Solar Industries India Ltd — Q4 FY26

Solar Industries India Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=pFG0IIlqQ-Y Published: 1d ago

0:00 Ladies and gentlemen, good day and welcome to the Solar Industries Q4 FY26 earnings call hosted by Motilar Oswal Financial Services. 0:11 11 seconds As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation 0:20 20 seconds concludes. Should you need assistance during this conference call, please signal an operator by pressing star then 0:27 27 seconds zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over 0:34 34 seconds to Miss Tina Virmani from Motilan Oswal Financial Services. Thank you and over to you ma'am. 0:42 42 seconds Yeah, thanks. Uh good evening everyone. 0:45 45 seconds On behalf of Motila Loal Financial Services, we thank the management of Solar Industries to give us an opportunity to host the call. From the 0:53 53 seconds management team, we have Mr. Manish Noal, managing director and CEO, Mr. Suresh Man, executive director, Mr. 1:01 1 minute, 1 second Milind Deshmuk, executive director, Mr. Manish Aaral, joint CFO, and Mrs. 1:07 1 minute, 7 seconds Shallini Mandana, joint CFO. Over to you, Mr. Manish for your opening remarks. And after that, we will open the floor for Q&A. 1:16 1 minute, 16 seconds Thank you Tina. 1:18 1 minute, 18 seconds A very good evening to all our dear stakeholders and well-wishes. 1:22 1 minute, 22 seconds My name is Shall and I would like you all welcome you all to Solar Industries fourth quarter and yearly conference call of FY26. 1:34 1 minute, 34 seconds This call recording including the transcript will be available on the site. The financial statement, quarterly 1:41 1 minute, 41 seconds fact sheet, investor presentation and press releases are all available on the website. To begin with, I'd like to 1:49 1 minute, 49 seconds remind you all that during this call, we might make projections or other forwardlooking statements regarding future event and about the future 1:59 1 minute, 59 seconds financial performance. Please remember that such statements are only predictions. actual events or results 2:06 2 minutes, 6 seconds may differ materally and our website will be updated with all the relevant information from time to time. Now I would request solar MD and CEO Mr. 2:18 2 minutes, 18 seconds Manish for his open remarks on the company's performance followed by Q&A session. Over to you sir. 2:27 2 minutes, 27 seconds Dear investor a very good evening. I'm Manish Nual, managing director and CEO 2:35 2 minutes, 35 seconds welcomes you all to Solar Industries India Limited earning for the fourth quarter and financial year ended 31st March 2026. 2:46 2 minutes, 46 seconds We're happy to report that our company has delivered landmark performance clocking its highest ever quarterly and 2:55 2 minutes, 55 seconds annual sales of rupes 3,53 crores and 9,838 3:02 3 minutes, 2 seconds crores respectively despite no growth in domestic mining markets. 3:08 3 minutes, 8 seconds We have also achieved the highest ever quarterly ADIA and PAT at 870 crores and 3:16 3 minutes, 16 seconds 556 crores registering a growth of 59% and 61% yearonear and highest ever 3:26 3 minutes, 26 seconds quarterly equity and back at 2750 crores and 1,737 3:33 3 minutes, 33 seconds crores resisting a growth of 35% each in the year FI26. 3:42 3 minutes, 42 seconds We achieved our AITA margins at around 28.5% for this quarter and 27.95% 3:51 3 minutes, 51 seconds for the whole year. These numbers were propelled by strong sales from international and defense business. 4:00 4 minutes Relentless focus on our high value chain products and operational efficiencies. We are investors. 4:09 4 minutes, 9 seconds Our defense business has nearly doubled delivering outstanding growth with 4:15 4 minutes, 15 seconds revenue searching 134% in Q4 and 94% 4:21 4 minutes, 21 seconds for the full year to reach a record high of 1,08 crores and 2,634 crores respectively. 4:33 4 minutes, 33 seconds Robust sales pipeline coupled with coupled with 4:43 4 minutes, 43 seconds coupled with strong execution capabilities position well to sustain this momentum and we should cross the 4:51 4 minutes, 51 seconds trend revenue of rups 4,500 crores in 27 4:58 4 minutes, 58 seconds solar the international business has performed very well And as a result, we registered a growth of 32% yearonear. 5:08 5 minutes, 8 seconds Solar's ability in establishing strong relationship with with its customers as a trusted partner underscores company's 5:17 5 minutes, 17 seconds strength in identifying and capitalizing the global opportunities. Our intent expansions into northern and western 5:27 5 minutes, 27 seconds parts of India paired with upcoming plants in the east and south India as well will definitely help us to strengthen our domestic footprints. 5:38 5 minutes, 38 seconds This expected growth in domestic market is further complemented by our strong momentum in international business. 5:47 5 minutes, 47 seconds Additionally, the defense vertical is steadily maturing into a powerful standalone platform driving deep tech 5:56 5 minutes, 56 seconds innovations enabling significant future growth potentials. 6:04 6 minutes, 4 seconds In FY26, we have delivered 30% revenue growth and surpass our annual AITA 6:11 6 minutes, 11 seconds guidance. This performance reinforces a confidence in the scalability of our business 6:20 6 minutes, 20 seconds backed up by a strong order book of rupees 21,300 crores and robust opportunities across all verticals. 6:31 6 minutes, 31 seconds We are targeting to achieve a revenue of 14,000 crores in FI27 while maintaining current margins. 6:42 6 minutes, 42 seconds To support these growth plans, the company has invested 2,700 crores over 6:48 6 minutes, 48 seconds last two years and entering into FI27 with a plan annual capex of 2,50 crores. 6:58 6 minutes, 58 seconds The company has proposed a dividend of rupees 11 per share for FI 2627 7:05 7 minutes, 5 seconds up from rupees 10 per share in the previous year reflecting confidence in its financial health and commitment to 7:15 7 minutes, 15 seconds the shareholders. I sincerely thank all our esteemed investors and analysts for joining us today. Thank you for your 7:24 7 minutes, 24 seconds continued trust and partnership. Now I will hand over uh the system to my Shahimi Mandana for presenting the credentials in detail. 7:37 7 minutes, 37 seconds Thank you sir. 7:39 7 minutes, 39 seconds Coming to the results we have shared the investor presentation carrying all the necessary information for your account 7:46 7 minutes, 46 seconds time par. Key highlights for quarter 4 and per year FY26 are as sales. The 7:54 7 minutes, 54 seconds consolidated revenue for the quarter is 3,53 cr versus 2,167 8:01 8 minutes, 1 second cr and for the year it is 9,838 cr versus 7,540 8:09 8 minutes, 9 seconds cr. The percentages of the sector in the customer basket are as follows. CI is 8:16 8 minutes, 16 seconds down in the basket to 9% from 13%. Non and institutional is at 10% from 14%. 8:24 8 minutes, 24 seconds Housing and infra is at 15% from 15% in the basket. International business is at 8:31 8 minutes, 31 seconds 33% from 36% and defense had massively increased to 33% from 20% and has 8:39 8 minutes, 39 seconds crossed the 4 mark reaching,08 cr during the quarter. And in terms of percentage 8:45 8 minutes, 45 seconds it is up 134% yearon year business in the year the C in the basket is down to 8:53 8 minutes, 53 seconds 9% from 13% non and institution is at 12% from 15% housing and ina is at 12% 9:03 9 minutes, 3 seconds from 15% in the basket international business is almost similar at 39% from 9:09 9 minutes, 9 seconds 38% and defense increased magnificently to 87% from 18%. And in number terms, it 9:18 9 minutes, 18 seconds has almost doubled to 3,634 crores from 1,355 crores and up by 94%. 9:27 9 minutes, 27 seconds Round materials raw material consumption for the quarter stands at 1,522 K versus 1,178 9:36 9 minutes, 36 seconds K and at T it stands at 4,894 K versus 3,979 K. 9:45 9 minutes, 45 seconds The employee cost for the quarter stands at 253 cr versus 174 cr and for the year it stands at 845 cr versus 600 crores. 9:57 9 minutes, 57 seconds The other expense for the quarter stands at 453 crores versus 275 cr and further 10:03 10 minutes, 3 seconds year stands at 1477 crores versus 1,1 cr. 10:10 10 minutes, 10 seconds Abita we reported highest EIA numbers for the quarter at 870 K versus 546 10:17 10 minutes, 17 seconds crores and for the year the highest EIA stands at 2750 K versus 231 K. 10:26 10 minutes, 26 seconds The interest and finance cost stands at 41 cr versus 29 crores and for the year it stands at 134 cr versus 117 cr. 10:38 10 minutes, 38 seconds Depreciation cost stands at 71 crores versus 50 crores for the quarter and for 10:44 10 minutes, 44 seconds the year it stands at 251 cr versus 182 crores. Profit support tax stands at 759 10:51 10 minutes, 51 seconds crores versus 464 crores and for the year it is at 2365 cr versus 1739 cr. 11:01 11 minutes, 1 second The highest ever 40 pack stands at 556 crores versus 346 crores and the for the 11:07 11 minutes, 7 seconds year it stands at 1,737 crores versus 1,288 crores. These were the updates for the 11:17 11 minutes, 17 seconds quarter and the year. This is all from my side and now we'll be happy to take any questions, comments or suggestions 11:24 11 minutes, 24 seconds that you have may have. Over to you Tina. We can now open the floors for Q&A. 11:35 11 minutes, 35 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star 11:42 11 minutes, 42 seconds and one on their telephone keypad. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use 11:51 11 minutes, 51 seconds handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 12:02 12 minutes, 2 seconds Our first question comes from the line of Amit Digshit with Goldman Sach. Please go ahead. 12:09 12 minutes, 9 seconds Uh yeah. Hi, good evening everyone and uh congratulations for a very robust set of numbers and indeed a very strong guidance. Uh I have couple of questions. 12:20 12 minutes, 20 seconds The first one is on uh international business. Now if you look at international business the growth has been very good this year. Uh just wanted 12:28 12 minutes, 28 seconds to uh get a sense on you know the new geographies like Zimbabwe uh that we entered this year and uh some of the and 12:37 12 minutes, 37 seconds what are the other key geographies we might be thinking also uh what uh I mean what all geographies are we expecting 12:44 12 minutes, 44 seconds more traction in uh this year FI27 that is my first question sir. Uh thank you Amit. 12:53 12 minutes, 53 seconds Uh you are very right that international business is doing quite good and uh like I said in this year the international business has grown by uh 30%. 13:07 13 minutes, 7 seconds And in the next year which is 27 we are expecting apart from defense uh domestic and international both should be very good. 13:18 13 minutes, 18 seconds So as far as new territories are concerned, mainly we are focusing on African continent and that's the market 13:25 13 minutes, 25 seconds where we are expanding every year. So like I have explained in my previous calls uh we have created South Africa as 13:34 13 minutes, 34 seconds one of the hubs for our future expansions and we are we have already set up the facilities apart from South 13:42 13 minutes, 42 seconds Africa and Zambia Tanzania and we have also started Zimbabwe facility and in the West Africa we have a Nigeria as a 13:52 13 minutes, 52 seconds base and from there we have started our operations in Ghana and in this Here we are expecting to start operation in 14:00 14 minutes Chira and in Turkey we have a strong base and we have started Kazakhstan plant. So similarly we are trying to 14:09 14 minutes, 9 seconds expand uh in all those markets which helps us to utilize the facilities which 14:16 14 minutes, 16 seconds we have set up in in these major markets and as far as Southeast Asia is concerned we have a small facility of 14:24 14 minutes, 24 seconds Thail and Indonesia. Australia is also going to start very soon. 14:31 14 minutes, 31 seconds Great. Very clear. Uh the second question is essentially on defense. Now defense guidance has been I mean is very very robust after a very good quarter. 14:41 14 minutes, 41 seconds Uh now a couple of uh clarifications or you know little bit more color that I would request from you in this regard. 14:48 14 minutes, 48 seconds So one is about Bharavastra. I mean the counter drone systems have been in slavery uh I mean for uh for some time 14:55 14 minutes, 55 seconds now. Uh so just wanted to get an understanding where we are on that frontally test pending and when can we expect the order. Similarly the progress 15:04 15 minutes, 4 seconds on uh 155 dimensions where we are with respect to test and uh and other necessary certifications. 15:13 15 minutes, 13 seconds So normally we would like to avoid all such uh product specific questions due to variety of reasons but Margo is a 15:22 15 minutes, 22 seconds strategic item for us and we are developing this product from last couple of years and this product will be one of 15:31 15 minutes, 31 seconds the very few uh companies in the world who will be developing such kind of system. So the product development is in 15:39 15 minutes, 39 seconds a final stage but still such kind of product development takes a longer time than what we expect but uh definitely we 15:48 15 minutes, 48 seconds should be able to with complete all the trials in this calendar year. So this is the status of bar and as far as 155 15:58 15 minutes, 58 seconds products are concerned we have already started supplying all the raw material intermediates going into this product. 16:05 16 minutes, 5 seconds Our bottling facility which will help us to produce the complete 155 mm product 16:14 16 minutes, 14 seconds uh should be should be able we should be able to finish in next couple of quarters but definitely it will take another 3 to 16:23 16 minutes, 23 seconds four months time then we will start supplying the complete round at 155. 16:30 16 minutes, 30 seconds Very comforting sir. Uh thank you so much and all the best. Thank you. 16:36 16 minutes, 36 seconds The next question comes from the line of ome with Namura India. Please go ahead. 16:46 16 minutes, 46 seconds Yeah. Hello sir, good evening and uh congratulations for a very good set of numbers. So my first question is pertaining to our exports business. Uh if I look at our historical trajectory. 16:57 16 minutes, 57 seconds I think uh we have seen a stronger growth in between FI19 to 23 when our business uh actually grew by almost uh 17:07 17 minutes, 7 seconds 3.5x in terms of topline. Uh then we had almost more of a flattish growth between 23 to 25 and again I think it looks like 17:16 17 minutes, 16 seconds with 32% kind of a growth in 26 uh growth uh is looking very stronger on the export side. So I just want to understand how big this opportunity is. 17:27 17 minutes, 27 seconds Uh probably 2 three years down the line again can we expect uh uh closer to 2 3x kind of jump in terms of topline for our 17:35 17 minutes, 35 seconds export business and to achieve these kind of uh growth opportunities. What kind of investment that we can expect 17:42 17 minutes, 42 seconds from you in terms of uh medium-term uh both on capacity expansion as well as on uh client traction side. 17:51 17 minutes, 51 seconds Yeah. Thank you very much. Uh yeah you are right that if you look at 2015 number the export and overseas was 18:00 18 minutes around 400 crores and that has reached to almost 800 crores and there we hover around for almost 3 to four years right 18:09 18 minutes, 9 seconds from 2021 to almost 2018 till 21 we were in that range of 800 crores and after 18:18 18 minutes, 18 seconds that it started picking up. So the point was that during that period we were setting up the green field facilities 18:27 18 minutes, 27 seconds qualifying ourself into the overall mining procurement system. So that was the key period and after that the sales 18:36 18 minutes, 36 seconds from uh our exports and overseas started picking up especially from 2022. So that was the year when it has reached to 18:44 18 minutes, 44 seconds 1,400 crores and now it has crossed almost 3,800 crores and this year also we are expecting a growth of around 30%. 18:54 18 minutes, 54 seconds So we believe that there are plenty of opportunities uh for us in the international market but it will be very 19:01 19 minutes, 1 second difficult for us to uh give any trajectory uh specifically in numbers of how much uh how much multiple we can 19:10 19 minutes, 10 seconds grow how much times we can grow from this base but I feel that u since international markets are growing at 2 19:19 19 minutes, 19 seconds to 3% that we expect that volume term should we should be able to grow comfortably at around 10%. And in value 19:27 19 minutes, 27 seconds terms we should do at around 15%. But this year definitely because of the uh rise in commodity prices will help us to 19:36 19 minutes, 36 seconds have more line. So that's why we are bullish and from the next year we are expecting a growth of around 30%. 19:47 19 minutes, 47 seconds Got it sir. So just one clarification if you can uh give us uh some understanding about market share that you have in uh key markets in export region. 19:59 19 minutes, 59 seconds Uh as of now we don't have that kind of visibility. 20:05 20 minutes, 5 seconds Okay. Okay. So my second question is if I exclude your uh target growth on exports and defense side uh domestic uh 20:13 20 minutes, 13 seconds looks like is expected to see about 35% kind of growth for 27 which is more of a implied growth from your guidance. So uh 20:22 20 minutes, 22 seconds is it on the account of purely low base where 26 was also impacted here from the monsoon and apart from that probably 20:31 20 minutes, 31 seconds higher traction on infra and uh coal volume side that you are expecting in 27. 20:39 20 minutes, 39 seconds Yeah. So for the next year likewise we have mentioned that we are targeting 14,000 cr revenue and if you take the 20:47 20 minutes, 47 seconds difference out of that total number then it is around 9,500 and like I said domesticity 20:54 20 minutes, 54 seconds international combined together we should be able to grow plus 30%. So out of this 30 32% or 33% growth we 21:04 21 minutes, 4 seconds expect that 10 to 15% should come from volume growth and around 20% 18 to 20% 21:13 21 minutes, 13 seconds should come from the price rise. So that is mainly because of the impact of the higher crude or gas prices on the down uh upstream products or downream lines. 21:25 21 minutes, 25 seconds As far as the demand in the domestic market is concerned and last year it was a totally flat uh growth market or you 21:33 21 minutes, 33 seconds can say the so the removal in coal India singi and private coal mine combined together was on a negative side but 21:41 21 minutes, 41 seconds despite of that we managed a decent growth of around 4% in value terms and this year we expect that because of the 21:51 21 minutes, 51 seconds pressure in the market where people would like to shift from the diesel, petrol or generated products to the uh 22:00 22 minutes electricity based products. So that will definitely uh help the growth in the coal mining sector and since last year 22:08 22 minutes, 8 seconds was the bottom out kind of situation for OB removal section. So this year we expect uh the demand should pick up. 22:20 22 minutes, 20 seconds Understood. Understood. So my last question on the competition side uh we are hearing about probable entry of 22:26 22 minutes, 26 seconds Kalani group into exclusive business. So any kind of thought process here? Uh I mean uh do you see incremental 22:34 22 minutes, 34 seconds competition because of this? Uh and and especially if you look at I think defense because they were already 22:40 22 minutes, 40 seconds present uh in this business in form of uh guns and missiles probably uh any kind of uh color over here uh in terms 22:48 22 minutes, 48 seconds of competitive intensities uh you are seeing increasing in the domestic market. 22:54 22 minutes, 54 seconds So the first point is definitely I would not like to comment on the competition side or competitive side but it's a 23:01 23 minutes, 1 second matter of fact that solar solar has risen its base from 1996 where it was a small player in the 23:10 23 minutes, 10 seconds global exclusive market and we have compete with the world number one number two in the markets and we have increased 23:17 23 minutes, 17 seconds our presence. So from competition side we are not afraid from anyone but market opportunities are immense where 23:25 23 minutes, 25 seconds everybody will have its own pile. We cannot say that we will have a 100% market share and that is not our target 23:32 23 minutes, 32 seconds also and the way we are expanding it is not the only product which we are working into. We are not a hardware 23:40 23 minutes, 40 seconds company also. We are developing integrated products. We are expanding our technology footprints and we need to 23:47 23 minutes, 47 seconds offer many advanced technology solutions for the border security. 23:54 23 minutes, 54 seconds Understood sir. Thank you. Thank you so much for these answers and all the very best. 24:02 24 minutes, 2 seconds The next question comes from the line of Vikas Singh from ICICI securities. Please go ahead. 24:09 24 minutes, 9 seconds Good evening sir. Thank you for the opportunity and congratulation on a very good set of number despite challenges. 24:15 24 minutes, 15 seconds Now my first question pertains to since our defense mix is improving in the overall phase while we are still giving 24:22 24 minutes, 22 seconds the guidance margin guidance kind of a intact versus last year. So is it some of the item where the cost inflation 24:31 24 minutes, 31 seconds pass on would be difficult and that's why overall margin has failed or we traditionally doing a conservative estimate at this point of time. 24:46 24 minutes, 46 seconds As far as margins are concerned, you are aware that the prices of all the commodities has gone up and uh 24:56 24 minutes, 56 seconds definitely passing on the same increase sometime is difficult but we have increased the prices and there are rise 25:04 25 minutes, 4 seconds and fall calculations already in place in our contracts. So that will take care of the actual price rise. But if you 25:12 25 minutes, 12 seconds look into the overall margin definitely there will be some little bit impact. 25:18 25 minutes, 18 seconds But since our defense is picking up international is also doing very good. 25:22 25 minutes, 22 seconds So we should be able to maintain the current AITA margins. 25:27 25 minutes, 27 seconds No sir sir. So my second question is the domestic exclusive market. Obviously we have added a lot of capitalities and 25:35 25 minutes, 35 seconds eyeing a market share gain. Is it uh basically through the new products because segments remain the same or the 25:43 25 minutes, 43 seconds user industries are limited in a way and none of them are growing at 10 or 12%. 25:49 25 minutes, 49 seconds So just wanted to understand this market share gain strategy how we are actually targeting that. 25:56 25 minutes, 56 seconds So it is not a straightaway market gaining strategy. uh over last say 10 12 26:03 26 minutes, 3 seconds years uh we were expanding our facilities at our core plant which is at NA which make package explosives and 26:11 26 minutes, 11 seconds initiating systems but as we have become a global player so capacity utilization level has gone up at the same time if 26:19 26 minutes, 19 seconds you look into the uh logistic cost which comes on the explosives it is a wise step for us to expand outside NATO 26:28 26 minutes, 28 seconds that's why we have acquired a company in northern part of India. At the same time, we have just uh almost finished 26:36 26 minutes, 36 seconds the mega expansion in western part of India and similarly we are going to expand our base in Orisa and uh 26:46 26 minutes, 46 seconds Telangana markets Andhra Pradesh. So this is a key reason. Second is as you are near to the customer definitely uh 26:54 26 minutes, 54 seconds gaining or servicing the customer is always better and that helps us to uh grow or grab the uh market growth in 27:04 27 minutes, 4 seconds those markets. So that's a key point. 27:09 27 minutes, 9 seconds Noted sir just uh one last question uh in terms of this quarter had we had any inventory gains in our overall numbers 27:18 27 minutes, 18 seconds or it's the natural kind of the margin which we were expecting. 27:24 27 minutes, 24 seconds So definitely whenever Kaiser goes up uh we have inventories like in this quarter 27:31 27 minutes, 31 seconds uh our inventory was more than what we normally carry with variety of reasons and definitely we will have a inventory 27:39 27 minutes, 39 seconds gain in the coming quarter but at the same time this is very normal for our kind of industry and since price goes up 27:47 27 minutes, 47 seconds by example $200 that we will get only uh the price escalation based only for uh 27:54 27 minutes, 54 seconds 60% of the total increase. So that will take care of only the price increase. But there are certain contracts where we can 28:03 28 minutes, 3 seconds pass on after a quarter. So those kind of situation we can easily uh absorb with having such kind of inventory 28:11 28 minutes, 11 seconds level. So definitely we are in a very good position to absorb these kind of shocks. 28:18 28 minutes, 18 seconds No doubt sir. And so next year capex if we can split between defense versus non-defense explosive that's 2,000 K 28:27 28 minutes, 27 seconds plus capital like we always say that for us uh our business is one and uh next year we are 28:36 28 minutes, 36 seconds going to invest around 250 crores and we always channel analyze the capex program 28:43 28 minutes, 43 seconds based on the priority and the market opportunity available to us. 28:50 28 minutes, 50 seconds No sir. Thank you and all the best for your future. Thank you. 28:57 28 minutes, 57 seconds Thank you. The next question comes from the line of Deepain Bakil with Philip Capital. Please go ahead. 29:05 29 minutes, 5 seconds Thank you for this opportunity and congratulations on a great execution. So my first question is uh sir can you help us with the order book break up between 29:13 29 minutes, 13 seconds defense and non-defense for the 21,300 cr order book and what are the major orders which we can expect in near future any highlight on that. 29:26 29 minutes, 26 seconds Yeah, out of the total 21,000 crores of order book defense is around 18,000 crores and non-defense is around 3,000 29:35 29 minutes, 35 seconds crores and out of these total defense 18,000 crores order book and mainly the 29:41 29 minutes, 41 seconds biggest order was from Paka and just all are the small small raw material and intermediate goods for the Indian 29:49 29 minutes, 49 seconds markets and we have also received plenty of orders uh from the international markets. 29:55 29 minutes, 55 seconds And as far as new orders are coming, yes, we are in a uh final stages of re receiving orders for the similar 30:04 30 minutes, 4 seconds products and we are also expecting orders from Pinata uh series of products that is in the discussion stage. We are in negotiation but that takes time. 30:17 30 minutes, 17 seconds Got it sir. So my second question is I want to understand uh the new product and development which are happening at solar. So considering that a lot of so 30:26 30 minutes, 26 seconds can you help us understand which which are the new products which will are on the advanced stages of finalization in terms of development and can come into 30:34 30 minutes, 34 seconds your product portfolio soon and which are in the early stages. 30:39 30 minutes, 39 seconds So like I say it is not wise on our part to share the program wise progress and 30:45 30 minutes, 45 seconds status but definitely uh the products on which we are working very closely and 30:52 30 minutes, 52 seconds which are in the final stages is one of them is a barbwire which is a counter grain product. There are multiple 30:59 30 minutes, 59 seconds options within the loin ammunition those are also in the pipeline. Apart from these two like I said 155 mm complete uh 31:09 31 minutes, 9 seconds round of ammunition that is also in the last stage of uh complete trials. So once we have finished like I said we 31:17 31 minutes, 17 seconds have already started making the propulence for these products which is large caliber ammunitions. Now we are 31:25 31 minutes, 25 seconds going to make a complete round and supplier for the qualification. So these are the key products apart from many others which are in the design and 31:33 31 minutes, 33 seconds development part and that is not wants to explain the exact status for each product. You can also uh since the argu 31:43 31 minutes, 43 seconds is developing many of the products and we are also partnered with those programs but these program takes time 31:50 31 minutes, 50 seconds and we will definitely share the progress on key milestones. 31:57 31 minutes, 57 seconds Got it sir. Last small followup. So you had like medium caliber ammunition facility you had recently commissioned. 32:03 32 minutes, 3 seconds So is it operational now or we are still awaiting some certification or something. So can you share an update on that? 32:10 32 minutes, 10 seconds Uh that is already commissioned and uh we are starting supplying the products for qualification and once we qualify we 32:18 32 minutes, 18 seconds will definitely receive orders for those products. Got it sir. That's all from my side. 32:25 32 minutes, 25 seconds Thank you so much and all the all the very best for 24. Thank you. 32:31 32 minutes, 31 seconds The next question comes from the line of Bharat Sha with BCS Capital Ideas. Please go ahead. 32:39 32 minutes, 39 seconds Yeah. Hi Manish. Uh hearty hearty congratulations uh once again uh uh really standard 32:47 32 minutes, 47 seconds defining performance. Happy congratulations to you and the team. Thank you very much sir. 32:55 32 minutes, 55 seconds Love pleasure. Uh as I over dozen odd years that I've known you in a 33:03 33 minutes, 3 seconds very quiet and unassuming way uh from virtually a limited product in limited 33:11 33 minutes, 11 seconds geography. We have built a business which is multis sector multi- geography multi-roducts 33:18 33 minutes, 18 seconds and made it uh brick by brick a very resilient and strong business. So great 33:25 33 minutes, 25 seconds credit to the uh way the business has been built over a period of time. Uh I I remember 10 years back when defense 33:34 33 minutes, 34 seconds business seeds were being laid and there was nothing on horizon and how painstakingly efforts have been put to build the 33:42 33 minutes, 42 seconds business where it is today. So clearly uh kudos to you and the entire solar 33:48 33 minutes, 48 seconds team. Just uh one uh two questions. Um uh last year uh if you see uh the 33:57 33 minutes, 57 seconds financial year 2526, working capital is sucked away almost about 1,600 crores and uh in the year 34:07 34 minutes, 7 seconds prior to that working capital actually released about 800 crores. So from the cash flow operational cash flow almost 34:16 34 minutes, 16 seconds the swing of 2400 crores is being sucked away from the operational cash flow uh 34:24 34 minutes, 24 seconds in the uh in the 2526 any comments on that 34:31 34 minutes, 31 seconds first of all thank you very much for your kind appreciation and definitely in fact it's a responsibility of every 34:39 34 minutes, 39 seconds citizen and every company who work towards our national security and contribute for the country's prosperity 34:47 34 minutes, 47 seconds and progress. So thank you very much sir and as far as your working capital question will respond to that just a minute. 34:58 34 minutes, 58 seconds Hello good evening sir. Yeah good evening. 35:02 35 minutes, 2 seconds Yes yes yes sir. uh the working capital days uh had been in this year it had been holding around 9200 days till 35:10 35 minutes, 10 seconds quarter 3 but in quarter 4 so we working capital days have been increased primarily due to high inventory levels 35:18 35 minutes, 18 seconds they were mainly done to build them and mitigate the risk arising from geopolitical uncertaintities and to address the uncertainties and 35:26 35 minutes, 26 seconds maintaining supply chain continuity risk had been critical and as Munich had answered in the last call so obviously 35:34 35 minutes, 34 seconds These inventory uh levels will help us going forward so as to uh you know it 35:40 35 minutes, 40 seconds will disturb the uh revenues going ahead as well as the same will help in generating uh the margins 35:49 35 minutes, 49 seconds and as the yeah sorry please go ahead. 35:53 35 minutes, 53 seconds Yeah as the geopolitical situation prevailing we anticipate normalization in the working capital may be next important. 36:02 36 minutes, 2 seconds Sure. So this was a deliberate and strategic decision. It is not accidental. Yes. Yes. Correct. 36:09 36 minutes, 9 seconds Right. Right. And uh second if I see uh contribution of subsidiaries 36:18 36 minutes, 18 seconds uh to the earnings uh consolidated bottom line. Um uh I'm bit intrigued by 36:25 36 minutes, 25 seconds that. uh uh if you see our consolidated earnings for last year has been about 36:35 36 minutes, 35 seconds 185 rupees compared to 134 last year uh year 25 uh of which subsidiaries have 36:44 36 minutes, 44 seconds contributed 50 rupees in the current year compared to 45 in the year 36:50 36 minutes, 50 seconds preceding. of subsidiaries is uh badly aided to the uh consolidated bottom line 37:00 37 minutes uh which uh considering our export and international presence I'm surprised that how subsidiary may need relatively 37:09 37 minutes, 9 seconds more muted contribution of course in the fourth quarter it is uh uh dramatically improved their 11 rupees headcome 37:19 37 minutes, 19 seconds contribution of subsidiary uh to the fourth quarter result last year which has shot up to 19 rupees in 37:26 37 minutes, 26 seconds the current year but uh year in entirety 45 rupees earnings to 50 rupee earnings 37:33 37 minutes, 33 seconds of the subsidiaries I bit surprised by that. 37:38 37 minutes, 38 seconds So sir in the first half of this year uh since the defense business because defense our solar defense is a 37:46 37 minutes, 46 seconds subsidiary of solar industries and our international business are also subsidies. So if you look at the total 37:53 37 minutes, 53 seconds results definitely in the first 6 months results from the defense section as well as the international as far as margins 38:02 38 minutes, 2 seconds are concerned were subdued and it started improving from Q3 and in Q4 those started giving uh very good 38:10 38 minutes, 10 seconds results. So that's the key factor and no longer we believe that the subsidiary 38:17 38 minutes, 17 seconds levels whether it is in India or overseas all will start delivering very good performance and that's why despite 38:25 38 minutes, 25 seconds of a very high base of raw material prices which we are expecting in the 38:31 38 minutes, 31 seconds coming financial year we are pretty confident that we should be able to achieve the current leverage of a bit 38:39 38 minutes, 39 seconds margins. If you look at the 3 four years back period when the raw material prices has increased by 50 60 70% at those 38:48 38 minutes, 48 seconds times our AITA margins went down by around 2 to 3%. At this time we are confident that we should be able to 38:56 38 minutes, 56 seconds manage this situation with the help of improved business as well as international business. 39:03 39 minutes, 3 seconds Sure. No understood. uh which means basically volatile currencies and volatile geographies must have taken 39:11 39 minutes, 11 seconds away some part of the earnings I suppose in the last year and that is expected to be reversed right 39:19 39 minutes, 19 seconds absolutely sir that is the situation uh in all these market sometime there is a lack of payment sometime there's a buy 39:26 39 minutes, 26 seconds at a higher price but frankly speaking all such kind of uncertainties and if you handle it well converts into 39:35 39 minutes, 35 seconds an opportunity and we like all these things. So in nutshell sir overall as a business if you are able to uh achieve 39:44 39 minutes, 44 seconds around 27 28% of a margin despite of all the current prices is all because of the 39:52 39 minutes, 52 seconds effects which we have taken on all the fronts. 39:56 39 minutes, 56 seconds Absolutely the record is there to show it fully what you are seeing. A remarkable remarkable one and once again hearty congratulations. 40:06 40 minutes, 6 seconds Thank you sir. 40:10 40 minutes, 10 seconds The next question comes from the line of Sanjiv Zarbad with antique stock broking. Please go ahead. 40:18 40 minutes, 18 seconds Thanks for taking my question. Uh sir, our exports business has uh remained largely flattish on a sequential basis. 40:28 40 minutes, 28 seconds So are you seeing any headwinds on account of the developments in the west Asia regarding set and you know 40:35 40 minutes, 35 seconds logistics and would it be would it impact uh the uh you know growth in uh 40:42 40 minutes, 42 seconds Q1 range from international is around 40:49 40 minutes, 49 seconds thousand and last quarter also it was in a similar range so we expect uh improved performance even more than these levels. 40:58 40 minutes, 58 seconds in the coming quarter and sir uh my second question was regarding uh the uh impact of uh the 41:08 41 minutes, 8 seconds commodity prices and of course we have sensitive pricing today so and I think uh from our past action I think uh the 41:17 41 minutes, 17 seconds benefit of pricing comes so is it possible that uh we might see some impact on margins in Q1 and then maybe 41:26 41 minutes, 26 seconds in Q2 to the there could be some uh you know recoup of the margins. 41:33 41 minutes, 33 seconds So we run business as a whole and we don't wish on shortest to quarterly basis. So what guidance we have given uh 41:41 41 minutes, 41 seconds we are pretty optimistic that we should be able to achieve that. 41:47 41 minutes, 47 seconds And for housing uh because of the increase in prices of ammonium nitrate um would there be any demand impact in 41:56 41 minutes, 56 seconds the sense that you know buyers might wait for some time to prices to cool off and then start buying the high. 42:08 42 minutes, 8 seconds uh it is too early to comment on this because the impact of very high high prices of commodities 42:15 42 minutes, 15 seconds uh killing the demand. We need to wait for some more time get the clarity and the response of the uh people who are 42:24 42 minutes, 24 seconds going to consume these products. But by and large we are uh we do feel that there can be a demand contraction for 42:32 42 minutes, 32 seconds some couple of month but by and large on annual basis I don't see that. 42:39 42 minutes, 39 seconds Okay sir. Thanks. Thanks and uh great and congratulations on a great set of thank you 42:50 42 minutes, 50 seconds ladies and gentlemen that was the last question for today. I would now like to hand the conference over to the management for the closing remarks. 42:59 42 minutes, 59 seconds Hello. Yeah, we thank and for the call and all the investors at Medi for taking the call. Thank you. 43:09 43 minutes, 9 seconds Thank you ma'am. Ladies and gentlemen, on behalf of Motil Oswal Financial Services Limited, that concludes this conference call. Thank you for joining 43:16 43 minutes, 16 seconds us and you may now disconnect your lines.