SKP Bearing Industries Ltd — Q3 FY26

SKP Bearing Industries Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=QDMgw1-zR7A Published: 2 months ago

0:01 1 second Ladies and gentlemen, on behalf of Captify Consulting investor relations team, I welcome you all to the Q3 and 9 0:09 9 seconds months FI26 post earnings conference call of SKP Bearing Industries Limited. 0:14 14 seconds Today on the call from the management team we have with us, Mr. Shinan Parikal, chairman and managing director along with his management team. As a 0:22 22 seconds disclaimer, I would like to inform all of you that this call may contain forward-looking statements which may involve risk and uncertainties. Also, a 0:30 30 seconds reminder that this call is being recorded. I would now request the management to brief us about the performance highlights for the period 0:37 37 seconds ended December 2025. The growth plan and vision for the coming year post which we will open the floor for Q&A. Over to the management team. 0:47 47 seconds Thank you, Vanessa. A very good morning to one and all present here. I am Shriada Patton CFO CFO of SKP Bearing 0:55 55 seconds Industries Limited. We have gathered here for Q3 financial highlights. So a small brief on what happened in the 1:03 1 minute, 3 seconds previous quarter. So our standalone from quarter 2 to quarter 3 has increased substantially as you can see in the 1:10 1 minute, 10 seconds figures. It's increased by 41%. Also our uh EITA margins have also increased slightly 9.5%. 1:20 1 minute, 20 seconds And even on a consolidated measure if you go to see uh India and France entity consolidation that two we 1:27 1 minute, 27 seconds see a substantial increase in the revenue of 38.9%. Next slide. 1:36 1 minute, 36 seconds A few operation highlights for what's happened in the roller plant. Uh in the current plant with space uh constraint 1:46 1 minute, 46 seconds removed since the ball plant has shifted. We have started expansion in the roller plant itself. Some of the 1:52 1 minute, 52 seconds capacity has been added and utilization of the same has also been started and further addition is on the way which is 2:00 2 minutes in line with our targets of 200 tons per month. 2:05 2 minutes, 5 seconds Also uh we are focusing on our synergies and uh our export oriented focus has 2:12 2 minutes, 12 seconds increased which has started to show in terms of revenue. Also there are many projects underway which might come into 2:21 2 minutes, 21 seconds uh revenue into next quarter and in the next financial year. Regarding the customer, we had uh undergone an 2:30 2 minutes, 30 seconds initiative to balance out the portfolios to reduce the uh weightage of any one industry. So that balancing out strategy 2:38 2 minutes, 38 seconds is working out well and uh we are seeing uh our portfolio diversify as well as 2:45 2 minutes, 45 seconds growth in the revenue because of this initiative. Also in view of our France plant and new technology, new products 2:54 2 minutes, 54 seconds are coming into play now which have started generating revenue on small basis which might which will uh give a 3:02 3 minutes, 2 seconds substantial contribution in the coming year and this ramp up is going underway as expected. 3:10 3 minutes, 10 seconds Next plant please. 3:12 3 minutes, 12 seconds Regarding the ball plant, as we have said earlier that capacity has been fully installed and now slowly utilization is coming into play. More 3:20 3 minutes, 20 seconds and more customers have started coming in and they starting off with small SOPs. So numbers are improving also our 3:28 3 minutes, 28 seconds utilization because of our uh flexible strategy with roller and balls. So we are having uh improvements in for 3:36 3 minutes, 36 seconds certain departments and uh because of which all our lines are also functional and utilization is slowly on an 3:44 3 minutes, 44 seconds increasing trend with the improvement of our ball plant we are having a good leverage on the international market 3:51 3 minutes, 51 seconds where mult global multinationals are coming to escape and showing a positive response 3:59 3 minutes, 59 seconds also in the this uh uh financial your ISO is achievable after 3 months. So 4:06 4 minutes, 6 seconds that we have started the initiative and next year we will be eligible for automotive uh uh IATF certificates. So 4:14 4 minutes, 14 seconds all that is planned in the next financial year regarding the France operation. We see a 4:22 4 minutes, 22 seconds good progress in the France operation even though we are seeing a slight dip in this particular quarter but if you see the nine months we are in a good 4:30 4 minutes, 30 seconds progress. uh our customers have ramped up and uh it's still on an improving trend. Also our uh strategy for aligning 4:40 4 minutes, 40 seconds our uh operationals and utilizing our skill is all underway. So stainless steel products are improving. Scaling of 4:48 4 minutes, 48 seconds operations is ongoing. Also customer engagement is better in all the plants. 4:54 4 minutes, 54 seconds And one of the key wins is that we are looking you know our target of 100 CR is 5:00 5 minutes on and we are looking forward to fulfilling it this year and rest assured with the mother of all 5:10 5 minutes, 10 seconds deals coming into play our France plant and India plants are both having a good traction ahead. Next please. 5:20 5 minutes, 20 seconds uh as I've explained earlier you can see the utilization our roller plant capacity itself has slightly increased and similarly utilization has increased 5:28 5 minutes, 28 seconds because of our customer demand even on the boil plant our capacity has now installed and that is utility the 5:36 5 minutes, 36 seconds utilization percentage might look small but since the capacity overall has increased so I'd say it's a good figure 5:43 5 minutes, 43 seconds next please this is a view of our international strategy so last year if we See our exports were 2% of the overall revenue. 5:52 5 minutes, 52 seconds This year our exports have increased to 5% of overall revenue and we're looking to improve it further by the end of this financial year. 6:02 6 minutes, 2 seconds Next please. 6:05 6 minutes, 5 seconds A small view of our manufacturing facilities. Our plant one which we're using as R&D center for developing some 6:13 6 minutes, 13 seconds of our specialized machines and trial and errors in technology. plant two which is our head office as well. Here 6:20 6 minutes, 20 seconds we are doing spec specializations in rollers that is needle cylindricals and special products which are the demand of 6:28 6 minutes, 28 seconds our customers and plant specifically for ball manufacturing. 6:34 6 minutes, 34 seconds Next question. And our transplant transplant is more into precision of 6:41 6 minutes, 41 seconds stainless steel balls, miniature balls and uh if you go to see there are 6:48 6 minutes, 48 seconds special coated balls and these sort of special products in the ball segment are being used in previously known as VJ. So 6:56 6 minutes, 56 seconds we had taken over 95 year old French company Violet and Guarant Industries and now it has become Escape France. So 7:04 7 minutes, 4 seconds there we are having a vast diverse portfolio and even the customer segment over there is quite vast. So in India if 7:10 7 minutes, 10 seconds you see we have more of automotives and technical there we have more of pharma, cosmetics and all other industries 7:19 7 minutes, 19 seconds and in view when we took over this acquisition there were a presence of over 400 assets 7:27 7 minutes, 27 seconds in one roof such a diverse portfolio. So it is a good synergy and a complimentary takeover for us which is showing 7:34 7 minutes, 34 seconds results. Now some of our products needle rollers 7:42 7 minutes, 42 seconds these are going into axles and bearings industrial machinery spins that way. Next please. 7:53 7 minutes, 53 seconds Cylindrical rollers. Cylindrical rollers are more for uh uh heavy machinery, heavy loads. So 8:01 8 minutes, 1 second these are going into again bearing gear applications and uh these pins also cylinder controllers also find their application 8:10 8 minutes, 10 seconds in uh international market in machineries. So that's another uh new market which we're exploring. Next please. 8:19 8 minutes, 19 seconds Precision pins they're going into gear boxes and anywhere where holding of two components is required. Next 8:29 8 minutes, 29 seconds balls. Balls have anything which moves rotates at high speed requires balls. 8:36 8 minutes, 36 seconds So our balls are going into many many applications pumps accelerators etc. 8:41 8 minutes, 41 seconds This is a a photograph of some of our laboratory and instruments high-end instruments available for testing at 8:48 8 minutes, 48 seconds your at our facilities and uh these enable us to reach international clients of which have precision requirement. 8:58 8 minutes, 58 seconds Next please. 9:01 9 minutes, 1 second Our way forward as as you must have seen our previous strategies have coming into play and now we are seeing a better improvement. Our 9:10 9 minutes, 10 seconds way forward for the coming quarters and next financial year is improving the utilization of Jumar plant that is our draw plant. So there we are improving 9:19 9 minutes, 19 seconds the utilization. Our France subsidy has completed a 2-year milestone and we are 9:27 9 minutes, 27 seconds looking to turn green in the coming financial year. Also our roller capacity is increasing as well as the utilization 9:34 9 minutes, 34 seconds is increasing along with it because we are having customers over here. Demand is good. Export acceleration is uh 9:42 9 minutes, 42 seconds ongoing as per our vision. So our export right now is at 5%, we we're focusing on improving it further. 9:50 9 minutes, 50 seconds Also in view of our international base now escape is looking to target international clients clients with uh 9:59 9 minutes, 59 seconds there are plants in multiple continents and uh that's the way we are going to go forward and uh France plant is going to 10:08 10 minutes, 8 seconds stabilize now but we are looking to not just stabilize it to make it a big uh driver in the growth of escaping. 10:20 10 minutes, 20 seconds And let's see now how our targets go. So as you see we are looking to target this year 100 CR. 10:28 10 minutes, 28 seconds And I'll open the question uh forum now for question answer sessions. A sir and Mr. Kikar MD please open to over to you. 10:41 10 minutes, 41 seconds Thank you ma'am. Uh we'll now open the floor for question and answer session. 10:46 10 minutes, 46 seconds Anybody who wishes to ask the question, please use the option of raise hand. If you're unable to do so, uh you can put your questions on the chat box also. 11:08 11 minutes, 8 seconds Now, until the question assembles, let me ask you a question. Considering the uh free trade agreement signed between 11:15 11 minutes, 15 seconds India and Europe right now, uh how do you see it favorably playing out with us with our French acquisition and do you 11:23 11 minutes, 23 seconds think this will help in faster turnaround in France as well as absorption of technology and pushing manufacturing to India along with if you could guide the audience on that? 11:33 11 minutes, 33 seconds Yes, it's a good opportunity for SKP India as well as SKP France because now it's uh 11:41 11 minutes, 41 seconds we already present in two uh segments to continents and this FDA where we had little 11:49 11 minutes, 49 seconds challenges now it's getting over plus on and above that earlier when we were there as only in India 11:57 11 minutes, 57 seconds many European customers has got a particular questions of just in time so we it's uh they need a delivery immediately. They they see it this is a 12:06 12 minutes, 6 seconds challenge. So now being present in two continents we can have a consignment stocks in in France and then export from 12:15 12 minutes, 15 seconds there. It's a very good uh opportunity for SKP both the entities now. 12:23 12 minutes, 23 seconds So we can explore new the opportunities as it comes we can in cash. 12:35 12 minutes, 35 seconds Thank you sir. Uh we have first question from the line of bank. 12:44 12 minutes, 44 seconds Uh good morning SKB sir. 12:46 12 minutes, 46 seconds Good morning. Uh sir uh I have a question uh regarding our uh uh roller 12:54 12 minutes, 54 seconds plant new plant plant 3. Uh so uh how is the uh uh traction uh going for that 13:03 13 minutes, 3 seconds plant and I believe we had couple of uh clients uh with with whom we already discussed agreed for commercial terms. 13:14 13 minutes, 14 seconds So have any new customers started for that that plant yet? 13:21 13 minutes, 21 seconds Currently uh uh say plant three is basically a ball. So you are talking of ball plant correct. Okay. 13:29 13 minutes, 29 seconds Yeah. Ball plants. Okay. No no sorry. 13:31 13 minutes, 31 seconds Uh so ball many customers discussion their quality requirements. So it's a 13:38 13 minutes, 38 seconds benchmarking samples giving samples again receiving feedbacks. This process is on correct for some the approval has 13:46 13 minutes, 46 seconds come for some the quality audits the processes are going on. So we are at different stages for each different clients. 13:55 13 minutes, 55 seconds In uh 6 months ago 3 months ago the driver was little because there was a QCO implementation was going to be done very fastly. So that was a impression. 14:05 14 minutes, 5 seconds So because of that particular activity being getting delayed from government. 14:10 14 minutes, 10 seconds So people are now little relaxed. So imports in full swing. So that is uh a little challenge to us. So that is why 14:18 14 minutes, 18 seconds the utilization of plant 3 is not going the way we planned it to because we have already done all commercial settlement 14:25 14 minutes, 25 seconds everything only now question of utilization. But it's okay. We are focusing right now on meeting all the 14:32 14 minutes, 32 seconds customer needs. Costwise we are already meeting their requirement. So that is not a problem. But quality requirement and the system requirement has to be 14:40 14 minutes, 40 seconds fulfilled. So that is the process is right now going on. Let us hope we are focusing to generate the revenue equalization as as fast as possible. 14:50 14 minutes, 50 seconds That is our current focus and we are available all the capacity everything is available. 14:57 14 minutes, 57 seconds Yeah. So so that is the reason I mean uh our plant is ready since last almost one year right? Uh not one year but something like one year but yes. 15:06 15 minutes, 6 seconds Yeah. So I mean uh can we expect uh uh new cl I mean uh material dispatches for 15:14 15 minutes, 14 seconds new clients maybe in this quarter or next quarter. No dispatches everything is okay you know what we're talking of a 15:21 15 minutes, 21 seconds customer who is importing I'll give you an example right he's importing suppose yeah import substitution 15:30 15 minutes, 30 seconds he will not be he will not buy 50% or 80% of his requirement from SP he will buy only 5% or 10% till the time he see 15:39 15 minutes, 39 seconds okay what is the performance level because our product are high precision and performanceoriented so the people has to be 100% assured of the 15:46 15 minutes, 46 seconds performance and quality requirement. So this is a slow process but okay this is uh it's it's going on right now 15:54 15 minutes, 54 seconds and I would like to add on to sir's point uh it's not that customers are not started we have already started dispatches and it's in the ramp up part 16:04 16 minutes, 4 seconds so usually in our industry ramping up process takes another one year in the ramp up process people take small 16:11 16 minutes, 11 seconds quantity so if the annual demand I'll give a example if the annual demand is one lakh they will ramp up with 1,000 16:18 16 minutes, 18 seconds and pieces every month. After a few months then the ramp up will start. So we are in the ramp up stage for certain customers. Those dispatches are started. 16:27 16 minutes, 27 seconds Some of them are 6 months down, some of them are 2 months down. That way multiple uh projects are on multiple stages that 16:36 16 minutes, 36 seconds Okay. So, so what you mean to say is the new clients which we found for these new plant uh they have already started buying in small quantities. Correct. 16:46 16 minutes, 46 seconds Oh, okay. Great. It it is really great to know that. 16:49 16 minutes, 49 seconds Okay. And sir, uh I also have a question for our uh fan subsidiary. So u uh how 16:57 16 minutes, 57 seconds uh how is the traction going there? I believe uh we were targeting for a break even maybe uh in very near future maybe 17:06 17 minutes, 6 seconds this year or by next year. So I mean uh are we on track? Yes, very well. 17:14 17 minutes, 14 seconds Okay. And uh how is the demand? I mean uh uh uh I believe the sales has uh for 17:21 17 minutes, 21 seconds the quarter one our sales from France subsidiary was good but in Q2 and Q3 uh 17:28 17 minutes, 28 seconds the sales was little less right so can you please let us know what was the reason for the for that 17:35 17 minutes, 35 seconds it's a fluctuations many many uh many not one factor many factors were there because of that the fluctuations were 17:44 17 minutes, 44 seconds there last year we had many customers with smaller volumes. So these smaller volumes will you know what the way she 17:53 17 minutes, 53 seconds explained these are like testing trials similar type of fluctuations were there. 17:59 17 minutes, 59 seconds Now all these customers have now allocated capacities allocated the volumes to us. So there is a big uh now 18:07 18 minutes, 7 seconds turnarounds. So these will situations will change in time to come. 18:12 18 minutes, 12 seconds Okay. And uh uh sir uh in your presentation you have mentioned that uh there is one new uh customer I mean I 18:19 18 minutes, 19 seconds believe one 100 crore customer which we have signed. So can you please let us know? 18:26 18 minutes, 26 seconds I think there is a mistake that's a revenue target which we are keeping for our financial year. Our customers are 18:34 18 minutes, 34 seconds add are being added but our consolidated target as a entity for SKP top line is 100 crores for this financial year end. 18:44 18 minutes, 44 seconds We are targeting uh okay okay no problem. Thanks a lot sir. 18:52 18 minutes, 52 seconds Thank you for your time. 18:54 18 minutes, 54 seconds Thank you K. Uh we'll take the next question from the line of Vimel Modi. Vim Modi may go ahead please. 19:02 19 minutes, 2 seconds Audible. Yes. 19:04 19 minutes, 4 seconds Thank you. Thank you so much sir. My name is Vimal Modi. I am from Bombay. Uh I am first time attending this uh 19:12 19 minutes, 12 seconds meeting. I a shareholder actually since maybe two or three years. Uh I have uh let me first congratulate you sir 19:19 19 minutes, 19 seconds because uh you started quarterly reporting. You know this is very very important for investors like me who invest inme transparency it gives lot of 19:28 19 minutes, 28 seconds you know confidence in the company uh uh about the impact of trade deals you have already highlighted something I 19:37 19 minutes, 37 seconds would like to know I have few queries four or five queries basic queries I would like to know the total number of employees in our Indian operation as 19:45 19 minutes, 45 seconds well as France operation if you can just tell me those numbers. 19:51 19 minutes, 51 seconds In India operations we are around 200 plus and in France when we took over it was 52 employees now we are around 31 employees. 20:01 20 minutes, 1 second 52 to 31 we have reduced. Yes. What would be the reason for that sir? 20:06 20 minutes, 6 seconds Simple because we didn't the revenue when we took over it was around 8 million. We didn't had the customers 20:13 20 minutes, 13 seconds return. So the customers some of the customer are taking more time than expected. So it's very 20:20 20 minutes, 20 seconds important that you need to uh balance your revenue versus your uh employee strength because the employee cost is 20:28 20 minutes, 28 seconds very high in Europe. So it's it's uh that's the way you balance it out. It's very important you be efficient and this 20:36 20 minutes, 36 seconds is what we believe in to remain efficient and uh profitable. It's very important. So this is a process which 20:43 20 minutes, 43 seconds has taken more time because we had certain uh economic dismissal all 20:50 20 minutes, 50 seconds activities customer coming back to meet customers you know it's Europe it's not that easy because even if the 20:58 20 minutes, 58 seconds customer sees you exist even if the customer sees that you are doing very 21:04 21 minutes, 4 seconds good but they want a sustenance so it's just not uh you are present and how you 21:11 21 minutes, 11 seconds sustainable you are. So sustainability also is very important for the European customers. 21:16 21 minutes, 16 seconds So are we able to build the confidence in the customers mindset now? Yes. 21:22 21 minutes, 22 seconds So we can I mean those orders which you are pilot orders now they have started materializing in a largest quantity and 21:29 21 minutes, 29 seconds our quality is up to the expectation right sir. 21:32 21 minutes, 32 seconds Yes we were the we are the market leader. I see in in France globally the turnover just 45 cr we are market 21:40 21 minutes, 40 seconds leaders we are 95 year old company in France turnover is just 45 cr as per the uh report 21:49 21 minutes, 49 seconds no it's 95 year old you just see the presentation you no not the old I'm talking about the turnover the top line 21:57 21 minutes, 57 seconds uh sorry basically top line is just 45 cr as per the report sir uh We your here we're comparing 22:06 22 minutes, 6 seconds quality. So if you check the quality standard of our product, we are one of the top companies in the world who has giving this sort of quality to 22:15 22 minutes, 15 seconds international clients. Now regarding the turnover and transition and leadership that's a different which we can work out 22:23 22 minutes, 23 seconds and study the market and then we can come back with that. But as our quality is what the customers are requiring and 22:31 22 minutes, 31 seconds that quality and usually in France you know European markets what customers say since you are a new entity you wait for 22:39 22 minutes, 39 seconds one year you check if you're profitable and then we'll come back to you. Yeah. Yeah. That's not a problem madam. 22:44 22 minutes, 44 seconds I'm I am quite excited. You know this fr French company we took over such a huge uh I mean brand and quality of assets at 22:53 22 minutes, 53 seconds a very very dirt cheap price. Sorry that that that subsidiary made a loss of 5.81 22:59 22 minutes, 59 seconds cr. So I just wanted to understand uh like which are the major points you know which resulted in such a loss like what 23:07 23 minutes, 7 seconds kind of expenses or why there was such a huge loss. Have we booked any one-time expenses that was not visible from the results which we have declared. 23:15 23 minutes, 15 seconds Uh usually I have already just now also I said economic dismissal. So economic dismissal is a cost is a cost like it's 23:24 23 minutes, 24 seconds a cost of when you the sum of employees are reduced you need to pay them. So this is a big cost. So and these are one 23:30 23 minutes, 30 seconds time cost. So when you reduce from 52 to 31 you paid something to these employees. So these are the cost which 23:37 23 minutes, 37 seconds are the onetime cost. If you must have observed our previous earners calls also we have mentioned the same. So this is 23:45 23 minutes, 45 seconds now we are at the threshold level. Now it's is the just enough people to run the company with the current uh the 23:52 23 minutes, 52 seconds volumes if we have a larger volumes probably we'll have to add now to the manpower you know this is already at the threshold levels 24:01 24 minutes, 1 second are we doing any kind of I mean automation there a fresh automation so that we don't need more number of people they are posting over there 24:09 24 minutes, 9 seconds it's one of the highest automation levels already okay so sir as as you said this 5.8 81 24:16 24 minutes, 16 seconds CR loss it won't be now there in the coming quarter from French subsidiary right see it's very important there are see 24:24 24 minutes, 24 seconds there is a you need to understand uh the models of European and other continents I will not say only 24:33 24 minutes, 33 seconds India Aan and other continents the compliance cost in Europe is very high the compliance cost is to meet the 24:41 24 minutes, 41 seconds requirements is the social systems these are All systems the cost is something. 24:48 24 minutes, 48 seconds Okay. The product quality product value also is different but the compliance cost if the same product is manufactured 24:56 24 minutes, 56 seconds in other locations there will be a cost difference. Okay. Now you need to have a very high productivity level to meet the offset this particular. We are already 25:05 25 minutes, 5 seconds at very good productivity levels in France. So I'm not afraid of that particular parameter. But the cost 25:12 25 minutes, 12 seconds itself is little higher. So you need to have a fixed cost structure for France. 25:18 25 minutes, 18 seconds So which is going to be there now you have higher utilization automatically it gets amortized. So that's it. So we are 25:26 25 minutes, 26 seconds focusing is to better volumes higher sales grow automatically it will be good 25:34 25 minutes, 34 seconds but as you said there are quite a I mean large portion of these 5.81 CR is a one time. I mean naturally it won't come 25:41 25 minutes, 41 seconds back right a portion of it exactly like that there are many cost uh which is there is going to be there like 25:49 25 minutes, 49 seconds rental is going to be there like energy cost are going to be there there are some which is fixed cost is going to be there 25:57 25 minutes, 57 seconds some particularly the compensation automatically come down usual industry industry 26:04 26 minutes, 4 seconds uh systems sir uh at the end of September quarter we had about 17 cr worth of inventory. 26:13 26 minutes, 13 seconds Are we able to liquidate the same in current quarter? 26:16 26 minutes, 16 seconds You you must you just analyze the current I mean inventory figures are not 26:22 26 minutes, 22 seconds available now because it is you need to analyze it properly. It's available. 26:30 26 minutes, 30 seconds So what is the present inventory level sir? in number of days. Yes. No, in in terms of value. 26:39 26 minutes, 39 seconds Uh I will pick us and we'll uh uh reply by email. You can just drop us the email of your uh No, I won't drop up. You please make a 26:48 26 minutes, 48 seconds note of my requirement and you just email me. Okay. My email id is Modi Viml G M O D I V I M A L Gmail.com. 26:58 26 minutes, 58 seconds Okay sir. 26:59 26 minutes, 59 seconds I have one more question which has upset me. You know this captify had informed n on 16th of February that the management 27:07 27 minutes, 7 seconds is available for physical meeting in Mumbai. I am from Mumbai. Okay. But it was the same date on 16th morning. I'm not supposed to read each and every 27:15 27 minutes, 15 seconds announcement on NC every day. We should have planned it well in advance. 27:18 27 minutes, 18 seconds Actually they should have informed. See if we had planned in advance they should have informed us well in advance. Uh so I mean like this upsets me you know 27:26 27 minutes, 26 seconds there is no gimm uh the announcement was made on the exchange at least four five days before. No it is later dated 16. 27:35 27 minutes, 35 seconds No no no that is that is that is the letter actually. 27:37 27 minutes, 37 seconds No no one made one minute sir that is a mistake on the part of the company whereby they declared the call invitation and by mistake put the covering letter of the 16th meeting. 27:50 27 minutes, 50 seconds Then the call invitation was resubmitted to the exchange with the correct covering letter. The 16th meeting uh 27:58 27 minutes, 58 seconds letter intimation was given 5 days before and was also sent on email and WhatsApp to all the investors. 28:05 28 minutes, 5 seconds If you will see the intimation on 16th the second page of that letter is the call invitation. So there was an error on the part of the company and they 28:13 28 minutes, 13 seconds resubmitted the invitation to the exchange. 28:16 28 minutes, 16 seconds Thanks for clarification sir. Actually I'm trying to you know come that side. I had called the company also a year maybe a year and a half back that I wanted to 28:24 28 minutes, 24 seconds see the facilities of our company to get more confidence and increase my investment. So I was not getting a proper uh response. So 28:32 28 minutes, 32 seconds no problem. Uh we'll have our team connect with you on this and we'll help you out on this front. My mobile number is 93. 28:38 28 minutes, 38 seconds No no no sir don't put it don't put it on the call because we have it in the registration. You have you have it now. 28:44 28 minutes, 44 seconds We have it in the registration. See whenever such such such kind of meetings are there now if you make it a point to email because we have very less number 28:52 28 minutes, 52 seconds of shareholders you can always email is zero cost now why not to email we'll take the details from you sir offline yeah yeah thank you so much sir 28:59 28 minutes, 59 seconds thank you thank you uh we'll take the next question from 29:07 29 minutes, 7 seconds chat it is from uh BR what kind of exposure we have towards defense and aerospace sector at the moment and plan for next two three years. 29:20 29 minutes, 20 seconds Uh we are already present in uh both these sectors. So defense and aerospace we are already present. Now these 29:27 29 minutes, 27 seconds sectors are very vious sectors. The we cannot disclose you the volumes and all but we are supporting this to both the 29:36 29 minutes, 36 seconds sectors from many years. For aerospace also for advanced engineering we are focusing certain new technologies where 29:44 29 minutes, 44 seconds they require certain very high precision requirements. So we are already working with the OEMs to develop the products. 29:55 29 minutes, 55 seconds Okay. The second question is would you like to give any guidance at consolidated level for FI27 and FI28? 30:05 30 minutes, 5 seconds uh it's very difficult to give in figures okay because uh growth is very 30:13 30 minutes, 13 seconds good growth is planned that's what we can commit at this stage because these are the customers what we are focusing to bring back in 27 and 28 especially 30:23 30 minutes, 23 seconds for France entity because the France entity at one point of time was something doing something like 16 million euros and our target is to reach 30:31 30 minutes, 31 seconds to that level with the same customers to come back and plus add new customers where because of the duty and now FDA 30:40 30 minutes, 40 seconds coming in place we can engage them. So these two factors we are right now focusing. 30:48 30 minutes, 48 seconds Okay. Thank you sir. We'll take the next question from the line of Pratam Shetty please go ahead. 30:55 30 minutes, 55 seconds Uh thanks for the opportunity. Uh sir Gujarati no problem sir. No sir, this con call is a public call. If you can ask an Indian. 31:05 31 minutes, 5 seconds Okay. Okay. Okay. Okay. Okay. Okay. 31:07 31 minutes, 7 seconds Okay. Fine. Fine. Modi G has given some many advice to you. Please. No. Uh problem is that transition. No. 31:15 31 minutes, 15 seconds I understand. I understand everything. 31:17 31 minutes, 17 seconds Okay. Okay. Sir. So suppose the acquisition of the France company SKP is maintaining the profit at the from the Indian operation but failed to generate 31:25 31 minutes, 25 seconds the profit from the France operation and you have mentioned the reason for the not making the profit that the low level of utilization plus the one-time cost in 31:34 31 minutes, 34 seconds the quarter three the more interesting is that from June September and December all quarter the loss amount is 31:41 31 minutes, 41 seconds increasing in the last quarter it is 5.33 cr rupees so when the France witness or France operation will start 31:49 31 minutes, 49 seconds positive contribution very soon where because because you said that there was a low level of utilization and 31:58 31 minutes, 58 seconds the company is the 95 years I just explained you uh we did acquisition in February 32:08 32 minutes, 8 seconds 24 okay all European customers majority their needs their requirements 32:16 32 minutes, 16 seconds for the next year usually last quarter they start discussing and settle. Okay. 32:22 32 minutes, 22 seconds So we had already missed the bus for 24 in this because we did a acquisition many customers did a legal 32:30 32 minutes, 30 seconds representation they want a an uh registration you know many procedures due diligence like that. So 24 was a 32:40 32 minutes, 40 seconds very very difficult period for us to you know do a revenue targets of our expectations. All the customers which 32:48 32 minutes, 48 seconds were there present for 23 should come back to us in 24. That was our expectation but that was not the case with many customers. 32:57 32 minutes, 57 seconds 25 was a better compared to 24. But then we have many cost which are like we 33:03 33 minutes, 3 seconds planned to do a because of that all the issues. In 25 we have to win back all 33:11 33 minutes, 11 seconds the convince customers see come visit us fulfill their needs quality needs uh 33:18 33 minutes, 18 seconds infrastructure needs investments. So all these things we have done in 25 for many customers. Now all these customers have 33:25 33 minutes, 25 seconds placed faith in us but they are not still faith put a faith 100% to us. They are better compared to the where it was 33:33 33 minutes, 33 seconds zero in 24 25 it was some level 26 it is much better levels. Now to reach to their highest level it will take maybe 33:42 33 minutes, 42 seconds one more year maybe two years but then it's okay. Now the customers which were present in in 2010 to 2020 or 23 now 33:52 33 minutes, 52 seconds these customers are focused their requirements quality needs all identified we are discussing with them 33:59 33 minutes, 59 seconds continuously we discussing we are not we have also given them you know all the options that we can manufacture with 34:07 34 minutes, 7 seconds India raw material other make raw materials manufacture in France in your present pro provide to you just in 34:14 34 minutes, 14 seconds solution just in time solutions. So these customers are like puzzled right now that how you can provide the products which are competitive to India and China sitting in France. 34:26 34 minutes, 26 seconds So we have given them that these are the options and how do we meet these particular requirements sitting in France. So these 34:35 34 minutes, 35 seconds are now opportunities being explored with all these customers and the that's why I'm saying we have a huge 34:42 34 minutes, 42 seconds opportunity and some customers which are still observing because they want a sustenance you know each our uh major 34:50 34 minutes, 50 seconds customers do a financial audit. Now financial audit means if it is profitable or nonprofitable if the 34:57 34 minutes, 57 seconds nonprofitable are making losses they will immediately question how do you going to recover these things. So these 35:04 35 minutes, 4 seconds all activities with major clients are in process. So these these are big clients not small clients big big clients and global presence many entities globally 35:13 35 minutes, 13 seconds present. So they analyze. So this is a sustainance part. So this portion is right now shaping once we are in a turnaround and which I 35:22 35 minutes, 22 seconds am confident very soon it will be and then you will see the revenue growth everything. 35:29 35 minutes, 29 seconds I would like to add on to your point uh pratam sir I just I like to add on to sir's point some of you who might be looking at the consolidated uh statement 35:38 35 minutes, 38 seconds together you must have seen that the revenue of operations from previous quarter to this quarter has increased despite having a 15-day holiday in uh 35:47 35 minutes, 47 seconds December because Christmas holidays are a big uh festival in France and European countries because of which the plant is 35:54 35 minutes, 54 seconds shut down so despite having holidays we are having an improved turnaround and if you check on the employee benefit cost. 36:01 36 minutes, 1 second So we had a few of our long-term employees retiring this quarter. So when the employees retire, we have to have a 36:09 36 minutes, 9 seconds one-time cost which is to be given as per the European regulation rules. So these are the onetime costs which came into place. So you must see the figure 36:18 36 minutes, 18 seconds the substantial part of quarter uh expense is because of the one-time employee cost which you can see in the 36:24 36 minutes, 24 seconds figures in the uh consolidated financial result. 36:30 36 minutes, 30 seconds Okay. So, so, so whatever the pulse said that he was trying to suggest that the 36:37 36 minutes, 37 seconds company France business is trying to attract the new customer and when the new customers comes they do the due diligence technical as well as the 36:45 36 minutes, 45 seconds financial okay that's fine but what about the existing when we take over the any company there must be a some relation with the some customer and they 36:54 36 minutes, 54 seconds are supplying the goods the bearings or the product finished product to the someone that that client and remains 37:01 37 minutes, 1 second with the old old company. So that business should be continue and that when do we have when when we take over 37:11 37 minutes, 11 seconds the company was it the profitable or was it incurring the loss and we what out the loss making unit and we tried to 37:20 37 minutes, 20 seconds turn around that company. What is the status sir? guess is the company was making losses and the the previous 37:27 37 minutes, 27 seconds management was not interested in running it because they had no expertise in uh these type of fields. So that was the reason it was under insolvency. 37:38 37 minutes, 38 seconds We were confident. See, it's very simple. The customers which were there in 23, 37:45 37 minutes, 45 seconds the value, the business value was around 80 million around 8 to 8.5 million. 37:50 37 minutes, 50 seconds Business value, the revenue was 8 to 8.5 million in 23. Please mind 23 37:56 37 minutes, 56 seconds 24 you must have seen our figures went down drastically. Many of these customers they till 31st of January the 38:07 38 minutes, 7 seconds invoice is there on the 1st of February the invoice stop because the change of legal entity we had tried to explain to 38:15 38 minutes, 15 seconds all these customers that it's just change of legal entity from VG to SK no change no form change no man no 38:24 38 minutes, 24 seconds material no method everything is the same so when you have everything the same So why you are like 38:32 38 minutes, 32 seconds you know so they say it's legal so legal legality you need to have a uh financial audit quality audits 38:42 38 minutes, 42 seconds all the due diligence of the customers now these are big customers now they took lot of time 38:51 38 minutes, 51 seconds lot of time you can imagine a customers which is there from day one for certain products the validation is still on so 38:59 38 minutes, 59 seconds it's like that they were there on 31st of January. So their validation is still on. 39:06 39 minutes, 6 seconds Now when it's a Indian company, their expectations also are different. They want a better quality. They want a uh lesser cost. Okay, that's okay. It's a 39:15 39 minutes, 15 seconds customer expectation. You need to meet meet their requirement. So uh it's it's it's it's a challenge. Of course, it's a 39:22 39 minutes, 22 seconds challenge. Big challenge. But I'm very confident that green is very very close by. 39:28 39 minutes, 28 seconds One more point. I don't see uh the clients which we are working from France are all international clients. So we are 39:36 39 minutes, 36 seconds dealing with OEMs who are having multiple plants in multiple countries and continents and we as SKP France 39:43 39 minutes, 43 seconds before previously known as VGI were a global supplier. So when these sort of entity change comes in in it is uh a 39:51 39 minutes, 51 seconds standard procedure in OEMs and it is a regulatory requirement which we were not aware that is a regulatory requirement for these companies to do a entire 40:00 40 minutes revalidation and these sort of things take almost 1 year 1 and a half year of turnaround. So which is why sir is 40:08 40 minutes, 8 seconds explaining that this activity itself takes a long time because we are dealing with big customers who are international who are in itself an international OEM. 40:19 40 minutes, 19 seconds So, so, so can we understand that now that procedure is over and now the few customer have been acquired and there is 40:28 40 minutes, 28 seconds a some concrete order book or something like that because the sir is mentioning that he is very confident about the 40:35 40 minutes, 35 seconds turnaround but the every confidence must have a some basis of the confidence say are we empanel with the new customer or 40:44 40 minutes, 44 seconds we have got we got any confirm order or what is the status how what are the basis of that confidence because when we 40:51 40 minutes, 51 seconds acquired that company you at that time also you must have be confident about the business you answered your own 40:58 40 minutes, 58 seconds question I cannot commit this I cannot say something which without any proper 41:05 41 minutes, 5 seconds data all data is there I cannot share in public domain I can that's fine that's fine that's fine sir okay we have we have a confirm order 41:13 41 minutes, 13 seconds book full requirement even customer have very clear said that okay to a performance we will increase it to the 41:21 41 minutes, 21 seconds next level also. So these are the confidence we have. We also discussing with the many customers which were not 41:28 41 minutes, 28 seconds we were lost many years back also we are discussing and they have started talking also. So it's not that easy but okay. So 41:36 41 minutes, 36 seconds it's it's a very bright future for no looking back now. 41:43 41 minutes, 43 seconds So so my last question is related to the Indian business operation. See are we doing the any only job work or are we 41:50 41 minutes, 50 seconds selling the our the finished product in escap or are 41:56 41 minutes, 56 seconds we in our business model is B2B or B2C uh it's there is no jobing there's 42:05 42 minutes, 5 seconds nothing like that we sell product directly to our customers it's OEM tier one tier two like that 42:14 42 minutes, 14 seconds sir B2B B2B so We so we are supplying the product to either SK fair team can or like that that player only. 42:30 42 minutes, 30 seconds Okay sir. Thank you. Thank you. That's all from the my side. 42:35 42 minutes, 35 seconds Thank you. We'll take the next question from the line of Rah Rudra Rah. 42:44 42 minutes, 44 seconds Thank you for the opportunity sir. Uh is my voice audible? Yes, good. 42:50 42 minutes, 50 seconds Thank you. Sir, some questions on the France entity itself. Uh you said that uh in Q4 there's a lot of uh clarity 42:59 42 minutes, 59 seconds like how much the business you will get for the next year. So is it the nature of the business like by Q1 of the next 43:06 43 minutes, 6 seconds year you will have a decent clarity on how much the France will be contributing for the whole year? 43:12 43 minutes, 12 seconds Is it like that? Usually previous year Q3 and Q4 the customers will start finalizing their volumes their needs for 43:20 43 minutes, 20 seconds future. Okay. And how much they do want to do allocated to their suppliers. This is a common strategy adopted by most European customers. 43:31 43 minutes, 31 seconds Now there could be some seasonal changes plus or minus. Okay. But then more or less this is a strategy. So we have a 43:38 43 minutes, 38 seconds very clear visibility for Q for the financial 20 because there is calendar year. So for 26 we have very clarity as 43:46 43 minutes, 46 seconds to okay where do we stand? Okay. We could have more additions but usually no substraction. 43:54 43 minutes, 54 seconds I hope I'm clear. 43:56 43 minutes, 56 seconds Yes. So since we are already done with Q3 and halfway Q4 sir what kind of traction are we getting for calendar 44:03 44 minutes, 3 seconds year 26? as you said that's why I already explained that this is our focus in 26 calendar year we will 44:10 44 minutes, 10 seconds be green that's for very clear understood that's good to hear you said 44:17 44 minutes, 17 seconds uh it could take at least one year or maybe even two years and you're all you're fine with that on ramping up the France business when you say two years 44:27 44 minutes, 27 seconds will we achieve the 16 million levels in two years is that what you meant no no no it's not that easy. It's not 44:34 44 minutes, 34 seconds that easy. See, you have a global challenges. Now, u you have all these 44:41 44 minutes, 41 seconds customers, majority of that is lost to very cheap imports. when it's a cheap imports 44:48 44 minutes, 48 seconds uh manufacturing in a country where high compliance is there high compliance cost is there you still need to reach a very 44:56 44 minutes, 56 seconds high of of productivity and meet meet the the cost requirement because these are the customers with very high volumes 45:06 45 minutes, 6 seconds very very high volumes so they are very cost conscious so uh to reach to that particular level we 45:14 45 minutes, 14 seconds may take little more time may I'm not sure about the timeline but our focus is that you understand there are two things 45:22 45 minutes, 22 seconds one is you give up and one is you focus and you try to deliver the best possible 45:29 45 minutes, 29 seconds so this is the drive our focus is to beat uh achieve imports by manufacturing 45:37 45 minutes, 37 seconds in France only got it sir And sir, how is the business? 45:46 45 minutes, 46 seconds Like uh do we onboard a customer and eventually they give you more orders like we increase the wallet share with 45:54 45 minutes, 54 seconds them or whenever you onboard a customer you get a very large or order. So which one off is it? 46:01 46 minutes, 1 second Usually it is uh as I has already explained usually it is on initially small volumes then the the confidence 46:09 46 minutes, 9 seconds increases then a larger volume and a larger volume. How do you uh the customer test you? They give you higher 46:17 46 minutes, 17 seconds volumes. All of a sudden they will reduce your volumes. All of a sudden it's a usual systems you know they will test you the quality. They will check 46:26 46 minutes, 26 seconds how you perform it is just in time like that you know how do you perform and then it's a confidence pack. 46:35 46 minutes, 35 seconds So sir is it possible to disclose like when we acquired the France business how many customers did we had and what's the 46:43 46 minutes, 43 seconds status as of now? Ive already explained to you that value wise we had around 8 million just before 8 to 8.5 million 46:51 46 minutes, 51 seconds before we did acquisition in 23 they were something like this when we did a 46:57 46 minutes, 57 seconds acquisition post acquisition our re revenue was just 25% something like that 47:04 47 minutes, 4 seconds or even less probably so you can imagine number of customers lost so these customers are big customers so volume 47:12 47 minutes, 12 seconds value wise they're uh volumes are huge. These customers are still discussing as on date with us for 47:20 47 minutes, 20 seconds product validation, new generation requirement and we are discussing with them, pushing them, we welcome them that 47:27 47 minutes, 27 seconds you please visit us. You see the things what we are doing. It takes time but uh it's okay. It's going on. This process 47:35 47 minutes, 35 seconds is on. So our target first is to reach to the post acquisition hour level. 47:41 47 minutes, 41 seconds After that we have a target next target of reach to the 2010 levels when it was something like 156 million euros. 47:51 47 minutes, 51 seconds So value part I understand 8 million to 2 million the followers there but in terms of number of customers like you 47:58 47 minutes, 58 seconds said key now we are already discussing with those customers I'm assuming even if you crack them the order 48:06 48 minutes, 6 seconds exactly number of customers in public domain is that's okay with you uh all right sir all right uh I'll just 48:16 48 minutes, 16 seconds uh pivot to the standalone business sir uh quarter three the growth cost margins have taken a hit. 48:23 48 minutes, 23 seconds Could you explain why is that the case? 48:26 48 minutes, 26 seconds Uh see it could be little product shifts here or there but there is nothing which is model change or nothing like that you know everything is okay everything is 48:35 48 minutes, 35 seconds the same way it is it is that could be because of some product or something it could be a little shift 48:44 48 minutes, 44 seconds sir actually it's not that little since in quarter 1 and two we did 70% plus and 48:49 48 minutes, 49 seconds it's 58% this quarter so 15% is uh little substantial. So just wanted to get a better sense. 49:01 49 minutes, 1 second Yeah, it could be some item which could be of low value additions we could have added but because of that there could be 49:08 49 minutes, 8 seconds a little shift that is why the revenue increase is higher. 49:16 49 minutes, 16 seconds Understood sir and sir sustainable gross margins and a bida margins for standalone business I understand France 49:23 49 minutes, 23 seconds will we are still working on all of that but for standalone business what could be the sustainable levels 49:30 49 minutes, 30 seconds this is more or less going to be sustained more or less this is a sustainable there's no issue for that because our manufacturing activities our 49:39 49 minutes, 39 seconds cost everything is the same so there is no no change going to be Sir, I would need a number on that part 49:48 49 minutes, 48 seconds because as I explained the quarter volatility is there. So I can't uh put a finger on. So could you just give me a number? 49:57 49 minutes, 57 seconds You have to be you please uh send an email specific email asking for specific information. We'll reply to it. 50:07 50 minutes, 7 seconds Got it sir. Uh so last question on the QCO part. Since you said it's delayed, so what's uh going to be a strategy to 50:15 50 minutes, 15 seconds ramp up the plant that is having a low C? 50:20 50 minutes, 20 seconds See, see, QCO is government-driven. So, it is we cannot be dependent on something which is not in our hand. You 50:28 50 minutes, 28 seconds know, our strategy is very strict. Even if that would have implemented, it would have been a big big uh boost something 50:37 50 minutes, 37 seconds like that. If you are allowed not allowed to import immediately you need to find an alternative. Now this particular thing is not there with the 50:45 50 minutes, 45 seconds big importers. So it's very obvious that they are taking their own time you know we are not leaving our efforts or less 50:52 50 minutes, 52 seconds efforts like that. So we are focusing on these customers okay to get back to them focus on them okay so we provide and 51:01 51 minutes, 1 second they also know that okay it is delayed it is not cancelled it could be implemented any time then in that case they have no option so it's they are 51:10 51 minutes, 10 seconds also working jointly with us to that's why as we have already explained earlier these trials the product validation this 51:18 51 minutes, 18 seconds thing is going on so this is going on but it's very simple When you are under a pressure and when you under no pressure 51:27 51 minutes, 27 seconds the the timeline differs with the customers you understand because there is no priority and it becomes a 51:33 51 minutes, 33 seconds priority. So these two things are there sir at 23% are we breaking even on this plant the ball plant? 51:43 51 minutes, 43 seconds That's okay. Break even is not understood sir. Thank you. 51:52 51 minutes, 52 seconds Thank you Rudra. Uh we'll take the next question from the chat. Uh which is from Chachi Malo. Uh sir, what is our volume and realization for Q3 FI26? 52:08 52 minutes, 8 seconds It's the same question. I think it's better to ask for a email specific question because it's a pure numbers what they're asking. So uh let email to be sent to the company. 52:19 52 minutes, 19 seconds So we'll reply. 52:23 52 minutes, 23 seconds Okay sir. Sir there is no further questions would you like to give any closing comments? 52:30 52 minutes, 30 seconds I have raised two question in the chat box please you want me to read out it'll be better if you ask the question. 52:41 52 minutes, 41 seconds Actually I I forgot you know to this was in my list. I wanted to know the current local order book as well as the export 52:49 52 minutes, 49 seconds order book. Point number one. And point number two is IATF16949 certification was expired you know on 52:57 52 minutes, 57 seconds 2nd December 23. So have are we able to renew it? 53:03 53 minutes, 3 seconds Two questions. Current local order book current export order book and IF6949 certification. Why? I mean have we 53:12 53 minutes, 12 seconds renewed or are we able to renew it or any hurdles are there? 53:15 53 minutes, 15 seconds There is no IF certification. It's a regular procedure. We are IF certified company since past 5 to 7 years and as a 53:23 53 minutes, 23 seconds regular procedure we have renewed the certificate. It's just not it is renewed. It is renewed already. I couldn't find anywhere know that this information 53:30 53 minutes, 30 seconds not it's not updated in the public domain because it's a very regular activity. And uh regarding the order 53:37 53 minutes, 37 seconds book uh percentage we can say that the percentage of export as we mentioned in the call it is uh 5% of the overall 53:45 53 minutes, 45 seconds revenue is export. So we are expecting that 5% to increase further by 1 2% this quarter but besides that I cannot 53:55 53 minutes, 55 seconds disclose any order book for the entire financial year for the next all the companies all the companies are doing madam I'm not asking any confidential information 54:03 54 minutes, 3 seconds then that's a call which we have to take with the board which we will consider your suggestion thank you and sir some of the 54:11 54 minutes, 11 seconds I would like to add one thing we do not have exactly as customer this Customer order book is a closed order book. We 54:18 54 minutes, 18 seconds have open open order book with the customers you there's a difference between the order book what you are 54:25 54 minutes, 25 seconds talking these order book are the closed order book that means it's a specific orders we have the open orders with customers. 54:34 54 minutes, 34 seconds So it's the open orders and the monthly schedules. So this is a system we are we are following. So that is why when you 54:41 54 minutes, 41 seconds when you are asking this particular question is what is your order book because we get puzzled because our order books are very large very large in value 54:50 54 minutes, 50 seconds very large in but we get monthly schedules uh so we get monthly schedules that is what is important for us because order book could be very big but we have 54:59 54 minutes, 59 seconds a monthly schedules as for that we have to supply so there is no okay okay s I mean red contracts you're talking about I think right 55:07 55 minutes, 7 seconds contracts usually it's automotive to all automotive all major industries. Now when you have a specific supplier 55:16 55 minutes, 16 seconds dedicated supplier your sob is fixed number one this so could be 100% also and could be 50% also could be 75 55:24 55 minutes, 24 seconds depending on customer strategies. Okay number number two we have open order. So 55:32 55 minutes, 32 seconds these open orders could be of very large volumes very large uh values but that is 55:39 55 minutes, 39 seconds not important to us. what is most important to us how much every monthly schedules we get because this our sob is 55:46 55 minutes, 46 seconds fixed monthly schedule is fixed that way okay yeah yeah sir that's that's very nice thank you so much sir one of the some of the investor you say do you send us 55:55 55 minutes, 55 seconds email and you will reply so I will be missing those replies so can you ensure that this is where my questions also but I 56:02 56 minutes, 2 seconds did not raise so will I get those information see what is we can disclose we will definitely let you 56:10 56 minutes, 10 seconds No, whatever queries are answered which you are deferring and requesting emails I would like to know the answers. No, no. See, very simple. Whatever exact 56:20 56 minutes, 20 seconds figures he's ask, someone is asking what is I think the point that he's trying to make is uh can he get answers to the 56:27 56 minutes, 27 seconds other questions that you're also replying to others. 56:29 56 minutes, 29 seconds Perfect. Perfect. Because you you're deferring the answers by requesting for emails. That is little upsetting. But anyways, I mean you may be right. It's 56:37 56 minutes, 37 seconds it's a different issue. But being a I a large investor sir, let me tell you. I wanted to increase further quantity but I got you know I I lost confidence in 56:46 56 minutes, 46 seconds due to the lower performance. Now since you held the uh you declared the quarterly results I'm back to the seat 56:53 56 minutes, 53 seconds actually now for investing more. So for me it is very very important to know the whole thing you know. Thank you sir. 57:00 57 minutes Thank you Viml. We'll take one question from the chat from Mr. Anil Kumar Agalwad. Reasons for increase in expenses in consolidated P&L employee benefit expenses. 57:12 57 minutes, 12 seconds Correct. 57:14 57 minutes, 14 seconds Uh so what's what's the reason to drive up the employee benefit expenses? I think we've answered this question. 57:21 57 minutes, 21 seconds They there were employees which have retired after their tenure is over. So that's a one time cost. 57:27 57 minutes, 27 seconds Okay. That is one. And secondly, once in a year like what we have in Diwali time, you know, we have a bonus and all right. 57:34 57 minutes, 34 seconds So similar thing is there in uh is Christmas and all it's there Diwali. 57:39 57 minutes, 39 seconds It's like that. So you have a additional cost of salaries for the December that is why and we are reporting now quarter 57:48 57 minutes, 48 seconds to quarter. So it's we are very transparent we are very open. So whatever is there it is shown now 57:55 57 minutes, 55 seconds quarter that particular quarter the last quarter Q4 for the calendar year you have all the bonus you also have the 58:03 58 minutes, 3 seconds employee cost which are retiring plus their benefits of retirement. So that is why the onetime cost is higher for 58:13 58 minutes, 13 seconds uh sorry for Q3 for our financial year. 58:20 58 minutes, 20 seconds Sure. We'll take the next question from Amish Kumar. Amish you can go ahead please. 58:25 58 minutes, 25 seconds Sir I am new to the company so forgive me for asking very simple questions. So this French acquisition you have done is 58:34 58 minutes, 34 seconds it for acquiring some new technology or for acquiring the customers itself because I can see that you are manufacturing balls and rollers they are 58:42 58 minutes, 42 seconds also into similar kind of business or is it that they also manufacture taper roller bearings taper rollers and also 58:50 58 minutes, 50 seconds outer or iners or something like that if you can give us some idea. No is this company uh the acquisition was with 58:58 58 minutes, 58 seconds multiple um thought processes one thought process was the business 59:07 59 minutes, 7 seconds overall business in European continent so you need to have a foothold in European continent number one number two 59:16 59 minutes, 16 seconds you need to add the customers which are in multi multiple continents with these customers you present them with two 59:24 59 minutes, 24 seconds sides of manufacturing one in India and one in Europe. So they these customers which were not our customers could be 59:32 59 minutes, 32 seconds bring to both India as well as to France. Second third the technology the 59:40 59 minutes, 40 seconds technology which is available over there many technology which is not available in India. So this is a technological transfer similarly 59:48 59 minutes, 48 seconds being Indian I am very proud to say that it's not like that we are very G. So there are we have certain advantages which over a period of time we have 59:56 59 minutes, 56 seconds gained. So we also transfer our technology to them. Number four the raw 1:00:03 1 hour, 3 seconds material the processing which we do in in India we can export to them and we can reduce the cost over there. Number 1:00:12 1 hour, 12 seconds five the toolings and all what we have the proficiency in manufacturing which we have developed over a period of time in India we can have a cheaper man 1:00:20 1 hour, 20 seconds cheaper cost over there of manufacturing number six number of assets what we 1:00:27 1 hour, 27 seconds acquired when doing a French it's huge it's huge huge huge it's not small it's 1:00:34 1 hour, 34 seconds huge and these particular assets to acquire is not that easy also number 1:00:41 1 hour, 41 seconds When we did acquisitions before SKP, there were eight or nine leaders. All of them want to break the company and take 1:00:49 1 hour, 49 seconds away everything. We were the only company to run the company because we do not believe in breaking. We belong we believe in building. 1:00:59 1 hour, 59 seconds Number eight, when we did the acquisitions, our focus was very clear as to the customers to whom we are 1:01:06 1 hour, 1 minute, 6 seconds presenting SKP as a a global manufacturer with a site in India with a backup from India and present over there in their 1:01:15 1 hour, 1 minute, 15 seconds front. All the customers should stay with us. 1:01:19 1 hour, 1 minute, 19 seconds So okay, this particular strategy, a little strategy has not exactly given us the fruits but it's okay. We are 1:01:27 1 hour, 1 minute, 27 seconds confident these customers because they are still watching us. They are in still in touch with us. These customers will very soon will come back and then we 1:01:35 1 hour, 1 minute, 35 seconds have a different uh situation. I hope I have very clarified about what our branch entity acquisitions what was strategy and what is our future plans. 1:01:47 1 hour, 1 minute, 47 seconds Got it sir. So my next question in in our standalone business do we start our process from heat treatment or is it just the grinding that we do for balls and rollers? 1:01:56 1 hour, 1 minute, 56 seconds We are end to end we are the end to end manufacturers. We do everything probably in India we are the only 1:02:05 1 hour, 2 minutes, 5 seconds company which we which is totally end to end which are dedicated vendors to even 1:02:12 1 hour, 2 minutes, 12 seconds supply raw material to us as per our specifications. So please understand we are the only company in India also probably very few companies globally which are end to end. 1:02:23 1 hour, 2 minutes, 23 seconds So you take the wire rods do the cold heading you do the rough grinding you do the dedicated also to do a wire processing please understand. 1:02:33 1 hour, 2 minutes, 33 seconds Got it sir. Thank you so much. 1:02:35 1 hour, 2 minutes, 35 seconds Thank you. We'll take the last question from the day from Pankit Sha. Pankit you can go ahead. 1:02:41 1 hour, 2 minutes, 41 seconds Uh thanks a lot for followup. Uh sir I have a question regarding our uh roller plant. I believe uh we were doing 1:02:50 1 hour, 2 minutes, 50 seconds expansion and we were installing new machines for rollers right. So uh have we uh commissioned these uh new machines 1:02:59 1 hour, 2 minutes, 59 seconds and have we started commercial supply from uh new machines or uh where are exactly 1:03:06 1 hour, 3 minutes, 6 seconds where do we stand exact is like this it's a it's a peace meal additions you know it's we are at suppose level of 1:03:15 1 hour, 3 minutes, 15 seconds x so we do not become 2x overnight in our case it's not like that so we have a primal additions of each steps. So we 1:03:25 1 hour, 3 minutes, 25 seconds have a bottleneck of some particular. So we establish manufacturing capacities in those getting established put operational that. So you we are adding 1:03:34 1 hour, 3 minutes, 34 seconds to every steps some capacities are added. That is why you must have seen over one year back maybe two years back the capacities and the current 1:03:42 1 hour, 3 minutes, 42 seconds capacities level. Okay. That is why you have the revenue growth also. We are adding continuously. So some some things 1:03:51 1 hour, 3 minutes, 51 seconds going to be added in this particular quarter. something is going to be added in next quarter. Everything continuously addition. We have a good booking. We 1:03:59 1 hour, 3 minutes, 59 seconds have a good customer demands. There is no problem. We have a very good export potential. Very very good export potential. And we are just focusing 1:04:08 1 hour, 4 minutes, 8 seconds right now because we don't want to have anything you know you eat you eat something which you cannot chew. We don't want to do this particular thing. 1:04:16 1 hour, 4 minutes, 16 seconds We believe in let it go slow but it should be steady and it should be very long term. 1:04:22 1 hour, 4 minutes, 22 seconds Okay. It's it's great to know sir because I believe we were already uh utilizing more than 90% of our plant 1:04:30 1 hour, 4 minutes, 30 seconds right so so that is the reason uh I wanted to know you must have seen our figures to two years back and probably our figures now 1:04:37 1 hour, 4 minutes, 37 seconds you will see the there is a difference and still utilization level is the same. 1:04:44 1 hour, 4 minutes, 44 seconds Yeah. Yeah. Thanks. Thanks a lot sir and all the best for the future. 1:04:50 1 hour, 4 minutes, 50 seconds you uh thank you to all the participants and management for joining on the call. 1:04:55 1 hour, 4 minutes, 55 seconds Uh this brings us to the end of today's conference call. Thank you so much. Thank you everyone.