M M Forgings Ltd — Q3 FY26

MM Forgings Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=GEGoWtV5MCU Published: 2 months ago

0:00 Ladies and gentlemen, good day and welcome to the MM Forings Limited Q3 FY26 post results earnings conference 0:08 8 seconds call hosted by Bartley Wala and Karani Securities India Private Limited. As a reminder, all participant lines will be 0:15 15 seconds in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this 0:24 24 seconds conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that 0:30 30 seconds this conference is being recorded. I now hand the conference over to Mr. Dhumar from BNK securities. Thank you and over to you sir. 0:41 41 seconds Thanks ma'am. Uh welcome to MMOs limited preq fi26 post researchers conference call. On the management side we have 0:49 49 seconds with us today Mr. Vidya Saga Krishna chairman and managing director Mr. 0:54 54 seconds Balaji Gopalad just in finance and accounts I will now hand over the call to Mr. Shya Sag Krishna for the opening remarks to be followed by question and answer session. Over to you sir. 1:06 1 minute, 6 seconds I morning everybody. 1:10 1 minute, 10 seconds Thank you all for being here. I would like to now um give a set of opening remarks for the results of Q3 S526. 1:19 1 minute, 19 seconds Our company delivered a reasonably good quarter considering the volatile global environment. Sales grew by 11.3% on Y 1:28 1 minute, 28 seconds basis with a sequential improvement in Q3 of about 7%. 1:35 1 minute, 35 seconds Growth was primarily driven by improvement in volumes of about 3% in Q3 compared to Q3 F25 along with positive change in average sales realization. 1:47 1 minute, 47 seconds Export markets after being weak in almost the first eight months of the year saw a sequential improvement with contribution from USA rising a bit. A 1:56 1 minute, 56 seconds sign of things to come. The US market seems to have uh given a positive uh outlook and 2:04 2 minutes, 4 seconds customers are coming back to us after running down the inventory of our parts. 2:08 2 minutes, 8 seconds Europe registered a healthy improvement in its mix this year which was a result of market share improvement and new program starts there. The decline in 2:16 2 minutes, 16 seconds gross margins reflects changes in both product mix and geographical mix. Also, power cost and labor costs seem to have 2:24 2 minutes, 24 seconds gone up a little bit. We are sure that we will claw back these in the months to come. 2:30 2 minutes, 30 seconds Senior management has been making all round efforts to mitigate the impact of rising costs amid a tough and volatile trade environment. 2:41 2 minutes, 41 seconds These efforts have reasonably helped arrest the decline in margins. 2:45 2 minutes, 45 seconds Looking ahead, recent government announcements on the tariff front along with the recovery in class A truck orders in the in the US augers very well 2:55 2 minutes, 55 seconds for us. Coupled with the pick up in domestic auto sector led by CV market, this should provide a reasonable boost to volumes in the next 12 to 18 months. 3:06 3 minutes, 6 seconds We remain confident of delivering industryleading volume growth and clawing back some of the margins lost in this year through a richer and improved 3:14 3 minutes, 14 seconds product mix cost cutting initiatives supported by a steep reduction in interest growth. 3:21 3 minutes, 21 seconds For the past several years, we have focused on strategically adding capacity while improving our product and market mix. Market conditions and delay new 3:29 3 minutes, 29 seconds programs didn't help though. We continue to invest in the current year and expect to close the year with a planned capex 3:35 3 minutes, 35 seconds of around 175 crores of which 137 crores has already been invested. We continue 3:42 3 minutes, 42 seconds to maintain a cap on net debt levels now in spite of the heavy capex. Next year two we expect capex to be in the around 3:52 3 minutes, 52 seconds 150 to 170 crores. Every activity is being reviewed with a sharp focus on cost reduction, automation, productivity 3:59 3 minutes, 59 seconds enhancement and strengthening the company and its balance sheet. And most important of all, relentless focus on 4:06 4 minutes, 6 seconds customer and delivery to customers which is now uh supported by a very strong market both domestic and in exports. I look at the next few years with optimism. 4:18 4 minutes, 18 seconds Significant positive cash flows generated by the business are expected to substantially reduce leverage and enhances enhance shareholder value. 4:27 4 minutes, 27 seconds As generally just a remark on the side, I've used the standalone results for the above comments. 4:35 4 minutes, 35 seconds So these are my initial remarks and if uh there are questions now, I'd be happy to take them. 4:43 4 minutes, 43 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone 4:51 4 minutes, 51 seconds telephone. 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 5:00 5 minutes question. Ladies and gentlemen, we will wait for a moment while the question assembles. 5:07 5 minutes, 7 seconds The first question is from the line of Raghab Maheshwari from Kamayaka Wealth Management. Please go ahead. 5:16 5 minutes, 16 seconds Uh hi uh thanks for the opportunity. So sir my first question will be around uh the demand recovery from the US on the 5:25 5 minutes, 25 seconds truck segment. Uh so uh as per some research reports we are seeing that the demand has now returned back and it has 5:34 5 minutes, 34 seconds shown quite a quite an uptick in I think uh the month of December. So are we is it safe to assume that we are going to 5:40 5 minutes, 40 seconds see that in our numbers in Q4 little bit partially in Q4 and uh fully from Q1 F27 onwards. 5:55 5 minutes, 55 seconds Understood sir. And then my uh next question one set of parts have gone into production another set of parts go into 6:02 6 minutes, 2 seconds production from February. So the full impact will come from March onwards. So effectively I would say Q1 S27. 6:11 6 minutes, 11 seconds Understood sir. And sir my next question is around the uh production mix sir. uh for years our uh con core investment 6:18 6 minutes, 18 seconds thesis has been the shift from you know uh Fords to machined components to drive the margins up and uh however uh you 6:27 6 minutes, 27 seconds know uh uh in the presentation the year-to- date FI26 data showed that the machined mix collapsed to around 47% 6:35 6 minutes, 35 seconds which was approximately which was more in FI25 while the lower margin for mix has uh uh has been showing a good spike 6:44 6 minutes, 44 seconds so Why is this a sharp reversal in product mix? 6:51 6 minutes, 51 seconds I think machining mix continues to be uh at that 45 odd percent. Let me check my numbers. 7:00 7 minutes Bali Gopal you have any shabi? 7:09 7 minutes, 9 seconds Yeah. Hey, the machine continues to be one second. I got it. Uh yeah 7:16 7 minutes, 16 seconds continuously our forging is 47% and forging is 53% and 7:23 7 minutes, 23 seconds missioning is 53 uh missioning is 53% up to Q3 FI 26 and with the corresponding 7:31 7 minutes, 31 seconds FI25 uh we did 42% in uh forging and mixing at 28%. So missioning has come down by 7:38 7 minutes, 38 seconds 5% and uh turn around to forging at uh 40 40 43 47 from 58 it has become 53 in. 7:50 7 minutes, 50 seconds Thank you Bali. Yeah. 7:53 7 minutes, 53 seconds Um this uh this mix is down uh largely because of some uh reduction in 8:00 8 minutes machining of export products. So I would expect it to bounce back in the coming months. 8:07 8 minutes, 7 seconds Understood sir that helps. And uh sir now uh the next question is on the uh finance cost sir. uh so our finance costs given our peak debt levels have 8:16 8 minutes, 16 seconds have jumped to almost approximately 30% year on year in Q3. So uh it's kind of uh you know wiping out the benefit of uh 8:24 8 minutes, 24 seconds the 10% revenue growth that we have seen and uh since we are also capitalizing the uh new t which is uh uh you know 8:32 8 minutes, 32 seconds coming so the interest meter is also kind of uh you know uh fully running. So sir uh what would be the like when the 8:41 8 minutes, 41 seconds press comes live in March, April as guided by the management uh what will be the break even utilization of that uh 8:48 8 minutes, 48 seconds press to cover it on you know interest and depreciation cost. 8:55 8 minutes, 55 seconds Yeah, let me first answer the overall question. Um we have embarked on a judicious study of our uh interest costs 9:04 9 minutes, 4 seconds and uh sorted fit to uh make some corrections. We have also been helped by 9:10 9 minutes, 10 seconds the fall in interest rates in India for both term as well as working capital debt. Backed by this we've also shifted 9:21 9 minutes, 21 seconds our term loans with synthetic swaps from rupee to euro. You've done only a it is 9:28 9 minutes, 28 seconds a IRS the principal portion being left open. 9:38 9 minutes, 38 seconds Sorry it's a yeah it's an interest rate swap with the principal portion being left open in euro itself. So now what 9:45 9 minutes, 45 seconds happens is that um uh we expect our interest rate to come 9:52 9 minutes, 52 seconds down to in the region of 55 crores for the next year or slightly lower but our target is uh we are very sure that we'll 10:01 10 minutes, 1 second bring it down to 55 crores in the next year from around a run rate of 80 crores this year 10:07 10 minutes, 7 seconds which is a substantial IRS because of the IRS and also backed by primary rupee debt rates also are coming 10:16 10 minutes, 16 seconds down by about 1 one and a quarter%. And we have also negotiated with banks to bring down our rates. We'll also be 10:23 10 minutes, 23 seconds doing uh similar exercise we are doing a similar exercise on our working capital debt and effectively we expect to save 10:32 10 minutes, 32 seconds uh on both the fronts ultimately bringing about uh 25 to 30 crores of savings. 25 crores we can take as a guaranteed amount almost. 10:42 10 minutes, 42 seconds Understood sir. and and uh uh it could almost be about one and a half 10:47 10 minutes, 47 seconds uh 1.5 uh points on uh 150 basis points on sales. 10:55 10 minutes, 55 seconds Understood sir. And what about the utilization sir? Like what is the optimum utilization for this new press in coming? 11:01 11 minutes, 1 second We expect the 15,000 ton press to deliver about three 300 crores of turnover. But that will take a few years 11:09 11 minutes, 9 seconds to fill up. Right now we would start with a few parts that are a struggle to produce on our 8,000 that will get moved 11:16 11 minutes, 16 seconds to the uh 16,500 as we have said earlier we expect yeah let me complete you you'll have full 11:25 11 minutes, 25 seconds input after uh as we have said earlier we expect company to grow by at least 300 crores 11:33 11 minutes, 33 seconds in FY27 from where we close out FY26. 11:38 11 minutes, 38 seconds So that growth will get will be largely out of the non6,500 ton machinery. The 11:46 11 minutes, 46 seconds 16,500 will only ease production a little bit. It is not going to significantly add further growth that will come out of the 16,500 in the months to come. 11:58 11 minutes, 58 seconds Understood sir and sir if you can give us some idea on what kind of Sorry to interrupt you mishwari but can you please rejoin the queue for 12:05 12 minutes, 5 seconds followup? Just 2 minutes this call this information will be required by everybody. So we'll take this question and then move on the queue. I hope that's fine by your Sure. 12:14 12 minutes, 14 seconds Can you repeat your question so much sir? 12:16 12 minutes, 16 seconds Yeah. So sir uh just for uh a idea if you can brief about how much like uh I know the full capacity optimum capacity 12:26 12 minutes, 26 seconds will give us 300 crores uh from this new press but in FY27 how much uh is this scope for revenue addition from this press? Hardly anything. 12:37 12 minutes, 37 seconds Hardly anything. Okay. We start the press, we commission it and then we move a few parts from existing to there. Get 12:46 12 minutes, 46 seconds ready. Then as we approach customers, we fill up the press. 12:50 12 minutes, 50 seconds Okay sir. Understood sir. And this you're talking about FI 27, right? 12:55 12 minutes, 55 seconds Correct. Correct. FI26 is almost done and dusted. From your point of view, of course. From an operations point of view, we have two busy months. 13:03 13 minutes, 3 seconds Of course. Okay sir, I'll turn back to you. Thank you. 13:08 13 minutes, 8 seconds Thank you. The next question is from the line of Naven Vijay from MS Capital. Please proceed. 13:17 13 minutes, 17 seconds Uh good morning sir. Uh just wanted uh an update on the our EV subsidiary Abinava Risel. On the sales front where 13:25 13 minutes, 25 seconds are we? Are we tying up with any fleet operators or uh somebody of sort sir? 13:32 13 minutes, 32 seconds We are worked Thank you. We are working on um a few customers and we expect uh these customers to be in the at least 13:40 13 minutes, 40 seconds one of them to be in the bag uh in the next few weeks couple of weeks. 13:47 13 minutes, 47 seconds Okay. And once they are in the once they have signed up only then we will go for full scale manufacturing or 13:55 13 minutes, 55 seconds we've kind of set up a line for anticipation anticipating these such customers. We'll have to do some bottlenecking based on their volumes. So 14:04 14 minutes, 4 seconds that there's a conference call today with the customer also. So once we have some news, we'll share it with you. 14:11 14 minutes, 11 seconds Hopefully next quarter I should have good news. 14:13 14 minutes, 13 seconds Great, great, great. Uh my other question uh is on the power cast that you alluded to in your TV interview 14:20 14 minutes, 20 seconds today morning sir. What steps are we taking to basically not just a power cost to uh to kind of uh uh manage the 14:29 14 minutes, 29 seconds overall operating cost uh to be very competitive? 14:34 14 minutes, 34 seconds Yeah. Basically what has happened is TEB uh has taken a long-term given a long-term industrial power policy of increasing its rate per unit by 5%. 14:44 14 minutes, 44 seconds every year. 14:46 14 minutes, 46 seconds So that is added to cost plus also the job mix and lesser utilization of scale at some of our plants. So how do we counter this? First is improved scale. 14:59 14 minutes, 59 seconds Then um we also look at uh doing power audits, energy audits and bringing down 15:07 15 minutes, 7 seconds the costs. Third, we are also shifting over to uh green power. We've all we've 15:14 15 minutes, 14 seconds uh identified a few parties. We signed up with them and we expect to save about 15 crores this year. This year means 15:22 15 minutes, 22 seconds FY27 uh on power costs by shifting over from uh grid power to EB power sorry uh grid power to uh green power. 15:35 15 minutes, 35 seconds My apologies. 15:39 15 minutes, 39 seconds Okay. So thank you. I on the on the interest and the uh power fronts we 15:47 15 minutes, 47 seconds expect to save almost 50 crores. We're looking at uh something in the region of 40 45 crores between these two and 15:55 15 minutes, 55 seconds another four five crore will come definitely out of other initiatives like moving over to PNG uh as against furnace 16:03 16 minutes, 3 seconds oil using LPG instead of furnace oil. We are judiciously in looking at all this. 16:09 16 minutes, 9 seconds Plus, we'll also see uh better utilization bringing down energy costs overall. 16:18 16 minutes, 18 seconds Great. Great. Thank you, sir. I'll join back in the queue. 16:21 16 minutes, 21 seconds Yeah, possibly I could have added this information about the power cost in the interview somehow. U Thank you. 16:32 16 minutes, 32 seconds I reserved it. I posed it for this video. 16:37 16 minutes, 37 seconds The next question is from the line of Bala Subramanyam from Ahand Capital. Please proceed. 16:45 16 minutes, 45 seconds Good afternoon sir. Thank you so much for the opportunities. Sir, first question. Hi sir. As sir, I think we are 16:52 16 minutes, 52 seconds commercializing uh like 16,500 10 plus. So it's basically for diversification. 16:59 16 minutes, 59 seconds So right now our CV segments nearly 75 uh% range. based on this diversification 17:05 17 minutes, 5 seconds that any further uh plans we have uh uh to enter any other specific segments and uh is there any plan to diversify to uh 17:15 17 minutes, 15 seconds reducing the mix of CV to 60 65% kind of range and what specific uh nonCV end 17:21 17 minutes, 21 seconds markets we are focusing like agriculture construction oil and gas or railways and 17:28 17 minutes, 28 seconds is there any uh timeline and target uh to achieve those event. 17:35 17 minutes, 35 seconds Okay. You see over over the next few months I would expect the CV to come to around 75%. 17:48 17 minutes, 48 seconds And uh PV to be about 10%. 17:51 17 minutes, 51 seconds And the balance 15 odd% to come from off highway and others. 17:57 17 minutes, 57 seconds This would be what we would converge somewhere in Sy27. 18:03 18 minutes, 3 seconds Okay sir. So we are targeting 300 cr kind of revenue orders are in place or we are in uh inquiry pipeline. 18:10 18 minutes, 10 seconds We are in inquiry mode on the 16,000. We are in enquiry mode. 18:15 18 minutes, 15 seconds Okay sir. Uh sir my second question uh regarding Abhinava reserve like beyond 18:21 18 minutes, 21 seconds motor design capabilities and uh so like I'm trying to understand uh what is the current uh uh cash burn rate and 18:30 18 minutes, 30 seconds secondly what kind of uh uh like uh uh capabilities beyond motor design whether we are focusing on uh design site only 18:38 18 minutes, 38 seconds or uh it's kind of uh uh like uh six in six in one solution providers like motor controller gearbox stocks uh those 18:46 18 minutes, 46 seconds areas. So I'm trying to understand this uh s subsidiary regarding cash fund rate a bit break even and our uh like a strategic plan. 18:58 18 minutes, 58 seconds Okay I'll answer one and three two I not in a position to answer at this point of time. 19:04 19 minutes, 4 seconds First question burn rate is about 80 lakhs to 1.2 crores a month. You can nominally take 1 cr a month. 19:13 19 minutes, 13 seconds Okay sir. So Mr. energy side. Yes sir. 19:16 19 minutes, 16 seconds Yeah. Second uh question on the Aida side. We are not in a position to predict Eida at this point of time. Let 19:24 19 minutes, 24 seconds us see customer acquisition and then we can talk about it. Third, I would expect Eida to be for the electrical industry 19:33 19 minutes, 33 seconds somewhere in the low double digits and if you're very lucky um around 15% 19:40 19 minutes, 40 seconds give or take a few then uh this is a wild guess no commitment. 19:47 19 minutes, 47 seconds The third thing on uh uh product offering yes currently we have motor design capabilities but we 19:56 19 minutes, 56 seconds realize that that is not enough. So customers are also asking us for 5 in1 6 in1 and therefore we are looking at 20:03 20 minutes, 3 seconds tie-ups to bring in uh 6 in1 5 in1 offerings. 20:12 20 minutes, 12 seconds Okay sir. Thank you. 20:14 20 minutes, 14 seconds Thank you. The next question is from the line of Vijay Kumar Pande from Noama Wealth. Please proceed. 20:24 20 minutes, 24 seconds Hi sir. Uh thank you for taking my questions. I just wanted to check the 20:31 20 minutes, 31 seconds the reason for our our domestic performance as compared to other peers 20:37 20 minutes, 37 seconds because uh though the um not talking about the exports the domestic performance is still slightly weaker as 20:46 20 minutes, 46 seconds compared to the other peers. So just want to understand uh are we losing any market share or is because this we are 20:56 20 minutes, 56 seconds not presenting some products which is growing in the commercial vehicle segment. You can just help us understand this 21:05 21 minutes, 5 seconds that will be pretty helpful. And secondly uh the commercial vehicle domestic commercial vehicle cycle now is 21:13 21 minutes, 13 seconds in the upcycle stage. We are seeing a strong growth from both SOP play and 21:19 21 minutes, 19 seconds Tata Motor CV. So can you help us understand what is your your perception uh looking into FI27 quarter 4 and FI27? 21:32 21 minutes, 32 seconds We expect uh are you also seeing the momentum to pick up in domestic service segments and if yes then how should we 21:42 21 minutes, 42 seconds look uh at the growth rate industry growth rate or growth rate? 21:50 21 minutes, 50 seconds Yeah, a few uh customers were not very happy in the last year on our performance. So 21:59 21 minutes, 59 seconds we did lose some sales up to Q1 of this year. Then uh we went back to them and 22:06 22 minutes, 6 seconds found out why we were you know um they not happy with us and found that 22:13 22 minutes, 13 seconds largely the reason was in much better deliveries were expected. Since then we have revamped our supply chain 22:21 22 minutes, 21 seconds management and we have gone ahead very positively with uh customers and we've clawed back the market share loss. I'm 22:30 22 minutes, 30 seconds not at liberty to reveal customer or uh customers uh in this situation. So you can take it that we have plot back our market share. 22:40 22 minutes, 40 seconds Second is that um going forward we expect the CV market to 22:49 22 minutes, 49 seconds be pretty strong in uh FY27 customers are talking of about 10% growth. 22:58 22 minutes, 58 seconds If that happens that'll be great but uh being a tier one so tier two we 23:07 23 minutes, 7 seconds are not the market maker we are a market follower so I would expect that we would 23:15 23 minutes, 15 seconds grow considerably in the coming year and the 10% uh at least is very good news for us 23:23 23 minutes, 23 seconds okay and also sir uh you also mentioned in the the previous question about the interest 23:31 23 minutes, 31 seconds in swap. So this IR swap is uh with respect to Indian rupees and euro rupees 23:39 23 minutes, 39 seconds that even if the Indian rupees appreciate then also we should get the 23:46 23 minutes, 46 seconds benefit or is it only the case if uh IMR depreciates then it will be described for us? 23:55 23 minutes, 55 seconds Yeah, good question. If the euro depreciates with regard to the rupee, we will gain. 24:01 24 minutes, 1 second If the euro appreciates with regard to the rupee, we will lose. Okay. Okay. Okay. 24:09 24 minutes, 9 seconds But because we have uh an export uh underlying exposure in exports, overall it'll be neutral for the organization. 24:18 24 minutes, 18 seconds In fact, I always say that it is better that uh these forex loans uh lose money 24:26 24 minutes, 26 seconds for us over a period of time gently not suddenly because that means that our export business will will be strong. 24:34 24 minutes, 34 seconds If the rupee were to sharply appreciate and continue a steep appreciation for example export business itself could be 24:41 24 minutes, 41 seconds under threat not just for me for not just for mi but for everybody else. 24:47 24 minutes, 47 seconds Okay. Okay sir. Uh thank you and I'll follow back to the queue. All the best for you. Thank you. 24:55 24 minutes, 55 seconds Thank you. 24:56 24 minutes, 56 seconds The next question is from the line of Akash from NV Alpha Fund. Please go ahead. 25:04 25 minutes, 4 seconds Yeah. Uh thanks for the opportunity sir. 25:07 25 minutes, 7 seconds Uh my first question will be uh on the gross margin front sir. Uh I think we 25:14 25 minutes, 14 seconds have seen that come down considerably in this quarter. uh in spite of uh I mean exports coming back and uh even 25:24 25 minutes, 24 seconds the domestic volumes growing. Uh so would like uh more elaborate response on I mean uh where do we see these margins 25:33 25 minutes, 33 seconds going uh coming back to in FI27 and uh yeah and secondly uh 25:42 25 minutes, 42 seconds also wanted to understand what capex uh number will we be doing in FI will we be 25:49 25 minutes, 49 seconds ending within FI26 and for FI27 what is the plan? 25:57 25 minutes, 57 seconds First question was on gross margin. 25:59 25 minutes, 59 seconds Second and third was in second was on kex. Uh and uh third is on uh debt repayment. Uh so 26:08 26 minutes, 8 seconds basically uh I think you you all are on an 80 cror run rate and uh earlier you mentioned that you will be coming down 26:14 26 minutes, 14 seconds to 55 cr in the next year. Uh am I understanding it right? 26:21 26 minutes, 21 seconds Yeah. This is with regard to interest not with regard to debt repayment. 26:26 26 minutes, 26 seconds Interest will come down from 80 cr run rate to 55 cr max run rate. 26:32 26 minutes, 32 seconds That will only with the help of the swap interest rate swap. Is it there will be no debt repayment? 26:37 26 minutes, 37 seconds No additional debt repayment. Whatever we repay we may have we may be borrowing for capex in this year. 26:48 26 minutes, 48 seconds Okay. Okay. And how much we have repaid in 26? Have we repaid uh any interest in 26? 26:56 26 minutes, 56 seconds We repaid about 175 176 crores exact number I'm not so sure but between 165 and 175 crores. Um so can you fill in? 27:06 27 minutes, 6 seconds Yeah. It is 177 crores for FI26. Okay. 27:12 27 minutes, 12 seconds And going forward because we need to do kx we won't be doing any further repayment. Right. 27:17 27 minutes, 17 seconds No, what what we do is every we have to repay. We can't not repay with 750 cr of 27:24 27 minutes, 24 seconds debt. You cannot not repay that 150 160 cr repayment. Uh this thing is on. But what we plan is we will not increase debt levels. 27:35 27 minutes, 35 seconds So we will spend only as much as we can repay and we borrow for the new spending. 27:44 27 minutes, 44 seconds gross debt remains constant or comes down. 27:49 27 minutes, 49 seconds Understood. Uh yeah, if you could now address my questions on gross margins and uh the second one capex that you plan for the next year. 28:00 28 minutes Yeah, capex I've already said uh to Raja first questioner we looking at about 150 odd crores of investment next year. How 28:09 28 minutes, 9 seconds much of that will actually materialize and be paid out all that we have we are working with uh projects uh team and 28:17 28 minutes, 17 seconds suppliers between 125 and 175 crores would be our actual s how much we have done till now in FI26 28:26 28 minutes, 26 seconds uh I've already given the u one sec about 135 cr 137 crores was spent 28:37 28 minutes, 37 seconds understood everything for 16,000 ton is done right the capex no about uh if I'm not mistaken about 50 28:45 28 minutes, 45 seconds odd cr will still remaining understood yeah and will will our gross margins now come back to our original 28:54 28 minutes, 54 seconds levels of around 58 59% or that looks difficult considering the 29:00 29 minutes orders that we've got we should get back to where we 29:08 29 minutes, 8 seconds originally we should that's why so what what was the main reason for such a sharp drop like I I think it was 29:15 29 minutes, 15 seconds almost a five% largely people cost and uh power power 29:22 29 minutes, 22 seconds we have clawed back people will claw back and people also uh there will be uh the thing by way of additional growth 29:31 29 minutes, 31 seconds I'm understanding from a gross margin perspective I think those those uh those cost will have more of an impact on the 29:37 29 minutes, 37 seconds AIDA level uh okay which which broadly we have managed on a quarter and quarter basis we are around 17%. But it is 29:46 29 minutes, 46 seconds mainly the gross margin that is uh if I just remove the cost of production from my revenue uh that is almost down by 5%. 29:56 29 minutes, 56 seconds Yeah I I'll come back to you I know my bad I missed a bit. So I'll get back to you within uh the same or send you an email. 30:07 30 minutes, 7 seconds If you can send us a an email, we'll we'll send out to everybody on the gross margin side. Okay. 30:15 30 minutes, 15 seconds Largely largely I would say gross margins have dropped because of uh 30:21 30 minutes, 21 seconds export revenues export and and s just because now you are positive on exports reviving back. 30:29 30 minutes, 29 seconds So what kind of projections have we got from our customers in terms of volume ramp up as compared to last year? So on the last year we how much increase in 30:37 30 minutes, 37 seconds volume ramp up are they promising us for this year FY27? 30:41 30 minutes, 41 seconds We would expect uh a 75 cr increase in sales because of the return of exports 30:50 30 minutes, 50 seconds particularly the US market 50 to 75 crores. Okay. 30:56 30 minutes, 56 seconds That is purely coming from US itself that is class 8 related. Yeah, class 8 related. 31:06 31 minutes, 6 seconds Understood. Answer for the 16,000 ton. 31:09 31 minutes, 9 seconds This will be my last question. For the 16,000 t uh I mean uh have we be been 31:15 31 minutes, 15 seconds able to finalize uh uh you know our orders or any boss or basically any uh 31:23 31 minutes, 23 seconds finested Okay, many customers are interested. U we have not yet bagged any. That will 31:30 31 minutes, 30 seconds take some time. So we want to put the present operation first and then uh run around for customers 31:38 31 minutes, 38 seconds because I believe you already have the customers in place, right? Because since you'll already export to US and other markets uh the same customers you 31:45 31 minutes, 45 seconds already be booking orders for on the heavier tates, right? 31:51 31 minutes, 51 seconds Possible. But uh to answer your question frankly and honestly right now no products are uh identified yet. 32:01 32 minutes, 1 second So that 300 cr revenue potential we are confident of filling it up by when? 2 3 years down the line. 32:10 32 minutes, 10 seconds 529 will be a correct uh year to look at. Yeah. 32:17 32 minutes, 17 seconds Understood. And this is just one if I can one. 32:22 32 minutes, 22 seconds Yeah sir. So since you are promising uh a 300 cr uh uh increase from the non6,000 ton uh 32:32 32 minutes, 32 seconds forging so uh I mean uh that will mainly come out of that around 75 kg is from 32:40 32 minutes, 40 seconds exports and uh the balance is from the volume group that comes in the Indian market right or any other new projects 32:46 32 minutes, 46 seconds we have won new components we have won it comes from uh a combination of growth 32:53 32 minutes, 53 seconds to current customers in the portfolio of products that we are supplying them and also we've launched a slew of new 33:02 33 minutes, 2 seconds products that are coming in for bulk production and we are also looking at this uh at a at a set of new parts uh 33:10 33 minutes, 10 seconds that have gone in for particularly the PV market in India. 33:16 33 minutes, 16 seconds Sorry if you could elaborate on that the new parts new which will soon start. 33:20 33 minutes, 20 seconds Thank you Mr. Please join the queue for more questions as there are more participants in the queue. 33:28 33 minutes, 28 seconds Yes, I'll just answer this question. 33:30 33 minutes, 30 seconds It's a needed one. We have uh looked at uh we are getting uh crankshafts for a 33:36 33 minutes, 36 seconds PV customer in India. 33:42 33 minutes, 42 seconds Understood. Uh so that's a top was project was delayed by about three by 33:50 33 minutes, 50 seconds about one year have come last year but uh now was coming has come into production from effectively from December onwards volumes are reasonably. 34:00 34 minutes So is that a top three OEM sir? I mean if I may just I can't say that because it'll give you the name pre-evidently. 34:08 34 minutes, 8 seconds So we'll leave it at that customer name. No problem sir. Thanks a lot. Thank you. 34:16 34 minutes, 16 seconds Thank you. The next question is from the line of mumlesia from Anandrai. Please proceed. 34:24 34 minutes, 24 seconds Yeah. Uh sir, good to hear the positive commentary on demand and the cost savings sir. Uh uh sir as you mentioned 34:32 34 minutes, 32 seconds about uh 300 cr of uh uh new orders which will come up next year which include the current uh volume growth. So 34:40 34 minutes, 40 seconds broadly we can say 15 to 20% could be the range of the growth for next year where uh assuming domestic CV also grows 34:48 34 minutes, 48 seconds by 10%. Right sir yes got it sir. Uh on the just on the data 34:57 34 minutes, 57 seconds point sir uh can I can I get your name and uh the thing please? Yeah. Much Mandela from Anandati sir. 35:05 35 minutes, 5 seconds Okay. 35:07 35 minutes, 7 seconds uh on the Q3 sir uh just on data points if help me what was the Q3 production number and uh for the uh for the 9 35:16 35 minutes, 16 seconds months if you can help me how was the sales volume tage in terms of domestic and export splits sir 35:24 35 minutes, 24 seconds overall uh sales tonnage was about 54,000 tons 35:32 35 minutes, 32 seconds right bal yes sir yes sir sir uh up to and Q3 FI26 we did 56,756 35:43 35 minutes, 43 seconds so 58,057 sir sales tage is 58,57 and uh production is 56,756 tage 35:52 35 minutes, 52 seconds okay nice thanks and within this sales how much would be the uh domestic exports sir you can take the same uh similar ratio 36:01 36 minutes, 1 second as overall uh percentage sure about uh 30% would be exports and 36:09 36 minutes, 9 seconds 70% would be sure uh on the machining mix sir uh how 36:18 36 minutes, 18 seconds do you see uh from a 53% this year or how do you see the next few years based on the orders I think in the past we 36:26 36 minutes, 26 seconds have invested a lot on the machining uh area so just want to understand how that mix will change sir 36:36 36 minutes, 36 seconds Machining mix will go up. 36:40 36 minutes, 40 seconds Almost all new orders are uh only for machineing. Almost most new orders are for machine. 36:51 36 minutes, 51 seconds Got it. Got it sir. Uh so on the Abina result uh just want to update. Last time you mentioned about this 20 30 cr order. 37:00 37 minutes uh is that uh the order you expect uh soon to be announced and uh uh and can help us I mean which category uh this order is is for them. 37:13 37 minutes, 13 seconds Yeah, that's uh the same thing that they're pursuing now. You're absolutely right. 37:19 37 minutes, 19 seconds And is it for this uh three-wheeler PV segment sir if you can help sir? I I can't disclose that at the moment. 37:26 37 minutes, 26 seconds after we go into production I'll surely give you the feedback. 37:31 37 minutes, 31 seconds Got it sir. Got it. And just finally if I help you what is the net debt number for this by end of December sir? 37:40 37 minutes, 40 seconds About 550 crores long-term. 37:47 37 minutes, 47 seconds Okay. And uh short-term sir also all told uh 550 plus another 500 37:56 37 minutes, 56 seconds close 500. Got it sir. Uh thank you sir,000,000. 38:04 38 minutes, 4 seconds Got it. Uh thank you for the opportunity. 38:06 38 minutes, 6 seconds One one second. Hold on. Exact 165. 38:14 38 minutes, 14 seconds Yes sir. Yeah, thank you so much. Thank you. 38:21 38 minutes, 21 seconds Thank you. 38:24 38 minutes, 24 seconds The next question is from the line of Anubhab Mukharji from Pient Capital. Please proceed. 38:32 38 minutes, 32 seconds Uh hello, sir. Am I audible? Hello. Yeah, of course. 38:40 38 minutes, 40 seconds Uh yeah, sir. uh can you uh like give some more details on the medium-term 38:46 38 minutes, 46 seconds outlook for like exports to US? Uh what I understand is that there's uh an emission norm change that was also about to come in like start of next year 2027. 38:59 38 minutes, 59 seconds So will that also uh result in some kind of T by and like good growth for us? Uh like if you can like throw some light on 39:08 39 minutes, 8 seconds that. Yes, we are expecting F by 27 uh calendar 26 to be a strong year going up to okay 1 Q2 of 27. 39:21 39 minutes, 21 seconds Okay. So the emission change uh that has not been rolled back uh that is still like about to come as of now as of now not but you know the 39:30 39 minutes, 30 seconds US government is functioning these days so nobody knows. 39:35 39 minutes, 35 seconds get that and sir uh uh just a basic question so uh uh what I understand is that our exports to us come under 39:44 39 minutes, 44 seconds section 232 so uh given that what will be the effective tariff now like will it be 25% or 18%. 39:55 39 minutes, 55 seconds as it is. We think that it'll be between the two. 40:00 40 minutes Okay. Okay. So, we are also waiting. I think fine print is not yet out. Fine print is not yet out the best of our knowledge. 40:11 40 minutes, 11 seconds We're working talking to customers. 40:14 40 minutes, 14 seconds They're also expecting it to be between 18 to 25%. If it is 18, then we stand at an advantage to competition. 40:23 40 minutes, 23 seconds get that if it is 25 we are even. 40:29 40 minutes, 29 seconds Okay. Uh thanks for that and and sir uh this 9 month our exports to Europe has 40:38 40 minutes, 38 seconds uh grown seems to have grown quite significantly compared to last year. So can you give some color on that and 40:45 40 minutes, 45 seconds especially given this uh Euro FTA also uh will that be a like big help to us or 40:54 40 minutes, 54 seconds Yeah. Yeah. The Euro FTA certainly will bring uh if not more business at least 41:01 41 minutes, 1 second it puts as I said earlier it brings stability to the to the global economy itself at a time when geopolitical 41:09 41 minutes, 9 seconds turmoil and volatility is the call of the day. 41:13 41 minutes, 13 seconds uh the Euro India FTU will definitely brings in stability to the entire if you 41:20 41 minutes, 20 seconds see after that itself the entire uh um volatility and the tension in people's 41:27 41 minutes, 27 seconds mind particularly next to the US deal also going through that has come the tension levels are uh the perceived 41:34 41 minutes, 34 seconds volatility has come down considerably right so it augers well only And uh the 41:42 41 minutes, 42 seconds EU now has no uh excuse to shun Indian exports because we are opening up our market also to them considerably. 41:55 41 minutes, 55 seconds So both ways to add trade uh similarly so with the US I think our government has done a 42:03 42 minutes, 3 seconds fabulous job on on both the fronts and it couldn't have come uh at a better time. good news for uh India as a whole. 42:16 42 minutes, 16 seconds Thanks. I'll get back with you. 42:20 42 minutes, 20 seconds Thank you. The next question is on the line of Raghab Maheshwari from Kamayaka Wealth Management. Please go ahead. 42:30 42 minutes, 30 seconds Yeah. Uh hi, thanks for the followup question opportunity m uh sir. uh adding building upon uh where we left the conversation in my previous uh question. 42:41 42 minutes, 41 seconds Uh so sir you mentioned that the press is uh not going to add any revenue in FY27. Uh so sir uh can you can you tell 42:49 42 minutes, 49 seconds us uh like are the approval cycle so long for this or is it that we are just taking a buffer time or are we uh you 42:58 42 minutes, 58 seconds know estimating it to be a long time so what is it like I I couldn't understand 43:06 43 minutes, 6 seconds we uh we set up our 8,000 ton press in 2016 43:13 43 minutes, 13 seconds orders started flowing in only from 18 and execution took from 19 onwards. So that kind of time frame is required for 43:20 43 minutes, 20 seconds the bigger equipment. This is not you know uh you not plug and play where you can sync everything and start banging from day one. Takes time. 43:31 43 minutes, 31 seconds Understood sir. And sir uh my next question will be on the margin front. Uh like you had clearly mentioned that our interest cost is coming down. uh since 43:40 43 minutes, 40 seconds we are at our peak debt levels uh and also our depreciation cost is going to be slightly inflated because of all the 43:47 43 minutes, 47 seconds capex that we have done. So sir what kind of aa level margin as well as pat level margin are we expecting for f27 43:56 43 minutes, 56 seconds I can't give absolute numbers but I would say both should improve uh improve from where we stand uh right 44:04 44 minutes, 4 seconds now definitely understood sir uh thank you sir uh those 44:11 44 minutes, 11 seconds were my questions and all the best thank you rather thank you the next question is from the 44:18 44 minutes, 18 seconds line of Munzal Sha from NSFO. Please proceed. 44:23 44 minutes, 23 seconds Uh good afternoon sir and your team. So just one broad question uh like if if we 44:30 44 minutes, 30 seconds look based on your you know uh guidance and everything uh and looking at the 44:37 44 minutes, 37 seconds next five years numbers okay by 30 can we do like 3,000 odd crores of turnover 44:44 44 minutes, 44 seconds and 20% of beta margin assuming 150 crores of capex annually 44:55 44 minutes, 55 seconds That would be a kind of uh goal. 45:02 45 minutes, 2 seconds And and what type of you know probability would you put to that? 45:08 45 minutes, 8 seconds Sorry. What type of probability would you put to that? Wrong. 45:16 45 minutes, 16 seconds Hello. Strong possibility. Strong possibility. Right. 45:21 45 minutes, 21 seconds Y thanks. Thank you sir. 45:29 45 minutes, 29 seconds Thank you. The next question is on the line of Manus Jane from Sanjay Jane Family Office. Please proceed. 45:37 45 minutes, 37 seconds Uh yeah. Uh good good afternoon sir. I just had a question on the similar uh the foreign currency thing. So I think 45:45 45 minutes, 45 seconds in the last call you mentioned that you're moving towards foreign currency borrowing. uh if you could quantify how much of that we have actually converted 45:53 45 minutes, 53 seconds and uh maybe what stage we are in and how are we planning to manage the currency risk on this exposure. 46:02 46 minutes, 2 seconds We converted some and we are convert converting the rest. We waited for the trade deal to go through uh for obvious 46:11 46 minutes, 11 seconds reasons to eliminate the volatility because nobody at one point of time everybody said rupee is going to tank or dollar is going to tank to 80 and then 46:20 46 minutes, 20 seconds suddenly the rupee went the other way around. uh because of the in non-conclusion of the trade deal and even now not even now most of the doubts 46:29 46 minutes, 29 seconds are addressed but uh the trade deal has to be fine printed I'm sure uh there will be sanity prevalent uh across all 46:36 46 minutes, 36 seconds uh powers that be so uh given these conditions uh the general outlook in the in the market is that the 46:44 46 minutes, 44 seconds rupee would appreciate a tad from where it is compared to the dollar and the euro that happens we would gain on uh 46:52 46 minutes, 52 seconds covers that we have made as I've said earlier uh long-term for MM for it's better to lose a little bit on the forex 46:59 46 minutes, 59 seconds covers over a period of time with nominal depreciation so that the export business continues to be profit more and more profitable for the company. 47:08 47 minutes, 8 seconds Okay. No, that I understood sir. If like if you could give a number, how much is actually? 47:12 47 minutes, 12 seconds Okay. Yeah. Okay. I sorry I your question had too many parts. No, my recall. So one the numbers uh to your uh 47:20 47 minutes, 20 seconds question is we are repaying about 160 cr a year. 160 to 175 crores a year. That constitutes I'd say 30% exports on even,500 crores. 47:33 47 minutes, 33 seconds That constitutes about one/ird of our exports. Correct. Nominal. 47:39 47 minutes, 39 seconds So you're doing it on in the tune to our export revenue. 47:42 47 minutes, 42 seconds Correct. So it is well within our the overall debt number. 47:48 47 minutes, 48 seconds No no the overall exposure will be larger than our overall exports. No doubt. 47:56 47 minutes, 56 seconds Okay. 47:56 47 minutes, 56 seconds But the repayment within a year will will be within the export range. So but if the currency 48:03 48 minutes, 3 seconds depreciates then you'll lose out on the uh this thing or yeah if there is a sudden depreciation we would stand to 48:10 48 minutes, 10 seconds lose out on the repayments of that year and hopefully see sanity in the months to come. This is a very it's a very 48:18 48 minutes, 18 seconds complicated uh thing overall but net to net because there is underlying exposure of exports 48:26 48 minutes, 26 seconds which is much more compared to the term the earnings and exports will be far greater than the loans uh repayment. So overall we should only be gaining. 48:37 48 minutes, 37 seconds Okay. So but so right now export is 40% maybe it will be 40 to 50% range. So you expect to be somewhere there then 48:45 48 minutes, 45 seconds right? If you take 40% of even say 2,000 crores nominally let's be positive now we're looking at about 30 35% of that is 700 crores. 48:54 48 minutes, 54 seconds Okay. 48:55 48 minutes, 55 seconds So which is where our uh gross debt itself stands. Okay. 49:02 49 minutes, 2 seconds Got it. Got it. You got it sir. Thank you so much. Thank you. 49:10 49 minutes, 10 seconds The next question is from the line of Priyanka Sarkcar from Square 64 Capital. Please proceed. 49:19 49 minutes, 19 seconds Yeah, good afternoon sir. So mine is a bit longer term question. So in the machining for us in FI16 was about 20%, 49:29 49 minutes, 29 seconds and obviously that has gone up right to about 58% in FI25. I'm talking for the full year FI25. However s if I look at 49:37 49 minutes, 37 seconds the AITA margin they are in the similar band and I'm talking about over 10ear period right so what could be the reason 49:43 49 minutes, 43 seconds for the same machining mix can you can you repeat your question 49:51 49 minutes, 51 seconds please sir in FI16 our machining as a percentage of overall revenue was 20%. 50:00 50 minutes And now that has increased to 58% for full year FI25. 50:05 50 minutes, 5 seconds However, when we look at EITA margin, they have been in the similar range because as I understand as machining 50:12 50 minutes, 12 seconds goes up as a percentage, the AITA margin also should move up. But that has not happened in our case. So what could be the reason uh for the same? 50:22 50 minutes, 22 seconds Yeah, very uh a cute one and uh something that we should ponder over. 50:27 50 minutes, 27 seconds See what is happening is what has happened between then and now is that our ex our domestic sales has grown 50:36 50 minutes, 36 seconds and the domestic market pricing is tight. 50:41 50 minutes, 41 seconds So that is the reason why profitability has not grown the way one would have expected it. 50:47 50 minutes, 47 seconds Right. So along with machining as a percentage going up our export has to go up for the AITA margins to improve from here on. Right. in in in a sense. Yes. 50:57 50 minutes, 57 seconds Or we should uh not add less value add machining. I would say possibly we 51:05 51 minutes, 5 seconds should add more value add machining than the less value add machine in the domestic market. 51:14 51 minutes, 14 seconds Sure sir. Okay. answer the second because see our machining makes unlike some of our competitors especially the 51:22 51 minutes, 22 seconds okay why name anybody some of our competition is that whose margins are pretty high is that uh we have a wide 51:29 51 minutes, 29 seconds product offering okay and some of those are not necessarily you know a bit 51:38 51 minutes, 38 seconds so and these have been legacy parts what has happened with legacy parts is that Almost in the domestic market no prices have increased. 51:51 51 minutes, 51 seconds Every customer most customers who have given price increases have taken it away uh because some competitors have gone 51:58 51 minutes, 58 seconds and offered them uh reductions or at least return of the price increases. So what has happened is that competition is brutal in the domestic market. 52:10 52 minutes, 10 seconds Many competitors believe that grow at all costs is not necessarily a reasonable strategy. 52:22 52 minutes, 22 seconds So yes to answer your question export should grow. Second value add machineing should grow let alone will contribute to 52:30 52 minutes, 30 seconds growth of a sure sir and sir uh just follow something off the just something off the 52:38 52 minutes, 38 seconds saying I'm not uh fully in line with that statement but if you uh came across one recent book on 100-y old companies 52:47 52 minutes, 47 seconds and one of the points that uh came up there was that these companies don't pump for growth they more focus on 52:54 52 minutes, 54 seconds customers and look at uh profitability rather than just growth at any cost. 53:02 53 minutes, 2 seconds I think if we are very very concerned about Aida you know and other things we should take such a view that we should 53:09 53 minutes, 9 seconds look at uh but you run the risk of being premiumized and then you get thrown out if you're premium too premium. So it's 53:18 53 minutes, 18 seconds good to have uh our hands dirty across the spectrum some value add parts some non so value added parts and therefore 53:26 53 minutes, 26 seconds you maintain the competitive edge everywhere but constant challenge is required 53:32 53 minutes, 32 seconds that's my learning thank you 53:39 53 minutes, 39 seconds sure sir the next question is from the line of vash and individual investor please 53:46 53 minutes, 46 seconds proceed Uh good afternoon sir. Uh so congratulations on a very uh fair and 53:55 53 minutes, 55 seconds decent set of numbers. Uh my question is on the debt portion sir. So I mean uh just consider like a suggestion or sir 54:04 54 minutes, 4 seconds is there any plans of uh raising any uh ri issue or preferential or QAP to considerably uh reduce that debt? 54:13 54 minutes, 13 seconds Actually that was my question. Yeah, we are Mali. 54:21 54 minutes, 21 seconds Okay. 54:24 54 minutes, 24 seconds Okay. Sure, sir. Sure, sir. Uh, good luck, sir. Uh, thanks for your detailed uh explanation, sir. Always uh I got to learn a lot from you, sir. Thank you. 54:34 54 minutes, 34 seconds Thank you. Your name, please. 54:37 54 minutes, 37 seconds Uh my name is Yesh. Uh individual investor from Hyderabad, sir. Yeah. Okay. 54:44 54 minutes, 44 seconds Thank you. 54:47 54 minutes, 47 seconds Thank you. The next question is from the line of Vijay Kumar Pande from Nama Wealth. Please go ahead. 54:56 54 minutes, 56 seconds Hi. 54:56 54 minutes, 56 seconds Hi sir. Thank you for allowing the follow. So just one sec in terms of the gross margin aspect what 55:05 55 minutes, 5 seconds will be the gross mar and machining separately. 55:13 55 minutes, 13 seconds We wouldn't be able to give you that number. And uh overall there was a question on gross margins. My finance team tells me Balaji can you take that? 55:23 55 minutes, 23 seconds Can you answer the earlier question on gross margins? Somebody said it went down but actually you say that it's gone up. 55:30 55 minutes, 30 seconds Yeah, it it went up. In fact the gross margin went up by 3%. In fact uh in FI26 that is I'm talking about Q3 up to Q3. 55:39 55 minutes, 39 seconds FI26 it is at 56%. 56.34 as against 53.5 in the corresponding quarter Q3 FI25 55:49 55 minutes, 49 seconds corresponding 9 month yes corresponding 9 month corresponding 9 is it went up by 3%. Okay thank you man. 55:58 55 minutes, 58 seconds Yeah thank you the next question is from the line of Harshett Vora an individual investor please proceed. 56:10 56 minutes, 10 seconds Good afternoon sir. Uh do we see any opportunities in the defense and aerospace sectors and uh is 56:19 56 minutes, 19 seconds there any plan for us to expand in this segments? 56:26 56 minutes, 26 seconds There are opportunities in every space no doubt. Um right now we are not pursuing much of those. 56:34 56 minutes, 34 seconds Any specific reason sir? 56:38 56 minutes, 38 seconds uh we are focusing on the capex that we have done and the capex that we have committed to customers. So we are focusing on 56:47 56 minutes, 47 seconds uh whatever we have acquired by way of customers and products. 56:54 56 minutes, 54 seconds Okay. Thanks a lot sir. 56:57 56 minutes, 57 seconds Thank you. Due to time constraints that was the last question for today. I now hand the conference over to the management for closing comments. Over to you sir. 57:07 57 minutes, 7 seconds Yeah, thank you. Thank you all for as usual very initial set of questions and 57:14 57 minutes, 14 seconds uh many new faces and new questions this time. Welcome to all of you to moping and hope you'll have continued interest 57:22 57 minutes, 22 seconds in this talk. Um basically the revenue outlook for the next year looks pretty strong coupled with uh cost control 57:30 57 minutes, 30 seconds measures on interest and on uh power. 57:35 57 minutes, 35 seconds We also initiate something on the people's side. We should uh look at a stronger performance in FY27. I'm pretty 57:44 57 minutes, 44 seconds positive on both revenue as well as bottom line. Thank you all for your and the 16,500 ton press gets commissioned 57:52 57 minutes, 52 seconds early next year and uh goes into uh production with some available parts and we add new parts in the months to come. 58:02 58 minutes, 2 seconds Abinavarisel we are expecting some new customer addition in the next few weeks. 58:07 58 minutes, 7 seconds So hopefully all of this or well for the organization over the next few uh months and weeks we expect things to 58:15 58 minutes, 15 seconds dramatically improve and also our performance and numbers. Thank you all. 58:23 58 minutes, 23 seconds Thank you on behalf of Bartley and Karani Securities India Private Limited. 58:28 58 minutes, 28 seconds That concludes this conference. Thank you for joining us and you may now disconnect your line. Thank you. Thank you operator. Thank you everyone. 58:36 58 minutes, 36 seconds Thank you.