KRN Heat Exchanger and Refrigeration Limited — Q4 FY26

KRN Heat Exchanger and Refrigeration Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=2v7F3wFpSl8 Published: 1d ago

0:01 1 second Ladies and gentlemen, good day and welcome to the KRN heat exchanger and refrigeration limited Q4 and 12 month 0:07 7 seconds FY26 earnings conference call hosted by Dutat Capital Markets Private Limited. 0:13 13 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:23 23 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:30 30 seconds I now hand the conference over to Miss Hel Parrick from Dorat Capital. Thank you and over to you ma'am. 0:37 37 seconds Thank you Shelena. Good afternoon ladies and gentlemen. On behalf of dollar Capital I'm pleased to invite all of you 0:44 44 seconds to the Q4 FI26 earnings conference call with the management of KRN heat exchanger and refrigeration limited. The 0:52 52 seconds management is represented by Mr. Santosh Kumarad Edmund and MD Mr. Pawan Nawal the CFO uh 1:01 1 minute, 1 second Mr. Jutendra Sharma the company secretary and Miss KL a whole time director KRN HWAC travel with that I'll 1:09 1 minute, 9 seconds hand over the call to KL ma'am for the opening remarks over to you KL good good afternoon everyone and thank 1:17 1 minute, 17 seconds you for joining us FY26 has been an important year for us in many ways this is the year where the groundwork we've 1:25 1 minute, 25 seconds been putting in over the last few years has started reflecting in our numbers and overall business momentum. If I look 1:33 1 minute, 33 seconds at the year, what stands out is not just growth but how the business is shaping up. We are seeing better traction across 1:40 1 minute, 40 seconds segments, stronger engagement with customers and more consistency in execution. The new HVAC facility and we 1:48 1 minute, 48 seconds commissioned during the year has started contributing and while it is still in the ramp up phase, the response from 1:55 1 minute, 55 seconds customers has been encouraging. We are also seeing our business becoming more balanced. Earlier a large part of our 2:02 2 minutes, 2 seconds focus was on core heat exchanger products. But now we are gradually moving towards a more integrated offering. Our presence today stands 2:12 2 minutes, 12 seconds across HWAC, data centers, industrial cooling, transport applications and refrigeration. This diversification is 2:20 2 minutes, 20 seconds helping us build stability in the business. Exports is another area where we are seeing steady progress. Markets 2:28 2 minutes, 28 seconds like UAE and US continue to do well for us and we are also seeing initial traction coming from Europe. It is still 2:36 2 minutes, 36 seconds early but the direction is positive and gives us confidence for the coming years. During the year we also entered 2:43 2 minutes, 43 seconds the bus 80 segment. This is a strategic move for us. It allows us to go beyond being just a component supplier and 2:51 2 minutes, 51 seconds participate in system level opportunities. We believe this will open up a meaningful growth avenue over the 2:58 2 minutes, 58 seconds next few years. On the operation side, we have stayed focused on execution. 3:03 3 minutes, 3 seconds Whether it is managing raw material volatility, improving efficiency or working on backward integration, the effort has been to keep the business 3:12 3 minutes, 12 seconds steady while scaling up. As the new plant ramps up further, we expect operating leverage to start playing clearly. 3:22 3 minutes, 22 seconds Coming to our financial performance for FY2026, our standalone total income grew by 3:30 3 minutes, 30 seconds 57.36% yearonear to 689.95 3:35 3 minutes, 35 seconds cr while ITA increased by 19.41% 41% to 3:41 3 minutes, 41 seconds 84.79 cr and net profit rose by 42.11% to 71.31 cr on a consolidated basis. 3:53 3 minutes, 53 seconds Total income stood at 609.81 cr up 38.06 yearonear with IITA growing 4:02 4 minutes, 2 seconds by 59.52% to 112.48 48 cr and net profit increasing by 44.62% 4:11 4 minutes, 11 seconds to 76.47 cr for Q4 2026 FY stand alone total 4:19 4 minutes, 19 seconds income grew by 55.06% yearonear to 204.93 4:26 4 minutes, 26 seconds cr with net profit rising by 22.69% to 16.87 87 cr. On the consolidated 4:35 4 minutes, 35 seconds side, total income came in at 181.40 cr up 33.5% 4:42 4 minutes, 42 seconds yearonear while IITA increased by 77.56% to 33.55 4:50 4 minutes, 50 seconds cr and net profit rose by 57.14% to 23.36 cr. Overall, the environment remains 4:59 4 minutes, 59 seconds supportive with demand across sectors such as data centers, infrastructure, and mobility. With the capabilities and 5:06 5 minutes, 6 seconds scale we have built, we believe we are well positioned to capture these opportunities. With that, we would be happy to take your questions. 5:18 5 minutes, 18 seconds Thank [clears throat] you. Thank you very much. 5:21 5 minutes, 21 seconds We will now begin the question and answer session. [clears throat] Anyone who wishes to ask a question may press star and one on the touchstone telephone. 5:31 5 minutes, 31 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies 5:40 5 minutes, 40 seconds and gentlemen, we will wait for a moment while the question Q assembles. 6:04 6 minutes, 4 seconds The first question is from Anojara from Interglo. Please go ahead. 6:10 6 minutes, 10 seconds Um hi my question is more around the data center front where a lot of the new AI data centers they require a lot of 6:17 6 minutes, 17 seconds liquid cooling and not a lot of air cooling. So in the new facility that we are uh setting up or are there any new 6:24 6 minutes, 24 seconds products that we are developing that can assist with the liquid cooling data centers AI data centers. 6:32 6 minutes, 32 seconds Yeah good afternoon to all. So basically data center there is two segment one is the audio side and another is the IDO side. So IDO side is changing like in 6:41 6 minutes, 41 seconds liquid cooling but uh still I think it's early phase in in India. So out outside like as a chiller or maybe dryer our 6:50 6 minutes, 50 seconds product is still will remain same fin and tube type and other one may be possible to change in future like micro 6:57 6 minutes, 57 seconds channel MCHX. So we already working on microch and by end of this year or early next early next year we will have this 7:05 7 minutes, 5 seconds product in our portfolio. Other than this ideal side ideal side pin and tube will replace maybe to like CDU. So there 7:13 7 minutes, 13 seconds will be the plate and plate heat exchanger. So we also started working on this heat exchanger. So once our study will complete so maybe we can add in 7:22 7 minutes, 22 seconds coming next year in our portfolio this heat exchanger as well. So as of now we are receiving order phenon tube from all our HVAC data center component in India. 7:33 7 minutes, 33 seconds So CD is very less for this year. Yeah got it. Uh my my next question on the uh 7:40 7 minutes, 40 seconds the new capacity that's coming up um in in this FI27 can we expect near 70% 7:47 7 minutes, 47 seconds utilization um for the new capacity that's coming up? 7:53 7 minutes, 53 seconds So new capacity if you see like uh uh including all products so we call like our old facility to six act. So if you 8:02 8 minutes, 2 seconds see uh all product maybe uh some of product you're not aware so maybe I can repeat. So there is new product what we added already. So it's the one is the 8:10 8 minutes, 10 seconds infration site W on tube condenser then second one is the roll bond operator also refrigerator. Then frost free operator also belongs to refrigerator. 8:20 8 minutes, 20 seconds Then skin condenser also belongs to refrigerator. Then other one is the different type of bar and plate and then 8:28 8 minutes, 28 seconds complete product dry air cooler. Then a complete product is ammonia operator and then complete product bus air 8:35 8 minutes, 35 seconds conditioning and also uh in heat exterior we increase our bandwidth in term of new geometry. So these are uh uh 8:45 8 minutes, 45 seconds portfolio. So we expecting this year uh inclusive all uh products and new geometry uh we will achieve 50% of capacity utilization from new facility. 8:58 8 minutes, 58 seconds Got it. And my final questions around the raw materials uh basically in the last uh 6 to9 months there's been a huge 9:05 9 minutes, 5 seconds hike in all the raw materials prices. Uh what percentage of the cost are you able to pass on through the customers? 9:14 9 minutes, 14 seconds So in all call or of course we always remain. So our price pattern is like that um uh quarter on quarter basis we 9:21 9 minutes, 21 seconds able to change to our customer or we have such contract we can pass almost 100% copper LME and aluminium LM and USD 9:30 9 minutes, 30 seconds to INR all three factor we can able to change with our customer and our price pattern or agree term is like that only 9:39 9 minutes, 39 seconds so you can say quarter on quarter basis we can able to pass 100%. Uh got it. Thank you so much. 9:48 9 minutes, 48 seconds Thank you. The next question is from Adja Sharma from Haloni Venture Capital Fund. Please go ahead. 9:57 9 minutes, 57 seconds First of all, congratulations for your excellent set of numbers. Sir, what is the expected revenue contribution from the bus AC business and data center 10:06 10 minutes, 6 seconds business in the upcoming quarters and what margin improvement does the management expect in bus AC segment due to backward integration. 10:17 10 minutes, 17 seconds So in bus air conditioning if you see like all Indian manufacturer so we are riding on the top in term of backward integration including fin tube type 10:26 10 minutes, 26 seconds exterior and micro channel we are going to add then tubing side and then FRP side uh we have all inhouse so you can 10:34 10 minutes, 34 seconds say backward indication we have compared to other manufacturers on the top uh last year we achieve around 10 cr from 10:42 10 minutes, 42 seconds bus AC only and uh this year whatever is the market size so we expecting at least uh 15% market share we will uh achieve 10:51 10 minutes, 51 seconds uh this running financial clear and sir for the data center business 11:00 11 minutes so data center now is really growing so we have some good uh uh order booking especially from data center and long lead time they like one person is 11:09 11 minutes, 9 seconds already booked like six to 7 month also so Q4 we achieve around u uh 18.7% from 11:16 11 minutes, 16 seconds center only. So if you uh see quarter on quarter basis increase around uh two and 2.7% uh especially on quarter on quarter 11:25 11 minutes, 25 seconds basis and yearon-year basis also I think it increase um so now we have good order 11:32 11 minutes, 32 seconds booking from data center even uh if I like little on the export side so last year we achieve around 100 cr export and 11:41 11 minutes, 41 seconds now we have uh two good customer from export side also from data center So as of now we have order booking almost 120 11:50 11 minutes, 50 seconds G plus uh for export including data center order. 11:56 11 minutes, 56 seconds Okay sir sir my second question is that uh could you please provide the further details regarding the export order of of 12:04 12 minutes, 4 seconds approximately INR 55 cr received by the KR and HBAC products private limited including the geography and end use industry of the customer. 12:16 12 minutes, 16 seconds So total order what I said last year we achieve around 100 cr uh from export side only and uh this year we are 12:24 12 minutes, 24 seconds planning to achieve almost double compared to last year in including all geomet like all geography 12:32 12 minutes, 32 seconds especially North America uh Europe and UAE and that part being a uh confidence 12:40 12 minutes, 40 seconds we can't share like particular industry size or geography but total we have opening motor is 120 cr including all geography Europe, UA and North America. 12:52 12 minutes, 52 seconds Sir, I am asking about the latest 55 cr order received by the K and HBAC 12:58 12 minutes, 58 seconds products sir. Yeah. Uh oh actually it's basically particular 13:07 13 minutes, 7 seconds that order I think what detail we can able to share we already share on our uh stock exchange. So behind that we unable to share. 13:18 13 minutes, 18 seconds Okay sir. My last question is that could you please provide the details of the recent IP including the amount raised to key investors and the proposed utilization of the proceeds. 13:30 13 minutes, 30 seconds Can you repeat again? 13:34 13 minutes, 34 seconds confidential right now about the Hello. 13:44 13 minutes, 44 seconds Yes, sir. 13:45 13 minutes, 45 seconds Could you please provide the details of the recent fee including the amount raised and the proposed utilization of the proceeds and the key investor determination? 13:56 13 minutes, 56 seconds So actually we just uh took the board approvals u up to 500 of the p size and the rest information is still not 14:04 14 minutes, 4 seconds concluded. So once concluded or we we can share uh after that only. Yeah. 14:10 14 minutes, 10 seconds Okay. Thank you very much sir. The best of luck for your upcoming quarters. Thank you. Thank you. 14:16 14 minutes, 16 seconds Thank you. The next question is from Vishad Kabra from Haroni Ventures Capital Fund. Please go ahead Mr. 14:23 14 minutes, 23 seconds Vishad. Hello. Yeah. Yes. 14:28 14 minutes, 28 seconds Good afternoon sir. First of all, I would like to congratulate for your financial year results. So the question 14:36 14 minutes, 36 seconds is management previously mentioned that the company has benefited from anti-dumping duties imposed on Chinese 14:43 14 minutes, 43 seconds products. If a favorable US Chinese trade agreements reduces these duties or changes the competitive landscape, what 14:51 14 minutes, 51 seconds precautionary strategies is the company implementing to protect margins and market share? Additionally, how is the 14:58 14 minutes, 58 seconds current geopolitical environment in impacting the export business in terms of demand, price chain, supply chain and customer diversification? 15:09 15 minutes, 9 seconds So I I got your second question but first I unable to understand you can you repeat on first question yeah sir 15:16 15 minutes, 16 seconds basically the question is management previously mentioned that the company has benefit from anti-dumping duties imposed on Chinese products if a 15:24 15 minutes, 24 seconds favorable US Chinese trade deal agreement reduces these duties or changes the competitive landship what 15:32 15 minutes, 32 seconds precautionary strategy is the company implementing to protect margins and market share 15:39 15 minutes, 39 seconds So uh I think unable to understand full question but maybe what I understand I can able to reply. So basically uh we are not competing with Chinese till now 15:48 15 minutes, 48 seconds because our all products is customization and special industry because we are not in bulk and mass production. So I think Chinese can able 15:56 15 minutes, 56 seconds to compete only if you have numbers is huge and one product like catalog item. So we are on that not not that industry. 16:04 16 minutes, 4 seconds So still we are competing with in Europe with European supplier and North America with North American supplier and of course we we are directly supplying. So 16:12 16 minutes, 12 seconds I think um this discussion I think long we are not competing with Chinese so there is no need to make a strategy on 16:19 16 minutes, 19 seconds that. Second one uh geographical tension of course there is a continue issue on like especially UA so in March month we 16:26 16 minutes, 26 seconds not able to dispatch our dispos but now our dispatch is already started our threat cost is increasing so we able 16:35 16 minutes, 35 seconds to take increase from our customer as well and North America and Europe uh as of now we don't have any issue so we 16:42 16 minutes, 42 seconds able to uh dispatch easily whatever we are posing to our customer other than this of course some slightly rate cost 16:49 16 minutes, 49 seconds is increased especially due to the container some issue or maybe uh vessel issue. So that also we able to pass on 16:57 16 minutes, 57 seconds our customer uh quarter on quarter basis and that's why little we increase our inventory also that is the one reason 17:04 17 minutes, 4 seconds also we little because we have import metal coper and alone in long item so due to that tension we increase our inventory as well. Yes. 17:15 17 minutes, 15 seconds Got it sir. Sir my second question is could you please share the utilized capacity and install capacity of the new 17:21 17 minutes, 21 seconds NMRA plant and what capacity utilization level does the management expect over the upcoming quarters and in the coming years. 17:33 17 minutes, 33 seconds So I think uh uh this uh last year detection center we able to utilize our 17:39 17 minutes, 39 seconds full capacity and for HBC we able to uh I think uh utilize around 15 15 uh% only 17:48 17 minutes, 48 seconds but this year our planning to achieve 50% from new facility as well and K will remain same. 17:56 17 minutes, 56 seconds Okay sir thank you and wish you all the best for the upcoming quarter. Yeah thank you. Thank you. 18:05 18 minutes, 5 seconds The next question is from Saga Tana from Alchemy. Please go ahead. Mr. Saga. 18:11 18 minutes, 11 seconds Hi Santos GI. We have raised uh resolution to raise funds. Yeah. Why are 18:19 18 minutes, 19 seconds we raising these funds? What is the end use? If you can just explain this. 18:25 18 minutes, 25 seconds Actually objective is still uh not concluded. So I think u uh very soon we will conclude the objective and then uh 18:34 18 minutes, 34 seconds uh we will let you know what broadly man region will be one of the working capital. 18:42 18 minutes, 42 seconds Okay. So this is just an enabling resolution up to 500 kores. We may not actually uh do the full 500 K fund raise. Is my understanding correct? 18:53 18 minutes, 53 seconds Yes. Yes. Got it. Got it. Thank you. 19:00 19 minutes Thank you. The next question is from Shashi Khan from Brighter Mind Equity Advisor. Please go ahead. 19:08 19 minutes, 8 seconds Hello. Yes. Hello. 19:12 19 minutes, 12 seconds Yeah, thank you for giving me the opportunity. So I have few questions. Uh the first one is how is the demand scenario panning out after you know IMD 19:21 19 minutes, 21 seconds uh and climate new you know guidance on the monsoon getting eric this year 19:30 19 minutes, 30 seconds so demand scenarios and inventory level in the market from our end customers. 19:37 19 minutes, 37 seconds So this question I think belong to room industry but actually we are not seasonable company. So on us there is of course no impact uh on weather or uh 19:46 19 minutes, 46 seconds season but uh we have as a like commercial or running business. So you can see our each quarter will be on the 19:53 19 minutes, 53 seconds like um year on year or quarter on quarter basis will be the on the top. So we have of course demand and we are able to retize what we are saying 50% in this 20:02 20 minutes, 2 seconds year. So of course uh you can see quarter on quarter basis growth will be there. So we we have good enough order booking and of course we are working on 20:09 20 minutes, 9 seconds same and you will able to see. So room AC side we are not aware of course inventory side and I think that this year what I heard from industry season 20:18 20 minutes, 18 seconds is not good but we still are waiting to improve this. 20:23 20 minutes, 23 seconds Okay. Uh so my next question is uh so uh a lot of data center uh you know uh transform happening in North America approximately around size of 100 gawatt. 20:35 20 minutes, 35 seconds So what is the time for uh us considering liquid cooling is being preferred alternative for uh in the local market here. 20:46 20 minutes, 46 seconds So in India of course everybody's talking about liquid cooling and what I have some input like AI data center they 20:54 20 minutes, 54 seconds will use liquid cooling as indoor side and of course outdoor side chiller or dryer will be there but still in commercialization maybe it's not started 21:02 21 minutes, 2 seconds there whatever like some piece they are using maybe Indian manufacturer they are importing complete CD unit and I think they are supplying so manufacturing not 21:11 21 minutes, 11 seconds started yet so as of now uh honestly uh our customer also not so much clearer 21:19 21 minutes, 19 seconds but uh what order they are booking is without liquid cooling till now or some maybe with with liquid pooling. So I for my personal opinion it will be I think 21:27 21 minutes, 27 seconds after one year some clarity will be there and then maybe we can able to update you. 21:33 21 minutes, 33 seconds So how we are looking at the export market in data center I mean US is one of our you know prominent export markets. So how is the demand planning 21:41 21 minutes, 41 seconds out for? Okay. So especially data center we already started export to two big 21:48 21 minutes, 48 seconds customer particular to data center and uh three customer we have pipeline under like development as a sample. So we are 21:57 21 minutes, 57 seconds open I think uh what I said key this year we are planning to achieve almost double export compared to last year. So there will be the one reason basically 22:05 22 minutes, 5 seconds we have like able to see good demand from data center as well from export side. Okay sir. Thank you. Thanks a lot. 22:13 22 minutes, 13 seconds That's all from all the Thank you. The next question is from May 22:20 22 minutes, 20 seconds Manor from Trust Mutual fund. Please go ahead. 22:26 22 minutes, 26 seconds Yeah. Hi thanks for giving the opportunity. Uh I said the numbers in the P&L are very good and you know very strong growth. uh even the bidder margins have also held up well on basis. 22:35 22 minutes, 35 seconds uh just on working capital side you know we have accumulated a lot of inventory almost 3x versus last year and receivables have also gone up 2x uh 22:43 22 minutes, 43 seconds versus last year some color around that I mean I understand that we are expecting large revenue uh big ramp up next year uh but how to see normalized 22:52 22 minutes, 52 seconds inventory levels and should one worry on the receable side because there is some acquisition receivables also 23:00 23 minutes so um actually inventory side of course we are also seeing case is and there is some of uh uh reason I can maybe able to 23:09 23 minutes, 9 seconds try to explain. So first one is actually we booked like order booked from UAE like I think u one order was 20 cr and 23:18 23 minutes, 18 seconds additional order also. So once March we have almost able to dispatch like around 15 to 20 cr but we unable to dispatch 23:25 23 minutes, 25 seconds due to that that work condition. So that material added in inventory in FG or raw material because raw material that other 23:34 23 minutes, 34 seconds one is uh in inventory is I think around uh 8 cr order 8 cr value we already dispatch in March but not able to 23:42 23 minutes, 42 seconds convert it uh in BL so that is also covered in inventory. So that article will be add export in this quarter 23:50 23 minutes, 50 seconds because from our festival in March only but auditor not consider in uh sales 23:57 23 minutes, 57 seconds because objective other one uh this because new business what we added uh especially W rollery 24:07 24 minutes, 7 seconds then skin condenser bar and place dry cooler ammonia bus air conditioning and new geometry. So we have to build minimum level stock for these all new 24:16 24 minutes, 16 seconds businesses. So that is the one of the reason also uh inventory nowadays. Other one is the 24:24 24 minutes, 24 seconds still BIS issue in India. So now in this month also like 20th of May is the last day of the for inner group tube. So that 24:33 24 minutes, 33 seconds will maybe government again take the reopen the B maybe approval which will take two three months. So that also we have to build the inventory for at least 24:41 24 minutes, 41 seconds one one month before due to the B system. Another one is the uh customer 24:48 24 minutes, 48 seconds side pending because now new customer is uh continue going to add in new business especially bus air conditioning. So 24:56 24 minutes, 56 seconds that's why also this amount is improving. So hopefully you can be able to improvement in this finale. Of course 25:04 25 minutes, 4 seconds we will now putting some net cash flow tools in our system. So using uh this running points here you'll be able to see improvement. 25:17 25 minutes, 17 seconds Sure. Sure. So I mean should we see normalization of inventory to happen? I mean dispatches uh dispatches and normalization of inventory to happen in 25:24 25 minutes, 24 seconds the next six months um next six month like each quarter 25:31 25 minutes, 31 seconds quarter you will see the improvement. So uh I think uh things in maybe as per norms or normalization 25:38 25 minutes, 38 seconds is still I can't comment because uh inner guru tube is still not started in India uh either before like 6 month also 25:46 25 minutes, 46 seconds we have news from manufacturing we can able to start including and also they are not started yet they supposed to start before one year so still we are 25:55 25 minutes, 55 seconds depend on imports and then government is also want to stop the import due to the this BIS tool. So still I think it will minimum it will take 6 months to 26:04 26 minutes, 4 seconds normalize that thing. So quality will take sure understood. Uh yeah uh that's it from my side. Thank you. 26:15 26 minutes, 15 seconds Thank you. The next question is from Vig Ayer from Sequent investments. 26:23 26 minutes, 23 seconds Please go ahead. Hello. Am I audible sir? 26:28 26 minutes, 28 seconds Yes you are audible. Yes. Speak it loudly. Uh yeah. 26:36 26 minutes, 36 seconds Yeah. Uh is it is it okay now? Yes. 26:39 26 minutes, 39 seconds Yeah. Thank you. Thank you for the opportunity. Uh so my uh first question is uh so I heard you earlier when you 26:46 26 minutes, 46 seconds said that uh we can pass on the uh cost escalation uh you know on the raw material side or uh be it on other 26:55 26 minutes, 55 seconds freight side uh to our customer. So wanted to understand uh if I if I uh you know understood it right there would be 27:04 27 minutes, 4 seconds a um quarter on quarter lag right before the price is passed on right. So for the first quarter we have to take the hit on our books right? 27:16 27 minutes, 16 seconds Yes because uh quarteron quarter bas also you can see is not increased like of course like since last six month there 27:24 27 minutes, 24 seconds is some issue because sometime increase sharply and then also sometime decrease but however our pattern is like that the last three month not last three month 27:33 27 minutes, 33 seconds last quarter last quarter average of the this is the our post pattern have one RM seat also we called Rome seed. So romance the factor like uh we we have 27:42 27 minutes, 42 seconds one separate table that's belongs to um LME for copper for like 3 month and then 27:49 27 minutes, 49 seconds copper LM for aluminium and then USD to INR and same seat we have uh some other ad also like including uh logistic cost 27:57 27 minutes, 57 seconds including freight cost. So that is the full transparency with customer and once this like uh changed so we always able to pass on to our customer. 28:07 28 minutes, 7 seconds Okay. So uh but what is the usual uh number of days of inventory that we maintain 28:17 28 minutes, 17 seconds months or days? Anything would do in months or days? Yeah. 28:21 28 minutes, 21 seconds Now it's around uh uh two and a half month I think. 28:27 28 minutes, 27 seconds Oh okay. Okay. And uh sir when it when it comes to execution I heard you that 28:34 28 minutes, 34 seconds uh you you trying to achieve 50% of utilization for the new plant uh in FI27 28:40 28 minutes, 40 seconds in addition to our old plan right and so what would be the uh what would be the 28:46 28 minutes, 46 seconds number look like for 28 and 29 of course number I can't describe I mean 28:54 28 minutes, 54 seconds not in ter yeah yeah in terms of utilization Sorry. 28:58 28 minutes, 58 seconds So this year we are able to achieve like our old facility is full utilized and new facility this year we are able to achieve 50% and next year 80%. 29:08 29 minutes, 8 seconds Okay. And what would the margins look like uh for 27? 29:12 29 minutes, 12 seconds So margin uh what is currently you see we can able to increase because uh now we will uh in earlier calls also I told 29:19 29 minutes, 19 seconds you we will have two incentive one is the central government is PLI. So we able to receive this year 5% 29:28 29 minutes, 28 seconds from PLI uh particular on heat exchanger production and uh very soon we will have 29:36 29 minutes, 36 seconds RIPS approval as well maybe within this month can be possible so that we have approval from uh state government uh for 29:44 29 minutes, 44 seconds RIPS approval then we can have for next 10 year uh we can have at least 1.56% of the top line uh uh for new facility and 29:53 29 minutes, 53 seconds other than this uh our export is uh this year we are able to I think uh achieve around double compared to last year. So we will have some good margin compared 30:01 30 minutes, 1 second to domestic in export and other than this we will able to save some money from uh solar like electricity as well 30:10 30 minutes, 10 seconds because we have now plant is fully operational and we have 8 solar facility. So if I plug all these things 30:17 30 minutes, 17 seconds so we can of course we can able to slightly increase. Other side we will have depreciation is quite high and the overhead is now increasing. 30:26 30 minutes, 26 seconds Okay sir. Got it. Got it sir. Uh thank you uh for your detailed answer. Uh I'll get back in the queue. 30:33 30 minutes, 33 seconds Thank you. Thank you ladies and gentlemen. 30:38 30 minutes, 38 seconds Please limit your questions to one per participant so that management can address more questions. Should you have 30:45 30 minutes, 45 seconds a follow-up question, we will request you to rejoin the queue. The next question is from Hitaw from Monarch AF. 30:53 30 minutes, 53 seconds Please go ahead. 30:54 30 minutes, 54 seconds Hi, uh good afternoon sir. Congratulation on amazing set of numbers. So I wanted to 31:01 31 minutes, 1 second understand from our Q4 revenue what percentage is from products other than fentin tube? 31:12 31 minutes, 12 seconds So honestly that number is not but it's roughly uh uh I think 31:20 31 minutes, 20 seconds honestly I don't have the data. So if you maybe you can maybe another entering queue. So next meanwhile our answer so we'll answer the next question. 31:31 31 minutes, 31 seconds Sure sir sure. So we were we were considering entering uh you know railways and marine segment as well. uh you know we were trying to get tenders 31:40 31 minutes, 40 seconds in those segments. So is there any progress in that? Uh yes that's right for railway for railway now we are um 31:48 31 minutes, 48 seconds eligible for this bar and plate exchanger. So there is procedure including six month field trial. So now we are approved by railway including six 31:56 31 minutes, 56 seconds month six month trial. So now whatever tender is coming so we are parting on the same even last week also we passwording three tender and uh we all 32:05 32 minutes, 5 seconds three we are on L1. So I think this week we able to u receive uh orders from railway. So bar plate we already 32:13 32 minutes, 13 seconds entered. Other than this marine we are supplying finan only for a marine application but complete at system in 32:20 32 minutes, 20 seconds Indian for Indian railway we will uh we will enter. So that procedure is uh I think uh from now it's almost 8 month. 32:28 32 minutes, 28 seconds So we already uh hired the team and I think team will join soon. So once they will join particular that business we will start uh the things for 32:37 32 minutes, 37 seconds documentation and plan approval. So it will take at least from now 6 to 8 month and then we will u uh once we will 32:44 32 minutes, 44 seconds approve by railway then we can start the business. So this final year I think we will not much expectation from this business but next year for sure we will have some numbers. 32:55 32 minutes, 55 seconds Okay. So that earlier one now we have now I so 95% from finan and 5% from other business only. 33:05 33 minutes, 5 seconds Okay. Thank you. 33:09 33 minutes, 9 seconds Thank you. The next question is from AJ Surya from Nishay. Please go ahead. 33:17 33 minutes, 17 seconds Uh thanks for the appointment. Am I audible? Yes. Yes. 33:24 33 minutes, 24 seconds So sir uh wanted to understand first thing on the uh customer concentration on the data center business uh because 33:32 33 minutes, 32 seconds on the commercial AC I guess one of the large OEM contribute significant portion of the revenue. So if you can maybe uh 33:41 33 minutes, 41 seconds help us understand the customer concentration on the data center segment who are the top customers and how are 33:48 33 minutes, 48 seconds they uh you know contributing in percentage and uh second thing on this 33:55 33 minutes, 55 seconds uh regarding the recent onboarding of new data center customers uh like uh I mean leaders like maybe 34:04 34 minutes, 4 seconds so how are we on the approval process with these major thermal management players like Bert or any other player 34:13 34 minutes, 13 seconds and with such players like already onboarded like Schneider and Clim and ST. So are we also plugging into their 34:22 34 minutes, 22 seconds localized Indian operations or is it just like uh we have to supply the cooling components to their global supply chain. 34:32 34 minutes, 32 seconds So for data center we are only supplying like fin and tube heat exchanger also if need customer like sub assembly as well 34:41 34 minutes, 41 seconds maybe with seat metal that also we are able to supply. So with some of customer we are supplying. So uh your first 34:48 34 minutes, 48 seconds question I I can see in top 10 customer we have the last final year we have three from data center only and uh what 34:57 34 minutes, 57 seconds like whoever making that maybe component for uh this data center. So almost all customer is our customer we are able to 35:07 35 minutes, 7 seconds supply to all still like world team we now vendor code opened our quality audit already uh happen and now we are 35:14 35 minutes, 14 seconds approved by their system but it's still um like uh business maybe in billing will need to start so incoming coming 35:23 35 minutes, 23 seconds weeks or coming months we can able to supply to what as well other than this whatever customer name like top five customer for data center so we are 35:32 35 minutes, 32 seconds supplying to all in India and uh uh export side also one customer we have from Europe and two or three customer 35:39 35 minutes, 39 seconds from we have North America so one customer is already we started supply to Northa as well so this year I think 35:46 35 minutes, 46 seconds number of for sure we like multifolding especially for data center we missed so we have good RF crews and the model 35:54 35 minutes, 54 seconds booking also very good from the center understood and so next question is on like basically we are targeting a significant ramp up of the new facility. 36:05 36 minutes, 5 seconds So if you can maybe help us understand like obviously uh commercial AC we have 36:12 36 minutes, 12 seconds a good share of revenue but the incremental revenue which is going to drive. So maybe if you can uh help us 36:21 36 minutes, 21 seconds understand that like how much will data center contribute or how much will bus AC contribute and also the railway one 36:30 36 minutes, 30 seconds and also similarly in between those segment how much will be export and domestic. 36:38 36 minutes, 38 seconds So uh in new facility you see we have nine uh eight to nine new products other than fin and tube type. So this business 36:47 36 minutes, 47 seconds business already started now in billing to many OEMs or including uh domestic some other. So that is the main reason 36:54 36 minutes, 54 seconds we will have revenue from new products as well as from finan tube on existing customer growth and also new customer 37:02 37 minutes, 2 seconds growth. Of course in finecially we will have expecting I think more than uh uh more than I think 80 or 90% on 37:10 37 minutes, 10 seconds growth from especially from data center only. So like I I can able to maybe new products 37:18 37 minutes, 18 seconds including uh complete bus air conditioning and then existing customer growth and plus new customer growth and of course export what I said key we are 37:25 37 minutes, 25 seconds going to achieve almost double within this year that's thank you 37:35 37 minutes, 35 seconds thank you the next question is from Kamish Bhagma from Lutus asset managers please Go 37:42 37 minutes, 42 seconds ahead Mr. Kamish. Yeah. [clears throat] Thanks. Thanks for the opportunity. So it's uh that revenue target of like say 2250 to uh 2850. 37:55 37 minutes, 55 seconds So are we targeting this by like say FI 28 or it may perform to FI 29 as well. 38:03 38 minutes, 3 seconds And secondly on the working general side like say believe I believe that at 2250 cr of revenue at the lower range of the 38:12 38 minutes, 12 seconds revenue we would be requiring roughly around 600 cr of working capital. So and I believe that given the fact that 38:21 38 minutes, 21 seconds we are targeting such a huge growth and uh based on your numbers like say at 20 250 cr revenue we may be generating 38:29 38 minutes, 29 seconds roughly around 350 cr of uh cash profit by the time we achieve that particular 38:36 38 minutes, 36 seconds revenue target. So is there really a requirement of uh uh like say to raise the money through uh equity raise 38:44 38 minutes, 44 seconds because uh given our capacity which is already commissioned up and running and we are targeting such a huge growth and 38:53 38 minutes, 53 seconds we can literally manage it through our own uh internal resources. So why why 39:00 39 minutes capital rates is on the card actually? Um of course you see the 39:08 39 minutes, 8 seconds growth is quite fast and uh we of course we already invested the money. So if you see I think our balance sheet um what we 39:17 39 minutes, 17 seconds receive from IPO. So but we invested more than uh receipt of the IPO in current uh 39:24 39 minutes, 24 seconds uh facility and now we are seeing key uh will have some maybe sorted on particularly on working capital side. So 39:33 39 minutes, 33 seconds that's why we decided in our board key we can maybe have some money group IP for especially for working capital but other objective also under December. So 39:42 39 minutes, 42 seconds that is still not um concluded yet. So of course we will have in coming weeks we will able to answer on that question 39:49 39 minutes, 49 seconds also. Uh you're also right key we can have through bank also but uh that is completely um decision by board only. So 39:58 39 minutes, 58 seconds we can have can maybe consider your sgest also. So we can see what will happen. 40:07 40 minutes, 7 seconds So lastly our entire capex is now over. 40:10 40 minutes, 10 seconds So the capacity like say 6x existing capacity. So all that is done now nothing is left on the chat side as well. 40:21 40 minutes, 21 seconds No like capacity we already done by building land or building and office and everything is ready like utiliz but uh 40:29 40 minutes, 29 seconds to maintain uh to make the like line balancing. So slightly we have to invest on existing facility also because we 40:37 40 minutes, 37 seconds plan such way utility side we completed building side completed but particular because especially now uh industry u 40:45 40 minutes, 45 seconds growth especially to industry industry we can't imagine what will happen because once we like design our facility before two year that time we don't know 40:54 40 minutes, 54 seconds okay data center will grow such way so data center geometry and our existing geometry some slightly difference so once our existing capacity will full 41:02 41 minutes, 2 seconds particularly geometry belongs to data center then we have to add another one also so a small investment will be there but not huge on existing for so next two 41:11 41 minutes, 11 seconds years how much capex we are planning for so it's still uh like uh paper is not my 41:19 41 minutes, 19 seconds in in front of me but uh roughly uh you can see I think u uh maybe 30 to 44 will 41:27 41 minutes, 27 seconds be there roughly in both years and next or year later and particularly your adjusting capacity. 41:36 41 minutes, 36 seconds Okay. And that will help us to achieve our uh revenue target of 2250 to 2850. 41:45 41 minutes, 45 seconds That numbers of course I can't answer but capacity what I said 50% and 80% we able to achieve for sure. 41:53 41 minutes, 53 seconds Okay. Sure. Great. Thanks a lot. 41:57 41 minutes, 57 seconds Thank you. The next question is from Pratik Giri from Shoulab Research. Please go ahead. 42:04 42 minutes, 4 seconds Hi Yadav G, greetings. I hope I'm audible. Uh, my first Thank you. My 42:12 42 minutes, 12 seconds first question is on the execution uh this [clears throat] quarter. Uh, I'll just try to explain where I'm coming 42:19 42 minutes, 19 seconds from because we probably uh commissioned this facility, new facility 42:26 42 minutes, 26 seconds in May of last year. uh we already had around a good two quarters for this to ramp up. So I was expecting you know a a 42:35 42 minutes, 35 seconds substantially better numbers this quarter from December 25 quarter Q3 of 26 whereas the incrementally we have 42:44 42 minutes, 44 seconds hardly done around 15 16 cr so I just wanted to understand uh is this understanding correct that uh the ramp 42:52 42 minutes, 52 seconds up is happening but it's happening at a very slow pace for the new facility that's the first question Y 43:00 43 minutes yes so actually what happened We started commission of production in May 202. You are right. But uh it was like facility 43:08 43 minutes, 8 seconds not fully uh commissioned in term of like our office work not ready and some construction is going on parally. So we started what uh we can already install. 43:18 43 minutes, 18 seconds So we no data about this facility on 11th of March only uh uh this this like 43:25 43 minutes, 25 seconds last before two month only. So now we shift last week only facility. So now you can say now is fully commissioned 43:32 43 minutes, 32 seconds and ready. Other than this what because in UFK we added um uh new products almost eight new products. So for eight 43:40 43 minutes, 40 seconds new products there is the procedure to customer approval side. So first we have to approach to customer uh for c our 43:47 43 minutes, 47 seconds plant visit then their audit then sample approval. So that process almost now completed even uh in bar and plate detection center there is a process of 43:54 43 minutes, 54 seconds the 8 month by Indian railway for approval. So that also we considered in in February only. So now uh you can see 44:03 44 minutes, 3 seconds in coming quarters what is your uh like Christian you you will have by default answer from our side quarter on quarter 44:11 44 minutes, 11 seconds basis now capacity utilization will be much faster compared to last three quarter or two quarter. 44:17 44 minutes, 17 seconds Got it. And uh yeah the last 45 days we are already on 15th of May now. So last 45 days the way Ramos has happened that 44:26 44 minutes, 26 seconds also gives you confidence that probably Q1, Q2, Q3 or 27 will be substantially better directionally. 44:34 44 minutes, 34 seconds Yeah, this quarter you will see even I can say next 8th quarter all quarter will be the highest. So this quarter 44:43 44 minutes, 43 seconds also average but number I can't close this. No no certainly certainly certainly one thing in the presentation 44:50 44 minutes, 50 seconds I could notice that you are quite confident of achieving [clears throat] 150 cr revenue from bus segment bus segment so I was just wondering is this 44:59 44 minutes, 59 seconds uh confidence backed by order book or we are still convincing OEMs to place orders with us do you already have 154 45:07 45 minutes, 7 seconds order book we already cracked the 23 OEM and our regular supply is already starting and we are the in line on the 15% % of the 45:16 45 minutes, 16 seconds marketplace and they are only great great that is that is very encouraging so that is the confidence of 45:23 45 minutes, 23 seconds 150 cr which we have written in the presentation my last question y you know I'm sure a lot of people have asked you 45:30 45 minutes, 30 seconds about the fund raise but uh you know uh fund raise in India have increased [clears throat] many fold in last few 45:39 45 minutes, 39 seconds quarters and uh what it leads to is you know different return ratios for some time this sometimes troubles the 45:48 45 minutes, 48 seconds shareholders return and I'm sure your team must have given you the calculation so this was just an uh you know suggestion that if it happens a little 45:58 45 minutes, 58 seconds late after the ramp up is you know gunning all blame uh that will help us a lot in absorbing the incremental capital 46:06 46 minutes, 6 seconds on the balance sheet uh you know as a sharehold equity shareholder but I'm sure whatever decision we'll take will be certainly in full interest of you 46:14 46 minutes, 14 seconds know minority share holders that is uh I am certain so that was a small suggestion uh just one more thing Jab uh 46:22 46 minutes, 22 seconds yeah please sorry no complete please complete completely yes yeah so our inventory has gone up 46:30 46 minutes, 30 seconds substantially uh uh this quarter uh I understand we are in ramping up phase was there a unbuild revenue also I mean 46:37 46 minutes, 37 seconds because of this geopolitical uncertainties any shipment issues etc that is why inventory has gone up we 46:44 46 minutes, 44 seconds have stocked up the raw material for faster execution. 46:50 46 minutes, 50 seconds So your first first question answer of course whatever decision we will take of course is must be uh interest of the 46:57 46 minutes, 57 seconds shareholder uh for sure we will consider that and second uh question uh there is the 47:04 47 minutes, 4 seconds multiple reason but uh uh one of the reason this uh war is also like whatever crisis going on so especially uh 47:12 47 minutes, 12 seconds actually if you see we declare one uh UAE order I think 2 of the for last quarter only so that is actually we arrange the material but somehow in 47:21 47 minutes, 21 seconds March dispatch is not happen. So we will have raw material and including finished good in our stock around worth of 15 to 20 cr and um okay 47:30 47 minutes, 30 seconds second one uh in March last week we export around 8 cr of the value of the export but is not considered in balance 47:38 47 minutes, 38 seconds sheet due to the BL is not generated so that is also considered in inventory and third one is of course uh uh uh we have 47:47 47 minutes, 47 seconds to increase minimum level stock of the four new products so new businesses so now we have eight new businesses so that's also we to build the inventory. 47:54 47 minutes, 54 seconds Other one is last quarter we have to slightly need to up the inventory because RC season is going on particular that quarter and our vendor is delivery 48:03 48 minutes, 3 seconds time is goes up compared to last two quarter so that's why slightly we safer side we quickly increase and of course 48:10 48 minutes, 10 seconds one is the reason BIS notification also from government the last date is 20 of May so we have to build inventory before that only so this some some reason of 48:18 48 minutes, 18 seconds course uh we we feel inventory is quite high but in coming quarters or maybe maximum from now to think whether you can able to see the under control. 48:29 48 minutes, 29 seconds Understood. So you see around 28 cr of finished good food is lying in this inventory number 48:36 48 minutes, 36 seconds 25 8 we already dispatched but of course they consider inventory and of course this no for for this UA order we not 48:46 48 minutes, 46 seconds converted completely in FG. So you can say half is raw metal and half is as a finish. Got it. 48:54 48 minutes, 54 seconds UA this month UA dispatch is already started. So now you can see good things in this quarter running quarter. 49:02 49 minutes, 2 seconds Got it. Got it. Very helpful. Uh Y. 49:05 49 minutes, 5 seconds Thanks a lot for the opportunity and I'm sure uh you know any capital allocation decision uh will you know always happen in our interest. Thanks a lot. Good luck. 49:13 49 minutes, 13 seconds Yes. Thank you. 49:16 49 minutes, 16 seconds The next question is from Tish Patel from Nishara. Please go ahead. Hello. Am I audible? 49:24 49 minutes, 24 seconds Yes. Yes. Yes. 49:26 49 minutes, 26 seconds Yeah. Thank you so much for the opportunity, sir. I think just you know this partic 49:39 49 minutes, 39 seconds so complete final year uh we have around 16% of uh revenue from data center. 49:46 49 minutes, 46 seconds Okay. Got it. Got it. And then and I get it. you know you have a rolling order book probably don't really provide the 49:54 49 minutes, 54 seconds order book number but you know since the lead time for data center are high is what you were saying I'm sure there will 50:00 50 minutes be some order book uh in the data center which we would be having right now so is it possible to proide that number what is our outstanding order book for data 50:09 50 minutes, 9 seconds center right now uh so have we not divided in uh total order booking in the data center 50:17 50 minutes, 17 seconds especially because a data center Indian customer are running customers. So they just give the one month firm order and that is the rolling. But the export side 50:26 50 minutes, 26 seconds we have um total order booking is around 120 cr including data center order. 50:32 50 minutes, 32 seconds Perfect. And that is 16% revenue which you are speaking of majorly from exports right the data center this both domestic and export both. 50:43 50 minutes, 43 seconds Okay. Okay. Got it. It's the same customer both in domestic and export. 50:48 50 minutes, 48 seconds the same two customers no in the as a domestic we can say the biggest is the SN electrical but other 50:56 50 minutes, 56 seconds customer now I can't disclose okay okay and so you were saying you know in we are in talk with you as well 51:05 51 minutes, 5 seconds I'm just trying to understand you know where can we get the final approval from them and when can we start seeing a dispatch 51:13 51 minutes, 13 seconds we we we have approvals now uh from what because the QM is also completed and we have results. So we passed in first go only. So now we received the drawings. 51:23 51 minutes, 23 seconds So we are preparing the drawings for customer approval. So once they will approve in maybe in coming week then we will uh we will have uh like supply to 51:30 51 minutes, 30 seconds proto them they will proto approval and then master will start. So in coming month I think it will start. 51:37 51 minutes, 37 seconds Great. Great. And so just wanted to understand you said I and of course you kind of you said almost incremental growth uh 51:45 51 minutes, 45 seconds from the tent would come from meative from data center right I'm just trying to understand what what portion of revenue probably uh would the data 51:54 51 minutes, 54 seconds center be in the next financial year so this uh year uh like last quarter we 52:02 52 minutes, 2 seconds will have around I think we have around 19% from data center so you can see I think quarteron quarter basis for sure it will increase but uh total percentage 52:11 52 minutes, 11 seconds I unable to convert now so maybe we can have to calculate and then we will let you know by your and are we the sole supplier or are we I mean are we 52:20 52 minutes, 20 seconds replacing any customer for let's say in for India business of snider are we the sole supplier or probably we are a 52:27 52 minutes, 27 seconds second supplier or you know one of the multiple suppliers no like our existing customer we have a 52:35 52 minutes, 35 seconds major share but their growth is uh I think each customer now is almost uh more than 80 or 90%. So that is we are 52:44 52 minutes, 44 seconds receiving same same P our fin with texture other than key uh like what earlier we are not supplying so now we 52:51 52 minutes, 51 seconds are adding new one and of course export also we added three new customer from data center only. So export side you can say we will be the maybe as a 53:00 53 minutes replacement or maybe second vendor and uh for India world we will enter as a second or third vendor but other our 53:08 53 minutes, 8 seconds customer like we are have maybe other one other last year maybe we will have 20% this year we will have number of share percentage increase and their 53:16 53 minutes, 16 seconds growth is also there so if you club all understood except for data center export business is it majorly or with geography 53:26 53 minutes, 26 seconds So we are exporting both uh Europe and North America. 53:31 53 minutes, 31 seconds I mean is it equally? I'm just trying to understand. Is it like more of Europe or I mean of course it's more North America North America is more and Europe is less. 53:42 53 minutes, 42 seconds Got it. Got it. And just one more question sir. 53:47 53 minutes, 47 seconds So when you say 50% utilization you know you you I mean of course if demand is so good I'm just trying to understand why 53:54 53 minutes, 54 seconds not more than 50 is like working capital constant or is it like a you know general nature of the business of time that takes time I'm just trying to 54:02 54 minutes, 2 seconds understand why can't we not go above 50 if demand is so good I mean of course I get it you know working capital comes with I'm just trying to get your view on 54:10 54 minutes, 10 seconds this no 50% [clears throat] means uh including all products and all geometry. So like uh refrigerator indust 54:18 54 minutes, 18 seconds refrigerator component we have five to six. So there is the different industry. 54:22 54 minutes, 22 seconds So now we are have already two three OM on board and we are already able to start supply with them. But now we have to add another customer also like big 54:30 54 minutes, 30 seconds OEM. So that's why this capacity will increase maybe in one or two year. Other than this bar and bid also now we 54:38 54 minutes, 38 seconds recently approved by Indian railway. So for this year we will of course we will participate in all tender and we will have business. also that will take uh uh 54:46 54 minutes, 46 seconds to increase business or new customer also as well. This new business dry air cooler and ammonia also we will have to add new customers or new business air 54:55 54 minutes, 55 seconds conditioning also same way. So this year we are able to like we have to open service center pan India base we have to uh onboard all OEMs. So it will take 55:03 55 minutes, 3 seconds time approvals and of course to stream the supply chain and for fin uh geometry like especially for like our existing 55:11 55 minutes, 11 seconds customer or data center of course we can maybe able to utilize 80 or 90% of the utilization but we will have total 20 geometry. So all geometry we will don't 55:20 55 minutes, 20 seconds have such uh order key we can maybe convert immediately on the same year. So we have to develop new customer based on our new geometry or geography. So that 55:28 55 minutes, 28 seconds is the old and if we look up so then we can say in total we can able to achieve 50%. 55:35 55 minutes, 35 seconds Okay understood and just wanted to get your viewpoint on in terms of gross margin can we expect 55:42 55 minutes, 42 seconds it to improve because you know at this scale are we getting advantage in terms of sourcing in terms of let's say copper prices or something like that? 55:52 55 minutes, 52 seconds Of course slightly uh improvement will be there but honestly last two three week or this this copper and aluminium 55:59 55 minutes, 59 seconds silver price is uh behind the expectation because it sharply increase and s. So of course once metal like 56:06 56 minutes, 6 seconds market is settled down then for sure we will have some benefit on uh like our volume will increase and we of course we can able to negotiate with our vendors in term of payment term or margins. 56:20 56 minutes, 20 seconds Thank you ladies and gentlemen. We will take this as our last question. I now hand the conference over to management for closing comments. 56:30 56 minutes, 30 seconds So thank you also for joining the course and uh I think uh we hopefully we able to answer all question 56:38 56 minutes, 38 seconds on the nice way but still if somebody have some question pending maybe you can uh write to our CA and we can able to 56:45 56 minutes, 45 seconds answer and of course uh what I said slightly you can say key we what we like utilize our capacity there is some maybe 56:54 56 minutes, 54 seconds uh still gap is there but this year for sure quadrat what you will in numbers which will be the really encouraging and 57:02 57 minutes, 2 seconds uh we will achieve what we said. So really thanks for joining the call. Thank you. 57:09 57 minutes, 9 seconds Thank you on behalf of Dollar Capitals. 57:12 57 minutes, 12 seconds That concludes this conference. Thank you for joining us and and you may now disconnect your lines. Thank you.