Mahindra EPC Irrigation Limited — Q4 FY26

Mahindra EPC Irrigation Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Sgvh718uKHM Published: 3 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Mahindra ETC irrigation investors conference call. As a reminder, all participant lines will be 0:09 9 seconds in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance 0:17 17 seconds during the conference call, please signal an operator by pressing start then zero on your touchstone board. 0:23 23 seconds Please note that this conference is being recorded. I now hand the conference over to Mr. Romesh Ramachandran, managing director, Mahindra EPC. Thank you and over to you sir. 0:35 35 seconds Thank you and a very good afternoon to all our listeners. On behalf of Mahindra EPC, I would like to sincerely thank you 0:43 43 seconds for joining this call. Thank you also for continuing to take a keen interest in your company. 0:51 51 seconds As is customary in my introduction, I'll start by touching upon some key insights and developments in the micro irrigation 0:58 58 seconds industry, our industry understanding as well as some points on the company's 1:05 1 minute, 5 seconds approach to address challenges and opportunities and following my introduction, we can have our Q&A session. 1:14 1 minute, 14 seconds So, let me start with a macro view of the micro irrigation industry in India. 1:22 1 minute, 22 seconds As there might be some firsttime attendees, I will take up points related to the macro environment which you may 1:29 1 minute, 29 seconds have heard before and which may be of repetitive nature but are important nevertheless to set up the context. 1:37 1 minute, 37 seconds India continues to demonstrate resilience as one of the fastest growing large economies supported by strong 1:44 1 minute, 44 seconds domestic demand, sustained public capital expenditure and policy continuity. 1:50 1 minute, 50 seconds We all know agriculture continues to be the backbone of our nation engaging nearly 65% of India's population and 1:59 1 minute, 59 seconds contributing around 18% to India's gross value added the GVA. 2:06 2 minutes, 6 seconds As for the ministry of statistics and program implementation, the first advanced estimates of the GDA, 2:14 2 minutes, 14 seconds the real GD of agriculture and allied sector has been estimated to grow by 2.4% during FY26 2:22 2 minutes, 22 seconds as compared to 3.8% witnessed during the last year which is FY25. 2:29 2 minutes, 29 seconds Apart from meeting domestic requirements, India has also rapidly emerged as a net exporter of agricultural products in recent years 2:37 2 minutes, 37 seconds and in the last couple of years, the exports of agricultural products in India have been in the range of 40 to 53 billion dollars. 2:48 2 minutes, 48 seconds The rural economy during FY26 continued to remain influenced by three things. Extended monsoon 2:57 2 minutes, 57 seconds distribution and intensity, input cost dynamics, inputs in terms of 3:03 3 minutes, 3 seconds fertilizers, power, labor as well as government support mechanisms. 3:09 3 minutes, 9 seconds Rising cultivation costs and climate related risks are increasing the relevance of solutions that improve 3:16 3 minutes, 16 seconds input efficiency and productivity. and micro irrigation are enabling savings in water, in fertilizer, in energy and 3:26 3 minutes, 26 seconds labor while at the same time improving yields continues to be viewed as a value enhancing investment by farmers rather than a mere capital expense. 3:38 3 minutes, 38 seconds The global outlook for the micro irrigation and agri solutions sector over FY27 and beyond indicates a few critical areas. 3:48 3 minutes, 48 seconds Firstly, structural demand drivers that arise from water stress, climate adaptation and food security concerns. 3:57 3 minutes, 57 seconds Secondly, near-term volatility in energy, polymer and logistics costs driven by geopolitical developments. 4:07 4 minutes, 7 seconds Thirdly, increasing policy and institutional support for water use efficiency and sustainable agriculture. 4:15 4 minutes, 15 seconds And fourthly, greater emphasis on productivity enhancing investments in emerging economies. 4:24 4 minutes, 24 seconds While cost pressures may create short-term challenges, the IMF's assessment indicates that investment in 4:31 4 minutes, 31 seconds water efficient agricultural infrastructure is likely to accelerate globally, creating sustained opportunities for players with 4:39 4 minutes, 39 seconds technology, scale, and execution capabilities. 4:44 4 minutes, 44 seconds However, with 18% of the world's population, India has access only to 4% of global freshwater resources. 4:53 4 minutes, 53 seconds Agriculture alone consumes over 80% of India's fresh water withdrawals. 5:00 5 minutes As per current estimates, per capita water availability in India 5:06 5 minutes, 6 seconds is expected to drop from 1,545 cubic meters in 2011 5:14 5 minutes, 14 seconds to 1,140 cubic meters by 2050, which would then classify India as a potentially water scarce nation. 5:25 5 minutes, 25 seconds Additionally, India is likely to see faster growth rates in the secondary and tertiary 5:33 5 minutes, 33 seconds sectors including manufacturing, construction, electricity, utilities etc. 5:39 5 minutes, 39 seconds And to support the actual rates of growth and the required rates of growth in these sectors, a larger share of 5:47 5 minutes, 47 seconds water available in India needs to be provided to these sectors. Since there is a natural limit on sources of water, 5:56 5 minutes, 56 seconds a lot of the water required for these sectors needs to come from reduced water consumption in agriculture. 6:04 6 minutes, 4 seconds This reduction will come from all types of water, all types of surface water, groundwater conservation and recharge 6:12 6 minutes, 12 seconds projects, but also it will come from onfarmm water management which is where micro irrigation comes in and which 6:21 6 minutes, 21 seconds includes farm water use efficiency improvement and this context puts micro 6:27 6 minutes, 27 seconds irrigation at the very heart of India's sustainability and economic transformation. ation initiatives. 6:36 6 minutes, 36 seconds The microation addresses three of India's four goals. First, water use efficiency. Second, productivity 6:43 6 minutes, 43 seconds improvement. And third, doubling of farmers income. 6:48 6 minutes, 48 seconds As I have mentioned in previous investor calls, there are various studies clearly proving that micro irrigation benefits 6:55 6 minutes, 55 seconds the farmer by saving cost such as fertilizer, labor, and electricity in the range of 20 to 30%. while at the 7:03 7 minutes, 3 seconds same time improving productivity by 30 to 40%. 7:07 7 minutes, 7 seconds With this background, as we look at the potential and the existing penetration of micro irrigation in India, we see 7:16 7 minutes, 16 seconds only about 17 to 18% penetration of the total identified current potential for 7:23 7 minutes, 23 seconds micro irrigation which is 72 million hectares. This estimated potential is 7:30 7 minutes, 30 seconds based over on groundwater availability and some portion of surface water. 7:39 7 minutes, 39 seconds If most of the surface water is also assumed to be available for agriculture 7:45 7 minutes, 45 seconds then the potential for micro irrigation will just double from the 72 million. 7:53 7 minutes, 53 seconds In other words, there is a big upside for this industry. 7:58 7 minutes, 58 seconds Let me now share some key trends and observations from Chris. The first is on policydriven demand. 8:08 8 minutes, 8 seconds Demand for microaggation is heavily guided by state and central government subsidies and budgetary allocations. 8:18 8 minutes, 18 seconds While the sector has seen long-term growth, top-term demand can be volatile and impacted by election cycles. example 8:27 8 minutes, 27 seconds in fiscal 2025 and it can also be impacted by agricultural policy changes. 8:34 8 minutes, 34 seconds The second observation from Chris is on working capital intensity. Companies in this sector including key players face 8:42 8 minutes, 42 seconds high working capital requirements due to delay payments from state governments resulting in high receivables. 8:49 8 minutes, 49 seconds The third observation they make is on industry restructuring. Leading firms are shifting focus towards cash and 8:56 8 minutes, 56 seconds carry models, reducing dependence on EPC projects with long payment cycles and expanding into non-s subsidy based 9:04 9 minutes, 4 seconds products to improve their liquidity which exactly is what your company is doing. The fourth observation is on 9:12 9 minutes, 12 seconds operating margins. Profitability is sensitive to fluctuations in raw material prices and the ability to pass on cost increases to government bodies. 9:22 9 minutes, 22 seconds But as your company is demonstrating, there are ways to manage this through product mix and market mix. 9:31 9 minutes, 31 seconds The fourth observation is a market position. This highlights a strong market position for key players with 9:37 9 minutes, 37 seconds established dealer networks and strong pairing support and your company is a good example of one of them. With this 9:46 9 minutes, 46 seconds in background, the government of India has therefore set an ambitious target of 2 million hectares annually aiming to 9:54 9 minutes, 54 seconds cover 10 million hectares over the next 5 years. The commitment of the central government is evident from the fact that 10:03 10 minutes, 3 seconds in FY26 for the first time the central government has issued 43% of its annual 10:11 10 minutes, 11 seconds fund allocations to the states in the form of mother sanctions and that too by the month of May 2025. 10:21 10 minutes, 21 seconds The same trend is likely to continue in FY27 as well with a possible improvement. 10:28 10 minutes, 28 seconds However, it is important to note that achieving this requires not just central 10:35 10 minutes, 35 seconds government push and central government policy but consistent state level execution, availability of state funding 10:44 10 minutes, 44 seconds and also price mechanisms that are linked to input costs. The synchronization of all these priorities 10:52 10 minutes, 52 seconds at the central and state levels will show a positive impact. 10:59 10 minutes, 59 seconds Let's now talk about FY26. 11:03 11 minutes, 3 seconds This year as we know was a year of Lanina and hence the southwest monsoon saw an above normal rainfall 11:12 11 minutes, 12 seconds 107.9% of LPA to be precise. While this meant better groundwater availability in the 11:18 11 minutes, 18 seconds longer term and assured a better rabbi season for FY26, it has however posed challenges for the 11:27 11 minutes, 27 seconds micro irrigation business in the first half of FY26. 11:33 11 minutes, 33 seconds The interception rains from May to as late as October impacted micro irrigation demand as well as micro irrigation installations. 11:45 11 minutes, 45 seconds On the other hand, H2 saw better industry demand which your company took full advantage of. That said, H2 was 11:54 11 minutes, 54 seconds negatively impacted by challenges on fund release by certain key states and also in the last two months of FY26, the 12:03 12 minutes, 3 seconds industry was impacted by extreme geopolitical disturbances. 12:08 12 minutes, 8 seconds Specifically in Q4 FY26, raw material prices suddenly shot up riding on geopolitical tensions in the 12:17 12 minutes, 17 seconds Middle East. And just to illustrate the magnitude, in February 2026, 12:23 12 minutes, 23 seconds on average, the PE pipe grades saw a 58 59% price increase. 12:32 12 minutes, 32 seconds Additionally, at this high price, availability was also an issue. With limited supplies at OEMs, the industry 12:40 12 minutes, 40 seconds had to resort to traders for spot buying. Various OEMs have indicated the shift of priorities with LPG and other essential petroleum product. 12:53 12 minutes, 53 seconds Despite all these challenges, your company registered with highest ever revenue in FY26. 13:03 13 minutes, 3 seconds This is a consequence of specific choices made by your company and outlined in earlier investor calls, 13:12 13 minutes, 12 seconds including its diversification to shorter collection cycle revenue streams such as irrigation project and 13:20 13 minutes, 20 seconds non-subsidity business as well as its focus on certain key subsidy states. 13:27 13 minutes, 27 seconds In what we estimate as an industry that may register a growth of 6 to 7% versus 13:34 13 minutes, 34 seconds FY25, your company registered a growth of 14.8% 13:42 13 minutes, 42 seconds with a 315.8 crore rupee revenue versus FY25 revenue 13:49 13 minutes, 49 seconds of 275.1 crores. 13:53 13 minutes, 53 seconds This growth was despite the challenges faced in Q4 FY26, 14:00 14 minutes a quarter which saw the highest ever raw material price in March, accompanied by 14:08 14 minutes, 8 seconds the challenge of certainty states not releasing funds as planned. In the face 14:14 14 minutes, 14 seconds of this, your company registered a Q4 growth of about 11%. 14:22 14 minutes, 22 seconds Coming to the fully bottom line, your company significantly improved bottom line and delivered a PBT of 17 cr rupees 14:30 14 minutes, 30 seconds for FY26 versus 10.7 crores in FY25. 14:36 14 minutes, 36 seconds This was despite the additional provision of personal cost of 2.1 K 14:44 14 minutes, 44 seconds towards past service costs owing to notification of the code on social security 2020. 14:52 14 minutes, 52 seconds The improvement in bottom line came through improved revenues, a slight improvement in variable margins, 15:01 15 minutes, 1 second riding on a 1% saving on material cost, which primarily came from an improved eight mix, product mix, and business mix. 15:13 15 minutes, 13 seconds A couple of words on the bottom line of Q4 FY26 where the company registered a 15:20 15 minutes, 20 seconds 6.44 4 crbt versus 9.4 cr last Q4. 15:27 15 minutes, 27 seconds This is impacted by the steep rise of raw material prices in March as well as 15:35 15 minutes, 35 seconds the heavy revenue skew of Q4 FY26 towards March. 15:43 15 minutes, 43 seconds I'd like to explain the impact of raw material prices in a little more detail as it might be on some of your minds. 15:51 15 minutes, 51 seconds While raw material prices have been favorable for most of the year except March 2026, 16:00 16 minutes the sharp increase in raw material prices in March amplified by our revenue 16:07 16 minutes, 7 seconds skew towards March did impact the full year. However, it was compensated for by 16:15 16 minutes, 15 seconds the soft spometical prices for the major part of the year. 16:20 16 minutes, 20 seconds Net net, the net increase in material costs that we saw on account of all 16:27 16 minutes, 27 seconds these factors coming together were also mitigated by our strategic sourcing initiatives and our conscious work on 16:36 16 minutes, 36 seconds the state mix and the product mix. And all this put together helped us manage the raw material cost increase in March. 16:46 16 minutes, 46 seconds And overall for the full year versus last full year, we delivered a material 16:53 16 minutes, 53 seconds cost saving of 1% expressed as a percentage of revenue. 17:00 17 minutes In Q4 though, our material cost did go up by 2% versus last Q4 because of the 17:07 17 minutes, 7 seconds steep surge in raw material prices in March versus February. A few words on receivables. 17:16 17 minutes, 16 seconds As you know, this was an exceptional year from a receivables perspective where despite a smoother process of the 17:25 17 minutes, 25 seconds mother sanction released by the government of India, key states took longer time to release the state 17:32 17 minutes, 32 seconds mandatory funds than the state pop-up funds. 17:37 17 minutes, 37 seconds Because of this, this led to a pileup of receivables for the industry in FY26 which significantly increased over the 17:46 17 minutes, 46 seconds FY opening FY25 opening status for receivables. 17:52 17 minutes, 52 seconds Further, your company demonstrated high revenue growth of 20% in the last four months of FY26, 18:01 18 minutes, 1 second which has also impacted the closing balance of its receivables, taking your company's closing balance to a higher level than the previous year. 18:13 18 minutes, 13 seconds Your company did well to mitigate this number from increasing even further by improving the nonsubsidy share of its business to an all-time high of 25%. 18:26 18 minutes, 26 seconds Overall, while high receivables in key states is an industry-wide phenomenon, your 18:33 18 minutes, 33 seconds company is happy to report that as per the past trends as well as as per current health checks or receivables, 18:42 18 minutes, 42 seconds most of these receivables have been acknowledged and are at finite dispersement stages in these respective 18:49 18 minutes, 49 seconds states. This endorses its recoverability as and when the funds are made available by the states. 18:59 18 minutes, 59 seconds The overall performance to sum up in FY26 was delivered to a combination of growth 19:08 19 minutes, 8 seconds in irrigation projects business number two improved performance in certain key 19:15 19 minutes, 15 seconds opportunity states. Number three, improvement in product mix. Number four, 19:23 19 minutes, 23 seconds good commercial discipline. And number five, good cost controls. 19:31 19 minutes, 31 seconds Let me switch back to the state of the industry for a little bit. 19:37 19 minutes, 37 seconds We do think that the industry is nearing an inflection point. 19:43 19 minutes, 43 seconds After the challenges and slowpaced growth that we saw some years ago, some encouraging trends are visible. 19:54 19 minutes, 54 seconds Number one, once these geopolitical crisis get over, the raw material price environment is 20:03 20 minutes, 3 seconds expected to stay balanced. Though the though these may not be enough to take us to FY20 material cost levels, they 20:13 20 minutes, 13 seconds are likely to stay range. Now the only caveat here is that geopolitical events are difficult to predict and hence we 20:22 20 minutes, 22 seconds see reason to be cautious on this front for Q1 FY27. 20:28 20 minutes, 28 seconds Second, further though FY27 is predicted by some agencies as an El Nino year, 20:37 20 minutes, 37 seconds there is still a possibility of near normal monsoon in FY27. 20:43 20 minutes, 43 seconds And with the groundwater situation improved on account of successor years of good monsoon in the recent past, FY27 20:53 20 minutes, 53 seconds could not be very challenging on account of water availability. for micro irrigation like crops. 21:02 21 minutes, 2 seconds Third, riding on efforts by government and industry as well as the visible 21:08 21 minutes, 8 seconds benefits of microiggation, we do believe that an increased number of farmers are getting aware of the benefits of 21:17 21 minutes, 17 seconds microiggation and that may lead to improved demand. 21:21 21 minutes, 21 seconds Fourthly, increasing sustainability awareness in urban regions will lead to improved usage of micro irrigation and 21:30 21 minutes, 30 seconds is likely to improve demand in retail markets as well. 21:36 21 minutes, 36 seconds Fifthly, the policy environment is showing some encouraging signs. And to give you a couple of examples, the 21:46 21 minutes, 46 seconds honorary prime minister is pushing for one core hectares, 10 million hectares to be covered in the next five years, 21:54 21 minutes, 54 seconds which translates to an average of 2 million hectares a year versus what we saw in FY25 at 1 million hectares. Also 22:04 22 minutes, 4 seconds key states such as Andhra Pradesh may get additional assistance to cover larger areas in the micro irrigation 22:11 22 minutes, 11 seconds over the next four years starting in financial year 27 and also several of the currently active states like AP 22:20 22 minutes, 20 seconds Telangana Gujarat Tamil Nadu are active giving a positive push to the industry. 22:27 22 minutes, 27 seconds We also think that the recent GST changes such as the reduction of GST from 12% to 5% is likely to have a 22:36 22 minutes, 36 seconds positive demand impact in the medium term to the long term. 22:43 22 minutes, 43 seconds The sixth point is that industry bodies are pursuing with the government of India and key states for reforms in the 22:51 22 minutes, 51 seconds fund dispersement process. The effect of this we started to see from F26 22:58 22 minutes, 58 seconds with a smooth release of the government of India mother sanctions with the states and this will be pursued further 23:05 23 minutes, 5 seconds for better central and state government synchronization. So all in all putting these points together we see early signs of a positive environment. 23:17 23 minutes, 17 seconds However, to unlock the opportunity, we also need strong coordination between the central governments and the state 23:25 23 minutes, 25 seconds governments and the regularizing of fund dispersement. And as the business environment gets favorable, we do 23:33 23 minutes, 33 seconds believe the industry could show would grow. 23:36 23 minutes, 36 seconds While that is good for the long-term prospects of the industry, how are we as Mahindra ETC geared to tap these opportunities? 23:48 23 minutes, 48 seconds As we have mentioned in previous investor calls, your company is learning from the past and working on 23:56 23 minutes, 56 seconds shockproofing itself by reshaping its business. 24:01 24 minutes, 1 second In the last 24 months, the industry has seen many events such as the election code of conduct, the temporary market 24:09 24 minutes, 9 seconds impact of GST change, unseasonal and extended rain imposed challenges, geopolitical crisis, 24:18 24 minutes, 18 seconds etc. In fact, the industry was a bit subdued and pegged at 1 million hectares in FY25 versus 1.1 million hectares in FY24. 24:30 24 minutes, 30 seconds This of course is estimated to improve by about 6 to 7% in FY26. 24:37 24 minutes, 37 seconds Despite these challenges, your company has shown consistent growth better than industry both on the top line as well as 24:45 24 minutes, 45 seconds the bottom line with a 14% compounded annual growth the last four years and solid bottom line improvement. 24:54 24 minutes, 54 seconds Steadily improving the foundation of the business leading to consistency and predictability is very important for us. 25:03 25 minutes, 3 seconds And so we've done a lot of ground work in the following areas. First of all, in the subsidy business, we have recalibrated our presence in various 25:12 25 minutes, 12 seconds states to reduce business concentration risks. 25:17 25 minutes, 17 seconds Secondly, as an internal effort to make growth smoother, we have strengthened processes and defined a tighter 25:26 25 minutes, 26 seconds commercial policy for optimizing revenue, profitability, and working capital. 25:35 25 minutes, 35 seconds Thirdly, we have continued to improve cost efficiency and productivity. 25:42 25 minutes, 42 seconds To quote a few examples, manpower cost in the last four years has gone up only at a compounded growth rate of 5.3%. 25:53 25 minutes, 53 seconds This is a 14% revenue growth despite inflation. Also, manufacturing rejections are at sub 2% levels, which is much better than industry average. 26:04 26 minutes, 4 seconds Fourthly, for a better control over freight and processing costs over the last few years, we've been efficiently 26:11 26 minutes, 11 seconds managing distributed manufacturing with satellite units while our main unit continues to be in NASA and this has also improved our asset utilization. 26:21 26 minutes, 21 seconds Fifthly, we have started improving our coverage in emerging markets such as the north of India where we have seen some early success in states like UK. And 26:30 26 minutes, 30 seconds there I would like to mention that after an exploratory two years, we now have a stable base in the state of UB and we've 26:37 26 minutes, 37 seconds grown by about 28% in the financial year 26 versus last year. 26:43 26 minutes, 43 seconds Next, we have strengthened internal capabilities to address non-s subsidy segments such as the thin wall business, 26:51 26 minutes, 51 seconds institutional sales and irrigation projects of the small and middle size. 26:58 26 minutes, 58 seconds In fact, you will be happy to know that we've reached a 35% contribution of non-subsidity business for FY26 27:05 27 minutes, 5 seconds from a mere 3% in FY20. Today, we have an unrecognized work order pipeline of 27:13 27 minutes, 13 seconds about rupees 53 crores for irrigation projects with a further upside of about 20 crores. And besides this, we're also 27:21 27 minutes, 21 seconds exploring exports markets in coordination with Mahindra and Mahindra's tractor businesses international operations. As we create a 27:30 27 minutes, 30 seconds more stable, more consistent and steadily growing revenue base, we will also look at margins. With the improvement in the subsidy business, no 27:39 27 minutes, 39 seconds doubt our margins will improve particularly to our business in the higher margin states. In the non-s subsidy business as our brand gets more 27:47 27 minutes, 47 seconds established like it is in the subsidy business we will also start funding a better price and better margins. As I 27:55 27 minutes, 55 seconds come to the end of my information sharing session I'd like to briefly touch upon one more point and that is the M&M parentage of Mahindra EPC. As 28:05 28 minutes, 5 seconds you know, M&M is a blue chip company with the highest standards of corporate governance and transparency which we as 28:12 28 minutes, 12 seconds Mahindra EPC benefit from. M&M also has a strong track record, manufacturing and marketing excellence which will benefit your company over the next few years. 28:24 28 minutes, 24 seconds And recently we have developed a few projects also in collaboration with M&M sustainability as well as our CSR teams. 28:32 28 minutes, 32 seconds We are further exploring agri he projects on civil line. To summarize and conclude, we feel that the micro education 28:40 28 minutes, 40 seconds industry will like any industry go through some ups and downs, but the long-term outlook is compelling and in 28:49 28 minutes, 49 seconds the medium-term we as Mahindra EPC are well placed to take advantage of both 28:56 28 minutes, 56 seconds our unique advantages as well as emerging opportunities to deliver above 29:03 29 minutes, 3 seconds industry performance. And that brings me to the end of my session. Thank you very much for listening patiently. I will now open this up to questions. 29:15 29 minutes, 15 seconds Thank you very much sir. We will now begin the question and answer session. 29:19 29 minutes, 19 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you 29:28 29 minutes, 28 seconds may press star and two. Participants are requested to use handsets while asking a question. 29:34 29 minutes, 34 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 29:42 29 minutes, 42 seconds We'll take a first question from the line of Disha Chia from Safire Capital. Please go ahead. 29:50 29 minutes, 50 seconds Hello. Hi. Am I audible sir? Yeah, I can hear you. 29:56 29 minutes, 56 seconds Yes. Thank you so much for this opportunity. So firstly coming on to this raw material price increase. So although this year we only saw this 30:05 30 minutes, 5 seconds impact for only one month for March but this remaining year what sort of expected price increase what what sort of price increase are you expecting and 30:14 30 minutes, 14 seconds just wanted to get a sense on how much of that will be able to pass on and what sort of imprisha 30:23 30 minutes, 23 seconds can you use your handset mode please your audio is coming muffled am I audible now 30:30 30 minutes, 30 seconds yeah you are audio Yeah. Should I repeat the question? Hello. Yes. 30:38 30 minutes, 38 seconds Uh sir, do you want her to repeat her question? 30:42 30 minutes, 42 seconds Uh I don't think I need her to repeat her question. Uh Nisha, just tell me if I got it right. Your question was the 30:49 30 minutes, 49 seconds impact of high raw material prices in the coming year given that in the FY26 30:57 30 minutes, 57 seconds we experienced it only for one month. Is that your question? 31:00 31 minutes Yeah. Yeah. And just like on what sort of impact will it have on our margin? Yeah. 31:06 31 minutes, 6 seconds Yeah. So uh you know so we definitely see the volatility in raw material prices as one of the risks for FY27. 31:17 31 minutes, 17 seconds There are ways in which we are looking to mitigate the risk by way of our own company strategy in terms of which 31:26 31 minutes, 26 seconds specific products we focus on within our mix, which particular markets we can 31:33 31 minutes, 33 seconds selectively look at price increases in, how and when do we procure raw material 31:41 31 minutes, 41 seconds etc. But overall we do think that raw material prices is an industry risk. As 31:50 31 minutes, 50 seconds a result, the industry irrigation association has also made a 31:57 31 minutes, 57 seconds representation to the government requesting for a price increase and the government is considering the industry's representation. 32:08 32 minutes, 8 seconds I hope that answers your question. 32:10 32 minutes, 10 seconds Okay. So you mentioned that we're looking for some specific products that we're targeting in some markets. Could you just elaborate a bit more on that? 32:18 32 minutes, 18 seconds Yeah. So I mean as our business uh and every business will have its own dynamics. We have a range of products 32:25 32 minutes, 25 seconds and we are selling in multiple states with a strong presence in the south and the west of the country. And if you look at our product portfolio and you look at 32:34 32 minutes, 34 seconds our geography portfolio, there will be areas where our margins are higher. 32:39 32 minutes, 39 seconds specific products in specific geographies. So we will look very carefully at what is the right mix for 32:46 32 minutes, 46 seconds us to pursue given the inflated level of raw material prices and we will 32:53 32 minutes, 53 seconds structure our approach in the coming months to maximize our margin opportunities 33:00 33 minutes uh at the same time drive a top line as well. So I think that is something that every company will form its own approach 33:08 33 minutes, 8 seconds on and ours looks like what I just described. So product mix intelligently chosen geography mix intelligently 33:16 33 minutes, 16 seconds chosen and the timing of our raw material prices also chosen carefully. 33:22 33 minutes, 22 seconds So any sort of number as to what epida margin you'll be targeting you going to maintain what you've done in FI6 33:32 33 minutes, 32 seconds we uh so we don't tend to give outlooks u I mean as of now what we would say is that our approach will broadly follow 33:40 33 minutes, 40 seconds the lines that I described uh we don't have a control on what happens to raw material prices but as an organization 33:49 33 minutes, 49 seconds we will use the levers at our disposal proposal to manage our business uh and uh and you know deliver the best results 33:58 33 minutes, 58 seconds we can in these circumstances and we are positive that we have identified some 34:05 34 minutes, 5 seconds levers that we can manage but we do see raw material prices as a risk. 34:11 34 minutes, 11 seconds Okay. Okay. Fair enough sir and yes the last question on we saw a huge jump in the other expense. What was the reason for that? 34:21 34 minutes, 21 seconds Sorry, can you please repeat? We saw a huge jump in other expenses. 34:27 34 minutes, 27 seconds Yeah. So that has a few components. The other expenses has a few components as 34:35 34 minutes, 35 seconds you know. Uh so if I were to just look at uh you know some of the things that went into it. Uh the first is project 34:44 34 minutes, 44 seconds expenses. So uh in our revenue mix like I said earlier we have a subsidy revenue 34:52 34 minutes, 52 seconds stream we have a non-s subsidy revenue stream and the non-subsidy revenue stream the largest contributor of the 34:59 34 minutes, 59 seconds non-s subsidy revenue stream is our projects revenue stream projects make government projects that we uh that are 35:09 35 minutes, 9 seconds tendered and that we win. Now in that revenue stream which is the project's revenue stream the collection cycles are 35:16 35 minutes, 16 seconds better for us and the revenue volatility is also lower that has a higher level of variable 35:25 35 minutes, 25 seconds expenses and when we sell more as part of our total revenue in projects then we 35:32 35 minutes, 32 seconds tend to see lower raw material costs because we have lower raw material costs but we tend to see higher variable expenses. A large part of our other 35:40 35 minutes, 40 seconds expenses is really the fact that the mix of business uh in Q4 veered towards projects. 35:50 35 minutes, 50 seconds So that's that's the number one uh reason and we have also increased some 35:57 35 minutes, 57 seconds costs in terms of manufacturing fixed and manufacturing variable but the 36:03 36 minutes, 3 seconds primary cost has come from the mix of projects revenue stream with the total revenues of the business. 36:16 36 minutes, 16 seconds Thank you. Before we take the next question, would like to remind participants to ask a question, please press star and one on your phone. Next 36:26 36 minutes, 26 seconds question is from the line of Adit Desa from Vikram Advisory Services. Please go ahead. 36:32 36 minutes, 32 seconds U the initial remarks sir you gave in your opening uh speech were uh were great. It were it was very informative. 36:41 36 minutes, 41 seconds Uh but there are certain things that I want to ask. One is uh Chris obviously made great observations which obviously 36:48 36 minutes, 48 seconds anybody in the industry would know these are the burning issues of the industry but I would like to point out uh uh one 36:56 36 minutes, 56 seconds more uh thing with it is that uh if you see our uh company on a one year two 37:03 37 minutes, 3 seconds year or even five year basis in terms of cash flow free cash flow operating free cash flow generation it is still 37:11 37 minutes, 11 seconds negative let's say if I say 3 years last 3 years it's -8 crores last four years 37:18 37 minutes, 18 seconds his total is zero and even five years if I were to take it's negative 22 crores 37:24 37 minutes, 24 seconds so now uh unless we address this issue uh even though the margins look great 37:31 37 minutes, 31 seconds and everything is fine and becoming more stable how do we plan to make this part of the business stable which will you 37:38 37 minutes, 38 seconds know uh keep us more cash and uh and not be borrowing more and more. 37:46 37 minutes, 46 seconds Yeah. So, yeah, Adita, thank you for your question and uh good to hear from you. Uh it is a good question and uh and 37:55 37 minutes, 55 seconds no doubt uh as any we are also focused very much on uh that goal. The pressure 38:04 38 minutes, 4 seconds on cash flows as you know in this industry is almost entirely due to receivables. 38:13 38 minutes, 13 seconds And while we have managed our working capital very actively through tighter inventory control, 38:23 38 minutes, 23 seconds receivable buildup has tended to happen in a few key states where the uh the 38:31 38 minutes, 31 seconds margins are good. uh there is a lot of demand in terms of farmer level demand 38:39 38 minutes, 39 seconds as well as in terms of the state push and where in the period from FY25 26 27 38:48 38 minutes, 48 seconds uh there has been a real buildup of the tendency and we are seeing uh a lot of 38:55 38 minutes, 55 seconds coordinated efforts at both the central level as well as the state level as an 39:02 39 minutes, 2 seconds industry we're making concerted representations as M&M we are making concerted representations and there is a 39:11 39 minutes, 11 seconds positive feedback coming from those states and there's also a possibility of some centrally funded interventions 39:19 39 minutes, 19 seconds nabard interventions to reduce funds so we do believe that as collections normalize the cash flows will improve 39:28 39 minutes, 28 seconds but I think as things stand uh we do acknowledge that in this industry 39:36 39 minutes, 36 seconds uh investment in working capital is required to drive growth. 39:41 39 minutes, 41 seconds And what is important and the way we're looking at it is to balance the business 39:47 39 minutes, 47 seconds across revenue streams which might have higher margin but more requirement for working capital and other revenue 39:54 39 minutes, 54 seconds streams which might require lower work lower working capital but might offer lower margin. So I think this is about 40:01 40 minutes, 1 second getting the the balance of your revenue streams and that is something that will evolve over time. 40:10 40 minutes, 10 seconds Correct sir. No I appreciate that sir but the the the pain point real big pain point is that okay we can understand that one year or two years can be 40:18 40 minutes, 18 seconds negative but entire five years being negative. So if we were to project the future five years, so like as an 40:28 40 minutes, 28 seconds investor, if I have to think uh if the company is still making uh negative cash flow five years from now, I will never 40:37 40 minutes, 37 seconds get returns. So even the business will never get returns because ultimately cash is the uh the the uh the thing 40:45 40 minutes, 45 seconds which the business needs to make to you know uh for use it for growth. uh currently what looks like is that the 40:53 40 minutes, 53 seconds last five years even the previous thing I'm sure that it's nothing to do with you or your company the industry I appreciate that but I'm what I'm asking 41:01 41 minutes, 1 second is that when do we see the subsidy part going or the ratio inversing like let's say 35% now the non-s subsidy part when 41:11 41 minutes, 11 seconds do we see the subsidy going to 35 because that is the dragger uh that that's that's a very important question 41:18 41 minutes, 18 seconds for me uh Second is uh out of the trade receivables of this 217 crores 217 41:25 41 minutes, 25 seconds crores how much of it is uh attributed to non-s subsidiary business 41:33 41 minutes, 33 seconds yeah so uh so good questions Adita um the first question 41:41 41 minutes, 41 seconds uh is uh in terms of the business mix uh as you know and as we shared on this 41:49 41 minutes, 49 seconds called and we're very proud of it. I've shared in previous calls as well, our share of the non-s subsidy business has 41:57 41 minutes, 57 seconds increased from 2% in FY20 to 35% in FY 42:03 42 minutes, 3 seconds 26 and this is a conscious choice that the business has made followed by some 42:10 42 minutes, 10 seconds very good execution on part of the team on the ground and this is uh broad-based 42:18 42 minutes, 18 seconds non-subsidiary revenue uh While the a larger part of it comes from our 42:24 42 minutes, 24 seconds projects business which we see as a good growth opportunity for your company in the years to come. Uh some of it also 42:33 42 minutes, 33 seconds comes from selling ISI grade products in uh you know to farmers who uh who who 42:40 42 minutes, 40 seconds buy outside the subsidy. Some of it comes from sales to institutions. 42:46 42 minutes, 46 seconds So it is a more broad-based revenue stream and it has grown significantly in the last five or six years and we are 42:54 42 minutes, 54 seconds very focused on continuing with that given. So without giving you a date 43:04 43 minutes, 4 seconds uh what I will say is that you have essentially summarized the strategy of our company which is to increase the 43:12 43 minutes, 12 seconds contribution of the non-subsidiary revenue stream in the token. What I will also say is again without putting a 43:20 43 minutes, 20 seconds timing to it that uh there is criticality in payments and as uh the some of the two states in the 43:29 43 minutes, 29 seconds south and one state in the west. If they start regularizing their payments and start paying which we expect imminently 43:38 43 minutes, 38 seconds then we will see good cash flows and uh and while at the same time our revenue 43:45 43 minutes, 45 seconds mix will also be improving. We do see possibilities of uh going back to some 43:52 43 minutes, 52 seconds of the earlier years where there was a positive cash flow but I mean in summary that is our focus and our strategy as well. 44:03 44 minutes, 3 seconds That's good to hear sir. Uh uh thank you for that. But uh the the the first question that I asked about was how much 44:10 44 minutes, 10 seconds of the 217 receivable is attributed to non-s subsidies? 44:15 44 minutes, 15 seconds Yes, sorry I forgot to answer that question. Yes, you did ask two questions. And the second question was how much of our total uh outstandings 44:23 44 minutes, 23 seconds comes from the subsidy and the non-subsidity business. So I would say that uh about uh 80% uh 80 to 90% of it 44:32 44 minutes, 32 seconds comes 85 to 90% of it comes from the subsidy business. So it is predominantly coming from our subsidy business. 44:42 44 minutes, 42 seconds Correct. So it looks like uh the the strategy that we doing has cleared out because if 65% of revenue contributes 44:50 44 minutes, 50 seconds 90% of outstanding then yeah obviously the the trajectory is fine. Um Jan let's hope uh that you 44:58 44 minutes, 58 seconds know this uh 35% reaches 50% next year and uh onward from there. 45:05 45 minutes, 5 seconds Yes. No, that that is exactly the the strategy in a nutshell which I will give the management team credit for. Uh and 45:14 45 minutes, 14 seconds uh the credibility comes from the fact that the needle has moved from 2% to 35% which is not uh an easy thing to do in 45:22 45 minutes, 22 seconds the last five or six years despite all the challenges and uh the the business is fully focused on continuing that trajectory with all its positive consequences. 45:34 45 minutes, 34 seconds Great to hear that sir. Last one suggestion uh before I end is uh uh can the company think uh on the lines of 45:43 45 minutes, 43 seconds some new product or probably related product uh in the field which uh gives 45:50 45 minutes, 50 seconds you good cash flows. I just just forgot uh please uh do think about it because there are certain products in the 45:58 45 minutes, 58 seconds segment uh in the in the irrigation segment which are cash and carry and 46:05 46 minutes, 5 seconds give good cash flows. So which will take care of the you know uh so our borrowings are not needed and you know 46:12 46 minutes, 12 seconds while we are winding down the uh allocation to from uh non sub subsidy to 46:20 46 minutes, 20 seconds non-s subsidy this will enable it faster is what my suggestion is do consider consider it if you think is right. 46:28 46 minutes, 28 seconds No, definitely and I think that uh uh you always make very pointed and valuable suggestions. Uh and this is something that we fully take on board. 46:40 46 minutes, 40 seconds Uh we have um we have developed thin wall products uh which sell in the 46:47 46 minutes, 47 seconds non-subsidiary part of our business and have better cash flows. Uh we also sell 46:54 46 minutes, 54 seconds mulch sheets which is also something which is an uh which is a related product but gives us better cash flows 47:04 47 minutes, 4 seconds and we do have other ideas in terms of products that we should uh introduce in time to come to both increase our 47:13 47 minutes, 13 seconds topline as well as improve our cash flow and and and balance. That is exactly what sir I'm targeting. 47:20 47 minutes, 20 seconds Thank you. I'm happy to hear that. 47:23 47 minutes, 23 seconds Yeah. No, definitely. So, I think that uh we we take your points very seriously and uh you know work is ongoing and we continue. 47:32 47 minutes, 32 seconds Thank you. Thank you so much, sir. And and last last observation is it's it's good to see uh onboarding of uh this ma 47:40 47 minutes, 40 seconds and uh uh uh the other person from uh this. 47:48 47 minutes, 48 seconds Yeah. Pulam. Yeah. Yeah. So uh looks like uh we are diversifying our uh board 47:56 47 minutes, 56 seconds uh for a bigger agree play is what it looks like. I'm I'm the indications looks good. 48:05 48 minutes, 5 seconds Yeah. So we are we welcome them and there's representation on the board. 48:10 48 minutes, 10 seconds they come as uh people with deep industry experience uh and they will definitely add value to 48:17 48 minutes, 17 seconds our discussions and our approach going forward. So, so thank you for acknowledging that. 48:24 48 minutes, 24 seconds Yes. Thank you, sir. Thank you. Thank you. 48:30 48 minutes, 30 seconds Ladies and gentlemen, to ask a question, please press star and one on your phone now. 48:38 48 minutes, 38 seconds Okay. Okay. Uh I think that we are done with questions as far as I can tell. So 48:45 48 minutes, 45 seconds sir, we have one. Uh should I go ahead and take it? Yes, we have two more. 48:50 48 minutes, 50 seconds Yeah, we can we can take those two more questions and then we can uh and then we can close. 48:55 48 minutes, 55 seconds Okay. The next question is from the line of Milan Sha, an individual investor. Please go ahead. 49:04 49 minutes, 4 seconds Hello. Yes, we can hear you. Please go ahead. 49:09 49 minutes, 9 seconds Uh so I wanted to know about any preex for FI27. 49:14 49 minutes, 14 seconds Uh hello. 49:19 49 minutes, 19 seconds Yes. Hi. Hi. I can hear you. Milan, you asked about whether we have any capex plans for FY27. Is that correct? 49:28 49 minutes, 28 seconds Hello. Yeah. 49:32 49 minutes, 32 seconds Okay. Yeah. So um we do have capeex plans. We have capeex plans every year 49:38 49 minutes, 38 seconds and then obviously we u we manage our capeex planning basis the requirements of the business the financial 49:47 49 minutes, 47 seconds requirements of the business. Most of our capeex plans are to are focused on improving productivity and on capacity 49:57 49 minutes, 57 seconds expansion. They're focused on current product lines and we we choose them carefully. So for example, we made an 50:05 50 minutes, 5 seconds investment in uh a power surge uh equipment which has 50:12 50 minutes, 12 seconds delivered immediate benefits by way of savings in our uh electricity. And so 50:20 50 minutes, 20 seconds when we look at cipex, we obviously have plans for the year which we uh which we 50:27 50 minutes, 27 seconds go through with basis the considerations of the business. But whenever we do execute like the power search solution 50:34 50 minutes, 34 seconds that we executed in FY26 have strong business cases. So there will be an expectation that we get quick payback on 50:43 50 minutes, 43 seconds whatever we spend and as the other product lines improve our new product lines that uh we were talking about earlier in the call definitely investment will follow. 50:56 50 minutes, 56 seconds Okay. Yeah. Thank you. 50:59 50 minutes, 59 seconds Next question is from the line of Rajan Shia, an individual investor. Please go ahead. Yeah. Good uh good afternoon Romesh G. 51:08 51 minutes, 8 seconds How are you? 51:09 51 minutes, 9 seconds Very well, thank you Rajan G. How are you? 51:12 51 minutes, 12 seconds Yeah, I know fine sir. Uh sir, I have a few questions actually. Uh yeah, the first question was on the employee cost 51:20 51 minutes, 20 seconds sir. It's up 20% in this quarter. So um normally whenever we see employee cost going up you know it gives us an 51:28 51 minutes, 28 seconds indication that you know the company has recruited a lot of people and is aiming for higher growth. So is my analysis correct? 51:37 51 minutes, 37 seconds Um well I mean your uh uh your point that the company is looking for higher growth is absolutely correct but not by 51:45 51 minutes, 45 seconds hiring more employees. So I'll just explain. So the employee costs have not gone up because we have hired a lot of 51:53 51 minutes, 53 seconds people and it has also not gone up because we have increased any kind of variable pay. Uh it is largely attributed 52:01 52 minutes, 1 second to the labor code the new labor code. So it's largely attributable to the uh the contractual 52:10 52 minutes, 10 seconds alignment of the employee benefits in anticipation of the the wage code. So this is really a direct impact of the new labor code. 52:24 52 minutes, 24 seconds Okay. Right. And so this year there's a prediction of below normal monsoon. 52:29 52 minutes, 29 seconds They're talking about 90 92% of normal monsoon. So will it affect the demand or is it that because of poor monsoon probably farmers may go in for this 52:37 52 minutes, 37 seconds system to see that their farm fields get proper water. 52:40 52 minutes, 40 seconds So is it I mean is good monsoon uh good for the industry? Yes, we understand. 52:46 52 minutes, 46 seconds But is it a below normal monsoon also equally good for the industry or will it affect demand? 52:52 52 minutes, 52 seconds So we see the the impact play out more in the second half of the year and it's something obviously that we will watch 53:01 53 minutes, 1 second very carefully for uh for strong sales and micro irrigation. 53:06 53 minutes, 6 seconds Uh one one tends to see that it happens best when there's a certain combination of easy availability of groundwater and 53:16 53 minutes, 16 seconds at the same time uncertainty in terms of rainfall. So when these two things come 53:22 53 minutes, 22 seconds together uh along with an immediacy that the farmer has for irrigation uh if it 53:30 53 minutes, 30 seconds is there at a critical phase in the crop cycle where irrigation is a must rainfall is uncertain groundwater is easily accessible then there tend to be 53:39 53 minutes, 39 seconds good conditions for the micro irrigation industry. So when all these things align is what is best. uh so right now we see 53:49 53 minutes, 49 seconds an impact if it does happen more in the second half of the year and it's something that we will continuously and very carefully monitor. 53:58 53 minutes, 58 seconds Okay. So you also mentioned in your opening remarks that you know the industry has made a representation to the government for taking up a price 54:05 54 minutes, 5 seconds hike because of the uh 40 50% rise in the raw material cost. So when can we expect the government to act sir because 54:12 54 minutes, 12 seconds last time they took a long time and in that process we had suffered a huge loss also. So can we expect it in the next 3 months or something like do we get some indication then when can we expect that? 54:24 54 minutes, 24 seconds Yeah, that is um that is something that is work in progress honestly Rajan G and 54:30 54 minutes, 30 seconds um uh from an industry association perspective uh it is happening every day in various 54:38 54 minutes, 38 seconds different forums at various different levels top to bottom and uh it is it's 54:45 54 minutes, 45 seconds something that is a daily matter of discussion to be quite honest uh difficult to call uh you know a point in 54:53 54 minutes, 53 seconds time when the uh the discussions will conclude but I can assure you that this 55:00 55 minutes is something which is a a top priority for pretty much everybody who is operating in this industry including us 55:07 55 minutes, 7 seconds okay so this will basically sir uh impact the 65% of revenue right 35% is non subsidy so there we can take a price like on our own we don't need government 55:16 55 minutes, 16 seconds approval for that yeah so so the way it could work is that um there is uh there is the government 55:25 55 minutes, 25 seconds which is the price giver in the case of the subsidy market and obviously uh that depends on the government but in the 55:34 55 minutes, 34 seconds non-subsidy part it is the farmer who will decide what is the right price. So and and this is not just in the case of 55:43 55 minutes, 43 seconds micro education industry but in all industries wherever there's going to be a raw material price increase the question is how much of that raw 55:50 55 minutes, 50 seconds material price increase will be comfortably absorbed by the consumer and that question applies to our industry as 55:58 55 minutes, 58 seconds well and so uh and so you know we have to we have to do it in a judicious way. 56:05 56 minutes, 5 seconds So, so yes, we will selectively take price increases but we have to do that in a way that uh is uh is calibrated. 56:14 56 minutes, 14 seconds Okay. And so projects we have been taking projects of 5 10 15 20 cr any plans to go a little higher 35 50 100 cr or something like that. 56:25 56 minutes, 25 seconds Yes. So uh that's a good question Rajan Gj and uh it is something that has been uh you know been uh discussed internally 56:33 56 minutes, 33 seconds for some time and we are we are preparing for you know maybe not a significant increase in the size of 56:40 56 minutes, 40 seconds projects that we uh that we manage but for you know a sort of step up from where we are. It requires us to have uh 56:50 56 minutes, 50 seconds to align certain internal capabilities, have certain types of experience and we're building on that. 56:57 56 minutes, 57 seconds Right. And sir, last question. Uh yeah, the project business is currently how much of the uh subsidy business 57:07 57 minutes, 7 seconds 65% is subsidy business, right? So how much is the project business of the total turnover of 315 cr? 57:14 57 minutes, 14 seconds So it would be about a quarter a quarter to five cr business. Aa so about 75 cr is project business. Okay. Okay. 57:24 57 minutes, 24 seconds In that sort of way. And what is the order book position sir today as of now? 57:27 57 minutes, 27 seconds I mean last year we had disclosed that I think it was 73 cr or something. So this year do we 57:35 57 minutes, 35 seconds so this year we have an uh an opening pipeline of about 55 crores and and and we and we see a further 57:44 57 minutes, 44 seconds upside uh so that is very clear to us that 55 crores and then we see a possible a possible upside of another 20 57:52 57 minutes, 52 seconds crores on top of that as we start the year. 57:56 57 minutes, 56 seconds So around 75 cr uh by the end of this month we can expect uh there is there is definitely visibility for the 55 it's actually 54 58:06 58 minutes, 6 seconds uh and the remaining uh upside will is in process and will sort of get clearer in the next few weeks. 58:14 58 minutes, 14 seconds Much fine sir fine sir it was very informative opening remarks and thank you for answering all the questions sir. 58:20 58 minutes, 20 seconds All the best and we look forward to uh a year where we report at least uh 350 360 cr of topline and uh uh with little bit 58:29 58 minutes, 29 seconds of price like we are in profit for the year because last time in 2122 I think we reported about 12 cr of loss because of crude going up to 100. 58:38 58 minutes, 38 seconds Correct. 58:38 58 minutes, 38 seconds So this time if we can uh just break even also for this year my expectations are a little low but at least if we can report good topline and break even and 58:47 58 minutes, 47 seconds maybe report a little nominal profit that would be good. 58:50 58 minutes, 50 seconds Thank you so much and all the best. So first of all, thank you for your uh very insightful questions and comments and 58:59 58 minutes, 59 seconds thank you also for your good wishes. We definitely want to with your good wishes, we'll definitely uh deliver 59:07 59 minutes, 7 seconds numbers that are uh are something that you know make everybody happy. So that's our focus. 59:13 59 minutes, 13 seconds Thank you so much. Thank you. It was good to hear that sir. Thank you. Likewise. 59:19 59 minutes, 19 seconds Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Romesh Ramachandra, managing director for closing comments. Over to you, sir. 59:30 59 minutes, 30 seconds Thank you for all the questions uh to the investor community. We look forward to speaking to you again in a few months 59:38 59 minutes, 38 seconds time. Till then, all the best. Thank you. Bye-bye. 59:42 59 minutes, 42 seconds Thank you, sir. On behalf of Mahindra EPC Irrigation Limited, that concludes this conference. Thank you for joining us.