Kranti Industries Ltd — Q3 FY26

Kranti Industries Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=VL08-1lNlGQ Published: 2 months ago

0:00 Ladies and gentlemen, good evening and welcome to Grant Industries Limited Q3 and9M FY26 earnings conference call. We 0:09 9 seconds have with us today from the management Mr. Sachinit Subash Mura promoter chairman and managing director Mr. Sumit Subashwara, promoter and hold time 0:17 17 seconds director. The Sampa Masaware, company secretary and compliance officer. As a reminder, all participant line will be 0:26 26 seconds in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:33 33 seconds If you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Before we proceed 0:41 41 seconds with this call, I would like to take this opportunity to remind everyone about the disclaimer related to this conference call. Today's discussion may 0:49 49 seconds be forward-looking in nature based on management's current beliefs and expectations. 0:54 54 seconds It must be viewed in conjunction with the risks that our business faces that c could cause our future results, performance or achievements to differ 1:02 1 minute, 2 seconds significantly from what we may be expressed or implied by such forward-looking statements. I now hand the conference over to Mr. 1:10 1 minute, 10 seconds Subit War for his opening remarks. Thank you and over to you sir. 1:15 1 minute, 15 seconds Thank you. Good evening everyone. I'm happy to welcome you all to the Q3 uh FI26 earnings call of the Grandi 1:22 1 minute, 22 seconds Industries Limited. We truly value this opportunity to engage directly with our shareholders, analysts and well-wishes. 1:29 1 minute, 29 seconds And I think you thank you all for joining us today. I trust you have already had the chance to go through our financial results, investor presentation 1:38 1 minute, 38 seconds and press release which are available on BC website as well as on the company website. We will discuss our performance, momentum and strategic progress during this during the quarter. 1:50 1 minute, 50 seconds Few business highlights I would like to put on. During the quarter we marked a significant strategic milestone with our 1:57 1 minute, 57 seconds formal entry into defense manufacturing segment. We secured multiple purchase orders from armed vehicle nigum limited 2:05 2 minutes, 5 seconds including mandates from its machine tool prototype factory and heavy vehicles factory. The aggregate of these orders stands to approximately 204 lak rupees. 2:15 2 minutes, 15 seconds These orders involve precision machining of critical components and reflect our technical capabilities process discipline and adherence to stringent 2:23 2 minutes, 23 seconds quality standards required for defense applications. This development also represents an important diversification step for the company. Entry into defense 2:32 2 minutes, 32 seconds manufacturing enhances our long-term order visibility and strengthens our position in miss uh mission critical engineering programs. 2:40 2 minutes, 40 seconds It also aligns with the government's focus on indigenous indigenization and domestic defense production providing us 2:47 2 minutes, 47 seconds access to a structurally with higher entry barriers with better margin potential. Additionally, we also 2:55 2 minutes, 55 seconds commissioned our new plant 4 facility in Japur uh that commencing the commercial operations from January 1, 2026. 3:04 3 minutes, 4 seconds The 35,160T machineing facility is equipped with advanced CNC infrastructure and scalable production capabilities. 3:13 3 minutes, 13 seconds This expansion stren strengthens our manufacturing footprint, enhances operational flexibility and positions us to cater efficiently to increasing 3:21 3 minutes, 21 seconds demand from the defense and industrial segments going forward. 3:25 3 minutes, 25 seconds On the global trend front, recent tariff realignments and evolving discussions are reshaping the supply 3:34 3 minutes, 34 seconds while direct exposure to tariffs impacted geog geographics remain limited. These developments are encouraging global audience to 3:41 3 minutes, 41 seconds diversify. sourcing under the China one plus China plus one strategy. We are evaluating select select export programs aligned with evolving trade landscapes. 3:51 3 minutes, 51 seconds India's improving trade partnership and competitive manufacturing ecosystem position companies like Cranti favorably to the capture incremental export 4:00 4 minutes opportunities with continue to closely monitor trade dynamics and remain focused on leveraging any emerging opportunity in global precision engineering supply chains. 4:10 4 minutes, 10 seconds I now hand hand the conference over to Mr. Sachi for an update on performance of Q3 and 9 months FY26. 4:19 4 minutes, 19 seconds Thank you and thank you once again. Over to you sir. 4:25 4 minutes, 25 seconds Yeah, good afternoon. 4:29 4 minutes, 29 seconds It is my pleasure to welcome all our valued shareholders, investors and analysts to the Q3 and 9month FI26 earnings conference call. 4:41 4 minutes, 41 seconds I sincerely appreciate your continued interest and the time you have taken our to join us today. 4:48 4 minutes, 48 seconds uh to give you industry overview, the Indian economy has sustained growth momentum despite global volatility with 4:56 4 minutes, 56 seconds GDP growth remaining above 6% supported by strong domestic consumption, sustained infrastructure spending and stable inflation trends. 5:06 5 minutes, 6 seconds The manifesting sector remains a key growth driver benefiting from government initiatives such as making India 5:15 5 minutes, 15 seconds realized schemes and increased capital expenditure across infrastructure and defense. 5:21 5 minutes, 21 seconds These structural measures are strengthening India's position as a reliable and competitive global manufacturing hub. 5:30 5 minutes, 30 seconds Within this environment, the automotive and precision engineering sector remains structurally positive. 5:36 5 minutes, 36 seconds Domestic vehicle uh production is stable. Export demand is gradually improving and capacity utilization levels are trending upwards. 5:46 5 minutes, 46 seconds Additionally, the push toward the EV adoption, defense indigenization and global supply chain diversification under the China plus1 framework 5:55 5 minutes, 55 seconds continues to create a long-term opportunities for quality focused precision component manufacturers. 6:02 6 minutes, 2 seconds Demand for precision machine components remain supported by localization and platform upgrades. Those with strong 6:10 6 minutes, 10 seconds execution capabilities, cost discipline and diversified sector exposure are well positioned to benefit from this evolving industry dynamics. 6:21 6 minutes, 21 seconds The union budget 2026 has further reinforced this momentum with continued emphasis on defense capital expenditure, 6:30 6 minutes, 30 seconds infrastructure development, manufacturing incentives and support for a EV ecosystem, increased allocation towards indigenous 6:40 6 minutes, 40 seconds defense production and technology modernization directly benefits precision engineering company like Clampy. 6:48 6 minutes, 48 seconds This enhances medium-term demand visibility for specialized machining players. 6:55 6 minutes, 55 seconds The sustained focus on domestic manufacturing, competitiveness, supply chain localization and MSME 7:02 7 minutes, 2 seconds supports creates a favorable operating environment enhancing long-term demand visibility across automotive, defense and industrial segment. 7:14 7 minutes, 14 seconds Now we go to the Q3 F26 standalone financial performance. 7:19 7 minutes, 19 seconds Uh during Q3 of FI26 we delivered a strong performance with a total revenue 7:25 7 minutes, 25 seconds of 22.87 crores reflecting a robust 32.2% year-on-year growth and a sequential growth of 5.8% over Q2. 7:38 7 minutes, 38 seconds This growth was driven by improved execution across our core automotive and industrial segment along with early 7:45 7 minutes, 45 seconds traction from newly diversified verticles. 7:48 7 minutes, 48 seconds The steady increase in revenue demonstrate the resilience for our business model and strengthening demand visibility across customer categories. 7:59 7 minutes, 59 seconds On the profitability front, EITA for the quarter stools to uh rupees 3.55 crores nearly three times higher compared to 8:08 8 minutes, 8 seconds the same period last year with the margins placed at around 15.5%. 8:15 8 minutes, 15 seconds Our profit before depreciation and tax that is PBT stood at 2.96 crores reflecting strong 8:23 8 minutes, 23 seconds operating performance and improved cost absorption. 8:28 8 minutes, 28 seconds Margins remained healthy despite expansion related ramp up cost. The overall profitability trajectory remained structurally positive. 8:38 8 minutes, 38 seconds At the bottom line level, our bat stood to around 74 lakhs, marking a clear 8:45 8 minutes, 45 seconds continuation for our profitability recovery compared to the loss reported in Q3 in the previous year, 8:53 8 minutes, 53 seconds strengthening earnings visibility into Q4. 8:57 8 minutes, 57 seconds The improvement in earnings underscores the impact of operational efficiencies, 9:04 9 minutes, 4 seconds better capacity utilizations and disciplined financial management. 9:08 9 minutes, 8 seconds Overall, Q3 Fi 26 reflect reflects sustained revenue growth combined with strengthening profitability positioning 9:17 9 minutes, 17 seconds us well for the remainder of the financial year. 9:22 9 minutes, 22 seconds 9 month F26 standalone financial performance for the 9month period ended 9:27 9 minutes, 27 seconds F26 our total revenue stood at 64.57 crores reflecting a strong growth of 9:35 9 minutes, 35 seconds 19.8% compared to the same period last year. 9:40 9 minutes, 40 seconds This consistent revenue expansion across quarters demonstrate the stability of demand across our core segments and the 9:49 9 minutes, 49 seconds benefits of our diversified customer base. 9:53 9 minutes, 53 seconds The growth also reflects improved execution capabilities and gradual scaling of newly added capacities. 10:01 10 minutes, 1 second ITA for 9 month FIR26 stood at 10.78 crores nearly doubling 10:08 10 minutes, 8 seconds compared to 5.39 crores in the corresponding period last year. 10:14 10 minutes, 14 seconds Margins expanded significantly to 16.7% which is an improvement of 669 basis points over year. 10:24 10 minutes, 24 seconds This reflects clear operating leverage as revenue scales. 10:29 10 minutes, 29 seconds PBD stood at 9.02 crores reflecting a 2.86x 10:36 10 minutes, 36 seconds growth over last year. This margin expansion has been driven by operating leverage, better product mix, cost 10:45 10 minutes, 45 seconds optimization initiatives and improved capacity utilization across plants. 10:51 10 minutes, 51 seconds Profit after tax for the 9-month period stood at 2.7 crores compared to the loss in the previous year. 10:59 10 minutes, 59 seconds clearly indicating a structural turnarounds in earnings. This reinforces the sustainability of our earnings recovery. 11:09 11 minutes, 9 seconds The sustained improvement across revenue, operating profitability and bottomline performance reinforces the strength of our execution framework. 11:19 11 minutes, 19 seconds We believe this consistent performance over 9 months provides strong visibility and confidence as we move into the final quarter of this financial year. 11:31 11 minutes, 31 seconds Looking ahead, while we remain mindful for global macroeconomic uncertaintities and evolving trade dynamics, the 11:39 11 minutes, 39 seconds domestic manufacturing outlook continues to remain constructive. 11:44 11 minutes, 44 seconds The momentum in defense indig indigenization, infrastructure spending and industrial 11:51 11 minutes, 51 seconds activity provides structural growth visibility. 11:56 11 minutes, 56 seconds Our diversified presence across automotive, EV, industrial and now defense segment positions us well to 12:04 12 minutes, 4 seconds benefit from this emerging opportunities while reducing cy cyclicity in the risk. 12:13 12 minutes, 13 seconds Our immediate focus will be stabilizing and scaling operations for our newly commissioned plan 4 facility. Improving 12:21 12 minutes, 21 seconds the capacity utilization levels at plan 4. We will continue to monitor and optimize our investment in automation 12:31 12 minutes, 31 seconds process optimization and smart manufacturing practices to enhance productivity and quality standards. 12:39 12 minutes, 39 seconds At the same time, we aim to strengthen customer relationship, expand export contribution and gradually increase our 12:46 12 minutes, 46 seconds participation in mission critical and value added programs. 12:51 12 minutes, 51 seconds Financial discipline remains central to our strategy. We will maintain a balanced approach towards growth and 12:58 12 minutes, 58 seconds capital allocation ensuring that expansion is supported by sustainable cash flows and prudent leverage management. 13:07 13 minutes, 7 seconds We remain focused on maintaining prudent leverage and healthy cash flows. 13:12 13 minutes, 12 seconds Our focus continues to be on margin stability, working capital efficiency and long-term value creation for our stakeholders. 13:22 13 minutes, 22 seconds With a stronger operational foundation and expanding sectoral footprint, we are confident about building a resilient and 13:32 13 minutes, 32 seconds scalable growth platform for the years ahead. 13:36 13 minutes, 36 seconds Thank you and I look forward for our discussion during the question and answer session. 13:44 13 minutes, 44 seconds Thank you sir. 13:46 13 minutes, 46 seconds We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish 13:56 13 minutes, 56 seconds to withdraw yourself from the question queue, you may press star and one again. 14:00 14 minutes Participants are requested to use handsets while asking a question. 14:05 14 minutes, 5 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 14:16 14 minutes, 16 seconds Ladies and gentlemen, if you have any questions, please press star and one on a telephone keypad. 14:24 14 minutes, 24 seconds The first question is from Mr. Abijit Pra from BB Capital. Please go ahead, sir. 14:30 14 minutes, 30 seconds Hello. Uh, thank you for the opportunity. Uh first of all congratulation on the good set of numbers sir. So yeah thank you. 14:37 14 minutes, 37 seconds My question is my question is on the defense order recent different defense order. 14:43 14 minutes, 43 seconds So what is the revenue potential from the from defense this order by next financial year FY27 and how much share 14:52 14 minutes, 52 seconds of the business is repetitive versus one-time qualification order. Also the margin profile of this. 15:00 15 minutes Oh yes also the margin profile of this. 15:03 15 minutes, 3 seconds Yeah. Uh for the defense segments we were we were targeting this segment from last more than 12 14 15 months. I will 15:11 15 minutes, 11 seconds be more precise. We have participated in various uh tenders and various uh segment. Uh fortunately in this last 15:20 15 minutes, 20 seconds quarter we received around 24 orders. Uh these are all small sample development orders which we will uh which are under 15:28 15 minutes, 28 seconds process. Few samples are submitted, few are under development. So we that current order value what we have got is around two close to around 2 crores 15:36 15 minutes, 36 seconds which will be executed in next uh 3 to 4 months. Uh in addition to this there are 15:44 15 minutes, 44 seconds another few more tenders where we have participated the technical round of discussion the plant visits of the team 15:51 15 minutes, 51 seconds is going on. So we are anticipating more orders inflows to come in next 3 4 months. If you go for FQ 27, yeah we are 16:01 16 minutes, 1 second taking a target of at least around uh 12 to 15 cr business from different segment maybe in order and execution that phase. 16:12 16 minutes, 12 seconds So that is the target what internally we have taken. We have already targeted uh I penetrated into two companies for the different manufacturing ordinance 16:20 16 minutes, 20 seconds factories and few companies the visits technical evaluation discussions are going on. 16:27 16 minutes, 27 seconds Okay. I understand the margin profile. 16:30 16 minutes, 30 seconds Ah yeah. Yeah. Margin profile more or less means it is definitely better than what we are doing for the automotive or 16:38 16 minutes, 38 seconds uh uh segment but uh it's too early to right now say because uh the few things like uh the development cost initial 16:45 16 minutes, 45 seconds product development that testing validation maybe the cost are high. So till we uh don't execute few orders and 16:55 16 minutes, 55 seconds few business uh margin profile definitely it is higher but uh how to how much it will be leveraging other cost that we have to evaluate. 17:06 17 minutes, 6 seconds Understood sir. Um now moving on to this standalone gross profit has grown that like 56.3% yearonear in quarter 3 which 17:15 17 minutes, 15 seconds is much faster than the as compared to the revenue and uh so what what favorable mix and efficiency strategy is 17:23 17 minutes, 23 seconds that opted uh and how sustainable is this profit uh regarding what profitability? 17:31 17 minutes, 31 seconds Yes. Uh the two basic point what we is we have improved our margin. There are two major factors in the one is the 17:40 17 minutes, 40 seconds capacity utilization. The more the capacity utilization increases the our fixed cost fixed overhead gets divided 17:46 17 minutes, 46 seconds accordingly and this increases in addition to do we have done some process optimization process improvement some 17:54 17 minutes, 54 seconds cost control measures. It is a ongoing continuous process on the shop floor also. So these things these initiatives 18:01 18 minutes, 1 second are taken and we were working on this from last 18 24 months and slowly we are 18:08 18 minutes, 8 seconds now we are able to get uh some good results and we are hopefully to uh maintained 18:16 18 minutes, 16 seconds uh to this level means at a consolidated at a uh optimized level we will be somewhere we will be stabilizing at 18:24 18 minutes, 24 seconds anita level of around 7 16 17 18%. That is what we are targeting and we will be reaching to that level. 18:36 18 minutes, 36 seconds Okay. Okay. Understood. Thank you sir. 18:39 18 minutes, 39 seconds And all the Thank you. 18:42 18 minutes, 42 seconds Thank you sir. Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. 18:51 18 minutes, 51 seconds I repeat, if you have any questions, please press star and one on your telephone keypad. Next questions is from the line of Mr. 19:00 19 minutes Himmanu Sharma and individual investor. Please go ahead. 19:04 19 minutes, 4 seconds Uh yes sir. Thank you uh for giving me this opportunity. Sir I have a two question. 19:09 19 minutes, 9 seconds First question question is uh for sorry to interrupt you. I think so we 19:17 19 minutes, 17 seconds are getting echo from your side. Uh can you be bit closer to the mic off? Okay. 19:24 19 minutes, 24 seconds The question is uh plant has commenced the operation from 1st January 26. So what is the design peak 19:33 19 minutes, 33 seconds revenue capacity of this plant and uh with what utilization do you hit plant level a break even and target ROC and uh 19:43 19 minutes, 43 seconds second question can you quantify the fixed cost setup uh setup of the J4 19:49 19 minutes, 49 seconds plant in terms of rent people and utility okay uh commencement I I'll answer this 19:58 19 minutes, 58 seconds question and then I'll hand out to searching for balance concern. So uh I'll explain you this is if you if you have gone through the news of Kranti we 20:06 20 minutes, 6 seconds had and this is uh this will be basically not completely not a green field project this is a brownfield project. So we have taken over and uh 20:14 20 minutes, 14 seconds complete machining business from universal out of under theou and entire their machine shop will be uh which is 20:22 20 minutes, 22 seconds which was from universal has been taken over by and now it is industries plan for from 1st of January 19 2026. 20:30 20 minutes, 30 seconds So operationally now we are stabilizing this operations and uh capacity wise we should be somewhere about uh reaching by 20:39 20 minutes, 39 seconds April uh at around 70 to 80% utilization of the complete installed current capacity. Okay. Uh that's that's uh good 20:48 20 minutes, 48 seconds of good enough to answer on the capacity side. Uh section can you take forward from here? 20:54 20 minutes, 54 seconds Yeah. Uh see the plan for operational is already commenced. The operations are because the existing existing 21:02 21 minutes, 2 seconds machineries machines which were installed in their plant are taken over by Kanti. So the operations has been 21:08 21 minutes, 8 seconds started uh capex uh capex so that that that there will be doing the component for that single customer only. So we'll 21:17 21 minutes, 17 seconds be there there uh as good as uh subcontractors or vendors for them and uh uh your point was towards the margins 21:27 21 minutes, 27 seconds I will definitely it will be in a more more or less in the same range what we are doing over there that is within 15 to 18% what we are talking 21:36 21 minutes, 36 seconds um ROC was ROC as you asked is currently we haven't done any capital investment over there 21:43 21 minutes, 43 seconds yeah currently the capital investment in that plant is uh only the installation, commissioning and uh preliminary expenses which are required 21:52 21 minutes, 52 seconds for sociated on plant basis. It will be on the balance sheet side which will be the full plant will be working out of that. 22:03 22 minutes, 3 seconds So our capital investment there is only working capital and marginal capex related to preliminary expenses and uh 22:10 22 minutes, 10 seconds uh installation commissioning of machineries. 22:16 22 minutes, 16 seconds Yeah, thank you sir. Ladies and gentlemen, if you have any questions, please press star and one on a telephone keypad. 22:30 22 minutes, 30 seconds I repeat, if you have any questions, please press star and one on a telephone keypad. 22:35 22 minutes, 35 seconds The next question is in from the line of Majid Ahmed from Pinpoint X Capital. Please go ahead. 22:42 22 minutes, 42 seconds I'm audible, sir. Yeah. Yes. 22:45 22 minutes, 45 seconds Yes sir. Uh sir just want to understand uh uh you know we are having defense of 15 crores and uh any plans to get into 22:55 22 minutes, 55 seconds any aerospace or any precision uh engineering that sigma mission. 22:59 22 minutes, 59 seconds Yeah we are we are working on those projects as well but as of now nothing we have come out of something in fact uh 23:07 23 minutes, 7 seconds we have also completed audit for HL there vendor registration audit. So we are in process of that but currently as 23:14 23 minutes, 14 seconds of now uh nothing is concluded. So hence we are not commenting. So if you see depends also we started working around 23:21 23 minutes, 21 seconds 14 15 months back. So some somewhere we have start. So these are some long-term process which we are working upon but currently we should not uh comment 23:29 23 minutes, 29 seconds anything on this because since we don't have any final outcome of it. Okay. We are working on that. 23:36 23 minutes, 36 seconds So going forward uh how are you looking to delever the balance sheet? Maybe we're having around 45 cr of debt and our cash flow is also not uh nonlinear. 23:47 23 minutes, 47 seconds So how are you going to manage your uh cash flows working capital and reduce debt like what's the strategy? 23:54 23 minutes, 54 seconds Yeah. So the leveraging the balance sheet is the uh tricky part in our business since our business is itself is 24:01 24 minutes, 1 second a heavy capex driven business. But uh we what we are targeting is uh uh we will 24:10 24 minutes, 10 seconds be we will be balancing balancing out our uh debt debt and equity structures. 24:16 24 minutes, 16 seconds So maybe by we are targeting that by at least by 2030 or something onward. uh we should be a virtual or what do we call 24:26 24 minutes, 26 seconds this net uh debtfree company. So working on towards that with the new business opportunities increased capitalization 24:35 24 minutes, 35 seconds we hopefully that uh in coming maybe 6 to 8 quarters the the ratios and will be improving drastically what we are 24:44 24 minutes, 44 seconds currently on the balance sheet side not the balance sheet side the the ratios will be improving drastically in this 24:51 24 minutes, 51 seconds maybe in next six to eight quarters uh So before the improvement in the in 25:01 25 minutes, 1 second the coming 6 to 8 quarters are we looking for additional uh fund raise or any borrowings are we looking to for expansion? 25:10 25 minutes, 10 seconds uh borrowing right now it is not there. 25:12 25 minutes, 12 seconds The working capital the only the working capital funds may be a marginal working capital funds we may add it uh with our 25:20 25 minutes, 20 seconds existing uh financial bankers only uh this is what uh we may require. Uh yeah 25:29 25 minutes, 29 seconds definitely capex uh we are we are right now in a better situation where we have a good uh amount of capex installed with 25:36 25 minutes, 36 seconds the machines of that Japur plant coming into our pocket that's the reason we went in that model where we become a 25:44 25 minutes, 44 seconds capex light we have we have added 45 machines which are directly taken on lease from them to make it same mean 25:52 25 minutes, 52 seconds with the idea to leverage and reduce down our capital cost uh with that uh today only. So no uh 26:00 26 minutes right now we are not planning anything but maybe six it depends what how the board decides and things how we move 26:08 26 minutes, 8 seconds forward but no next two three quarters at least no any fundraising plan is there 26:17 26 minutes, 17 seconds also I want to also understand especially in a defense part so how are you looking to scale up and what is our 26:24 26 minutes, 24 seconds you know the right to win to exponentially scale this business in two to three years how we positioning ourselves as a company. 26:33 26 minutes, 33 seconds So uh see we are we yeah see we are we are in the way of uh 26:39 26 minutes, 39 seconds scaling up. So if you say last uh for 25 to 26 we will be we are right now we are 26:47 26 minutes, 47 seconds growing at a rate of around 20%. We expect that is next at least 2 years the same ratio will be continuing. So that 26:56 26 minutes, 56 seconds is cooling up by the addition of new business also, new products also as well as setting up a new plant and addition to the capacity also. So at least next 27:05 27 minutes, 5 seconds two years we have that visibility that at the same rate what we have grown from 25 to 26 we'll be growing to in 26 uh to 27:12 27 minutes, 12 seconds 27 and 28 that is what we are targeting and we are pretty much confident we'll be on that 27:20 27 minutes, 20 seconds track maybe plus or minus uh margin plus or minus. Yes. 27:27 27 minutes, 27 seconds So finally I just want to understand sir as of your presentation you have mentioned uh of the segmented revenue majority getting from tractor business. 27:36 27 minutes, 36 seconds Do you see any kind of technicality or anything sir like how do you see this in terms of margin pressures or anything? 27:43 27 minutes, 43 seconds No see tractor industry is in a growing industry and this will remain as a growing industry for next two years and 27:50 27 minutes, 50 seconds uh if you if you I mean gone through the other other I don't know this ind 27:58 27 minutes, 58 seconds growing domestic as well as export market for next two to three years uh with the need of basic basic since food 28:06 28 minutes, 6 seconds is one of the basics necessity secondly farm farming automation is one thing which is which currently India lags 28:14 28 minutes, 14 seconds far behind then as compared to any any European and US farm sectors. So this is one area where uh we feel that uh this 28:21 28 minutes, 21 seconds is again where this industry is going to grow at least at two digits uh for next year and uh around 8 8 to 9% again next 28:30 28 minutes, 30 seconds uh next year that is what is the prediction says. Secondly, uh even if we are in a tractor industry, if you see 28:38 28 minutes, 38 seconds the split of our tractor industry, we are into multiple customers and multiple product zones. So know we are into a lower HP factors with higher HP and also 28:46 28 minutes, 46 seconds in medium HP. So these combination help us to diversify our product range within that one segment as well. And then with 28:54 28 minutes, 54 seconds agriculture now we have also started concentrating on agree implements like harvesters and bailers and which are part of agree implements uh which is 29:03 29 minutes, 3 seconds growing market further again. So this these are industry which are always going to grow for next two to three years without without any uh variation. 29:17 29 minutes, 17 seconds All the var thank you. 29:21 29 minutes, 21 seconds Thank you sir. Ladies and gentlemen, if you have any questions, please press star and one on a telephone keypad. 29:31 29 minutes, 31 seconds I repeat, if you have any questions, please press star and one on a telephone keypad. 29:50 29 minutes, 50 seconds I believe there are no more questions. 29:52 29 minutes, 52 seconds Sir, I hand over the floor to the management for the closing remarks. 30:03 30 minutes, 3 seconds Yeah. Thank you. 30:08 30 minutes, 8 seconds I would like to extend my sincere gratitude to our board of directors for their guidance, our employees for the 30:15 30 minutes, 15 seconds dedication, our customers for the trust and of our shareholders for their unwavering support. We remain committed 30:24 30 minutes, 24 seconds to consistent execution and transparent communication. 30:29 30 minutes, 29 seconds Thank you very much for all of you for joining this call. Thank you very much. Thank you. 30:35 30 minutes, 35 seconds Thank you. Thank you sir. On behalf behalf of Kanti Industries Limited, we would like to formally conclude this Q3 30:43 30 minutes, 43 seconds FY26 earnings conference call. We sincerely appreciate your participation in this event and we kindly request that 30:50 30 minutes, 50 seconds you now disconnect your lines. Thank you for your time and engagement. Thank you.