Knowledge Marine & Engineering Works Ltd — Q3 FY26

Knowledge Marine & Engineering Works Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=opN_XMHAQrQ Published: 2 months ago

0:00 Good evening everyone. Welcome to the Q3 and FYI26 earnings conference call of knowledge marine and engineering works limited. Today on this call we have Mrs. 0:11 11 seconds Sajjay Kal Ramani Chief Executive Officer along with Mrs. Kanak Kal Ramani director and chief financial officer. 0:19 19 seconds Before beginning with the call I would like to give you a short disclaimer. 0:23 23 seconds This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions and expectations as of today and actual results may differ materally. 0:34 34 seconds The statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. As a reminder, all participant 0:42 42 seconds lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. With this, I now hand over 0:51 51 seconds the call to Mrs. Kakable Romani for opening remarks and financial performance of the company. Over to you ma'am. 0:59 59 seconds Thank you. A very good evening to everyone. On behalf of Knowledge Marine and Engineering Works Limited, I warmly 1:07 1 minute, 7 seconds welcome you all to our Q3 FY 2026 earnings call. At the outset, we wish all of you a very happy new year 2026. 1:17 1 minute, 17 seconds We hope that the year has begun on a positive note for you and your family and it brings good health, continued 1:24 1 minute, 24 seconds progress and renewed optimism. I trust you have had the opportunity to review our financial results which have been 1:32 1 minute, 32 seconds uploaded on the stock exchange and are also available on our website. I hope the year has begun on a positive note 1:39 1 minute, 39 seconds for you and your families bringing good health, continued progress and renewed optimism. 1:45 1 minute, 45 seconds Uh going forward, uh I will move on to the quarter overview. 1:51 1 minute, 51 seconds Q3 FY 2026 marks one of the strongest quarters in our company's recent history. We recorded a 56% year-on-year 2:00 2 minutes increase in revenue, underscoring the acceleration in our growth trajectory. 2:05 2 minutes, 5 seconds This sharp improvement reflects scaling efficiencies from our expansion initiative, improved realizations and 2:14 2 minutes, 14 seconds stronger market demand across key segments. More importantly, this growth has been profitable and sustainable 2:21 2 minutes, 21 seconds which is supported by our stakeholders and investors confidence. While the growth rate is significant, we remain focused on sustaining performance 2:30 2 minutes, 30 seconds through disciplined cost management and prudent capital allocation. 2:35 2 minutes, 35 seconds Moving moving forward to the financial performance during the quarter revenue stood at rupees 90 crores representing a 2:43 2 minutes, 43 seconds 79% quarteronquarter growth. Abita stood at rupees 38.54 crores which is with a 2:50 2 minutes, 50 seconds margin of 43% reflecting a strong improvement in operating efficiency. 2:56 2 minutes, 56 seconds Profit after tax stood at rupees 32.89 89 crores with a margin of 34% significantly higher on a 3:04 3 minutes, 4 seconds quarteronquarter basis. The expansion initiatives undertaken over the past year along with a growing order book 3:11 3 minutes, 11 seconds have now begun contributing meaningfully to revenue. Importantly, this has resulted in improved operating leverage and enhanced profitability. 3:21 3 minutes, 21 seconds Moving forward to the operational highlights, this quarter and financial year have been transformational for us. 3:28 3 minutes, 28 seconds We entered the commercial ship building segment securing orders worth over rupees 230 crores from inland waterways 3:35 3 minutes, 35 seconds authority of India for the supply of workboards, accommodation boards, survey boards and cutter suction dredges to be executed over a period of 2 years. 3:46 3 minutes, 46 seconds We received significant long-term orders from Vishaka Patnham port and VOCC port for the construction and chartering of 3:54 3 minutes, 54 seconds 60 ton bulpool green tugs with a total contract value of appro 700 crores to be executed over a period of 15 years. 4:04 4 minutes, 4 seconds These projects are not only commercially significant but also reflect our commitment to sustainability and innovation in maritime operations. 4:15 4 minutes, 15 seconds We secured a specialized capital reging contract at GNPT port uh at the co coastal birth valued at rupees 50 cr to be executed over a period of 6 months. 4:27 4 minutes, 27 seconds This is technically demanding project involving dredging along with control drilling and blasting. 4:34 4 minutes, 34 seconds Moving forward, I would give some highlights on the capital raised and share split during the quarter. To 4:41 4 minutes, 41 seconds support our growth journey, we successfully raised rupees 285 crores through a preferential issue of equity 4:49 4 minutes, 49 seconds shares and warrants. This reinforces investor confidence in our long-term vision. The capital will primarily be 4:57 4 minutes, 57 seconds deployed towards fleet expansion and pro uh for projects in hand and in the pipeline. 5:03 5 minutes, 3 seconds Further in line with our commitment to enhance shareholders value with effect from December 22 2025 we subdivided the 5:12 5 minutes, 12 seconds company's shares from rupees 10 to rupees 5 to improve liquidity enhance retail participation and improve overall 5:21 5 minutes, 21 seconds trading efficiency way forward as we celebrate these milestones we recognize they are 5:29 5 minutes, 29 seconds stepping stones not end points the coming decade will dem demand greater discipline, innovation, and 5:36 5 minutes, 36 seconds collaboration. With our continued trust and support, we are confident in our ability to convert opportunities into 5:43 5 minutes, 43 seconds sustainable long-term value. Together, we have built a company that stands tall at 10 years. Together, we will chart the 5:51 5 minutes, 51 seconds course for the next decade. Anchored in growth, guided by sustainability, and driven by excellence. Our strategic 5:59 5 minutes, 59 seconds vision remains clear to establish a sustainable and reliable dredging and marine engineering company rooted in 6:07 6 minutes, 7 seconds India with expanding operations and fleet strength and a prominent position in the industry. 6:15 6 minutes, 15 seconds I will now like to give some key details about the company's order book and the performance to avoid repetitive 6:23 6 minutes, 23 seconds questions on the same order book as on date stands at rupees 1,500 crores out of which dredging order 6:32 6 minutes, 32 seconds book is 409 crores charter hire order book 863 crores including green tub contract and ship building order book stands at rupees 230 crores. 6:45 6 minutes, 45 seconds Bids in pipeline stands at rupees 300 more than 300 3,000 crores. Dredging orders in pipeline 1,400 crores. 6:54 6 minutes, 54 seconds Chartering 1,000 crores and ship building 704 crores. 6:59 6 minutes, 59 seconds We own and operate 45 crafts out of which 16 are dredges, three are hopper barges, 11 are support vessels for 7:07 7 minutes, 7 seconds dredging equipment and balance 15 are portillary crafts including survey boards, patrol boards, pilot boards and tugs. 7:16 7 minutes, 16 seconds Debt outstanding as on date is 166 crores. Fixed assets as on date is 207 7:24 7 minutes, 24 seconds crores and a capital work in progress of around 36 crores. 7:29 7 minutes, 29 seconds We have raised fund raise of 285 crores for which the allocation was as follows. 7:36 7 minutes, 36 seconds Capeex 183 crores, working capital 30 crores and for under GCP general corporate purpose 71 crores which will 7:45 7 minutes, 45 seconds be utilized either towards capeex or margins or working capitals or ship building projects. 7:52 7 minutes, 52 seconds Uh thank you everyone. I would now like to ask moderator to open the Q&A. 7:59 7 minutes, 59 seconds Thank you very much. We will now begin again the question and answer session. 8:03 8 minutes, 3 seconds Anyone who wishes to ask a question may press start and one on the touchstone telephone. If you wish to remove yourself from the question may press 8:11 8 minutes, 11 seconds start and two. Participants are requested to use answers while asking a question. Ladies and gentlemen, we will 8:19 8 minutes, 19 seconds wait for a moment while the question Qse symbols. 8:34 8 minutes, 34 seconds The first question is from the line of Rahul Kotari from Grit Equities. Please go ahead. 8:39 8 minutes, 39 seconds Hi. Um, congratulations for the amazing result. Um, I have two questions. First question is regarding the tax part. Uh 8:48 8 minutes, 48 seconds can you help me understand what would be what should we assume as an effective tax percentage uh for next year onwards 8:57 8 minutes, 57 seconds since there is some uh change in the taxation structure for your company and uh second part is can you help us this quarter has uh given amazing results. 9:06 9 minutes, 6 seconds Can this be considered as a new norm for the company or if any guidance that can be provided for next year growth? 9:16 9 minutes, 16 seconds Hi uh good evening Sujay Kamani here CEO of the company. I will answer both the questions. 9:26 9 minutes, 26 seconds We have chosen to fall under the Danish tax scheme. We had approached the income 9:33 9 minutes, 33 seconds tax department made our application and our application has been accepted. The tonnage tax scheme provides for 9:42 9 minutes, 42 seconds giving training on board our vessels and the tax implication of the corporate tax 9:50 9 minutes, 50 seconds being reinvested into the vessels. If we are able to get both of these and a compliance certificate from the tesh tax 9:59 9 minutes, 59 seconds sale then there is a method to calculate tax basis the number of vessels. Since 10:08 10 minutes, 8 seconds the number of vessels are not going to be constant between now and next year, there is not a specific percentage that 10:16 10 minutes, 16 seconds I can give you. But it is going to be significantly lower than the corporate tax that we used to follow. Uh it the 10:26 10 minutes, 26 seconds guidance could be anywhere between uh less than 1% of the turnover as the 10:34 10 minutes, 34 seconds total tax implication. it'll be less than 1% of the total turnover. That is what uh we believe it is going to be. So 10:41 10 minutes, 41 seconds that's regarding the tax part. Uh we have moved towards uh higher revenue, 10:48 10 minutes, 48 seconds higher profit margin. So this can be considered as the benchmark going forward into the future. 11:05 11 minutes, 5 seconds Okay. Yeah. 11:10 11 minutes, 10 seconds Thank you. The next question is from the line of Vashal WHmak from Convergence Capital. Please go ahead. 11:18 11 minutes, 18 seconds Yeah. Uh, hi. Am I audible? Yeah. Hi. Yes, you are. 11:22 11 minutes, 22 seconds Yes. Uh, good afternoon and uh, congratulations for a very strong quarter. I have few questions. So my first question is on the receivable 11:30 11 minutes, 30 seconds days. Uh recently the receivable has uh the receivable days has increased and with the strong quarterly performance uh 11:38 11 minutes, 38 seconds what is the current uh working capital situation looks like and uh do you expect the current level to be the new normal or uh do you anticipate a 11:46 11 minutes, 46 seconds reduction in the uh receivables in uh coming quarters? 11:52 11 minutes, 52 seconds Uh hi I would like to answer this question. uh receivables uh you would have uh seen the numbers of the 11:59 11 minutes, 59 seconds receivables for our uh first half that is in the month of September that we uh have declared. Um most of the revenue 12:07 12 minutes, 7 seconds was being booked in the month of August and September. That is why you could see the receivables higher as compared to 12:16 12 minutes, 16 seconds the previous numbers. Uh but right now our receivables ranges from between 45 12:22 12 minutes, 22 seconds to max 60 days. So uh going forward receivable days will uh tend to decrease 12:29 12 minutes, 29 seconds uh because the the number of receivable number of days of receivable in the Bahin books were little higher as 12:36 12 minutes, 36 seconds compared to the Indian books and uh going forward it will reduce and come down between 30 to 45 days. 12:45 12 minutes, 45 seconds Yeah. Okay. Thanks. Uh great. So my uh another question is uh what is the uh current uh fleet utilization across the 12:55 12 minutes, 55 seconds uh uh dreger and work ports fleet it's 100% utilized none of our equipment is idle as on date 13:03 13 minutes, 3 seconds yeah I wanted to ask uh in the uh number of days per year 13:11 13 minutes, 11 seconds so dredges are deployed out of 365 days the utilization days ranges between 270 13:19 13 minutes, 19 seconds to 300 days. Uh as comp uh with regards to quotillary craft they are utilized over a full year I mean 365 days. 13:30 13 minutes, 30 seconds Okay. Okay. So you are at peak utilization right? Okay. Yes. 13:35 13 minutes, 35 seconds Uh my another question is uh because of the government's uh increased focus in the overall industry as well as uh the 13:44 13 minutes, 44 seconds uh revival of dredging corp with 4,000 cr of investment do you see any uh increase in competitive intensity as 13:51 13 minutes, 51 seconds well as uh if the dredging corp is revived successfully uh will it affect the uh subcontracting opportunities? 14:01 14 minutes, 1 second We believe uh uh in uh the push from the government towards DCI is uh because 14:09 14 minutes, 9 seconds there is a huge demand there is a lot of opportunity. Uh DCI is investing in much 14:16 14 minutes, 16 seconds larger vessels uh the big size 12,000 cubic meter TSHDs. We have been investing in smaller trees. We plan to 14:25 14 minutes, 25 seconds invest in larger treasures as well going forward. But there is no overlap between the assets. So the subcontracting from 14:35 14 minutes, 35 seconds DCI is going to continue as far as shallow draft and smaller vessels is required because DCI is not planning to 14:42 14 minutes, 42 seconds invest in those dredges and there is sufficient demand for knowledge marine DCI and maybe four or 14:51 14 minutes, 51 seconds five other competition to come in because you must have seen in the budget right now uh almost 20 more national 14:59 14 minutes, 59 seconds waterways have been uh required to be made navigable and this demand is huge. 15:05 15 minutes, 5 seconds So over the next 5 years in in the inland waterway uh dredging demand is going to 15:13 15 minutes, 13 seconds increase multiffold and uh we are in that space whereas DCI is not planning to be in that space uh as directly 15:20 15 minutes, 20 seconds contractors or competition. So we do not believe that uh uh DCI is direct competition right now or we are direct 15:28 15 minutes, 28 seconds competition to DCI but because the demand is so high there is enough space for more than two players to be in the field. 15:37 15 minutes, 37 seconds Okay. Okay. Got it. Got it. And uh if I can ask one more question. Uh so if my 15:44 15 minutes, 44 seconds memory serves me right in one of the previous calls you mentioned that after you get the contract you buy the vessels. uh so let's say if you got a 15:53 15 minutes, 53 seconds contract and there are no uh old vessels available in the market so uh generally how will you deal with this situation 16:00 16 minutes because in that case it will dilute the margin as well as uh delay the execution right 16:08 16 minutes, 8 seconds so now we own uh more than 45 vessels in the last 11 years this situation has not 16:15 16 minutes, 15 seconds arisen where uh we have not been able able to accept or buy the vessel once 16:24 16 minutes, 24 seconds the contract is awarded to us. Usually we identify the vessel and then bid for the contract and enter into a soft 16:32 16 minutes, 32 seconds agreement with the owners of the vessel uh binding them to uh sell the vessel to us or hire the vessel to us and once the 16:40 16 minutes, 40 seconds contract is awarded the agreement is finalized and the commercials are exchanged. So this situation hasn't 16:48 16 minutes, 48 seconds arisen till date and uh we do not see even going forward a situation like that coming in wherein we make the bid and we 16:57 16 minutes, 57 seconds don't have the asset to complete the work. 17:00 17 minutes Okay, great. Uh thank you. Uh that answers all my question and uh best of luck for the future. 17:10 17 minutes, 10 seconds Thank you. Thank you so much. 17:12 17 minutes, 12 seconds Ladies and gentlemen to ask a question please press star and one. 17:18 17 minutes, 18 seconds The next question is from the line of Sorup Gupta from financially free. Please go ahead. 17:31 17 minutes, 31 seconds Mr. Gupta please go ahead with your questions. Your line is unmuted. 17:35 17 minutes, 35 seconds Thanks for the opportunity sir. As you as you have said that uh we have started applying the tan tech from Q3 itself but 17:44 17 minutes, 44 seconds when I see the PPT or the announcement that you have posted in December it said that the amendment will be effective 17:51 17 minutes, 51 seconds from April 2026. So what is uh what is the demand that is uh I'm not able to catch up with 18:01 18 minutes, 1 second the tonnage tax will be applicable from the current year itself. Okay. Okay. From Q3 onwards. 18:10 18 minutes, 10 seconds Yes. 18:11 18 minutes, 11 seconds Okay. And and the next question that I have is regarding our cruise services and tourism. So when we are into 18:18 18 minutes, 18 seconds dredging services and now we are foring into this cruise services and tourism. 18:23 18 minutes, 23 seconds So why we are diverting our focus from dredging to this type of services. If you provide some color about it. 18:30 18 minutes, 30 seconds So we have three verticals. One is dredging, one is operation of small crafts and third is ship building. 18:41 18 minutes, 41 seconds cruise on a river is part of the second vertical which is operating small crafts 18:47 18 minutes, 47 seconds on charter or higher. So it is not anything different from the core business. We don't intend I mean we can 18:55 18 minutes, 55 seconds have a strategic tie up with the hospitality company to bring in uh the uh people required on board the crew on 19:04 19 minutes, 4 seconds board the cruise. We are not directly going to be entering the hospitality industry. There is an aspect of 19:10 19 minutes, 10 seconds operating a vessel which is required for the cruising purpose. So we are going to be more focused on that rather than the hospitality industry. 19:21 19 minutes, 21 seconds Got it. Got it. So means we are we are not into the operation and maintenance of the vessels. 19:28 19 minutes, 28 seconds So we will be operating the vessel but there are two aspects to it. Operations of the vessel is one part. operating the 19:36 19 minutes, 36 seconds cruise uh the hospitality of it in the sense uh getting the guest or finding or 19:44 19 minutes, 44 seconds ticketing all that can be out easily outsourced. Okay. Okay. Got it. Got it. 19:49 19 minutes, 49 seconds Maintaining vessel is like maintaining any other vessel that we have uh with certifying insurance maintaining the crew on board. So it is like any of our 19:58 19 minutes, 58 seconds other vessels but the other aspect wherein uh the guests have to be brought on board and the hospitality of the 20:06 20 minutes, 6 seconds guests on board the cruise vessel that can be outsourced very easily. 20:10 20 minutes, 10 seconds Got it. Got it. And the next question that I have is regarding the deming corporation of India that they are doing 20:17 20 minutes, 17 seconds massive capex and as you said earlier that they are not going into the smaller visa but if I see their announcement 20:24 20 minutes, 24 seconds that they are also planning to buy a one cutter cutter section dregers apart from trailing section ders and other than that they are also planning for water 20:33 20 minutes, 33 seconds injection dreger and lower capacity trailer section dreger. So could you provide or do you want to comment on that? 20:41 20 minutes, 41 seconds Yeah. Uh they are presently investing on a large trailing suction hopper dger. 20:47 20 minutes, 47 seconds The small trailing suction regger that you are talking about is 2,500 to 3,000 cubic meters for which they have to do a 20:55 20 minutes, 55 seconds feasibility study. They haven't uh yet decided directly. They they have plans to think about it. The cutter suction 21:02 21 minutes, 2 seconds dreger is again not for inland waterway that is for ports. We are we have nine cutter suction dredgers that operate in 21:10 21 minutes, 10 seconds rivers. Presently DCI has zero dredges that pl that are operating in rivers. 21:15 21 minutes, 15 seconds They are into port dredgers and they are planning to buy and water injection dreger is in combination with the trailing section the large trailing 21:24 21 minutes, 24 seconds suction oper that they operate. So it is not directly uh overlapping any of the asset base that we have. 21:31 21 minutes, 31 seconds So the cutter section regger that they are planning to buy. So can't it uh can't it uh cutter section regger be also used in waterways river waterways? 21:42 21 minutes, 42 seconds So the cutter section regger that DCI plans to invest is a 3,000 kilowatt cutter with a draft in excess of 3 m. 21:51 21 minutes, 51 seconds Rivers and waterways required to be maintained need a draft of 2 and a half to 3 m. This vessel cannot enter rivers. 21:59 21 minutes, 59 seconds It has to stay in port. It's a very large cutter section dger required for rock dredging or hard strata dredging. 22:07 22 minutes, 7 seconds Uh not meant for river dredging. 22:10 22 minutes, 10 seconds Got it. Got it. Thank you. That's it from my side and congratulation for the great set of numbers. Thank you. 22:17 22 minutes, 17 seconds Thank you. 22:19 22 minutes, 19 seconds The next question is from the line of Saram Zuka from Vimmana Capital. Please go ahead. 22:26 22 minutes, 26 seconds Hello. Yeah. Hi. Thanks for the opportunity. Uh so first question is on the market size. I just wanted to 22:33 22 minutes, 33 seconds understand currently in the dredging and on the ancillary business. uh uh how 22:40 22 minutes, 40 seconds much your market share would be and uh second part is uh you know every year how many contracts I mean in rupees uh 22:50 22 minutes, 50 seconds are up for renewal like how many contracts are up for grabs as a market opportunity for you every year. 22:59 22 minutes, 59 seconds So in dredging uh in the overall uh market of oats, rivers and dam we are 23:07 23 minutes, 7 seconds less than 2% right now our uh revenue from all these businesses. Uh in terms 23:14 23 minutes, 14 seconds of small craft business between the 12 major ports there are between 550 to 600 23:21 23 minutes, 21 seconds vessels that are required. uh we presently have less than 25 vessels 23:27 23 minutes, 27 seconds deployed out of these 550 to 600. Uh they consider the life of the vessel uh 23:34 23 minutes, 34 seconds as 20 years. So uh close to uh about 15 anywhere between 15 to 30 vessels are up 23:44 23 minutes, 44 seconds for renewal every year and these vessels can vary between uh hydrographic survey boats, moing boats, tugboats, electric 23:53 23 minutes, 53 seconds tugboats or various other crafts. 23:58 23 minutes, 58 seconds Got it. And on the dredging side uh like contract uh value of contract up for renewal if you can give some estimate on 24:07 24 minutes, 7 seconds that. So uh close to uh about 1,500 to 2,000 crores worth of maintenance 24:16 24 minutes, 16 seconds dredging in done is done in major ports of India including some of the minor ports. The capital dredging is close to 24:25 24 minutes, 25 seconds 1,500 crores per anom in major ports. If you include minor ports, that crosses close to 3,000 cr rupees. 24:36 24 minutes, 36 seconds In terms of river dredging, the market size is going to increase from about 1,500 crores to close to 24:44 24 minutes, 44 seconds 5,000 crores when all the 20 national waterways are made operational. 24:51 24 minutes, 51 seconds And we are doing a turnover of less than 200 crores in dredging from all these businesses right now. 24:58 24 minutes, 58 seconds Understood. Got it. That was very helpful. Another one was on the Baharin uh project. Is there any update on that? 25:06 25 minutes, 6 seconds Like will a new vessel be deployed there? Are you expecting any revenue from that project next year? F27. 25:14 25 minutes, 14 seconds So in the current year we are actively exploring for a vessel uh that because the last vessel that was deployed in 25:22 25 minutes, 22 seconds Bahin has been moved to India because there was a high demand for that vessel in India and we were getting better revenues also we had chosen to move that 25:31 25 minutes, 31 seconds vessel to Bahin because of the tax advantage. Since the tax advantage has come to India as well we found it more beneficial for the company to operate 25:40 25 minutes, 40 seconds that vessel in India. We are currently actively looking for a vessel in the market uh to uh place it in Bahrain and 25:49 25 minutes, 49 seconds start the business. So we have not completely given up on Bahrain. We are actively looking for a business uh for a vessel and as soon as the vessel is 25:58 25 minutes, 58 seconds identified and moved uh the business can commence. So we have kept with the operating uh uh cost for that uh 26:08 26 minutes, 8 seconds contract. So we have not given up on licenses. We have not given up on uh uh the companies as yet. So once a suitable 26:15 26 minutes, 15 seconds vessel at a suitable price is found, we can uh continue with that business. Got it. And from the fund raise uh that you 26:24 26 minutes, 24 seconds raised for 180 for KEX, would you be deploying all of that in FI27? 26:31 26 minutes, 31 seconds Uh that will be spread out over uh this year and the next financial year. 26:37 26 minutes, 37 seconds Got it. Thank you. 26:42 26 minutes, 42 seconds Thank you. The next question is from the line of Ana from Mangal Quesa Financials. Please go ahead. 26:50 26 minutes, 50 seconds Uh hello. Am I audible? Yes. 26:54 26 minutes, 54 seconds Uh firstly, good evening and congratulations on a great set of numbers. Uh actually my question also revolved around the barin operation. So 27:02 27 minutes, 2 seconds I just wanted to uh know that uh are the operations still on hold and when do we expect the operations to resume and also 27:10 27 minutes, 10 seconds uh did we not have an alternative vessel uh uh domestically which could meet the requirements and why was the vessel 27:18 27 minutes, 18 seconds redeployed from Bahin and what uh impact did we have overall on the Bahin operations? Thank you. 27:27 27 minutes, 27 seconds So uh the time at which the demand in India regarding the vessel came in there was no other vessel available 27:36 27 minutes, 36 seconds domestically for the size between 1,500 to 2,000 cubic meter. There was an opportunity to directly enter the west 27:45 27 minutes, 45 seconds coast of India uh maintenance dredging market and the pricing was uh really 27:52 27 minutes, 52 seconds good. We got contracts at uh 1,200 rupees per cubic meter, 1,400 rupees per cubic meter working with DCI at Kandla 28:01 28 minutes, 1 second port at Goa and with the short duration during which these contracts came up. It was not possible to acquire another 28:09 28 minutes, 9 seconds vessel flag it in India. So the only option available at that time since the commitment in Bahrain was not for a 28:17 28 minutes, 17 seconds particular vessel we were able to move that vessel from Bahrain to India. that vessel has been gainfully deployed since 28:25 28 minutes, 25 seconds it moved to India early 2025. It has done it is executing the fourth contract right now at a uh higher than uh Bahrain 28:34 28 minutes, 34 seconds numbers that were available. So presently since it is gainfully deployed at that cost we don't intend to uh take 28:42 28 minutes, 42 seconds that vessel back to Bahrain. We are looking for a vessel which could be in lesser value than river pearl 18 that we 28:49 28 minutes, 49 seconds can get from the international market and replace it in Bahin. So I don't have a fixed date uh by when the operation in 28:57 28 minutes, 57 seconds Bahrain can start but as soon as uh we will make it public as soon as we find a suitable vessel for Bahin we can recommence those operations. 29:07 29 minutes, 7 seconds Okay great thank you and all the best for the future quarters. Thank you. 29:13 29 minutes, 13 seconds Thank you. The next question is from the line of Prem Luna from Astute Investment Management. Please go ahead. 29:20 29 minutes, 20 seconds Hello. Uh yes sir. So congratulations on the results. Uh I wanted to ask to you 29:27 29 minutes, 27 seconds about the specific um operations which we are on the revenues which we are generating from the subcontracting from 29:34 29 minutes, 34 seconds DCI as of now in the 9 months and what was the number last year? 29:40 29 minutes, 40 seconds I'm sorry. Can you please repeat the question a little louder? 29:43 29 minutes, 43 seconds Uh so what I wanted to know in the 9 months as of now uh what was the amount which was booked as revenue which was part of the DCI um subcontracting? 29:55 29 minutes, 55 seconds Okay. Uh we don't have that number exactly handy right now but uh we we can 30:03 30 minutes, 3 seconds uh uh maybe a range also works as a percentage maybe. your percentage is uh definitely 30:10 30 minutes, 10 seconds uh going to be more or less similar or a little higher than what it was last year. 30:16 30 minutes, 16 seconds Okay. Okay. Sure. So then what was the last year? Maybe you can tell me later that is fine. And uh sir also I wanted 30:23 30 minutes, 23 seconds to specifically focus on the ship building uh part of the business. So uh here we have gotten two contracts of the 30:31 30 minutes, 31 seconds uh green tug boards and which we are also going to further um use in our second business which is the uh renting out business. Correct. 30:41 30 minutes, 41 seconds Correct. 30:42 30 minutes, 42 seconds So uh will we be focusing only in such type of contracts where there would be a renting out option or we will focus on 30:50 30 minutes, 50 seconds uh contracts where it is only the ship building part going forward and what do you see the trajectory in this business 30:57 30 minutes, 57 seconds going forward? So we have got ship building contracts from inland waterway 31:03 31 minutes, 3 seconds authority of India to the tune of 240 crores which is building a vessel and supplying that 31:11 31 minutes, 11 seconds vessel to government of India. The green tub uh we are building for ourselves. So two green tubs are to be built for 31:18 31 minutes, 18 seconds ourselves and uh there are other small crafts also being built for our operating company knowledge marine. So 31:26 31 minutes, 26 seconds uh it's a mix of both. It is not just uh owning and operating. It is owning and uh building and supplying as well. 31:33 31 minutes, 33 seconds Sure sir. But will we be focusing uh on these green tug operations going forward because I believe there is a requirement 31:39 31 minutes, 39 seconds of 120 130 more such uh tugs going forward. Right. 31:45 31 minutes, 45 seconds So yeah we we uh are actively participating in uh the green tug tenders that are being floated by major 31:54 31 minutes, 54 seconds ports of India. There are presently tenders out there from Paradi port, Kochin port, Bombay port. So and and 32:02 32 minutes, 2 seconds Kolkata port. So we are going to be actively participating in these tenders. 32:07 32 minutes, 7 seconds If we secure the bids then the order for building such vessels will be done by the ship building company uh and uh will be operated by knowledge. 32:17 32 minutes, 17 seconds Sure. So will there be any capex requirement on a shipyard? I believe there would be a specific number which uh the top number further which you 32:26 32 minutes, 26 seconds cannot do in your own shipyard as of now. Can you give me that number? What revenue can you achieve as a top? So we 32:33 32 minutes, 33 seconds are going to invest close to 100 crores in the shipyard which is going to be a mix of debt and equity that is going to 32:43 32 minutes, 43 seconds go in creation of the shipyard which is going to have these facility of building these tugs and smaller vessels. We don't 32:50 32 minutes, 50 seconds intend to uh build uh larger vessels more than 100 mters right now and draft in excess of 5 m. So that is the 32:59 32 minutes, 59 seconds restriction. uh we believe that we can reach a top line of between 500 to 700 33:07 33 minutes, 7 seconds crores with the facility 3 years down the line. 33:12 33 minutes, 12 seconds Sure. Sure sir. And just the last question if I can squeeze in um the green does basically require a specifically uh advanced technology 33:20 33 minutes, 20 seconds which we can say maybe for the batteries. So we have tied up with someone else or is it completely being done in house? 33:28 33 minutes, 28 seconds So we have tied up with a designer and the designer uh helps us uh model the 33:38 33 minutes, 38 seconds vessel and the specifications for the green tug. We have been negotiating with various suppliers of various components 33:47 33 minutes, 47 seconds that will go into constructing the green tub and we are going to do the assembly 33:55 33 minutes, 55 seconds inhouse ourselves by procuring these components from various suppliers. 34:01 34 minutes, 1 second Sure. Thank you so much. 34:06 34 minutes, 6 seconds Thank you ladies and gentlemen. That was the last question for today. With that we conclude today's conference call. On 34:14 34 minutes, 14 seconds behalf of Knowledge Marine and Engineering Works Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.