Rossell Techsys Ltd — Q4 FY26

Rossell Techsys Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=w34i8dFP04s Published: 1 day ago

0:03 3 seconds Ladies and gentlemen, good day and welcome to the Rosel Tech Limited Q4 and FYI26 earnings call. This conference 0:11 11 seconds call may contain forward-looking statements about the company which are based on the belief, opinions and expectations of the company as on the 0:19 19 seconds date of this call. These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. 0:27 27 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation 0:34 34 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:42 42 seconds zero on your touchdown phone. Please note that this conference is being recorded. I now have the conference 0:50 50 seconds Risha Moan Gupta, managing director of Los X Limited. Thank you and over to you sir. 0:56 56 seconds All right, thank you. Hi, good morning everyone to our respected shareholders, investors, analysts, customers, partners and members of the Rosel Texas family. I 1:06 1 minute, 6 seconds am Rishel Mohan Gupta, managing director of Rosel Texas Limited. Joining me today are Mr. Santil Bala Subraman, chief 1:13 1 minute, 13 seconds executive officer, Nina Phillip, our chief operating officer, and Mr. J, our chief financial officer. 1:20 1 minute, 20 seconds Thank you for joining us as we as we close one of the most defining and transformative years in Rosen Texas's history. On behalf of the entire 1:28 1 minute, 28 seconds leadership team, thank you for your trust and your continued belief in the Rosen Texas journey. Today, the belief stands rewarded. 1:37 1 minute, 37 seconds At the beginning of the year, we made clear commitments to our stakeholders. 1:41 1 minute, 41 seconds Standing here at the end, I can say with confidence that we delivered on every one of them. 1:50 1 minute, 50 seconds Financial year 2526 was a year of delivery discipline and focused execution. We crossed our guided revenue 1:57 1 minute, 57 seconds milestone, restored profitability across programs, expanded our order book, built capacity, entered new markets, and rewarded our people. 2:08 2 minutes, 8 seconds Most importantly, this performance is not a one-off. Financial year 26 marks the beginning of a structurally high growth trajectory. The foundation built this year is designed to compound. 2:21 2 minutes, 21 seconds Our financial performance in the fourth quarter was the strongest quarter in the company's history. We delivered revenues of approximately 142 crores, a 62% 2:30 2 minutes, 30 seconds year-on-year increase with profits of around 9.5 crores. 2:36 2 minutes, 36 seconds For the full year, our revenue grew from 259 crores in the year 25 to 485 crores in the year 26, an increase of 87%. 2:46 2 minutes, 46 seconds Profit before tax rose from 10 crores to 28 crores while our increased from 38 crores to 66 crores. 2:55 2 minutes, 55 seconds These are not incremental gains. Revenue nearly doubled, profitability more than doubles and a bita expanded sharply. 3:02 3 minutes, 2 seconds Even after we made significant investments in capacity, people, inventory and new market entries, 3:09 3 minutes, 9 seconds our order book and revenue visibility is quite clear today. uh are relatively visibility stronger than at any point in the company's history reported by 3:18 3 minutes, 18 seconds strategic agreements aggregating approximately 3,000 crores. As on date, the company's total order booking stands 3:25 3 minutes, 25 seconds at around 715 crores of confirmed POS and during the year we received orders aggregating approximately 500 cr 570 3:34 3 minutes, 34 seconds crores further strengthening execution visibility. 3:39 3 minutes, 39 seconds During the year, the company also submitted bids aggregating nearly 4,500 crores across the aerospace, defense, space, and semiconductor segments. 3:49 3 minutes, 49 seconds The company secured a landmark multi-year space contract valued at approximately 400 crores along with repeat orders from overseas defense 3:58 3 minutes, 58 seconds customers reflecting strong customer confidence. 4:03 4 minutes, 3 seconds In the semiconductor segment, assured orders and onboarding of new customers provide clear growth and visibility. 4:10 4 minutes, 10 seconds More bids are expected to convert into orders in the coming months, further strengthening revenue visibility. 4:17 4 minutes, 17 seconds When it comes to operational highlights in aerospace and defense, our aerospace and defense programs delivered consistent on-time performance 4:25 4 minutes, 25 seconds throughout the year. Seeing our performance, Boeing not only appreciated our efforts, but also agreed to level future schedules. a powerful endorsement 4:33 4 minutes, 33 seconds of the relationship and trust we have built. 4:36 4 minutes, 36 seconds Businesses with these fortune customers saw meaningful growth during the year. 4:41 4 minutes, 41 seconds These are not transactional relationships. These are strategic partnerships built over years of consistent delivery and quality. 4:48 4 minutes, 48 seconds We recently received a repeat order from one of the major customers in defense in the semiconductor space. Uh we 4:56 4 minutes, 56 seconds emerged as a key growth driver in the year 26 following successful customer qualification in the second quarter. 5:02 5 minutes, 2 seconds Volumes ramped up immediately demonstrating both our manufacturing readiness and our strong customer confidence in our capabilities. 5:11 5 minutes, 11 seconds This segment is now an established and growing revenue pillar for South Texas where we are building early market leadership. 5:18 5 minutes, 18 seconds In addition, we are in the process of onboarding another major overseas customer which is expected to further accelerate growth in the segment. 5:27 5 minutes, 27 seconds From our space programs, we progressed decisively from qualification to volume ready execution during the year, 5:35 5 minutes, 35 seconds culminating in one of the most significant wins of the year 2026. 5:40 5 minutes, 40 seconds We successfully executed the first large production batches and are well positioned to scale the segment meaningfully in the year 2027. 5:48 5 minutes, 48 seconds In parallel, we are in the process of on boarding additional customers in the space segment, further strengthening our growth pipeline. One of our space 5:57 5 minutes, 57 seconds customers is actively encourage encouraging an expanded presence in the United States as well for our US subsidy RGI. We are seeing 6:06 6 minutes, 6 seconds increased interest from multiple customers seeking to leverage our capabilities. 6:13 6 minutes, 13 seconds We are evaluating the optimal way to strengthen Gross Health Texas Inc.'s infrastructure to capitalize on this growing demand and we view RTI as an 6:21 6 minutes, 21 seconds important pillar of our global growth architecture. 6:26 6 minutes, 26 seconds On the Indian market side, targeted efforts to expand our domestic presence began evening results during the year. 6:32 6 minutes, 32 seconds We secured initial orders in the Indian defense and aerospace ecosystem. Modest in scale today but strategically significant in establishing our local 6:41 6 minutes, 41 seconds credentials with our BTA license and AS910 MRO certification now in place. We have 6:49 6 minutes, 49 seconds formally unlocked the Indian market for manufacturing with overall and aftermarket services. 6:54 6 minutes, 54 seconds In parallel, we have established strong domestic partnerships that provide a robust platform for scaling our India business in 27 and beyond. 7:03 7 minutes, 3 seconds On the commercial aerospace side, we have also begun opening doors to the commercial aerospace segment. While we currently participate as a tier 2 7:12 7 minutes, 12 seconds supplier in the space, we are now positioning ourselves for a more meaningful entry into commercial aerospace programs. We would like to emphasize that this opportunity has the 7:20 7 minutes, 20 seconds potential to be transformational. Once this door opens at scale, it could significantly reshape our growth outlook, business model, and long-term 7:28 7 minutes, 28 seconds projections. We approaching this opportunity with discipline and intent, ensuring that when we scale our presence, we do so with the right 7:36 7 minutes, 36 seconds capabilities, the right certifications, and the right partnerships. 7:41 7 minutes, 41 seconds While revenue grew sharply by 87%, inventory increased by only 45% reflecting disciplined working capital management. 7:49 7 minutes, 49 seconds Inventory coverage improved significantly from 10 months historically to 7.67 months, demonstrating enhanced capital 7:56 7 minutes, 56 seconds efficiency. As our scale increases and demand planning continues to strengthen, we firmly believe and confirm that inventory coverage will reduce further in the coming years. 8:07 8 minutes, 7 seconds On the capacity expansion side, to meet the growing customer demand and address urgent program requirements, we have taken a strategic decision to lease an 8:16 8 minutes, 16 seconds additional facility of approximately 210,000 square ft in close proximity to our existing operations instead of 8:23 8 minutes, 23 seconds constructing a new facility as previously contemplated. 8:27 8 minutes, 27 seconds This decision enables us to achieve operational readiness significantly faster. 8:33 8 minutes, 33 seconds The space and semiconductor programs will be migrated to the new facility which is expected to deliver revenue levels comparable to our existing facility. 8:42 8 minutes, 42 seconds This transition allows us to optimize utilization across both facilities while maintaining focus, efficiency and scalability. 8:50 8 minutes, 50 seconds This significant move ensures that capacity would not be a constraint on growth. It enables us to respond swiftly to customer needs and positions the 8:59 8 minutes, 59 seconds company to sustain rapid expansion without compromising financial discipline or execution excellence. 9:06 9 minutes, 6 seconds Our financial position remains stable and it is supported by diverse multi-banking framework. During the fourth quarter, we secured additional 9:14 9 minutes, 14 seconds working capital facilities to meet execution requirements for the current year. In parallel, the company's actively pursuing the fundraising 9:22 9 minutes, 22 seconds initiatives for strengthening the balance sheet to support the next phase of accelerated global scale up. These 9:29 9 minutes, 29 seconds initiatives are being undertaken with priority and precision aligned with the company's accelerated gloss and commitment to financial discipline. 9:38 9 minutes, 38 seconds On the people's side, uh the people are the foundation of every result we have reported today. The workforce growth 9:45 9 minutes, 45 seconds from 680 to nearly 1,200 in two years is not just a number. It is a reflection of the organization we are building. We 9:53 9 minutes, 53 seconds have continued to invest in training upskilling and certification including the use of virtual reality based training technologies. A strong capable 10:02 10 minutes, 2 seconds and motivated workforce is the engine of our next phase of growth. 10:07 10 minutes, 7 seconds And critically this year's extraordinary performance has been recognized and rewarded. We have we have implemented 10:14 10 minutes, 14 seconds employee increments and performances bonuses. Our people created the value they deserve to share in it. This is a principle, not a policy. 10:24 10 minutes, 24 seconds Improved earnings, stronger fundamentals and a clear visible growth trajectory from the foundation of sustainable long-term shareholder value. During the 10:33 10 minutes, 33 seconds year, we have delivered meaningful value creation reflecting the execution of our strategy. In line with our commitment to balancing growth investments with 10:41 10 minutes, 41 seconds shareholders returns, we are pleased to announce a dividend distribution. 10:45 10 minutes, 45 seconds The appreciation in South Texas's share price reflects the market's increasing recognition of the fundamental transformation underway. While this 10:53 10 minutes, 53 seconds progress is encouraging, we believe that a significant part of the company's underlying potential driven by a strong order pipeline, expanding customer base, 11:01 11 minutes, 1 second enhanced certification, and entry into new markets remains to be reflected over time. The value creation journey is 11:09 11 minutes, 9 seconds progressing steadily with important milestones still ahead. To conclude, over the past years, we have not only delivered improved financial 11:17 11 minutes, 17 seconds performance, we have built a strong foundation for sustainable wealth creation. This progress has been driven by disciplined execution, scalable 11:26 11 minutes, 26 seconds growth initiatives, and increasing long-term visibility achieved within a single financial year. 11:33 11 minutes, 33 seconds This value creation is not episodic. 11:35 11 minutes, 35 seconds It's structured, repeatable, and designed to compound over time. We believe this is the right time for the company and for our long-term stakeholders to build on this momentum and advance to the next phase of growth. 11:47 11 minutes, 47 seconds We would like to assure our shareholders that this journey is driven by our ability to convert opportunities into performance and performance into enduring value. 11:57 11 minutes, 57 seconds This progress is underpinned by a strong invisible order pipeline, the continued trust of global customers and the unwaving commitment of our nearly 1200 12:06 12 minutes, 6 seconds colleagues who contribute every day with ded with dedication and pride. 12:11 12 minutes, 11 seconds The foundation is in place, the direction is clear and the opportunity ahead is significant. We believe the company's entering a phase of sustained 12:19 12 minutes, 19 seconds progress making this meaningful stage of Rosan Texas a's journey. Thank you for your trust, confidence and continued belief in Rosan Texas. Thank you. 12:31 12 minutes, 31 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star N1 on their touchstone telephone. 12:42 12 minutes, 42 seconds If you wish to remove yourself from the question queue, you may press start and two. Participants are requested to use 12:49 12 minutes, 49 seconds handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 13:19 13 minutes, 19 seconds The first question is from the line of Yash Jwani from Mal Analytics. Please go ahead. 13:26 13 minutes, 26 seconds Hi, thanks for the opportunity. Uh she says uh congratulations on a good scale up that we have seen in the uh top line. 13:34 13 minutes, 34 seconds Just one question on the margin front. 13:36 13 minutes, 36 seconds uh margins have been sequentially uh weaker and in fact lower than what we have been aiming for and guiding for. 13:43 13 minutes, 43 seconds any specific reasons for this thing if you can highlight please. 13:49 13 minutes, 49 seconds Yeah. So, see basically Rosel is investing a lot for the future whether it's on people, whether it's on infrastructure, whether it's on training. We've also got a lot of new 13:56 13 minutes, 56 seconds customers with a lot of new contracts where a lot of qualification is going on. A lot of energy and efforts are being spent on those qualifications 14:04 14 minutes, 4 seconds which doesn't necessarily re yield in revenue this year but in the following years to come all these qualifications 14:10 14 minutes, 10 seconds will uh result in repeat uh making our profitability much higher moving forward. So that's one of the prime reasons 14:19 14 minutes, 19 seconds right. So uh going forward in FY27 do you feel our margins can increase substantially and also if you could just 14:27 14 minutes, 27 seconds broadly share a guidance in terms of what FI27 uh revenue would look like and if you can also break it up in terms of 14:34 14 minutes, 34 seconds the new segments uh how they will contribute the semiconductor and your space and also if MRO will start in FI27 or is it for a little later period? 14:47 14 minutes, 47 seconds Yeah sure. So if you look at it from a revenue perspective, I can't be very specific, but we saw the scale that we had uh last year and we're targeting the same kind of growth this year as well. 14:56 14 minutes, 56 seconds Uh honor revenue uh moving forward. Uh the break up in the sp of revenue I 15:03 15 minutes, 3 seconds would say is 50% aerospace in defense and 50% non-erospace and defense for the year 2627. 15:10 15 minutes, 10 seconds uh we got all our MRO licenses and uh we started a lot of marketing activities with all our different customers globally and in India. So hopefully we 15:19 15 minutes, 19 seconds should see some uh traction in that uh in the short to medium term questions. 15:27 15 minutes, 27 seconds Yeah, margin definitely will get better moving forward. I've always said uh that the margins will be between 17 to 22%. 15:34 15 minutes, 34 seconds uh we are definitely going to show uh increased uh margin this financial year with a lot of efficiencies and the scale we're 15:41 15 minutes, 41 seconds looking at. So yes, our margins will get better this year for sure. 15:45 15 minutes, 45 seconds Is it semiconductor uh uh is typically a high volume zone margin business with that scaling up do you still feel that 15:53 15 minutes, 53 seconds your blended margin will continue to be 17 to 20%. 15:57 15 minutes, 57 seconds Yes, the margins in the current competency that we do uh whether it's for defense or non-defense will be in the range of 72 17 to 22%. Yes, 16:06 16 minutes, 6 seconds definitely for our non-erospace and defense customers, we're doing a lot of automation which also increases our bottom line and our profitability. 16:16 16 minutes, 16 seconds If I can squeeze in one more question. Sure. 16:22 16 minutes, 22 seconds Thanks. Uh so sir uh on on your balance sheet side if you see the debt has been increasing and in your opening remarks you did touch upon that uh you're 16:30 16 minutes, 30 seconds looking for some funding if you could just broadly share your thought process how going forward uh we'll manage our balance sheet and the uh specifically 16:38 16 minutes, 38 seconds the debt side because again FI27 the growth that you are anticipating is uh is very high right so again we need a 16:46 16 minutes, 46 seconds lot of working capital because a business is such wherein a lot of inventory goes in and uh you know a lot of money will be required. So how are we 16:53 16 minutes, 53 seconds looking at it and how do we plan to manage the the debt and the pressure properly? 16:59 16 minutes, 59 seconds See the the idea definitely is uh to reduce our inventory levels moving forward. I didn't mention that as a company we were running on a 10-month 17:07 17 minutes, 7 seconds inventory which we've been able to get down to 7.6. Uh the idea is to keep reducing that moving forward and eventually be a four-month inventory 17:14 17 minutes, 14 seconds company. Uh so a lot of energies and efforts are being made towards that and we're already seeing improvements coming in that area. We're also looking at a 17:22 17 minutes, 22 seconds fund raise. Uh the idea for the fundra fundra is primarily to for rosel to you know to for growth enablement 17:31 17 minutes, 31 seconds infrastructure. It's going to be growth enablement infrastructure uh that we see moving forward. Uh there's a lot of potential uh that we've 17:38 17 minutes, 38 seconds seen with a lot of our customers. Uh and we are proactively strengthening our balance sheet uh to support the next phase of accelerated global scale up. 17:46 17 minutes, 46 seconds That's the fundamental idea of of doing this QIP. So yes, we have a lot of plans in mind to raise capital and also to 17:54 17 minutes, 54 seconds improve our inventory level moving forward which will obviously make our balance sheet much stronger for all the different customers we work with moving forward. 18:06 18 minutes, 6 seconds I have more questions but I'll get back in. Thank you. 18:12 18 minutes, 12 seconds Thank you. Next question is from the line of Rahul Dasani from Apple. Please go ahead. Yeah. Hi. 18:20 18 minutes, 20 seconds Yes, you are. 18:22 18 minutes, 22 seconds Yeah, good morning and thank you for this opportunity. Uh, so just wanted to understand how much of the loss making 18:28 18 minutes, 28 seconds Boeing order was executed in Q4 and how much is left to be executed in FI27. 18:35 18 minutes, 35 seconds Uh um I can tell you that we did approximately uh 75 crores this year on 18:44 18 minutes, 44 seconds that program and we're left with uh another 70 for this financial year and that will be throughout the year or 18:51 18 minutes, 51 seconds maybe we clear it will be uh high in the first two quarters and then low in the next two. 18:58 18 minutes, 58 seconds Got it. And if if the same thing if you can share for the space and semicon execution in Q4 and plan for FI27. 19:07 19 minutes, 7 seconds Yeah. So for uh for both the space and the semiconductor this year we're looking at a significant growth. We're looking at close to a 300 to 400% growth 19:16 19 minutes, 16 seconds on our revenue from the previous year for both semiconductors and space. 19:22 19 minutes, 22 seconds Got it. And since in our introduction you spoke about the entry into the commercial that we are seeing right now. 19:28 19 minutes, 28 seconds So by when can we expect our first large commercial aircraft order and execution? 19:35 19 minutes, 35 seconds So the companies we're talking to are building a strategy for India. Uh they they've made a decision that they want to create a supply base in India. Rosen 19:43 19 minutes, 43 seconds has been shortlisted as one of the suppliers they want to work with. Uh so it's still early stages but we're hoping 19:49 19 minutes, 49 seconds that we shall get some RFPs uh by the second quarter of this financial year. 19:55 19 minutes, 55 seconds So we should be getting some RFPs and requirements uh and opportunities by the second quarter of this financial year. 20:01 20 minutes, 1 second Got it. But is this a starter order or will it be significant from the first level itself? 20:07 20 minutes, 7 seconds When you looking at commercial orders, they're all uh much larger in scale. Uh you know they're not going to be small size orders. Yes, maybe the first year the revenue would be much smaller but 20:15 20 minutes, 15 seconds then the scale uh in the second, third, fourth and fifth year will be much much uh larger moving forward but the the order sizes are much larger than uh the 20:25 20 minutes, 25 seconds defense or the space or the semiconductors that we're dealing with today. 20:28 20 minutes, 28 seconds Got it. That is very good to hear and if you can also share what are our plans in the MRO part are we looking for any acquisition or will we develop the 20:37 20 minutes, 37 seconds capabilities and do everything from scratch here? See, we've already got the license. We have a lot of relationship with existing customers that we're in 20:45 20 minutes, 45 seconds dialogue with. We're partnering with not only foreigners but uh foreign companies but Indian companies as well. Uh so it's something that we're working on. Uh Sil 20:54 20 minutes, 54 seconds is is is taking lead on this and we're pretty confident that this should bring us a lot more value to our customers and obviously uh increase our profit margin 21:03 21 minutes, 3 seconds significantly moving forward. lot of potential not only in MRO and the existing fees they were in but Rosel also has a plan to grab a lot more 21:12 21 minutes, 12 seconds content share on the existing platforms we're on today uh so we can increase our revenue three to five times on the 21:19 21 minutes, 19 seconds existing platforms that we're on it very clear and just one last question from my side we had earlier announced a large strategic contract from Boeing for 21:28 21 minutes, 28 seconds a new platform of theirs so what has been the status of the same and when do we expect this to commercialize Uh I think deliveries have started. Uh I 21:37 21 minutes, 37 seconds don't want to say something wrong. Uh either Sant or Zena if you can take this up but I think deliveries have started and I think the program ramp up is going to happen sometime in the third quarter 21:46 21 minutes, 46 seconds of this financial year and then we'll be consistently growing for the next five to seven years. 21:52 21 minutes, 52 seconds Okay. And you don't think that the quantum for the same? 21:55 21 minutes, 55 seconds I we announced uh uh we announced the the award wins when we got them I think a couple of years ago. It's I I think you're referring to the the the T7 program if I'm not mistaken. Correct. 22:05 22 minutes, 5 seconds Yeah. 22:06 22 minutes, 6 seconds Yeah. So, we have a strategic agreements of of close to uh 200 million on the T7 already. $200 million. 22:15 22 minutes, 15 seconds Got it. And you said this will be ramping up on Q2. 22:19 22 minutes, 19 seconds Uh I think so if I'm not mistaken. I'll leave that to for something to answer when the production on purpose is expected for that program. 22:28 22 minutes, 28 seconds Yes. started. You your voice is not clear. 22:36 22 minutes, 36 seconds Yeah, I'm Dina. Um, yes. Uh, it will ramp up from later part of this year. 22:42 22 minutes, 42 seconds Later part of this year. Got it. Yeah, that would be also my side and a few more and join back in the Thank you. 22:51 22 minutes, 51 seconds Thank you. Next question is from the line of Fred Choxy from India Security Advisor. Please go ahead. 22:59 22 minutes, 59 seconds Uh good morning sir. Thank you for the opportunity. Congratulations on a good scale up. So my first request to you would be is uh if you know the I think 23:07 23 minutes, 7 seconds the company is scaling really well and to to do justice to understand the story even deeper would urge you all to consider doing some inerson analyst meet 23:15 23 minutes, 15 seconds so that everyone can really spend some more time with you all and understand his story even better. 23:21 23 minutes, 21 seconds Sure. Well noted. We can look into this for sure. 23:23 23 minutes, 23 seconds Uh so secondly I missed the opening remark. So I just had a question. So I understand you've had a good revenue scale up. We have a visible order book and we've had a slight miss on the 23:32 23 minutes, 32 seconds margins. But if I take a 3 to four year length what where do you see Rosal Texas as a company in 2030 and what do you how 23:41 23 minutes, 41 seconds how should one envision the future of the company? 23:44 23 minutes, 44 seconds I mean I I I'll talk to you first about you know the the whole macros uh macro picture that we're looking at. I mean if you look at it globally what's happening 23:52 23 minutes, 52 seconds aerospace commercial production is ramping up uh defense spend is increasing significantly countries are increasing the GDP spend on defense uh 24:01 24 minutes, 1 second there's rapid space ecosystem growth happening uh semiconductor equipment expansion is happening globally and uh companies have decided to create a 24:10 24 minutes, 10 seconds supply base in India uh China diversification is happening so a lot of companies are looking at coming to India 24:17 24 minutes, 17 seconds supply chain there are a lot of supply chain resilience requirements. Uh so there's a big demand for trusted manufacturing partners and and DOS is 24:27 24 minutes, 27 seconds very well positioned for that. We are a high reliability manufacturing company. 24:30 24 minutes, 30 seconds We're interconnect systems. We do uh there's a lot of requirement for uh the current competencies that we're in 24:38 24 minutes, 38 seconds today. And like I said earlier, the idea is to uh strengthen our balance sheet and and be able to grow and uh to the 24:48 24 minutes, 48 seconds needs of our different different customers. Today we do x amount uh of of an aircraft. The idea is definitely in 24:55 24 minutes, 55 seconds phase two, which is two two and a half years from now, for us to be able to deliver a lot more product and a lot more content on the existing platforms 25:04 25 minutes, 4 seconds that we're in. So, we're also looking at moving up the value chain two years down the line where we can multiply our revenue per platform significantly. So, 25:13 25 minutes, 13 seconds we are positioning ourselves for the growth we see coming our way. And that's why one of the reasons of taking another 25:20 25 minutes, 20 seconds 210,000 ft² of space next to us was to meet the growing demand of all our customers. So if you look at it, Rossell has the reputation. We have the global 25:29 25 minutes, 29 seconds customers. We've shown strong growth. Uh we have secular tail tailwinds. We have a visible scalable business model. There 25:38 25 minutes, 38 seconds are significant qualification barriers for anyone to get into the different activities we're in today. And uh that's 25:46 25 minutes, 46 seconds why today Rosan is just getting set for this increase in demand. And like I'm saying the growth that we even seeing this year will be similar to the growth 25:54 25 minutes, 54 seconds we had last year. So we are preparing ourselves to be able to deliver the right at the right quality at the right 26:01 26 minutes, 1 second price and that's one of the reasons we're looking at a QP as well this year. I hope I answered your question. 26:07 26 minutes, 7 seconds Yeah, that's helpful. So just a follow up here. So currently we're largely doing work related to ES and that would fall within the avionics realm, right? 26:16 26 minutes, 16 seconds So it's just electronics. Yes, you you can say the electronics. Yeah. Yeah. 26:20 26 minutes, 20 seconds Yeah. It's within avionics, right? In in any sort of plane or fighter jet or whatever. So just to going forward are 26:28 26 minutes, 28 seconds we also some when you keep saying we have further opportunities to move up the value are you talking about maybe getting into aerero engine parts maybe 26:36 26 minutes, 36 seconds aeros structures and different parts of different parts that we can get into is that I I can put it we're looking at getting 26:44 26 minutes, 44 seconds into electromechanical integrated systems and assemblies next so so three so today I understand 26:52 26 minutes, 52 seconds you've given a certain level of aa guidance but just to understand two years out once maybe the QIP is done, money has come in, CPEX is done, our MRO 27:01 27 minutes, 1 second has MRO division has been set up, commercial deviation is been an uptick. 27:07 27 minutes, 7 seconds What do you see as a margin profile for the company two years from today which would be two years from two years from 27:14 27 minutes, 14 seconds today two years two years down the line we'll still uh be focusing on our current competencies and where we're going to be scaling our current competencies. So I said in our current 27:22 27 minutes, 22 seconds competencies we looking at anywhere from 17 to 20 uh 22%. Obviously on the MRO side the profit margin grows much higher 27:30 27 minutes, 30 seconds because it's services that you're providing. And when we go to our phase 2 expansion which I mentioned about electromechanical integrated systems and 27:38 27 minutes, 38 seconds assemblies then our profit margin from 17 to 21 can go anywhere from 21 to 30%. 27:43 27 minutes, 43 seconds You know so that's the kind of scale we're looking at. Uh right now all focus is for operation excellence. uh we want 27:50 27 minutes, 50 seconds to dominate wire harness scaling for the next two years at least. We're focusing on a lot of commercial work. We're focusing on our semiconductor growth. 28:00 28 minutes We're focusing on uh our operational maturity, our systems, our margin protections, infrastructure scaling and 28:07 28 minutes, 7 seconds our MRO foundation. So the focus for the next two years is these things I just mentioned and then the idea is to make it phase two sometime in the year 28 29. 28:18 28 minutes, 18 seconds Got it sir. So just a quick question on uh the MRO. So right now majority of India's fleet usually goes out to get 28:25 28 minutes, 25 seconds service and this is a good opportunity for us. So what is the sort of time you are envisioning here? But what what do you think is the total what are the 28:34 28 minutes, 34 seconds numbers you think you can generate from this business? 28:37 28 minutes, 37 seconds That's that's a tricky question to answer but uh why don't I leave this question for Sil if you don't mind taking this up because you're heading the MRO and that's your baby. 28:47 28 minutes, 47 seconds Sure. Um good morning everyone. This is Santel. uh I'm the CEO for for the cell and like Richard mentioned uh you know 28:54 28 minutes, 54 seconds we have the license and we are now talking to all our existing customers and you know organic and inorganic growth existing customers and also 29:02 29 minutes, 2 seconds external customers saying that we do have a capability and we are generating a lot of I guess interest from our 29:09 29 minutes, 9 seconds customers and so this is you know the foundation right where we are talking to our customers and things like that to put a number you know might be tricky 29:17 29 minutes, 17 seconds like Rish said it's uh something we are working on but we do see great potential partnering with you know other service providers and also with our existing 29:26 29 minutes, 26 seconds customers even you know from the US there's a lot of interest with our existing customers so I'm talking strategy but to put a number is uh you 29:34 29 minutes, 34 seconds know we we'll work through to see uh you know how how well we're able to ramp up in a in a very short period of time 29:42 29 minutes, 42 seconds that's helpful thank you so much of answering all the questions and just once again would request you to please conduct some inerson m so we and spend some more time together. All the best. 29:52 29 minutes, 52 seconds Thank you. We'll definitely invite uh you know a lot of our customers and interested people to come visit our factory because once you visit the factory you get the wow factor. You'll 30:00 30 minutes definitely see all the worldass manufacturing that's happening at Thank you. 30:10 30 minutes, 10 seconds Next question is from Sharan LD virtual investor. Please go ahead. 30:16 30 minutes, 16 seconds Yes sir. Thanks for the opportunity. Sir uh as as you mentioned that the growth will be according as per the last year so it will be around 80 to 90% growth. 30:26 30 minutes, 26 seconds Uh you have given the margin percentage of 16 to 17%. Can you throw some light on what will be the tax margin approximately? 30:36 30 minutes, 36 seconds Hi sorry I'm not sure if that question was to me but I got disconnected. I've just joined again. So if you could please repeat that question. 30:43 30 minutes, 43 seconds Sure. So sir you gathered that approximately we will get the same kind of growth as the last year. So uh that 30:51 30 minutes, 51 seconds the growth is approximately 87% this year. So we are expecting that we will be getting same 80 to 90% of growth next 30:58 30 minutes, 58 seconds year also. And uh you have growth yes in similar levels. Yes similar. 31:03 31 minutes, 3 seconds Yes correct. And uh the profit margin is said that it will be approximately uh 17 to 18% or 16 to 17%. What what would be 31:13 31 minutes, 13 seconds the pat margin approximately? 31:18 31 minutes, 18 seconds See that totally depends. We see what our pat margins are today. Definitely there's going to be an improvement on that. And like I said, we're looking at uh uh also looking at strengthening our 31:27 31 minutes, 27 seconds balance sheet. So it completely uh depends on when the happens as well and when the fund raise happens. Uh so difficult to answer that question now 31:36 31 minutes, 36 seconds but from our current levels if it continues the same way we will definitely see an improvement next year as well on our PBT and our obviously our 31:45 31 minutes, 45 seconds revenue much more much higher than what it is. 31:50 31 minutes, 50 seconds Sure. And when can we expect that our CFO will be positive? 31:55 31 minutes, 55 seconds Sorry when we can expect that our cash flow margin will be positive. Cash flow will be positive. Can I take that question? 32:05 32 minutes, 5 seconds Yeah, please. 32:07 32 minutes, 7 seconds We are expecting a ramp up. I think uh in the coming years we should be uh able to see much improvisation in that. 32:16 32 minutes, 16 seconds No question. Thank you. Thank you. 32:22 32 minutes, 22 seconds Thank you. Next question is from the line of Hmon from Anand Capital. Please go ahead. Hello. Am I audible? 32:31 32 minutes, 31 seconds Yep. 32:32 32 minutes, 32 seconds Yeah. So, uh sir um so uh last call you guided for um you know achieving around um 1300 cr um topline in next two years. 32:42 32 minutes, 42 seconds So we did somewhere around 500 cr this year. Uh so the 800 cr are we expecting to reach that 800 cr in next year? 32:53 32 minutes, 53 seconds Yeah, we're looking at a very significant growth just as we grew last year 87% we're looking at something similar this year. 32:59 32 minutes, 59 seconds Uh okay. And um um yeah so one another question is we uh actually deal with long-term contracts right? Majority of 33:07 33 minutes, 7 seconds our contracts are long-term in defense. Yes. In defense. 33:13 33 minutes, 13 seconds Yeah. So in terms of not not in semiconductors and not in space. 33:17 33 minutes, 17 seconds Okay. Okay. So in that in that aspect uh how do we uh you know try to compensate the raw material prices variation when 33:25 33 minutes, 25 seconds we are doing the agreements? How do we uh it's all built in. We we have backto-back agreements. If we are signing a fivee contract with our 33:33 33 minutes, 33 seconds customers we sign a five contract with all our different suppliers. So when you're bidding you get an RFP. You get different bits from all our different uh 33:41 33 minutes, 41 seconds suppliers around the world. uh they tell us what their escalations are, they don't we add an escalation and then we submit our bid. So uh it's kind of a 33:49 33 minutes, 49 seconds backto-back agreement in some cases that we have uh from our customers to our suppliers and in some cases we take an escalation and you add that to your cost. 33:58 33 minutes, 58 seconds So so we uh uh am I trying to understand like uh are we able to pass on the prices to the customer uh for the 34:05 34 minutes, 5 seconds existing orders also? In some cases, uh yes, we've uh changed our contract contracts also recently where we've 34:14 34 minutes, 14 seconds added a few more clauses, whether it's an EPA clause, which is an equitable price adjustment clause. Uh we've added those in our contract. Some customers 34:21 34 minutes, 21 seconds agree to it, some don't. Uh we've also started asking for advanced payment and upfront payments along with items or uh 34:29 34 minutes, 29 seconds material that is single source that needs to be procured up front to secure the material to to deris the program. So 34:35 34 minutes, 35 seconds it it depends on what that material is and who the customer is. But uh yes definitely in some cases we are able to 34:43 34 minutes, 43 seconds get compensated from our customers and in some cases uh we add that in our contracts as well. 34:50 34 minutes, 50 seconds Yeah. And one last question um what was the percentage of uh cost that went into our manpower last year versus this year? 34:59 34 minutes, 59 seconds Uh J can you please answer that? 35:06 35 minutes, 6 seconds around 15% of uh of our uh revenue goes into employee cost in our level. Uh 35:14 35 minutes, 14 seconds we're looking at uh an improvisation in this year uh as we scale up to so this year it was 15%. How how much was it last year? 35:23 35 minutes, 23 seconds 15.5 in FI26 where we're looking at uh good improvisation in this year in FI27. 35:31 35 minutes, 31 seconds Uh okay. Okay. That's all from mine. Thank you and all the best. Thank you. 35:38 35 minutes, 38 seconds Thank you. Next question is from the line of Raj Agraal from Visha Asset Management. Please go ahead. 35:47 35 minutes, 47 seconds Uh so thank you for the opportunity and uh congratulations on the scale up. So my first question was on the semicolon 35:54 35 minutes, 54 seconds semicolon and space side. you know where do these businesses get their wire harnesses today and uh going forward 36:02 36 minutes, 2 seconds what kind of share of business do you think uh you know can move to India and uh Rossell particularly 36:09 36 minutes, 9 seconds um so it depends on the customers we're dealing with today one of the customers we deal with have uh a big supply chain 36:16 36 minutes, 16 seconds base in in in in South Korea and uh because it's such a growing market uh they've decided to create a new supply 36:25 36 minutes, 25 seconds base in India So Rosel is one of the partners they tied up with. When you're looking at it from a scale perspective, I think I mean uh the sky is the limit 36:34 36 minutes, 34 seconds in this. I think we barely scratch the surface yet. Like I'm saying this year on the semiconductor, we should be growing at 300 to 400% compared to last 36:41 36 minutes, 41 seconds year. And uh I mean the growth in this can be pretty pretty significant. I mean uh it's difficult to put in numbers but 36:49 36 minutes, 49 seconds definitely the idea I mean the target is we can do up to even 200 million 3 years or four years from now. That's the kind of potential we see on the semiconductor 36:58 36 minutes, 58 seconds side where we can do 200 million revenue 3 to five years down the line. 37:02 37 minutes, 2 seconds That's that's great to hear. So thank you. And so uh on the on on this topic again you know currently we have one 37:09 37 minutes, 9 seconds large customer in each of these uh categories. You alluded that one more customer in semiconductor is uh is going 37:16 37 minutes, 16 seconds to get added. So is it a new semicon company or is it a supply chain partner of of basically one of our customers that we have? No, it's a new 37:25 37 minutes, 25 seconds semiconductor company. It's a it's I mean they've been in existence for years as one of the largest semiconductor manufacturers in the world and uh we 37:33 37 minutes, 33 seconds should be hopefully joining hands with them and signing a contract with them soon. 37:37 37 minutes, 37 seconds Wow sir. Uh and in uh on the space side there are two large you know space companies in US uh with our current 37:45 37 minutes, 45 seconds facility in US getting refurbished uh based on one of our customer requirement. Uh can you start doing business with both of them? Is it a requirement to be in US for this? 37:55 37 minutes, 55 seconds Uh yeah sure we can work with you. There are no restrictions. Uh we can work with any company. Uh there there's no restrictions on that. 38:03 38 minutes, 3 seconds Got it. So one last question. Uh sir our margins are declined. Uh is it um because of changing mix or that was not the reason for decline in margins? 38:13 38 minutes, 13 seconds It's a lot of investment that is doing like I'm saying they're growing significantly. The partners need to our customers need to qualify a lot of their products to qualify products. There's a lot of investment that is required. 38:23 38 minutes, 23 seconds There's a lot of training that takes place uh to there's a lot of learning curve that happens and is doing a lot of that uh primarily for our new customers 38:31 38 minutes, 31 seconds in the semiconductor space category. So a lot of investments are being made in that and we're also making a lot of investment in inhouse for our training 38:38 38 minutes, 38 seconds and automation to get better and more efficient moving forward. So like I said yes definitely there are a lot of qualifications happening now which will 38:47 38 minutes, 47 seconds uh yield much higher profits moving forward. So it just depends of on how many qualifications yourself does on a yearly basis and I'm happy to say that 38:56 38 minutes, 56 seconds uh it's increasing significantly on a yearly basis and that's why we see a very positive outlook over the next 3 to 5 years uh in the competencies that we're in. 39:06 39 minutes, 6 seconds Thank you sir. Thank you so much for Thank you. Before we take the next question, a reminder to all the 39:14 39 minutes, 14 seconds participants, if you wish to ask a question, please press star and one. 39:20 39 minutes, 20 seconds The next question is from the line of Mayisha from Sappire Capital. Please go ahead. Yeah. Hello. Am I audible? 39:29 39 minutes, 29 seconds Yes. 39:29 39 minutes, 29 seconds Hello. Yeah. Hello. Good morning. Um, great set of results. The commentary has been very positive. Um, just a few questions on the segmental split. So you 39:38 39 minutes, 38 seconds said that the semicondant space is going to grow 300 to 400 times in FI27. Um could you help me out with the numbers 39:46 39 minutes, 46 seconds for FI26? What sort of revenues we recorded on these two segments? 39:53 39 minutes, 53 seconds I don't know if I can be so specific. Uh but I can say u approximately 20% of a 40:00 40 minutes revenue in the year 25 26 came from these two segments. 40:04 40 minutes, 4 seconds Okay. And that that is going to go significantly up uh I should say from the contribution 300 to 400% increase this year. 40:13 40 minutes, 13 seconds Correct. Okay. And the margins on these are are uh far better than the aerospace and defense if I'm correct. 40:20 40 minutes, 20 seconds I I would be in the same lines between 17 and 20. 40:24 40 minutes, 24 seconds Okay. Okay. And on the MRO side you said that the scale up is going to happen in a very short time. We're going to see a good ramp up. um any sort of guidance on 40:33 40 minutes, 33 seconds how much contribution do you see coming in from MRO maybe from FI 28 29 um that could kind of significantly increase our 40:41 40 minutes, 41 seconds margin outlook going forward again I will leave that for Sil if you want to bring it up please sure sure yeah thank you for the 40:50 40 minutes, 50 seconds question this is I'm the CEO for uh I made a comment earlier uh we do have the certification we received that a few 40:58 40 minutes, 58 seconds months ago we very proud of that right now we're in the process of building the foundation ation of you know letting all our existing customers know that we now 41:05 41 minutes, 5 seconds have a service of MRO also and we're also marketing that with outside customers I referred that as the organic 41:13 41 minutes, 13 seconds and inorganic growth and uh so right now we are very excited that we are getting a lot of interest both from our existing 41:21 41 minutes, 21 seconds and new customers globally right not only in India but also in the US so we'll we'll work through that we are 41:28 41 minutes, 28 seconds pretty you know excited about this journey and uh you'll see some pick up on on revenue in the coming quarters 41:36 41 minutes, 36 seconds and just to add on what Sunfield said it's not only the MR we're looking at like I mentioned earlier today Rosel is nearly on every military platform that 41:45 41 minutes, 45 seconds comes out of the US uh the idea is to increase our content on each platform from panels and move up the value chain 41:52 41 minutes, 52 seconds so we have a very robust plan of how we're going to do that and the idea is to do that two years down the line in in the year 28 uh where we invest to uh you 42:01 42 minutes, 1 second know do a lot more for our current customers, our current platforms where we're going to be supplying X into three or X into five moving forward. 42:11 42 minutes, 11 seconds That is great. Um also the order book of 715 cr um any sort of split you would provide me on what portion of it comes 42:20 42 minutes, 20 seconds from the space and semicon uh yeah so I mean just to rephrase we have strategic agreements for 3,000 42:27 42 minutes, 27 seconds crores and confirmed uh orders are placed on a strategic agreements also on a yearly basis uh so 42:35 42 minutes, 35 seconds strategic agreements among the aerospace and defense side and after the 715 confirmed POS I mean uh I hope I'm not wrong with my 42:44 42 minutes, 44 seconds numbers. Please correct me if something I'm wrong, but I would say approximately 50/50 would be a space in defense and non-erospace in defense. 42:51 42 minutes, 51 seconds Okay. Um and on the QP you said that we'll be raising some funds. Any sort of color on when this will be happening? 42:59 42 minutes, 59 seconds What sort of funds are we raising? Any quantum on that? And also um where are we going to be using it? 43:06 43 minutes, 6 seconds Like a new facility are we putting it up? a new market we're going to enter. Yeah. 43:12 43 minutes, 12 seconds You see, we're making all our efforts for the QIP. Obviously, from our mind, uh we want the right investor to come in as well. So, obviously, we're targeting to get the right investors. 43:22 43 minutes, 22 seconds Uh so, that's uh uh that's the idea basically for the QIP. Uh where the money is being used, it's it's going to 43:29 43 minutes, 29 seconds be primarily used for our infrastructure uh you know, capacity expansion. We expanding our facility footprint. We're 43:37 43 minutes, 37 seconds adding infrastructure. We're scaling our production capabilities. Uh and we're preparing ourselves for larger platforms. So that's one of the areas 43:45 43 minutes, 45 seconds where money is going to be used. Second is operational infrastructure. As we scale, we need better systems, quality infrastructure, planning capability, 43:53 43 minutes, 53 seconds supply chain capability, testing infrastructures. So we're industrializing ourselves much more. So that's again where money is going to be 44:00 44 minutes used. And the third area is uh working capital for scale. you know for the aerospace rampups we're seeing for the semiconductor growth we're seeing for 44:08 44 minutes, 8 seconds long heat inventory uh so it's going to be primely used in these three areas capacity capacity expansion operation infrastructure and what we have to go 44:18 44 minutes, 18 seconds okay uh yeah thank you so much thank you so much thank you thank you next question is from the line 44:26 44 minutes, 26 seconds of Anerut Seni from the LAN coach please go ahead hi good morning so just a clarification when uh we say 3,000 of strategic 44:35 44 minutes, 35 seconds contracts. Is that uh over and above the audible book? Like does that revenue over and over the order? Yes, that's over and above. Correct. 44:44 44 minutes, 44 seconds All right. And uh what is the typical size of an order that we receive? Like recently we see the repeat order for is a typical range of the order size. 44:53 44 minutes, 53 seconds It again completely depends. We're on nearly every platform. So it completely depends on the platform and the customer. So it's difficult for me to answer that question. 45:02 45 minutes, 2 seconds Okay. Uh so so 3,700 crores of visible revenue is what we have right now. That's the correct. 45:09 45 minutes, 9 seconds No, we have visible revenue because of our strategic agreements as well. We have 3,000 K of strategic agreements and how the aerospace and defense landscape 45:16 45 minutes, 16 seconds normally works. 6 to 12 months before delivery uh POS are placed against the strate strategic agreements. So you have 45:24 45 minutes, 24 seconds a very clear outlook for the next three years at least where we're heading as an organization. 45:28 45 minutes, 28 seconds All right. And uh just a request if we could come visit you and see the factory that' be very helpful. 45:36 45 minutes, 36 seconds Yeah sure we can definitely plan that. I would tell uh Krishna to take that forward and you can be in touch with Krishna for that. Sure. Thank you. 45:44 45 minutes, 44 seconds Thank you. 45:46 45 minutes, 46 seconds Thank you. Next question is from the line of muni from MM capital. Please go ahead. 45:55 45 minutes, 55 seconds Uh good morning sir. I wanted to know about the geography splits in terms of revenue. How much is coming from exports 46:02 46 minutes, 2 seconds and predominantly uh how much is from North America if at all we have any other geographies uh uh provided I 46:11 46 minutes, 11 seconds yeah sure so today we're dealing with bunch of geographies we're not only dealing in the US but we deal a lot with Europe we're dealing with Israel and we started dealing a lot with India as 46:19 46 minutes, 19 seconds well. Uh the question was the revenue spits sorry uh could you repeat the question? Yeah, the revenue specs as in uh in terms of geography especially exports. 46:29 46 minutes, 29 seconds Uh so I would say 98% of our revenue is on exported. So we're still very export focused. So 98% of our revenue is on 46:37 46 minutes, 37 seconds export and the reason the people 46:45 46 minutes, 45 seconds North America and uh we have diversified into southeast middle east and uh we're 46:53 46 minutes, 53 seconds looking to expand uh more on these numbers of southeast and middle east uh in the coming year uh also in future. 47:01 47 minutes, 1 second Great. Uh my second question would be in terms of the uh in terms of the low orbit satellites which we had initially 47:09 47 minutes, 9 seconds with blue origin. Uh so are we getting any scale up orders over there or uh or we are not getting any orders in the low 47:17 47 minutes, 17 seconds orbit origin sector and I'm trying to understand how uh today we're not dealing with blue origin we're dealing with uh Amazon uh for all our uh uh uh space requirements. 47:30 47 minutes, 30 seconds So we're dealing with them now. The idea is to obviously expand our customer base on the on the space side as well and uh 47:36 47 minutes, 36 seconds looking at uh getting new contracts from different customers. The financial year terms of semiconductor we are 47:45 47 minutes, 45 seconds predominantly providing wiring harness or are we providing anything more than wiring harness over there? 47:51 47 minutes, 51 seconds Wire harnesses as of now is all wire harnesses. Okay. Okay. 47:56 47 minutes, 56 seconds The last question would be sir the quantum of amount which we're trying to raise in QIP would be around 48:03 48 minutes, 3 seconds uh look it you know QRP has to be done on on on the market cap of the company 48:09 48 minutes, 9 seconds with the 5% up down market shing anywhere from uh 7 to 10%. 48:16 48 minutes, 16 seconds 7 to 10%. Fair enough. I appreciate it sir. Thank you. I got my answer clear. Thank you. 48:24 48 minutes, 24 seconds Thank you. Next question is from the line of Ankur Galati from Jan Capital. Please go ahead. 48:32 48 minutes, 32 seconds Ankur your line is unmuted. Thank you. 48:35 48 minutes, 35 seconds Just just a small question. U your transportation is uh Seabon or Airlift and uh whether you guys build on FOB or CIS basis. 48:46 48 minutes, 46 seconds Sorry, could you repeat that? I something on transportation and it's it's it's all being done by air right now. It's F rated. All all the everything we supply is F rated. 48:57 48 minutes, 57 seconds Was that the question? 48:58 48 minutes, 58 seconds Yes, that's fine. And second, uh FOB basis or CIF? I mean, you pay for freight or the the customer pays for freight? 49:06 49 minutes, 6 seconds No, the customer pays for it. Uh please correct me if I'm wrong. Something the customer pays for it, right? No, that is correct. Uh predominantly 49:14 49 minutes, 14 seconds all the shipment cost is paid by the customers. Yeah. Okay. Thanks. All the best. 49:22 49 minutes, 22 seconds Thank you. Next question is from the line of Ankush Mahajan from Sanctum 12. 49:27 49 minutes, 27 seconds Please go ahead. Sir thanks for the opportunity uh to ask me question. So I joined later uh just try to understand 49:36 49 minutes, 36 seconds sir if we if I see the year on year basis the margins are on the lower side beta margins. So what was the reasons 49:42 49 minutes, 42 seconds behind it? it's a one time or uh recurring something or what is the guidance for FI27 for the margins? 49:51 49 minutes, 51 seconds Definitely will be an improvement in our in our margins on ADITA and our PBT in this financial year which is 2627. Uh the reasons why margins were a bit lower 49:59 49 minutes, 59 seconds in the year 2526 as I mentioned earlier is making a lot of investments uh in infrastructure in training in tooling in people in processes. Uh we're doing a 50:08 50 minutes, 8 seconds lot of qualifications right now with our new customers. uh that requires a lot of investment uh and the revenue comes uh 50:15 50 minutes, 15 seconds in subsequent years once that product is qualified. So we're doing a lot of FI which are starting inspections uh where the time taken and the effort and and 50:24 50 minutes, 24 seconds the cost taken to to qualify that component is much higher in the in the initial days and once qualified we'll see much better margins moving forward 50:32 50 minutes, 32 seconds because we're doing a lot of automation for our non-defense customers so our profit margin will be much higher moving forward. 50:40 50 minutes, 40 seconds Thank you. Thank you sir. 50:45 50 minutes, 45 seconds Thank you. That was the last question for today. I now hand the conference back to Mr. Rishad Moan Gupta for closing comments. Over to you sir. 50:55 50 minutes, 55 seconds Would like to thank everyone for joining. Uh Rousel is on a very good growth trajectory. We've been able to 51:02 51 minutes, 2 seconds build the confidence of all our customers. We are a very reputable company. We deal with the best of the best globally and uh we're very well 51:11 51 minutes, 11 seconds positioned and to grab the scale that we foresee and we're very excited about the future and uh sky is the limit. So thank 51:19 51 minutes, 19 seconds you all for all your support these years and look forward to your continued support moving forward. Thank you all very much. 51:29 51 minutes, 29 seconds Thank you very much members of the management on behalf of Rasel X Limited that concludes this conference. Thank you all for joining us today and you may now disconnect your lines. 51:41 51 minutes, 41 seconds Thank you. Thank you everyone. Thank you.