Kirloskar Brothers Limited — Q4 FY26

Kirloskar Brothers Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=7WJXwAsGAbk Published: 1d ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Triiloskar Brother Limited Q4 and FY26 earnings conference call. 0:12 12 seconds This conference call may contain certain forward-looking statements about the company which are based on beliefs, opinions and expectations of the company as on date of this call. 0:25 25 seconds These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. 0:33 33 seconds As a reminder, all participant line will be in listenonly mode and there will be an opportunity for you to ask question after the presentation concludes. 0:45 45 seconds Should you need any assistant during the conference call, please signal an operator by pressing star then zero on your touchstone phone. I now hand the 0:54 54 seconds conference over to Mr. Sanjay Kirloskar, chairman and managing director Kiloska Brother Limited. Thank you and over to you sir. 1:02 1 minute, 2 seconds Thank you. 1:04 1 minute, 4 seconds Uh good afternoon everyone. On behalf of Kilosa Brothers Limited, I extend a very warm welcome to everyone for joining us 1:11 1 minute, 11 seconds on our call today. I hope you've had an opportunity to go through the financial results and the investor presentation 1:18 1 minute, 18 seconds which have been uploaded on the stock exchanges and on the company's website. 1:23 1 minute, 23 seconds On this call I have with me Mr. Aloc Kuroskar managing director Koser brothers international Mr. Ramakoskar joint managing director Klo Brothers 1:32 1 minute, 32 seconds Limited Mr. Hmon Shaligram our associate vice president Mr. Dwang Privi, our company secretary and strategic growth advisors, our investor relations adviserss. 1:45 1 minute, 45 seconds Um, let me begin my remarks by giving some business highlights and u talking about our Q4 FY26 performance for the 1:54 1 minute, 54 seconds quarter ended 31st March 2026. A consolidated revenue stood at 14 bill151 2:03 2 minutes, 3 seconds million rupees marking a growth of 10% on a year-on-year basis. For the full year, revenue was 45 billion380 million 2:12 2 minutes, 12 seconds rupees reflecting a marginal growth of 1% compared to the same period last year. For Q4 FY26, our domestic revenue 2:22 2 minutes, 22 seconds stood at 9 billion 91 million, registering a growth of 3% year-on-year basis. For a for the full year, the 2:30 2 minutes, 30 seconds revenue was rupees 28 bill281 million, reflecting a degrowth of 3% compared to 2:38 2 minutes, 38 seconds the same period last year. On the international business performance, our revenue for Q4 grew by 25% and for the 2:46 2 minutes, 46 seconds full year our revenue grew by 7%. This growth was driven by u growth in the 2:53 2 minutes, 53 seconds Dutch entity, South African entity, SP UK and SP USA on account of a healthy order book execution along with 3:01 3 minutes, 1 second improvement in overall product demand. A consolidated EITA for the quarter stood at rupees 2 billion93 million with margin standing at 14.8%. 3:14 3 minutes, 14 seconds For the full year, EITA was 6 bill213 million rupees with margin standing at 13.7%. 3:23 3 minutes, 23 seconds PAT for Q4 FY26 was rupees 1 bill121 million and for the full year PAT was 3:32 3 minutes, 32 seconds rupees 3 bill772 million rupees a performance during the year was impacted on the back of if you 3:39 3 minutes, 39 seconds remember in Q4 there was a one-time expense of rupees 258 million relating to implementation of the new labor codes 3:48 3 minutes, 48 seconds the total impact due to implementation of the new labor code is rupes 389 million in FY26. 3:56 3 minutes, 56 seconds As this impact arises from regulatory change and is a non-recurring in nature, it has been classified as an exceptional item. The group will continue to monitor 4:05 4 minutes, 5 seconds further developments and revised estimates based on additional clarifications and notified rules. 4:12 4 minutes, 12 seconds The second point is that in the first half of last year we witnessed adverse seasonal trends which affected demand in the small palm segment primarily catering to the agricultural sector. 4:23 4 minutes, 23 seconds There were delays in Jelj1 mission relating funding issues uh funding to dealers which affected dispatches and 4:30 4 minutes, 30 seconds the production schedules. As you're aware, the company continues to maintain strict commercial policies. While we were quite hopeful when the center 4:37 4 minutes, 37 seconds released funds for the J1 mission, dispatches and further manufacturing were impacted due to delays in fund release at the state level. And the 4:46 4 minutes, 46 seconds third point was in addition we had uh SAP based ERP implementation at the foundry foundary operations in Koskrai. 4:55 4 minutes, 55 seconds This led to temporary operational disruptions during the transition phase impacting production levels and execution. particularly in the small and 5:02 5 minutes, 2 seconds medium pump segment. However, the system has now r largely stabilized and is expected to improve operational efficiency, cost control and order execution going forward. 5:14 5 minutes, 14 seconds However, our domestic order book stands at rupees 24 bill680 million registering 5:21 5 minutes, 21 seconds a robust growth of 30% over the previous year. While the international order book also remains strong, growing 21% yearonear to rupees 14 bill88 million. 5:32 5 minutes, 32 seconds These results reflect a healthy pipeline and continued customer confidence while reaffirming the strength of our global presence and our ability to capitalize 5:40 5 minutes, 40 seconds on growth opportunities across diverse markets. Looking ahead, we are optimistic about the company's growth trajectory backed by a healthy mix of 5:49 5 minutes, 49 seconds domestic and international business, a robust order pipeline, and continued focus on operational excellence. The 5:56 5 minutes, 56 seconds company is well positioned to deliver sustainable growth in the periods ahead. 6:00 6 minutes I'm happy to share that the board has recommended a final dividend of rupees 7 um that's 350% per equity share of 6:08 6 minutes, 8 seconds rupees 2 each for the financial year 2526. 6:12 6 minutes, 12 seconds This dividend is subject to shareholders approval in the ensuing annual general meeting. That's all I have to say. We can now begin the question and answer session. Thank you. 6:24 6 minutes, 24 seconds Thank you very much. We will now begin the question and answer session. 6:31 6 minutes, 31 seconds Anyone who wishes to ask a question may press star and one on their touchstone telephone. 6:39 6 minutes, 39 seconds If you wish to remove yourself from the question queue, you may press star and two. 6:45 6 minutes, 45 seconds Participants are requested to use handset while asking a question. 6:51 6 minutes, 51 seconds You may press star and one to ask questions. 6:55 6 minutes, 55 seconds Ladies and gentlemen, we'll wait for a moment while the question assembles. 7:07 7 minutes, 7 seconds A reminder to participants they may press star and one to ask questions. 7:13 7 minutes, 13 seconds The first question is from the line of Pratik Kotari from unique PMS. Please go ahead. 7:20 7 minutes, 20 seconds Yes. Hi good afternoon and thank you. 7:23 7 minutes, 23 seconds So first on our standalone so we have seen very strong order inflow and building up of our order book. So you 7:30 7 minutes, 30 seconds can just talk about uh where are these orders coming from what is going right which end industry etc. Sure. 7:40 7 minutes, 40 seconds Is that the only question or uh no there is there there two more if uh so so second is uh one I mean we we call 7:48 7 minutes, 48 seconds out JJM as an issue which is hurting our execution but in previous call we had called out that JJM was sub four 5% of 7:56 7 minutes, 56 seconds revenue so not as material uh so anything else that is help that is disrupting the execution despite the strong order book that is filling up so 8:04 8 minutes, 4 seconds this two on India and then maybe later one to Alo Okay. U you know the standalone order 8:12 8 minutes, 12 seconds book we we are seeing growth in um building and construction. I'd mentioned that building and construction is uh the 8:19 8 minutes, 19 seconds infrastructure is doing very well in India and the company has certain products which um the competition doesn't have and we are able to bundle 8:27 8 minutes, 27 seconds those products along with others. So we seeing good um growth in the building and construction um in marine and 8:36 8 minutes, 36 seconds defense as government of India puts in more and more uh u emphasis on the 8:43 8 minutes, 43 seconds defense industry. Oil and gas again is another area where we are seeing good growth. 8:51 8 minutes, 51 seconds Some of the best numbers are coming from power. um that is because of the um 8:59 8 minutes, 59 seconds different um power stations uh different types of power stations that's both uh coal fired as well as uh nuclear uh 9:08 9 minutes, 8 seconds which is showing good promise um and water and irrigation again um is also 9:16 9 minutes, 16 seconds quite strong at the moment. So uh these are the areas that we are seeing growth in. 9:24 9 minutes, 24 seconds Um I think the company's um product portfolio is extremely strong. 9:32 9 minutes, 32 seconds uh we make some of the most efficient pumps and I believe that customers have started understanding lowest life cycle 9:40 9 minutes, 40 seconds cost and the fact that efficiency the loss in efficiency with our products is far less than anyone else and uh 9:49 9 minutes, 49 seconds therefore uh though our we we do get premiums uh for our orders um even 9:56 9 minutes, 56 seconds against multinational companies who don't have such products and the other thing which you might think is a little 10:04 10 minutes, 4 seconds uh that we are being too strict but we continue to follow uh despite uh all this we continue to follow our 10:12 10 minutes, 12 seconds commercial policies which is uh especially for the small and medium and keroskadi range of products we insist on 10:20 10 minutes, 20 seconds in advance and we insist on letter of credit the retail business whether it's from the small pumps or small and medium 10:28 10 minutes, 28 seconds pumps continues to be done on cash basis So we are maintaining very strong commercial terms and at the same time 10:37 10 minutes, 37 seconds the product portfolio is very strong. I I don't know if you are following the company you would have seen that the 10:46 10 minutes, 46 seconds government of India itself recognized one of our products as the appliance of the year. So that is what is driving 10:54 10 minutes, 54 seconds uh the growth. In fact, all new products u that fall into that category uh we 11:01 11 minutes, 1 second when we improve them or redesign them or come out with new products, we ensure that they meet the European minimum 11:08 11 minutes, 8 seconds efficiency index norms. So I think that also is something that customers appreciate and want to come back to us 11:16 11 minutes, 16 seconds for or want to give us a premium for. uh as far as JJM is concerned yes uh we do 11:24 11 minutes, 24 seconds u though it is 4 to 5% um it does affect uh one of the sectors very badly that's 11:30 11 minutes, 30 seconds the water sector and um what we've seen is um there have been all kinds of investigations which don't affect the 11:39 11 minutes, 39 seconds company as such but it does affect the ability to ship out products. So while we do have orders which are unfulfilled 11:47 11 minutes, 47 seconds and un um you know we've not moved ahead on that uh there are other orders where 11:54 11 minutes, 54 seconds uh where we release the products to our dealers or the contractors only when we are assured of 100% payment either in 12:02 12 minutes, 2 seconds advance or an LC. So that will I think move slowly. uh hopefully the problems 12:09 12 minutes, 9 seconds will be behind us uh in the next few quarters. The other uh thing which we had mentioned some time ago and I think 12:17 12 minutes, 17 seconds in the last quarter I had said um was uh little difficult was the u 12:24 12 minutes, 24 seconds implementation of the ERP in the foundry where uh we're trying to get um exact material accounting and ensure that you 12:34 12 minutes, 34 seconds know orders are followed orders go out of our system as they are placed into the system. um you would understand that 12:43 12 minutes, 43 seconds there are many orders for different types of pumps that come together in different materials. So we want to smoothen this process by ensuring that a 12:52 12 minutes, 52 seconds customer regardless of the type of pump and the material of construction of pump he orders in he gets everything um 12:59 12 minutes, 59 seconds together and in time. That has been a issue earlier but now we expect it to 13:06 13 minutes, 6 seconds sort itself out. So that was something that affected our foundry. our foundry affected our small and medium pump business. 13:14 13 minutes, 14 seconds If you have a question for Aloc or you have a follow-up question to me, I can take that. Sure. No, no, thank you for that sir. 13:21 13 minutes, 21 seconds Wow. So to all by uh one again very strong order inflow continues this I think would this quarter will be one of 13:29 13 minutes, 29 seconds the highest. So one what is going right there and two on margins. I mean uh surprisingly I mean we did a lot of 13:38 13 minutes, 38 seconds corrective actions in the past uh uh but again I mean and keeping the SP UK aside which is where the issues are but even 13:45 13 minutes, 45 seconds in say US and other geographies. Uh so if you want to talk about the margins and the order inflow 13:51 13 minutes, 51 seconds um yeah so I think just to address I I'll start with the margins because uh they they they they're connected to order and flow. Uh you know when you 14:00 14 minutes look at slide 11 of the presentation u the big drop in IITa comes only from STP 14:07 14 minutes, 7 seconds UK which you know moves from 95 crores to 58.1 crores 37 cr drop in EITA. uh if you look at it compared to the US it's 14:15 14 minutes, 15 seconds three cores and I mean the others in terms of real value is not very much uh I mean the others are are increased are doing better except South Africa which 14:24 14 minutes, 24 seconds as a percentage is lower but as a actual value is higher in terms of EIA uh but I would say that this mainly is coming from the mix of the products so to 14:33 14 minutes, 33 seconds answer your question uh we have more orders in the UK a lot of them coming from oil and gas and and as I mentioned 14:41 14 minutes, 41 seconds in the last quarter uh the service booking had reduced because uh as you probably know uh the UK power prices have crossed 30 rupees a 14:50 14 minutes, 50 seconds unit uh which means that you know manufacturing and uh not manufacturing actually for us but for very energy intensive industries which for which we 14:59 14 minutes, 59 seconds would do the service like steel or chemicals or petrochemicals or you know uh glass industries etc. uh they're 15:07 15 minutes, 7 seconds struggling and they are only idling in the UK at that level and so the amount of service work done for them even under a framework has reduced 15:15 15 minutes, 15 seconds um like I mentioned we have looked to diversify out of industry I mean we diversified into industry in other areas to move move away from oil and gas but 15:24 15 minutes, 24 seconds unfortunately because of uh misguided uh views of politicians uh you know even industry is struggling because of power 15:31 15 minutes, 31 seconds prices so we we've moved to water um as I mentioned last time we've won the framework agreement for United Utilities 15:39 15 minutes, 39 seconds uh which is which controls basically the water supply for most almost all of eastern England. So uh but it takes some 15:47 15 minutes, 47 seconds time for us to uh you know bring uh the service work in because the first at least a quarter goes in uh analysis 15:55 15 minutes, 55 seconds surveys uh agreeing with the customer what requires maintenance those kinds of things. So I would say the the mix has changed. The service business has 16:03 16 minutes, 3 seconds reduced. Uh the product business has increased. Uh the order book that you see right now coming into the UK uh and 16:10 16 minutes, 10 seconds US is fueled by uh oil and gas, water and data centers. Uh as as a norm like 16:18 16 minutes, 18 seconds we said oil and gas is the lowest margin. Uh data centers is great margin but they're not as close to um service. 16:26 16 minutes, 26 seconds So you know what we're trying to do right now is reconfigure the sales but uh you know looking at the order book 16:33 16 minutes, 33 seconds position uh we feel that you know and this is just indicative what I'm saying it's not not our second quarter which is 16:41 16 minutes, 41 seconds calendar year second quarter for the international companies but closer to third quarter probably we will be able to realign uh the margins back to what 16:49 16 minutes, 49 seconds we want. Uh but that said um you know we still are very optimistic and uh and we would probably you know look to get back 16:58 16 minutes, 58 seconds to the margin levels that we're looking for uh even on a whole year basis. That's what we are trying to achieve. 17:06 17 minutes, 6 seconds Right. That is very encouraging. Thank you. Thank you and all the best. Thank you. 17:12 17 minutes, 12 seconds Thank you. Next question is from the line of Raj Shah from INAM AMC. Please go ahead. 17:19 17 minutes, 19 seconds Yes sir. Uh thank you for the opportunity. Uh so my first question is on the standalone uh number. So uh we 17:27 17 minutes, 27 seconds were expecting uh as you had mentioned in the last on call as well that Q4 uh the year should see a backended kind of 17:36 17 minutes, 36 seconds growth that Q4 should uh uh show a significant growth. Uh well you mentioned sir that uh there were issues 17:44 17 minutes, 44 seconds related to SAP implementation in the foundry. uh but uh if that would not have taken place do you see this uh year 17:52 17 minutes, 52 seconds would have grown at double digit which which was your aspiration uh earlier 17:59 17 minutes, 59 seconds I think um you know the growth in the last quarter uh is indicative of um 18:06 18 minutes, 6 seconds basically the way it'll it'll continue to grow because quite a few things were smoothened out um and uh therefore um 18:17 18 minutes, 17 seconds the uh um double-digit growth that we expected was actually you know impacted by the 18:25 18 minutes, 25 seconds first quarter, second quarter and third quarter but the last quarter the sale was higher than the previous year's last 18:31 18 minutes, 31 seconds quarter. So basically um now we do expect that uh quite a few things have 18:39 18 minutes, 39 seconds gotten clear um and we will continue to grow as grow as we did earlier. Uh that being said there's one big caveat in the 18:48 18 minutes, 48 seconds sense that there is a war uh which we don't know whether it has started or stopped or restarted and how that is 18:55 18 minutes, 55 seconds going to affect you know but that's going to affect everyone. Um like uh other people we did have problems with 19:02 19 minutes, 2 seconds gas availability because as you're aware we do have our own foundry. Uh we were able to quickly change over uh and 19:11 19 minutes, 11 seconds ensure that most of the requirements were were met by electricity and that uh 19:18 19 minutes, 18 seconds really helped us uh you know have far better numbers than could have had. But as you can see the auto code is all 19:26 19 minutes, 26 seconds there. Um there are um the the company follows a very conservative policy of um 19:33 19 minutes, 33 seconds recognizing orders. Um there are many orders that we have which are not recognized because they've not met commercial terms and uh therefore they 19:42 19 minutes, 42 seconds do not get counted as orders. U so I would like to make that statement because that's the way we operate and it 19:50 19 minutes, 50 seconds might give you a sense that u you know are these all the orders 19:58 19 minutes, 58 seconds Got it. Got it. Sir, uh secondly, uh you mentioned about the problems that we face under the J1 mission scheme. Uh 20:06 20 minutes, 6 seconds sir, uh recently government laid out the J1 mission second part of second branch where the focus will be more towards 20:13 20 minutes, 13 seconds rather than infrastructure development, it will be more towards service delivery and the network. So uh given all the problems uh that that are that exist in 20:23 20 minutes, 23 seconds the short term do you see this second jersey mission via our dealers can be an opportunity for the business? 20:31 20 minutes, 31 seconds I think any um spend on infra will be an opportunity for our business. Of course we've learned from the first time and so 20:40 20 minutes, 40 seconds have our dealers. So we will be quite careful and I hope that you know the rest of industry also follows because all of us in industry have had the same 20:48 20 minutes, 48 seconds problem. Uh we need to be careful. Um and we will see uh you know uh there will be business out of this as well. 21:00 21 minutes Got it. Got it. So second set of questions on uh nuclear uh sector. So there are various parts to this. First 21:08 21 minutes, 8 seconds is sir uh all of us read and we congratulated you for the uh success of the fast feeder reactor which we had 21:15 21 minutes, 15 seconds supplied uh few years ago the primary and secondary sodium pumps. Uh so now when stage three starts uh what what 21:25 21 minutes, 25 seconds could be uh the timeline that it will take uh for I know it is very tough to answer but how much time will it take and what could be the opportunity over here for us? 21:35 21 minutes, 35 seconds I'm the wrong person to ask such a question because I don't give the orders for the nuclear power plants. But you know at the end of the day as as we see 21:43 21 minutes, 43 seconds it and I I think I believe I had told you this last time also we are sufficiently bullish about this sector 21:51 21 minutes, 51 seconds because the company has developed certain pumps using its own money. So we've invested in new designs, we've invested in new um um what is it called? 22:04 22 minutes, 4 seconds prototyping and testing of new pumps which we had not made before. These 22:11 22 minutes, 11 seconds funds have been uh totally designed in India and so the IP is controlled in India and we've worked very closely with 22:19 22 minutes, 19 seconds uh the department of atomic energy uh to ensure that what we make is um also uh 22:27 22 minutes, 27 seconds you know uh going to be useful for them and I'm quite confident that uh despite the fact that we have made these pumps 22:37 22 minutes, 37 seconds uh we will get we will get orders for these uh kind of pumps. The opportunity is quite large. You know, uh government 22:44 22 minutes, 44 seconds has announced that 100 gawatt of nuclear power um 22:52 22 minutes, 52 seconds could be generated through nuclear power. We believe that it should be closer to 200 uh because for Vixit Bharat we need something like 1,000 23:01 23 minutes, 1 second gawatt of power and base load if slowly the coal fired power plants go out. um 23:08 23 minutes, 8 seconds this will have to be done by nuclear power plants. So for the fast breeder you know we've developed most of the 23:15 23 minutes, 15 seconds pumps on the primary side the secondary side uh for the um primary pressurized 23:24 23 minutes, 24 seconds heavy water reactors. We already had the secondary side. Now we have a large portion of products developed inhouse 23:31 23 minutes, 31 seconds for the primary side. um our primary heat transport pumps, you know, the performance of those pumps is better 23:39 23 minutes, 39 seconds than what we had. Uh we're now ensuring that the full scale prototype will be delivered on schedule um to the NPCIL 23:48 23 minutes, 48 seconds and the requirements are quite large. I mean the Shanti bill has I believe 23:55 23 minutes, 55 seconds ensured that many players who want to generate nuclear power are interested 24:01 24 minutes, 1 second and um we see we the company has made uh has been asked to give budgetary quotes for all types of pumps uh which have 24:10 24 minutes, 10 seconds been given as soon as whatever constraints they have are cleared I believe that we will see uh stepby step 24:19 24 minutes, 19 seconds uh customers is uh placing orders on pump suppliers for uh the different types of pumps required in a nuclear power station. 24:30 24 minutes, 30 seconds Got it sir. Got it. That that's very helpful. Uh sir in connection to this u the pumps that we are developing uh and 24:38 24 minutes, 38 seconds we have in portfolio will it also be part of the upcoming this bat small module reactor program that is laid up by the government? 24:48 24 minutes, 48 seconds The Maharat small reactor is a 200 megawatt uh small modular reactor that is being designed. Um we are being asked 24:58 24 minutes, 58 seconds to give quotations for different types of pumps. Um it is um I think whenever 25:06 25 minutes, 6 seconds that uh is finalized we do expect that there will be prototype orders because it's a totally different type of pump. 25:16 25 minutes, 16 seconds The small modular reactors are all lightwater reactors. Um our company has 25:23 25 minutes, 23 seconds experience in designing light pumps for lightwater reactors. So and has delivered. So we expect that we will be 25:32 25 minutes, 32 seconds asked to participate in tenders for development of this t this type of reactor as well. 25:40 25 minutes, 40 seconds Got it. Got it. Thank you very much sir. 25:42 25 minutes, 42 seconds That was very Thank you. 25:47 25 minutes, 47 seconds Thank you. Next question is from the line of Kayatri from Kamaran Ventures. Please go ahead. 25:54 25 minutes, 54 seconds Uh hello sir. Thank you for the opportunity. Um my question is on the topic of data centers. So in the 26:03 26 minutes, 3 seconds previous conversations as well you have mentioned that um the scale of data centers being established in India is relatively small when we compare it to 26:12 26 minutes, 12 seconds the likes of USA. Um however following just the recent update of there being a 26:19 26 minutes, 19 seconds mild delay in the execution of data centers even in the US how do you forecast that demand and if we were to 26:27 26 minutes, 27 seconds set up um 1 gawatt of uh like a data then what sort of a cost element is 26:35 26 minutes, 35 seconds correlated to the pumps which are required in percentage do we have any idea there 26:43 26 minutes, 43 seconds Um yes I mean just to put it in context because you know as you mentioned everyone says there a lot of data centers coming in India and compares it 26:51 26 minutes, 51 seconds to the US. You know I've had many conversations with people but uh I just put some numbers to you. Uh you know at the current time there are over 4,000 27:00 27 minutes data centers operating in the US and as we speak 2,000 data centers over 2,000 data centers in the US have received PL 27:08 27 minutes, 8 seconds all planning permissions to proceed for construction. So compared to that as you would imagine the number of data centers in India or coming up in India are much 27:16 27 minutes, 16 seconds smaller. Not to say they are not but they are they are data centers we are aware who puts them up because uh you know on one side you have consultants 27:23 27 minutes, 23 seconds like AECOM etc who we work with on a regular basis and and on the other side you have the people who finance them like Brookfields and others who also we 27:32 27 minutes, 32 seconds work with. So, so, so you know that's that's generally the ecosystem and of course there are a few people like Amazon which I mentioned earlier uh with 27:40 27 minutes, 40 seconds whom we work in the US and they are one of few who put up their own data center Amazon and Microsoft of course u so so I 27:47 27 minutes, 47 seconds would say that's the general uh general landscape for a 1 megawatt data center you know there different different types 27:55 27 minutes, 55 seconds of pumps and I think uh just to put it in context one is the main intake water pumps that bring the water into a data 28:02 28 minutes, 2 seconds uh then and these the value of these pumps varies greatly because it depends whether you're using sea water or fresh 28:10 28 minutes, 10 seconds water or different kinds of water. So that changes the metallergy of the pump. 28:14 28 minutes, 14 seconds I would not want to you know because it will misguide you you know the price of a regular pump could be and giving you an example half a million dollars but 28:22 28 minutes, 22 seconds maybe the price of a seawater intake pump for the same sort of installation would would be close to maybe $4.5 million. Just to put in context the the 28:31 28 minutes, 31 seconds variation is huge depending on the intake. So it's probably better to discuss not not the intake not the treatment because that's the next stage 28:39 28 minutes, 39 seconds but after treatment you have the um you know the uh the HVAC system. So you have an HVAC system which basically cools the 28:47 28 minutes, 47 seconds water where we participate uh and and that usually for the HVAC side could be around uh $2 million. Then you have uh 28:56 28 minutes, 56 seconds and this is not just a pump. This is a containerized system. Uh you have the fire package again which is about maybe 29:03 29 minutes, 3 seconds uh one 1 million uh $1 million which is again a package system not just a fire pumps by themselves because nowadays a lot of them buy most of them buy them in 29:10 29 minutes, 10 seconds a container or modular unit. Uh then you have a booster package which may be 200 or 300,000 which is basically takes the 29:18 29 minutes, 18 seconds chilled water towards the onchip cooling system. Now the onchip cooling system as a company we don't have much exposure 29:25 29 minutes, 25 seconds which are much smaller pumps that go into the attached to the onchip cooling system we don't participate so much in that and then you have the return system 29:33 29 minutes, 33 seconds bringing uh the water back to the to the chiller so that's that's the loop that I think should give you a general idea of 29:40 29 minutes, 40 seconds what what what uh value is there in a hypers scale data center which usually requires 2 million liters of top up water every day. 29:51 29 minutes, 51 seconds Okay. on this journey. Yes, I followed that. Thank you a lot for sharing. So, um essentially the end part where you said there's the return cooling system. 30:02 30 minutes, 2 seconds Uh is there pumps involved in that step as well or no? 30:06 30 minutes, 6 seconds Yes, it's similar. It's similar to the booster package. I see. Okay, got it. Yeah. 30:12 30 minutes, 12 seconds Thank you very much. That's all for my end. 30:25 30 minutes, 25 seconds Thank you. Next question is from the line of Ashwini Sharma from MK Global. Please go ahead. 30:33 30 minutes, 33 seconds Yeah. Hello sir. Good afternoon and thank you very much for the opportunity. 30:37 30 minutes, 37 seconds Uh yeah so my first question is again on the JGM. So after this JJM2 has there 30:44 30 minutes, 44 seconds been a meaningful pickup in the uh tendering or warding uh from the orders any state um not yet that I'm aware of. 30:57 30 minutes, 57 seconds Okay. And uh you know we have been reading uh news on the releasing of funds uh by many states. U any rough 31:05 31 minutes, 5 seconds idea that how much would be you know outstanding at a country level? uh for JGM 31:13 31 minutes, 13 seconds I think the ministry would be the best people to ask such a question because I you know because we like I 31:21 31 minutes, 21 seconds always held pumps are usually 1 to one and a half% 31:27 31 minutes, 27 seconds of any project got it sir secondly sir on the growth 31:34 31 minutes, 34 seconds for example on the domestic and internationally u given the fact that you know there has been a meaningful jump in the order 31:42 31 minutes, 42 seconds inflow and order backlog. Uh is it fair to say that we can grow 15 20% uh next 31:49 31 minutes, 49 seconds year in FI27 uh in both the businesses domestic and international? 31:56 31 minutes, 56 seconds Um you know I have been saying that for the last few years that we will show double digit growth. Unfortunately last 32:03 32 minutes, 3 seconds year with all its challenges we could not do that. So I will say that we'll strive for double digit growth u this 32:12 32 minutes, 12 seconds year as well. Um you know I I cannot predict wars. I cannot predict gas 32:19 32 minutes, 19 seconds shortages but everything that is being done whether you see you know new product development uh that's something that the company believes in uh we 32:28 32 minutes, 28 seconds believe that uh as a company we can develop products in India for the world and increasingly we see a lot of people 32:37 32 minutes, 37 seconds from around the world placing orders on us um and the operations are being 32:44 32 minutes, 44 seconds streamlined uh as we have mentioned and the uh distribution network also is being uh enhanced whether it's in 32:53 32 minutes, 53 seconds Southeast Asia or whether it is in India or around the world. So fortunately for us you know as a nation we are in a good 33:01 33 minutes, 1 second place and uh as a company then it is our responsibility to take full advantage of that. 33:10 33 minutes, 10 seconds Got it sir. And sir on the you know given the fact that there's so much of you know geopolitical 33:16 33 minutes, 16 seconds you know scenario are we facing any any supply chain issues uh in the operations 33:23 33 minutes, 23 seconds uh raw material availability challenges anything you know which are kind of obviously it is is it there for most of 33:31 33 minutes, 31 seconds the industries but how are you dealing with it you know costs obviously start going up 33:37 33 minutes, 37 seconds you've seen the uh as soon as the state of hormones was closed. None of us realized that fertilizer would be 33:45 33 minutes, 45 seconds affected. Helium supplies would go down causing all consequential 33:51 33 minutes, 51 seconds issues. Um oil prices again will affect food and agriculture. 33:58 33 minutes, 58 seconds So you know each of these actions have consequences and I don't think when Mr. 34:04 34 minutes, 4 seconds Trump decided to go to war even he had thought it out very well as to where what would get affected but you know 34:12 34 minutes, 12 seconds then it's our responsibility as uh management to ensure that the least amount of impact comes on us 34:21 34 minutes, 21 seconds and fortunately I would say with the kind of product line that we have and the strong distribution network that we 34:28 34 minutes, 28 seconds have um we are able to pass on price rises whenever ever required. 34:37 34 minutes, 37 seconds Just one clarification in the JJM when you take an order do we have that O 34:44 34 minutes, 44 seconds andM portion also it is or it is just the product? We take we take we just take a product out. 34:50 34 minutes, 50 seconds We just take the product out. We don't have in most of these cases you know sometimes if if the project is also large and the products are also large we 34:58 34 minutes, 58 seconds would split the product order into a uh you know order for the product and an order for installation and commissioning 35:06 35 minutes, 6 seconds especially when u it is going to take time. But here you know the orders have come through dealers or contractors and 35:15 35 minutes, 15 seconds usually they can handle it. Our dealers have been trained to install our products properly. So we would prefer to 35:23 35 minutes, 23 seconds be paid for whatever we have provided u as soon as possible. 35:29 35 minutes, 29 seconds And other than JGM when we look at the product business do we have that after sales service attached to it? Is there a contract for that? Yeah. Yeah. Yeah. 35:39 35 minutes, 39 seconds there are authorized filters and everything that the company has. 35:44 35 minutes, 44 seconds So if I have to let's say let's say out of the domestic uh product order book how much would be the after sale service 35:52 35 minutes, 52 seconds in that is it possible to quantify this this kind of question does come whether it is after sales service or 36:00 36 minutes what portion of your business comes from energy or whatever we we don't give these numbers. Sure, sure. No problem, 36:08 36 minutes, 8 seconds sir. Thank you very much for this insight. Thank you. Yeah. All the best. Thank you. 36:15 36 minutes, 15 seconds Thank you. A reminder to all participants, you may press star and want to ask questions. 36:22 36 minutes, 22 seconds A reminder to all participants, you may press star and want to ask questions. 36:27 36 minutes, 27 seconds Next question is from the line of Himmanu up from Steadford. Please go ahead. 36:33 36 minutes, 33 seconds Yeah. Hi Anuk. Uh the question is to alloc one of the places or geographies which has done pretty well for us has 36:41 36 minutes, 41 seconds been US. Okay from 300 cr in 22 to today it is 540 crores. Okay. And uh the 36:49 36 minutes, 49 seconds margins are also pretty decent. How diversified is our business in that geography across the segments and 36:57 36 minutes, 57 seconds products today? Means do we still depend on one or two particular sectors let's 37:03 37 minutes, 3 seconds say 30 40% of our revenue or uh it it is much more diversified granular so some 37:11 37 minutes, 11 seconds thoughts on that and again something on product and from here on what would be your thoughts for next uh 3 years uh uh 37:19 37 minutes, 19 seconds to take that business ahead uh Mr. Thank you for the question. Um I 37:26 37 minutes, 26 seconds think like I mentioned in maybe a few calls ago that you know um the US business started uh with the fire business and the reason for that was uh 37:35 37 minutes, 35 seconds as we said when we approached the old US distributors of comp other companies who've obviously been the distributors 37:42 37 minutes, 42 seconds of those other US companies sometimes up to you know a century uh multigenerational they were not keen to take our products at that time when we 37:51 37 minutes, 51 seconds started this business and so you know we uh finally made them take the fire product because fire product was one 37:57 37 minutes, 57 seconds product where you know most US companies were not so keen in and uh and and the reason that the dealers didn't want to 38:05 38 minutes, 5 seconds disturb the existing relationships was obviously because spare parts that they were getting and the ready spare part business were getting from the historic 38:13 38 minutes, 13 seconds uh installed base of those American companies. So you know we entered using the firep pump business and the firep 38:19 38 minutes, 19 seconds business grew and and they liked our products and that's how we slowly widened our scoops uh with the distributors starting with fire pumps 38:27 38 minutes, 27 seconds but of course fire pumps don't have any spare parts because usually a fire pump should not be used that often unless there's a fire and and doesn't require 38:34 38 minutes, 34 seconds so much service. So it was a very firep pump heavy business and from fire pumps we sort of got larger and got into uh 38:44 38 minutes, 44 seconds water and uh and uh and we were having traction issues and so that's the reason we bought synchrflow. Synchrflow was more in the municipal business and there 38:53 38 minutes, 53 seconds was some synergies between the distributors that we had on the fire side and um and uh synchroflow side. So that's how together we could offer a 39:01 39 minutes, 1 second larger basket of products from our overall basket that was that was available. 39:06 39 minutes, 6 seconds So that said I would say today if you look at it uh about 35% of our business still comes from fire. Um as the u you 39:15 39 minutes, 15 seconds know we were not able to make a breakthrough in the water business because you know of the old relationships and even though we had an excellent water product as I've 39:23 39 minutes, 23 seconds mentioned in the UK water utilities we have 85% market share in in the water business and one of the reasons for that 39:30 39 minutes, 30 seconds is high efficiency of the product but also very low downtime. uh because all the maintenance on our products which 39:37 39 minutes, 37 seconds are our LLC products can be done from the outside and uh and so you know when data centers picked up first on the fire 39:45 39 minutes, 45 seconds side and we showed this product to them for HVAC on the water side uh it was very attractive because as you know 39:52 39 minutes, 52 seconds hypers scale data centers say 99% uptime which means they only have six hours of maintenance in the entire year so that's 40:00 40 minutes the reason why suddenly this product got traction and uh in the in the data center market and now 25% of our US 40:07 40 minutes, 7 seconds business comes from data centers. So and the remainder of the business comes from diversified business in water uh 40:14 40 minutes, 14 seconds utilities u retail packages for high-rise buildings. So what we call booster systems um as well as uh 40:21 40 minutes, 21 seconds municipal booster packages which account for the remaining of remainder of the business. So that is the case key sector. So if I break it up, I'd say 40:30 40 minutes, 30 seconds fire that goes into commercial buildings, industrial buildings, um as well as industrial sites, data centers, which by itself is a 25% chunk. And then 40:39 40 minutes, 39 seconds the remainder is uh municipal booster systems for water, uh and uh and booster packages and HVAC and very small HVAC 40:47 40 minutes, 47 seconds packages, mainly booster packages that go into high-rise buildings, commercial buildings, uh golf courses, things like that. Does that answer your question? 40:56 40 minutes, 56 seconds Yeah. uh uh look that's very yeah and going forward I would say our focus is really how can we use our 41:03 41 minutes, 3 seconds traction in data centers to get into other HBAC areas because obviously we have an advantage there uh into other 41:10 41 minutes, 10 seconds HBAC areas uh and enhance our what in India we call our commercial building services division or BNC division so we look to you know have a holistic 41:18 41 minutes, 18 seconds approach into that division uh on one side and the second side is push harder into the municipal market uh which like 41:26 41 minutes, 26 seconds we have in the UK a strength in the UK uh you know we push harder into that and start getting the municipal market because the US infrastructure as you 41:34 41 minutes, 34 seconds know has uh has gotten older over the many years and they are investing now in infrastructure just like AMP 8 is coming 41:41 41 minutes, 41 seconds up in the UK where you know we expect uh we didn't see so much movement this year but we do see uh the inquiries so we do expect movement from next quarter in amp 41:50 41 minutes, 50 seconds but similarly there are programs in the US for uh growth in the municipal side so we expect that you know we can participate in a better way uh you know 41:58 41 minutes, 58 seconds using these existing relationships because there are a lot of common contractors uh for the intake water systems of a data center which obviously 42:06 42 minutes, 6 seconds come from a river or from the sea uh and the big municipal contract big municipal uh consultants because those are usually 42:15 42 minutes, 15 seconds common because they're working on one side with the government and the other side a private party so they are common consultants so that will help us spec the product and it will get us into the 42:23 42 minutes, 23 seconds municipal market so those are the few sectors we're looking at you know extending from the base we've already created and how many distributors would we be 42:32 42 minutes, 32 seconds having now in US versus let's say four years back so uh approximately as just as 42:40 42 minutes, 40 seconds distributors we have about 46 distributors in the US uh four years ago we had 42:48 42 minutes, 48 seconds 12 distributors uh and we had u at that time one national distributor out of as well which is Ferguson. Uh today apart from 42:57 42 minutes, 57 seconds Ferguson we also have Coror and Main which is another national distributor. 43:01 43 minutes, 1 second Um so so we are adding also a few big national distributors like Ferguson in the new 42 but we're also going deeper 43:08 43 minutes, 8 seconds now into every state and and from the state down to you know all the counties to see that you know can we now further 43:16 43 minutes, 16 seconds divide it because you know as we when we started in the US we were looking at a very overall country level state level now of course we are able to go down to 43:23 43 minutes, 23 seconds county level. So, so that's really what we are doing uh as we deepen our footprint. But there still continue to 43:29 43 minutes, 29 seconds be about um 10 states in the US where we do nothing absolutely nothing and there 43:36 43 minutes, 36 seconds are probably another uh seven or eight states which would which are partially covered. So uh so I would say that 43:43 43 minutes, 43 seconds probably one of the best cover the best covered states for us are truly on the eastern coast of the US and Texas. Those 43:50 43 minutes, 50 seconds are our best covered states. But as you start going uh to the north and as you start going to the west our uh our penetration is lower at the moment. 44:01 44 minutes, 1 second Okay. Thank you Aloc. Uh and one question to both either you or Sanjay G can reply. Uh see one of the segments 44:10 44 minutes, 10 seconds where we have a pretty wide product profile is on the power side. Okay. 44:15 44 minutes, 15 seconds which has uh showing growth in India but outside India is there any market where you see the potential for that product 44:22 44 minutes, 22 seconds and cross sell or cross subsidize in those markets and it becomes a large product profile for us overall or how 44:31 44 minutes, 31 seconds are you seeing the situation play out on the power side outside India? Yeah. 44:36 44 minutes, 36 seconds So I think power is divided into nuclear uh thermal and hydro. Uh I would say our strength historically has been of course 44:44 44 minutes, 44 seconds in nuclear and and thermal uh indies u as as you know um you know the thermal 44:51 44 minutes, 51 seconds power concept in Europe and UK uh has not been very palatable and that's the reason why our power prices today in the 45:00 45 minutes UK are cross 30 rupees a unit. Um um but Southeast Asia we do see limited number of these projects coming up and we do 45:08 45 minutes, 8 seconds participate. So in Thailand uh we have a good penetration in Indonesia we have a good penetration in thermal power plants. Uh we do see some coming up in 45:17 45 minutes, 17 seconds the US but I think uh power will be very interesting for us connected to data centers because as you know they are 45:24 45 minutes, 24 seconds looking at gas fire turbines uh for data centers because data centers are consuming so much power even in the US that they cannot put up power plants 45:33 45 minutes, 33 seconds fast enough. So they are going for uh gas powered turbines. So the quickest opportunity for us to use our existing 45:40 45 minutes, 40 seconds strength would be there if you ask me uh you know where the quick opportunity and turnaround is. And to uh give you a 45:47 45 minutes, 47 seconds little u background u you know when the first independent power producers came to India uh in the '90s uh whether it 45:56 45 minutes, 56 seconds was Becttel with Enron or other companies Rolls-Royce Maruben Dusan Dau 46:04 46 minutes, 4 seconds uh Seammens all of them participated in the putting up power stations in India and our pumps are running in every 46:12 46 minutes, 12 seconds single one of them. Uh this was followed by them using our pumps uh for their 46:19 46 minutes, 19 seconds projects overseas. And one thing that we saw was other than beel which use our pumps for two very large power stations 46:27 46 minutes, 27 seconds in Illinois and Texas and some smaller ones in various uh some of those sunb belt or they call the sunb belt states. 46:37 46 minutes, 37 seconds uh the Europeans uh and the East Asians only used uh these pro uh pumps from us 46:44 46 minutes, 44 seconds for all their projects outside of their home countries. And so that's uh some so we've supplied to Seammens, we've 46:52 46 minutes, 52 seconds supplied to uh Altom, we've supplied to the Japanese and the Koreans, but it's more in the Middle East, Central Asia. 47:00 47 minutes We're also working with many Turkish companies in uh like Calik or Enter 47:08 47 minutes, 8 seconds for Enka uh for their projects uh around the world. Uh because the product line 47:14 47 minutes, 14 seconds is very robust product line and a lot of these companies like us to participate. 47:22 47 minutes, 22 seconds Um as far as nuclear is concerned um yes in India we can provide uh government has been um quite uh liberal uh one or 47:31 47 minutes, 31 seconds two times when we asked them for permission to quote u they first looked at where the power plant was being set up what were the safeguards for that 47:39 47 minutes, 39 seconds power plant and then gave us permission uh to quote for our products uh with those EPC contractors in who are operating in certain countries. 47:52 47 minutes, 52 seconds Okay. Okay. 48:01 48 minutes, 1 second Thank you. Next question is from the line of Sham Maheshwari from Adita Berla Mutual Fund. Please go ahead. 48:10 48 minutes, 10 seconds Uh yeah, thank you for the opportunity and uh congratulations team on a decent set of results. Uh all of my questions 48:17 48 minutes, 17 seconds uh have largely been answered. U just one question on the profitability bit. 48:21 48 minutes, 21 seconds Uh so on the standalone side on the domestic business we have taken a lot of measures particularly on cost efficiency 48:28 48 minutes, 28 seconds implementing the ERP systems. Um so having done all of it how should we think of you know our profitability 48:36 48 minutes, 36 seconds uh margins improving especially with u you know execution of the high order book that we have. uh that is on the standalone side and for ALOC uh similar 48:45 48 minutes, 45 seconds question on the international piece uh of course FY26 was sort of a u disappointing year in that sense uh but 48:53 48 minutes, 53 seconds now again with the order book u coming back and the inquiry pipeline looking decent in amate um should we expect uh 49:02 49 minutes, 2 seconds the profitability to revert back to our FI25 numbers uh yeah so those questions basically 49:09 49 minutes, 9 seconds so just to answer your question on the standalone bit. Um couple of areas we are working on to um towards growth of 49:17 49 minutes, 17 seconds the profitability. One is operational efficiency. You know that um our plants and our operations are quite complex. So 49:25 49 minutes, 25 seconds this cannot be done overnight. It'll have to be done in a staggered manner. 49:29 49 minutes, 29 seconds Uh we are very foundry intense and we have five foundaries. Uh we have concentrated on one of the largest ones 49:36 49 minutes, 36 seconds this year. We did have a few tickbing issues which is why uh we were hit on the revenue side because we as you know 49:44 49 minutes, 44 seconds we have a healthy order board but because of some tbing issues with uh the foundry uh that did hurt our dispatch. 49:52 49 minutes, 52 seconds Uh the other aspect was uh in terms of the war and gas shortages. There were supply chain disruptions for our retail 49:59 49 minutes, 59 seconds business as far as gas shortages were concerned. But we have now um ensured 50:05 50 minutes, 5 seconds that we um hedge risks towards those gas shortages by enhancing capacity um 50:12 50 minutes, 12 seconds internally. So this should not be a problem going forward. Uh as um our chairman has mentioned uh in in this 50:19 50 minutes, 19 seconds manner we strive to um enhance our performance as far as profitability is is concerned. 50:26 50 minutes, 26 seconds I hope I've answered your question. 50:29 50 minutes, 29 seconds Yeah. Yeah, it does. and uh are you on the international side? Yeah, especially I think uh we discussed earlier that uh 50:37 50 minutes, 37 seconds the the issue was not just the orders but is the mix that we are looking at and uh you know the mix needs to move 50:44 50 minutes, 44 seconds back to services which is what we I said earlier uh you know when uh when this question was asked I think by um 50:53 50 minutes, 53 seconds by Pratik um at the start that you know we are looking to move it back towards um FY25 51:00 51 minutes in terms of um percentage and actual margins. Um because uh you know we do expect the the service business to come 51:08 51 minutes, 8 seconds back as we we diversified even further now away from industrial towards more core industries or uh or or industries 51:16 51 minutes, 16 seconds like water you know which are imperative for human human requirement u because that's the only thing we can 51:22 51 minutes, 22 seconds do to you know keep either dodging uh volatility or or or misguided government views and uh and so that's that's really 51:31 51 minutes, 31 seconds what we have done. So we do expect uh that you know we will get back to that level. Uh the order book as you know is strong. Uh but the order book is more 51:41 51 minutes, 41 seconds tuned towards like I mentioned earlier uh energy, water and data centers. Um and uh and the margin or the higher 51:49 51 minutes, 49 seconds margin comes more from services. So so that's that's really what we've focus been focusing on. Um and and we're 51:56 51 minutes, 56 seconds retuning mainly in the UK for moving into services now into enhancing the service percentages from water and power 52:04 52 minutes, 4 seconds uh because uh that will have a little bit more dependability than industrial uh you know which uh which which we hope 52:12 52 minutes, 12 seconds will ensure that there is less volatility going forward. Does that answer? 52:18 52 minutes, 18 seconds Yeah, it does. And just one followup to that. Um, so we had seeded I think Microsoft uh in the US as a framework contract in data center. 52:26 52 minutes, 26 seconds No, Amazon Amazon. 52:28 52 minutes, 28 seconds Amazon. Sorry, my bad. Uh, have you been able to get any other successes there? 52:33 52 minutes, 33 seconds Um, or are you seeing something in the pipeline development? 52:37 52 minutes, 37 seconds Yeah, we we actually have many uh data center opportunities and even as we speak right now, we have eight data center packages on the shop floor in the 52:45 52 minutes, 45 seconds US plant. So going to various various data centers. Uh the model as you probably know has changed um you know 52:52 52 minutes, 52 seconds because Google um uh not Google sorry Microsoft and Amazon are the ones who are the most active putting up their own 52:59 52 minutes, 59 seconds data centers. Uh but a lot of the other players uh are getting data centers put up by and putting a name out there. 53:06 53 minutes, 6 seconds There are many companies like this but one of the big names of course is Brookfield. So uh so you know these are the ones who put up these big data 53:13 53 minutes, 13 seconds centers and then these are uh um basically uh uh these become like a annote revenue to the private equities 53:20 53 minutes, 20 seconds when you know people like as an example let's say SAP or someone else comes and you know uses that data center for you 53:28 53 minutes, 28 seconds know putting in their or hosting their customers. So, so you know we are also working more closely with uh the large private equities now and uh and we are 53:37 53 minutes, 37 seconds also as you know couple few meetings back I had mentioned that we work with UK export finance for uh projects in water but UK export finance is also 53:46 53 minutes, 46 seconds working with us now with people like Brookfields and others uh to approach them for financing which is um uh ECA 53:54 53 minutes, 54 seconds financing export credit agency financing for uh for these kinds of data centers because they are able to give long uh 54:02 54 minutes, 2 seconds long uh financing arrangements usually u 22 years after commissioning and at very concessional rates and of course the 54:10 54 minutes, 10 seconds requirement is that the product has to come from the country that provides the ECA funding. So let's say if it's UKF then it would have to be UK. So uh so so 54:19 54 minutes, 19 seconds that's that's quite interesting and and they do provide 85% financing for the entire project value. uh as long as 25% 54:27 54 minutes, 27 seconds content comes from let's in this this case say the UK. So, so we are using all the options uh that are available to get 54:34 54 minutes, 34 seconds better traction with uh even the private equities because we do understand what what uh makes them tick. 54:42 54 minutes, 42 seconds Interesting that that's quite amazing. 54:45 54 minutes, 45 seconds All the best team for the next Thank you. Next question is from the 54:53 54 minutes, 53 seconds line of Ashish from Leo Capital. Please go ahead. Uh hi, thank you for taking my question. My question has been partially answered. 55:01 55 minutes, 1 second I just confirmed that 25 30% of the SP US revenue is liquid cooling applications. Is my understanding correct? 55:10 55 minutes, 10 seconds Yes. Data centers not just liquid data. 55:13 55 minutes, 13 seconds Data centers. Yeah. Because like I mentioned there are few categories of data centers. It's data centers. So which segment of order? 55:21 55 minutes, 21 seconds Data centers but not intake water systems of data centers. Just so that as I know you have a better comes under which segment of the order 55:29 55 minutes, 29 seconds book uh it'll come in ST inc. No no no order book. Order book. 55:38 55 minutes, 38 seconds Uh I don't know if you break the order book like this. I don't believe it. 55:42 55 minutes, 42 seconds Yeah I don't order book companies are broken like this. Yeah, we just it's not that the liquid cooling 55:51 55 minutes, 51 seconds application or the AI data center comes under building and construction. No. 55:56 55 minutes, 56 seconds Okay. Okay. Sorry. Yeah, that's who who who do we compete with in this space in the DC liquid cooling applications? Who are the US incumbents? 56:08 56 minutes, 8 seconds Uh the US become the the North American incumbents are Amsterd 56:15 56 minutes, 15 seconds uh and then Grunfos has a has a division in America Zylm. So we quote we we we um 56:23 56 minutes, 23 seconds compete against them and are we cheaper on a cost basis from them? 56:29 56 minutes, 29 seconds uh we're not cheaper but you know we changed the model before to a modular model and we provide a container system to them you know which has a pump has a 56:37 56 minutes, 37 seconds control system it already is prepiped and it's just plug-and-play with a in a in a ship in in something that looks like a shipping container or it can look 56:45 56 minutes, 45 seconds like a like a house depending on what they specify and it just sits next to their the data center ready made and plugs in on on they say for the cooling 56:53 56 minutes, 53 seconds application on one side the water source and the other side to the chiller. bought it. Got it. Thank you. Thank you. 56:59 56 minutes, 59 seconds That's so much plug and play type of uh equipment. I think it's better value for them. They don't need to uh think much. 57:07 57 minutes, 7 seconds Their architects don't need to think much. All they need to do is tell us uh the dimensions available, the amount of water they need, at what pressure, what 57:14 57 minutes, 14 seconds temperature, and we can supply a system, a pump house which has both fire and utility requirements can be met. 57:23 57 minutes, 23 seconds Got it. Got it. Okay. Thank you. 57:26 57 minutes, 26 seconds far better solution than GR force or the other companies can give who operate only in one of these segments. 57:33 57 minutes, 33 seconds Got it. Thank you. 57:36 57 minutes, 36 seconds Al also I think one important aspect is that the lead time for data centers usually is 18 to 24 months. So from that point of view uh you know it it saves 57:45 57 minutes, 45 seconds some construction time for them for let's say a pump house because you just drop a container in there next to the uh the main uh building. 57:57 57 minutes, 57 seconds Thank you. 57:59 57 minutes, 59 seconds Next question is from the line of Nirmand from Unique PMS. Please go ahead. 58:05 58 minutes, 5 seconds Uh yeah. So thank you for the opportunity. My question is again on the international bit. So uh while you mentioned that the profitability was 58:14 58 minutes, 14 seconds affected by the UK operations but if we see for this particular quarter profits across entities I mean even the US and 58:22 58 minutes, 22 seconds the Dutch entities the South African entity also was lower. 58:26 58 minutes, 26 seconds So is there any particular reason for this? 58:30 58 minutes, 30 seconds Um yes I mean you'll appreciate that this quarter while it is KBL's quarter 4 it is their first quarter. So normally 58:39 58 minutes, 39 seconds their first quarter is a little bit slower uh in uh you know comp in comparatively uh but I would say the 58:47 58 minutes, 47 seconds first quarter it it varies really because it's the first quarter right it depends very often on what is the spillover from the last from the previous year into the first quarter. So 58:56 58 minutes, 56 seconds as an example, SP UK uh last year had a good spillover from uh Q4 into Q1 and 59:02 59 minutes, 2 seconds that helped their first quarter. Um and uh and that was also similar for the Dutch entities last year. Um so so I 59:10 59 minutes, 10 seconds think that's that's really what it depends but there's nothing in particular. I wouldn't say that there is uh anything that I would say necessarily on that. I would look at it more from a 59:19 59 minutes, 19 seconds a year-to-year point of view and that's what I mentioned earlier on the same slide 11. uh with the exception of STP UK because the mix you know like I said 59:27 59 minutes, 27 seconds the service is lower all the others were uh you know better off than the previous year. 59:33 59 minutes, 33 seconds Yeah got understood unders thank you and all the best thank you due to time constraint that 59:44 59 minutes, 44 seconds was the last question of the day I now hand the conference over to Mr. Rahman Shaligram for closing comments. Thank you for sir. 59:52 59 minutes, 52 seconds Uh uh we thank you everyone for joining the call today. We hope we were able to provide you the comprehensive overview of our business and address your queries 1:00:00 1 hour satisfactory. Uh should you have any further question or require any additional clarification please free uh to reach out to HA our 1:00:08 1 hour, 8 seconds investor relation advisor. Thank you one once again for your continued trust and support. Wishing you everyone a very pleasant day ahead. Thank you. 1:00:18 1 hour, 18 seconds Thank you. 1:00:21 1 hour, 21 seconds Thank you on behalf of the Kirloska Brother Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines.