we have demonstrated our 28:46 28 minutes, 46 seconds ability of how to bring back the next days by both working on supplier side and also on the customer side and uh 28:55 28 minutes, 55 seconds brought it back the numbers are available in this I think uh you can see from our opening receivables of about 29:02 29 minutes, 2 seconds 399 crores in the EMS business by end of the year sorry 379 crores by the end of the year we have come to 399 crores even 29:09 29 minutes, 9 seconds though we grown the EMS business at 30% % or outstanding or renewables has gone up only by 20 cr which clearly shows how 29:17 29 minutes, 17 seconds we could able to u manage this business efficiently. Ladies and gentlemen, trust us, in the years to come, we will manage 29:24 29 minutes, 24 seconds the mentoring business and demonstrate our ability to manage the product development which is going to be a 29:32 29 minutes, 32 seconds strategic shift in the gains organization from moving an EMS provider to a product provider and at the same 29:39 29 minutes, 39 seconds time manage this working capital uh cash flow efficiently. Added to that, if you 29:45 29 minutes, 45 seconds all recolct, we were very clear. Our main EMS business, we will be cash flow 29:52 29 minutes, 52 seconds positive this year. Whereas the entire company, we will not be able to do that. 29:59 29 minutes, 59 seconds So please appreciate we have done and honored what we have said. So from 65 crores I want to bring it to your 30:06 30 minutes, 6 seconds attention of a cash flow positive of EMS business from last year we have migrated to 250 crores plus which is a a 30:13 30 minutes, 13 seconds significant improvement in a year where there were lot of uncertainties including the escalations at one end supply chain disruption in the last 30:21 30 minutes, 21 seconds quarter and of course customer pulling of the material and our customers and customers and suppliers have really supported Kane's initiative in taking this uh commitment and moving forward. 30:34 30 minutes, 34 seconds Thank you. We will take the next question from the line of Nidan Naroda from Access News. Please go ahead. 30:42 30 minutes, 42 seconds Hi. Um just uh I think the call is all over the place. So going forward given 30:50 30 minutes, 50 seconds um I think we are not giving guidance um uh in the same business when you articulated it's a customer-driven business 30:58 30 minutes, 58 seconds uh and when you're saying demand is very good what is stopping you of giving you the guidance I mean is it you see more deration in working capital which will 31:07 31 minutes, 7 seconds erode the revenue growth from here on also so we are very confused if you can throw some light how the direction of 31:14 31 minutes, 14 seconds revenue and working capital improvement will happen because it has not happened so far. Uh and 31:21 31 minutes, 21 seconds you're not giving any guidance. So it's very confusing for the investors because if you can throw on three aspects of both revenue and working capital. 31:34 31 minutes, 34 seconds Okay. Uh I think thanks for asking this and giving us an opportunity to explain our position. It is not that we are not giving an guidance for the revenue. We 31:43 31 minutes, 43 seconds are not only giving guidance for the the revenue numbers when we are saying that the industry in India the GDP growth is 31:50 31 minutes, 50 seconds at 8%. The EMS space where we are playing is has grown at about 18% last year or expected to grow in this year 16 31:59 31 minutes, 59 seconds to 18%. We say we'll outgrow the market we'll penetrate into each and every segment and we'll double the growth of market growth is what the commitment 32:06 32 minutes, 6 seconds that we have done. I'm sure that we'll be able to do that but exactly we don't want to put the number because it see for example the the the December 32:14 32 minutes, 14 seconds projection of automotive industry was a mid double digit growth for this year whereas the latest prediction says it'll 32:22 32 minutes, 22 seconds be a single digit higher or lower double digit which may impact onto the the offtake of the product while we are 32:30 32 minutes, 30 seconds trying to mitigate it by getting into the various verticals like in fact we are going to be uh getting into defense in spring and Of course space this is 32:38 32 minutes, 38 seconds another thing but at the same time we want to be little cautious because the market is in a highly volatile condition nothing to do with this our ability to 32:45 32 minutes, 45 seconds deliver our capacity and capabilities is always available. So we are committing doubling the growth of market growth which we will be definitely coming back 32:53 32 minutes, 53 seconds in every quarter to say that how the market has grown and how we have grown. 32:57 32 minutes, 57 seconds You can rest assured that Kes will continue to focus on uh delivery efficiency and meeting the customer demands and of course making the 33:04 33 minutes, 4 seconds investors calculation. Um sorry if we have made you to put it in a confusing state by not giving the exact number. 33:11 33 minutes, 11 seconds Having given the exact number we find that there are a lot of uh uncertaintities which is beyond our control and rather than coming and telling it and apologetically saying 33:19 33 minutes, 19 seconds that it is uh because of this reason we don't want to be providing a reason but we wanted to be a solution provider in this that is on the first revenue in 33:27 33 minutes, 27 seconds terms of working capital management we will continue to be efficient on this area. uh you can rest assured that chain 33:34 33 minutes, 34 seconds standalone the EMS business will continue to be cash positive and we'll be improving it at least by about 8 to 10 days in the years to come in this 33:43 33 minutes, 43 seconds segment. Having said that the metering business which is a complete the full year we started the metering business 33:50 33 minutes, 50 seconds which about 521 crores uh sorry 231 um 1 minute sorry from the receivables of 521 34:00 34 minutes cr,300 crores. We are putting our execution team to go and install it in every area. We will reverse the trend that's what we can say but uh we have a 34:09 34 minutes, 9 seconds very clear road map of bringing it back in three quarters to uh track and the metering business also we are also working out various business the current 34:16 34 minutes, 16 seconds business models I'm sure that most of you are aware the business model of metering business is completely different from the EMS business uh these 34:25 34 minutes, 25 seconds are all some of the things the positive thing is getting into the product a new technology and of course a expanded 34:32 34 minutes, 32 seconds margin product and the other side is on the working capital management. But rest assured that K management has got the capability and we will ensure that we 34:41 34 minutes, 41 seconds reverse the trend uh in this quarters and quarter after quarter you will see within three quarters of this year we have a very clear strategy on how we are 34:49 34 minutes, 49 seconds going to come out of this uh cash flow issue in the metering business and ladies and gentlemen at this point of time we want to bring it to your notice 34:56 34 minutes, 56 seconds the working capital management will not have any impact on our growth trajectory or in terms of our execution capability. 35:03 35 minutes, 3 seconds Our order books continue to be stronger at 9,000 cr plus. What we have been talking about and executing the new 35:09 35 minutes, 9 seconds product in uh 12 months to 18 months today our ability to launch the product in 9 months. The product full product has come because of the acquisition of 35:18 35 minutes, 18 seconds new technology and new teams that we have got a product technology thing. You will be able to see and you'll be able to hear in more and more of our products 35:26 35 minutes, 26 seconds launched in the electric vehicles base in every se uh spectrum that we are going to work in wherein you will see that it gives an ability to launch the 35:34 35 minutes, 34 seconds product and of course uh improve the margins. Um we are also committing 30% of our revenue in the years to come will 35:42 35 minutes, 42 seconds come from the new products which means it gives us an opportunity to leverage our techn technological excellence at the same time getting into a better uh 35:51 35 minutes, 51 seconds product uh standardization of the product to bring working capital management and of course expanding the margins. Our idea was not to not to give 36:01 36 minutes, 1 second a guidance. What we are trying to tell is we will better our growth of this 36:07 36 minutes, 7 seconds year next year. We do not want to attach a number to that. That is the only conclusion. I think I hope I have clarified this. 36:16 36 minutes, 16 seconds Sir, I don't want a number. The question was more what will change suddenly which will get your 600 negative cash to break 36:23 36 minutes, 23 seconds even. Uh business remains the same. Even escaro you moves out which I think you have two more quarters to go. Correct me if I'm wrong. 36:32 36 minutes, 32 seconds rest of the business is not negative working capital. So what will take this 600 cr is my was the question the 600 crores by end of the third 36:41 36 minutes, 41 seconds quarters will come to around um um we will try to work on the positive but we will at least 70 to 80% of this will 36:48 36 minutes, 48 seconds come down for sure and by end of the year we'll be positive positive we have a very clear strategy quarter on quarter um I'm sure that the next earnings call 36:57 36 minutes, 57 seconds when we are going to be together because it's almost 40 days have gone in this quarter and the team is working on the put this in Thank you very much sir. Thanks. 37:07 37 minutes, 7 seconds We took little time on this business uh because more of a product is what we were focusing and uh we didn't anticipate this much of delay in the uh execution of the erection commissioning. 37:20 37 minutes, 20 seconds Thank you. We will take the next question from the line of Reo Buggalia from Capital. Please go ahead. 37:28 37 minutes, 28 seconds Yeah. Hi, good morning team. A few questions from my side. First if you can help quantify what was the share of 37:35 37 minutes, 35 seconds metering related revenues in our console um revenues for fiscal 26 versus 25 and how does the growth look x metering 37:43 37 minutes, 43 seconds portfolio that's first question um how are we scaling up in terms of new applications um on um the power supplies 37:51 37 minutes, 51 seconds um and um other aspects including EVs within the industrial business. Uh third is um if you can share updates in terms 37:58 37 minutes, 58 seconds of ramp up of the rail portfolio uh with respect to coveret solution and do we see any headwinds on government offtake given that government finances this year 38:07 38 minutes, 7 seconds are likely to be under stress. Um next question I have two questions I'll come back. 38:15 38 minutes, 15 seconds Um thank you very much for listing it out. I will answer the first two questions. One is of the metering business. our uh the mating business 38:23 38 minutes, 23 seconds contribution to our total revenue is around 20 to 25%. Okay, having said that it is not that the ent entire 25% of the 38:31 38 minutes, 31 seconds revenue has come because of the metering business. Um I'm sure that you would all be able to recollect that we have been supplying the components and the PCBs 38:40 38 minutes, 40 seconds for this metering business which is around 60% of the revenue has already be coming. That's why when people say oh your growth is is it only because of 38:47 38 minutes, 47 seconds metering business 60% of this is our EMS business which we have done and we have added the box build software and O andM 38:54 38 minutes, 54 seconds business onto this. So the growth is uh like that in that business. The second question that you ask is yes the company 39:03 39 minutes, 3 seconds is now um launching the product for EV segment and you can see our growth in the EV segment this year is about 28% 39:10 39 minutes, 10 seconds growth despite the fact that one of our largest customers in two wheelers has dropped the production significantly by about 90%. That means had that been in 39:19 39 minutes, 19 seconds full our penetration would have been much higher. This is one segment which is growing which is continued to grow and rather than supplying only PCB we'll 39:27 39 minutes, 27 seconds start working on the assemblies and products which will make our value addition much higher. Um every segment 39:34 39 minutes, 34 seconds as we said we are going to um diversify to make sure that our impact is because of one business will not be there. 39:41 39 minutes, 41 seconds Having talked about the first two of your question I will leave it your executive vice chairman to talk about our progress what we are doing in 39:48 39 minutes, 48 seconds railway business. Uh regarding rail business, our Kawasatch product has received the initial approvals and we 39:56 39 minutes, 56 seconds have got the trial orders. We are in the execution stage. We have done field survey and everything. We are expecting 40:03 40 minutes, 3 seconds this year in the first half to complete all approvals and the second half to get large portion of orders. 40:12 40 minutes, 12 seconds Execution wise yes we will have opening order in a big number but a small portion will be uh out of that 40:21 40 minutes, 21 seconds completed. So this is the status as far as kawatch is concerned we are developing one another two more products 40:28 40 minutes, 28 seconds for the global requirement for one of the OEMs in the rail sector that also so rail business I am expecting this year 40:37 40 minutes, 37 seconds to grow by around 20 25%. because of these coming in and the margins are going to be 40:45 40 minutes, 45 seconds north of current 30% plus. I hope I have answered this. 40:55 40 minutes, 55 seconds Thank you. We will take the next question from the line of Amber Singha from Deepon India. Please go ahead. 41:05 41 minutes, 5 seconds Yeah. 41:07 41 minutes, 7 seconds Uh first thing is if you can share details about uh uh your metering subsidiary uh what was the revenue for 41:14 41 minutes, 14 seconds the full year aida and what is the total receivable in this subsidiary you are asking about the metering 41:22 41 minutes, 22 seconds subsidiary yes hello can you repeat the question sorry can you repeat the question the metering subsidiary what is the 41:31 41 minutes, 31 seconds revenue and receivables at the end of the year for the year okay metering subsidiary Yeah. Yeah. 41:37 41 minutes, 37 seconds Sir, as far as the metering uh subsidy is concerned, out of the total 3,626 crores, the metering we normally don't 41:46 41 minutes, 46 seconds uh Okay. It's a subsidy coming. It's about 971 crores is a metering u um subsidies revenue which is 24 to 24%. 42:04 42 minutes, 4 seconds The metering revenue is at 971 crores out of the total 3,626 crores revenue. 42:12 42 minutes, 12 seconds Yeah. And how much is the receivable in this? 42:16 42 minutes, 16 seconds Okay. On the receivables of the grid the metering business is about,365 crores including the um in the total 42:25 42 minutes, 25 seconds revenue the receivables on this business. It is more than that because the first two quarters of this year we could not able to execute the while the 42:33 42 minutes, 33 seconds meterings we are supplied the inflation got hugely delayed particularly in the rural uh uh states where the sorry rural 42:41 42 minutes, 41 seconds towns where the government has given business our pickup has happened only in the last quarter where our inflation is 42:49 42 minutes, 49 seconds going it's going to take about one or two quarters for us to complete the inflation that is why I have committed that it will take up to the um third 42:57 42 minutes, 57 seconds quarter for us to complete this. I'm sure that this is not only with us it's a overall the ecosystem of this is creating a problem but we have created a 43:06 43 minutes, 6 seconds pipeline of team and pip of equipment to make sure that these installation takes place on time 43:13 43 minutes, 13 seconds just the availability of people the availability of uh the location is a concern just a clarification in this if I'm 43:22 43 minutes, 22 seconds correct uh last quarter corn call you mentioned that metering the subsidiary refuel was somewhere around 1 odd cr uh 43:30 43 minutes, 30 seconds and you were supposed to uh receive 250 odd cr by securitization itself. Uh whereas when we are seeing now uh it has 43:39 43 minutes, 39 seconds gone up. So if you can help me understand uh was there any secretization done if not why not because you have committed that it is 43:47 43 minutes, 47 seconds almost done uh during the last call and secondly uh what what has led to this kind of increase in receivables uh 43:56 43 minutes, 56 seconds on on on the bank. 44:03 44 minutes, 3 seconds See this uh securization we have just started with one bank and uh the first lot where the installation is completed 44:12 44 minutes, 12 seconds bank has started accepting it. 44:17 44 minutes, 17 seconds Bank would like to have the first month complete building and realization. So we have the sanctions everything but we 44:25 44 minutes, 25 seconds have only discounted to around 40 crores or so. 44:31 44 minutes, 31 seconds I think this exactly same commission was there last quarter control. So there is no pro in this quarter at all in this. 44:40 44 minutes, 40 seconds No no no apart from last last time this quarter again we have discounted some 40 crores. 44:48 44 minutes, 48 seconds see the installation and all reports after the secularization takes place and they are willing to disperse the money. 44:55 44 minutes, 55 seconds Our key challenge is on the installation now which is what we are working with the various organization public sector 45:02 45 minutes, 2 seconds enterprises and the uh the end customers and uh the P um 45:09 45 minutes, 9 seconds the respect to chesscom or discom how we can speed it up. uh we we understand your concern of uh why the revenue has 45:17 45 minutes, 17 seconds in the last quarter is 380 crores. We almost added this as this basically because of the delay and u the on the 45:25 45 minutes, 25 seconds installation just wanted a better clarity in this business going forward. Are we going to 45:33 45 minutes, 33 seconds continue execute this kind of revenue with this kind of working capital? uh if not then what is the factor which are 45:41 45 minutes, 41 seconds giving you confidence that you'll be able to reduce this trouble in this business and if you can you can quantify something with the concrete steps it 45:50 45 minutes, 50 seconds will be helpful for for us to understand. 45:53 45 minutes, 53 seconds No no no no in the past we have already agreed we are not going to take any orders like this we are only going to take meter orders and we will be 46:02 46 minutes, 2 seconds supplying to the project teams who are taken up orders for the 46:09 46 minutes, 9 seconds entire execution like us so further it will be our EMS component only we'll be taking order the current business what 46:16 46 minutes, 16 seconds we are taking is about 35 we have the company yeah 35 lakh meters is what we have taken which is the order that is being 46:23 46 minutes, 23 seconds executed and all. But uh ladies and gentlemen, I think we need to while I fully understand working capital is one of the key concern and we are working on 46:32 46 minutes, 32 seconds this which are dropping lots of other strategic advantage to the organization in terms of our product development capability, a software capability which 46:40 46 minutes, 40 seconds no other EMS business has and on top of this our ability to execute the um the projects uh like this. I think these are 46:49 46 minutes, 49 seconds the strength going forward is going to come and you all know that this comes with a a better margin than the standard EMS product. the companies when it's 46:57 46 minutes, 57 seconds going to migrate from a a service provider to a product company you know the benefits of this when we are going to be in a B2C our brand is going to get 47:05 47 minutes, 5 seconds sent in the people are going to look for our brand and this is going to be a as I said it's going to have a lot of strategic advantage having said that you 47:14 47 minutes, 14 seconds can rest assured that we will come back with a a quarterly um progress on this and see how last year yes every four 47:22 47 minutes, 22 seconds quarters we have added up the number almost more than 50% of the revenue that has But now that we have created an ecosystem of our ability to install the 47:32 47 minutes, 32 seconds meters and the location, we will get into that. And you also know that when we are doing it with the public sector enterprises and doing this, the process 47:40 47 minutes, 40 seconds is taking little more time than in normally in tier one OEM or other business. But having understood this 47:49 47 minutes, 49 seconds business, we are pretty confident we going to come and like our executive vice chairman said, we'll also be cautious of taking such a huge business of 3540 lakhs on rather than on this 47:58 47 minutes, 58 seconds model to only just supplying a metering uh supplies and uh giving it to an SPV companies where they will do the information erection commission. 48:10 48 minutes, 10 seconds Hope that answers your question. But it is a very very valid question. Thank you. 48:18 48 minutes, 18 seconds We will take the next question from the line of Daval Sumeya from Access Mutual F. Please go ahead. 48:25 48 minutes, 25 seconds Good morning. Uh I have two questions. 48:28 48 minutes, 28 seconds Uh firstly, uh this 35 lakh odd meters is is broadly a 1400 odd crder. So what 48:35 48 minutes, 35 seconds uh how many meters or if you can give some quantum in terms of uh how many meters are pending from this order and secondly uh like you highlighted the 48:44 48 minutes, 44 seconds smart meter business this year did roughly 971 odd crores of topline that implies that sisterh there is another contribution of 740 odd crores from 48:53 48 minutes, 53 seconds subsidiaries what uh is the breakup of that if you can help us understand. 49:00 49 minutes Okay. Um sir in terms of the metering uh we will take another uh two to three months to complete the entire pending 49:07 49 minutes, 7 seconds order of this and which is what we are also putting into our calculation small extension of this order as per the 49:14 49 minutes, 14 seconds condition. It may or may not come that is another three three and a half to four lakhs. So that is we are pretty confident in three quarters from now 49:22 49 minutes, 22 seconds we'll be able to finish on this and the new businesses will be in a different model that is on the majoring business and the other subsidiary which is very 49:31 49 minutes, 31 seconds prominent is the KMPL which is exactly the EMS business only and we are considering this EMS business and there 49:40 49 minutes, 40 seconds almost if you see our EMS receivable the start of the year we started with 379 crores the EMS revenue I'll just talk 49:46 49 minutes, 46 seconds about it the EMS revenue is about 2,000 655 uh crores with 442 crores in the 49:53 49 minutes, 53 seconds quarter 1, 683 in quarter 2, 667 in quarter 3 and 862 in quarter 4. We 50:00 50 minutes started the year with 379 u crores of receivables and we ended up the year with we we went up we went up 50:07 50 minutes, 7 seconds to 466 in the quarter 2 and 437 in the quarter 3 and we brought it down to 399 50:13 50 minutes, 13 seconds in the quarter 4 which sees that we have exceeded only by 20 cr for a revenue 50:20 50 minutes, 20 seconds growth of about 26%. Which means our uh prudent management of receivables and our shortterm lead time actually 50:27 50 minutes, 27 seconds basically it is about how fast we can manufacture and ship it out of the plant and ensure that it gets into the factory 50:34 50 minutes, 34 seconds and start consumed by the customer. Um out of the 2,655 crores for your other question one is executive chairman 50:41 50 minutes, 41 seconds answer kmpl there are two foreign entities which put together on an average about 300 cr revenue but they are also EMS company. They are 50:50 50 minutes, 50 seconds also EMS company in the North America and Canada. Okay. Uh understood. Uh thank you. 50:59 50 minutes, 59 seconds Thank you. Thank you very much for giving us an opportunity to clarify this question. I fully understand your concerns on this. But uh the business 51:07 51 minutes, 7 seconds model of the metering business is completely different from the EMS space. 51:10 51 minutes, 10 seconds While it is putting a stress onto the working capital management, ladies and gentlemen, believe us it gives us an enormous ability to do the product 51:18 51 minutes, 18 seconds development launch at the time. Not only with the product development but building our capability in erection commissioning on um these type of 51:26 51 minutes, 26 seconds projects and of course the software which is going to really help us not only for this contract but beyond this contract the money is going to come back 51:34 51 minutes, 34 seconds for a long term for us till the meter is up and running. 51:41 51 minutes, 41 seconds Thank you. We will take the next question from the line of Jagar Sha from HSBC Mutual Fund. Please go ahead. 51:50 51 minutes, 50 seconds Yeah. Hi sir. Uh thank you thank you for the opportunity and uh sorry to hop on it uh again and again on uh smart meter business but the communication from your 51:59 51 minutes, 59 seconds side seems to be very uh off uh since last uh two three quarters on smart meter business and uh uh has created a 52:06 52 minutes, 6 seconds lot of confusion and uh if you uh see uh you know your commentary has been that you know uh this year uh smart meter 52:16 52 minutes, 16 seconds business FI26 would be 800 crores but it has come at you know almost 1,000 crores and uh going forward you will not be 52:24 52 minutes, 24 seconds taking uh a missed business uh you know and hence receivables which is uh current but not due uh standing in other 52:33 52 minutes, 33 seconds current assets or non-current assets which is around 250 cr will come down so that has not also done in fact uh 52:41 52 minutes, 41 seconds revenue has increased receivables have increased and in FI27 uh uh I would like to know that you know from MS model. How 52:50 52 minutes, 50 seconds much will be you know revenue and uh you know incremental other current assets but not due uh you know incremental what will be the situation over there. 53:01 53 minutes, 1 second Okay sir, I just wanted to um let you know um while we were at 800 crores when we grab when we got an opportunity to 53:09 53 minutes, 9 seconds grab to offset some of the business that uh there was a delay in um automotive business or there is delay in something 53:17 53 minutes, 17 seconds we grabbed every opportunity and that is why we have grown in this uh for the next year while the the 971 crores of 53:24 53 minutes, 24 seconds sales what we did this year uh in absolute numbers we may remain same or slightly up or down. That's not a question. But almost 50% of the business 53:33 53 minutes, 33 seconds will be in the old model and the rest will come in the new model. As executive vice chairman said, we have to finish some more and there is a contract that 53:41 53 minutes, 41 seconds if the government is going to ask for more, we may have to continue to supply. 53:45 53 minutes, 45 seconds Um so we will be definitely taking prudent but rest assured we have worked out the business model for this year. We will in next investor call we will just 53:53 53 minutes, 53 seconds make sure that we start a presentation with this for past five minutes or something and giving the numbers to get make sure that we completely keep you 54:01 54 minutes, 1 second all in transparency on how the business is going and how we are going to collect it. We're also working out on couple of more strategies to make sure that how 54:09 54 minutes, 9 seconds the non-current assets what you're talking about which is setting up for a long time how we are going to mitigate that risk and at least get 50% immediately. We will uh get back to you 54:18 54 minutes, 18 seconds in the days to come on this specific project. But rest assured that this is on top of our agenda and top of our uh working to make sure that how we can 54:25 54 minutes, 25 seconds reverse this and then get back into a towards a positive like we have our improved 54:33 54 minutes, 33 seconds working capital please. 54:36 54 minutes, 36 seconds Yeah just one more thing on uh receivables you mentioned that uh you know subsidiary is 1365 cr. So how much will be this uh uh long-term and uh short-term? 54:48 54 minutes, 48 seconds I think you already estimated about 250 crores is the non-current assets. I think that will be there. Uh rest will be current. I think uh I think our 54:55 54 minutes, 55 seconds ability to now u do the installation is going to be the key. There are four states where our team is working and it is taking extremely high time more than 55:04 55 minutes, 4 seconds six zones. fix zones we are working on this but we have put enough uh infrastructure and team to do this and 55:12 55 minutes, 12 seconds uh we now got a clearance from them to do the almost uh from morning 6:00 to night 12 I think our team is putting 55:19 55 minutes, 19 seconds effort and we'll speed up this problem thank you we have been a traditionally a 55:26 55 minutes, 26 seconds manufacturing company so we worked on improving the efficiency and productivity in the plant and we really understand the new model of how it takes 55:33 55 minutes, 33 seconds time to do the installation at every uh site location or every house. 55:43 55 minutes, 43 seconds Thank you. We will take the next question from the line of Sum Kumar from Motilwad. Please go ahead. 55:50 55 minutes, 50 seconds Hi sir. In balance sheet the intangible asset in FY25 was 238 and in FY26 it is 536. So what was the 300 cr uh increase? 56:03 56 minutes, 3 seconds What was the key reason for that? 56:06 56 minutes, 6 seconds I think um if you u go back to the two quarters before we did the two acquisition one is in Iskamico and 56:14 56 minutes, 14 seconds second is August electronics which is uh um in Canada and supplying in the DMS space to the big players in the North 56:23 56 minutes, 23 seconds America. Um the intangible asset that has been capitalized from these two is about 320 crores and there was a clear 56:31 56 minutes, 31 seconds things in what is the order book and what it based on the current accounting standards and we did 320 crores. For all of your information even though you're 56:37 56 minutes, 37 seconds not asked for this question now in the I think we are committed that how we are going to do the amortization of this our policy was once in a year. So in the 56:46 56 minutes, 46 seconds last quarter we amortized these intangible assets and that has added to our depreciation amortization to a level of about 32 crores. That is why the PAT 56:53 56 minutes, 53 seconds in the last quarter has uh come down PBD but uh ladies believe that the full year was around 10%. Going forward I think 57:01 57 minutes, 1 second we'll be doing this amortization on every quarter. This is basically from the the order book and other assets that's available from uh acquisitions of u August electronics. 57:15 57 minutes, 15 seconds Thank you. We will take the next question from the line of summit sa from mquiri. Please go ahead. 57:23 57 minutes, 23 seconds Yes, thank you very much. So um apart from the smart meeting business, I think everyone's trying to get their arms around uh guidance. Uh Mr. Matukumar, 57:31 57 minutes, 31 seconds you on TV talking about two of the CMN growth. I wanted to get a sense of when do you get to expect to get to that uh 57:39 57 minutes, 39 seconds double the market rate? Is it uh from starting now or is it going to be the third quarter is uh what you're referring to? And would that include 57:48 57 minutes, 48 seconds OSAT and PCB? um as well to get to that sort of double rate or is that just a pure EMS business and then I have a followup. 57:59 57 minutes, 59 seconds Okay sir in the uh the double the x 2x growth I think we have launched three products of uh and which is already in 58:06 58 minutes, 6 seconds production now s so started so we will be continue to penetrate into every customer and you know when the automotive business is growing at around 58:14 58 minutes, 14 seconds 30% share of business is the key driver for this business and we'll continue to focus on not only introducing the new product but also expanding our share in 58:22 58 minutes, 22 seconds the business and that is why we are confidently telling we are getting into this the aeros business is another one where we are substantially growing last 58:30 58 minutes, 30 seconds year and we continue to grow in this year like executive vice chairman said railway is another course so see the as 58:37 58 minutes, 37 seconds I said in the earlier or to some of you when we are talking the mark industry is growing at 8 6.5 to 7% in India that our 58:46 58 minutes, 46 seconds market space is growing at around 15 to 16% and we'll be doubling the growth um being in the Middle East war even in the 58:53 58 minutes, 53 seconds last quarter we have performed much much better and our supply chain agility was good our strategic stocking has really helped us in this. So we will be doing 59:02 59 minutes, 2 seconds the double xx2x growth uh from the start. Uh when I say 2x growth is not the 2x growth of our last quarter comparison but on the market growth and 59:11 59 minutes, 11 seconds our growth. Um I just want to make myself clear and uh you know the market is going to grow at 15% and uh we are doubling and then you are there the 59:19 59 minutes, 19 seconds numbers all right and that okay on was and PCB I'm sorry I missed 59:28 59 minutes, 28 seconds the question see and PCB ours is a very very strategic uh product we are also evaluating how much of that is going to 59:35 59 minutes, 35 seconds be consumed internally and how much we are going to give it outside for all the product that we are making where we are making design specific and where we are 59:43 59 minutes, 43 seconds going to um offering it as a solutions as the canes product we may be using our own product because of the technological advantage and the competitiveness at the 59:52 59 minutes, 52 seconds same time we'll continue to focus on the end customer there's a pipeline of customers is coming in and you know the ecosystems and PCB systems we are 59:59 59 minutes, 59 seconds strategy it out but at the end of the year yes the overall growth from those segments we can see that either it'll 1:00:07 1 hour, 7 seconds expand in bottom line or on the top line depending on how we strategy use the product through our own product by 1:00:14 1 hour, 14 seconds expanding the margin or selling it to their customers. It'll be a strategic call and it'll be moving forward it'll be an integrated business. 1:00:24 1 hour, 24 seconds Thank you. We will take the last question from the line of Acheladi from Nama Institutional Equities. Please go ahead. 1:00:32 1 hour, 32 seconds Thank you for the opportunity. Just extending the previous question. Sorry to interrupt between Mr. Archel. Uh can you please use the answer model please? 1:00:42 1 hour, 42 seconds Better. Yeah sorry for that. Uh am I audible? Yes you're audible. Please proceed. 1:00:49 1 hour, 49 seconds Yes. Uh sir just to extend the previous question you know uh if you could talk from a production value perspective uh you know the earlier guidance was 1,000 1:00:57 1 hour, 57 seconds crores for OSAD 500 crores for PCB. Does that stay intact or uh is uh you know is 1:01:04 1 hour, 1 minute, 4 seconds there any um risk to that number? That's my first question. 1:01:11 1 hour, 1 minute, 11 seconds We have not given any guidance like this. This is our 12th year. 1:01:17 1 hour, 1 minute, 17 seconds I'm sure and certain we will do a good number of PCB of around 300 to 400 and 1:01:25 1 hour, 1 minute, 25 seconds uh OSAT of around 250 to 300 and how much of that we are going to consume locally how much of them we 1:01:33 1 hour, 1 minute, 33 seconds going to sell uh outside is a strategy that being worked out and it'll be we'll be communicating to you at an appropriate time to all of you but OAT 1:01:42 1 hour, 1 minute, 42 seconds business and all locally there will be nothing to start with it will always in export mode only. 1:01:57 1 hour, 1 minute, 57 seconds Thank you very much ladies and gentlemen. We will take that as a last question and with that concludes the question and answer session. I now hand 1:02:06 1 hour, 2 minutes, 6 seconds the conference back to the management for the closing comments. Thank you and over to you sir. 1:02:13 1 hour, 2 minutes, 13 seconds Um thank you very much ladies and gentlemen. I think um we appreciate really the opportunity that is given to us to explain about our initiatives and 1:02:22 1 hour, 2 minutes, 22 seconds some of the concerns that you had. Um we hope that we have answered most of your queries and if anyone of you have any 1:02:30 1 hour, 2 minutes, 30 seconds queries please do reach us to our investor relations and we are here to show you. We also welcome you to visit our plants and see those facilities. 1:02:39 1 hour, 2 minutes, 39 seconds Seeing is believing and I'm sure that uh thanks to everyone of you for supporting us in this growth journey. I'm just handing over the phone to executive vice 1:02:48 1 hour, 2 minutes, 48 seconds chairman for any closing comments. Thank you very much. I will be shortly meeting in some conferences. So if there is any clarification, please reach out to us. 1:02:58 1 hour, 2 minutes, 58 seconds We will be happy to clarify all points. Thank you. Thank you very much. 1:03:05 1 hour, 3 minutes, 5 seconds Thank you members of the management. On behalf of Access Capital Limited, that concludes this conference. Thank you all 1:03:12 1 hour, 3 minutes, 12 seconds for joining us and you disconnect your