Tejas Networks Ltd — Q4 FY26

Tejas Networks Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=ezUjUuREeWI Published: 4 weeks ago

0:00 Ladies and gentlemen, good day and welcome to the Pages Networks Limited Q4 FY26 earnings conference call hosted by 0:08 8 seconds ICICI Securities Limited. As a reminder, all participant lines will be in the listenon mode and there will be an 0:16 16 seconds opportunity for you to ask questions after the presentation concludes. 0:20 20 seconds Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your Touchstone phone. Please note that this conference is being recorded. 0:32 32 seconds I now hand the conference over to Mr. 0:34 34 seconds Mohit Mishra from ICICICI Securities Limited. Thank you and over to you sir. 0:42 42 seconds Yeah, thank you. Uh good evening everyone. Thank you for joining on the Q4 FI26 results conference call of Tasis 0:49 49 seconds Networks Limited. We have the management with us of Tas Networks on this call represented by uh Mr. Ernoby, executive 0:58 58 seconds director and COO, Mr. Sumit Bingra, CFO, Dr. Kumar N. Subrajan, CTO, and Mr. 1:06 1 minute, 6 seconds Sanjay Malik, Chief Business and Strategy Officer. I would like to invite Mr. Ernoy to initiate with opening remarks post which we will have a Q&A session. Thank you and over to you sir. 1:18 1 minute, 18 seconds Yeah, thank you Mohit. Uh good evening and welcome everyone to our quarterly earnings call uh presentation. So at uh 1:27 1 minute, 27 seconds at the outset let me uh sincerely apologize for the delay. We have a delay of of an hour. We had a lot of technical 1:36 1 minute, 36 seconds problems uploading uh the materials uh to the SE site and uh that largely caused the delay. So I once again uh you 1:44 1 minute, 44 seconds know profusely apologize for the the delays just for the start of the conference. So uh [clears throat] let me 1:51 1 minute, 51 seconds begin by walking you through the uh Q4 financial numbers. So in Q4 we had 1:58 1 minute, 58 seconds revenue of 333 crores as opposed to 307 crores in Q3 and for the year we had revenues of uh 1,13 crores. 2:09 2 minutes, 9 seconds uh we had a net pack loss of uh 211 crores in Q4 as opposed to 197 crores of 2:17 2 minutes, 17 seconds pack loss in Q3 and for the entire year we had a pack loss of 99 crores. Uh we 2:26 2 minutes, 26 seconds had a growth in order book at the end of Q4. um we ended uh with uh 1,514 crores 2:34 2 minutes, 34 seconds at the end of Q4 as opposed to um uh you know, 19 crores at the end of uh Q4 of FI25. 2:46 2 minutes, 46 seconds So uh from a revenue mix uh India once again uh dominated our business uh 88% 2:54 2 minutes, 54 seconds India um and uh from order book also it was uh very similar where was dominated 3:00 3 minutes by um uh the the India business as far as bookings are concerned. 3:06 3 minutes, 6 seconds So even though we made a initial uh business wireless business with international customers 3:14 3 minutes, 14 seconds order revenue was driven largely by the sale of wland products to uh India private and international customers and 3:21 3 minutes, 21 seconds as I mentioned we had a significant order grow uh year on year growth. So I would like to now hand you over to our 3:29 3 minutes, 29 seconds uh CFO Sumit for taking you through the financial numbers and details. Good evening everyone. The revenue for the 3:38 3 minutes, 38 seconds quarter 4 uh was 333 crores compared to 307 crores in the previous quarter. Uh 3:45 3 minutes, 45 seconds quarteron quarter growth of 8%. Uh for the was negative 219 crores as against 239 crores in the previous quarter and 3:54 3 minutes, 54 seconds uh profit after tax was 211 crores compared to 197 in the uh previous 4:00 4 minutes quarter. The full year uh revenue uh was 113 crores and the profit after tax was negative 3909 crores. 4:11 4 minutes, 11 seconds Uh inventory at the end of the quarter was put at 2,438 crores uh compared to 363 crores in the previous quarter. 4:19 4 minutes, 19 seconds Receivables at uh 3,258 crores uh and uh payables at 478 crores. The 4:29 4 minutes, 29 seconds cash position at the end of uh the quarter was 505 crores and uh uh net debt of uh 3531 4:37 4 minutes, 37 seconds crores uh at gross level the borrowings were 4,35 coursees at the end of the quarter 4:44 4 minutes, 44 seconds that I'll ask an to take over the next few slides. 4:49 4 minutes, 49 seconds Thank you sir. uh I'd like to add uh some color to the business that has happened over Q4 and uh also have a 4:57 4 minutes, 57 seconds review of uh of our business during the year. Uh so during the during the quarter uh you know some of the 5:04 5 minutes, 4 seconds significant things that happened in our wireless business was uh signing an agreement with the NEC to uh to 5:12 5 minutes, 12 seconds manufacture and supply uh our 5G massive radios for a global customer. Uh the other significant thing was we received 5:20 5 minutes, 20 seconds an initial order for the expansion of 4G networks uh from a customer in uh Southeast South Asia. And uh we have 5:30 5 minutes, 30 seconds multiple uh ongoing field trials uh for our 4G and 5G land product products across uh South Asia and the Americas 5:39 5 minutes, 39 seconds and we recently successfully completed a 5G P in in South America. 5:46 5 minutes, 46 seconds on our wland business. Uh in the quarter we completed uh the shipment of a significant number of IPMs 5:55 5 minutes, 55 seconds routers to bhat phase 3. As you know we are the largest suppliers in terms of number of circles for bhat phase 3 and 6:03 6 minutes, 3 seconds uh you know significant amount of shipment and uh and many of them several sites are now carrying live traffic. 6:12 6 minutes, 12 seconds uh we supplied a major amount of uh 100 gig and 400 gig WDM systems to our tier 6:19 6 minutes, 19 seconds one telco in India for their 5G back hall network for the enterprise services 6:26 6 minutes, 26 seconds and also for their uh services for hyperscaler uh data center connectivity. 6:33 6 minutes, 33 seconds uh we were selected to build uh you know a nationwide uh network of a multi-term network for a hyperscaler data center 6:42 6 minutes, 42 seconds application in India and um you know it was a cold proud moment for us for for a very famous 6:49 6 minutes, 49 seconds global sporting event we implemented the backbone network of a you know multi-country network for this event u 6:58 6 minutes, 58 seconds using our uh state-of-the-art WDM network this was a global supporting events we have recently. 7:05 7 minutes, 5 seconds Other highlights during the year uh our products got recognized uh at 80 Telecom for our innovative satellite satcom IoT 7:15 7 minutes, 15 seconds solution and we also won the prestigious Golden Peacock Awards for our 5G brand solutions. We launched our 7:23 7 minutes, 23 seconds state-of-the-art uh uh ultra compact and hypers scalable data center interconnect product at uh NWC at Mobile World 7:31 7 minutes, 31 seconds Conference in Barcelona. It was launched by the honorable minister of communications. 7:37 7 minutes, 37 seconds We filed 63 patents in uh in Q4 bringing the cumulative count to 676 out 7:44 7 minutes, 44 seconds of which 371 have been granted. We also release received PLA incentives um for FI25 7:52 7 minutes, 52 seconds or additional 69 crores reaching a total of 467 crores for FI25. 8:01 8 minutes, 1 second A few corporate updates for the year uh we had some changes at the board as well as our senior management. So we 8:07 8 minutes, 7 seconds appointed uh Mr. Shikumar Vijay Shikaran as additional director non-executive and independent director of the company uh 8:15 8 minutes, 15 seconds with effect from April 15th subject to the approval of shareholders and uh Mr. Shikumar is a chartered 8:22 8 minutes, 22 seconds accountant with over 40 years of experience covering audit and assurance services uh including eight years as COO at Deote. 8:34 8 minutes, 34 seconds Um Mr. PR Romesh who was an independent director of the company uh resigned and uh effective closing business hours of 8:42 8 minutes, 42 seconds April 18th and uh Mr. Shushikumar has taken over his spot as the independent director of the company. Uh I have been 8:50 8 minutes, 50 seconds appointed as the executive I was uh I'm currently the executive director and chief operating officer but has been appointed as the managing director and 8:58 8 minutes, 58 seconds CEO of the company uh from uh effective today till uh 2028. 9:05 9 minutes, 5 seconds And this is subject to uh the approvals of the shareholders of the company. 9:10 9 minutes, 10 seconds Few more updates. Uh Mr. Fam Mutaya who is currently the vice president of product line management of the company has been appointed as the chief 9:18 9 minutes, 18 seconds operating officer uh of the company with effect from today. Mr. Elas Prasad who is currently the financial controller of 9:26 9 minutes, 26 seconds TJS has been appointed as the chief financial officer of the company with effect from 16th of May. and Mr. 9:34 9 minutes, 34 seconds Sumiding our current CFO has resigned from the services of the company but it will be effective from the close of business hours on May 15th. 9:46 9 minutes, 46 seconds So a quick review of the of FI26. So this year has been a year of consolidation for us. A lot of the 9:55 9 minutes, 55 seconds technology and products that we developed over the last u 3 four years uh re uh you know achieved commercial scale and deployment at a global scale. 10:06 10 minutes, 6 seconds The BSML 4G 5G network uh went live uh across 100,000 sites and were launched by the honorable prime minister uh in uh 10:14 10 minutes, 14 seconds in 2025. We deployed the largest indigenous router networks in the country through the BSNL 4G backall 10:24 10 minutes, 24 seconds network or the the man network as well as in the for of the bhat net phase three networks. We did we had a very 10:32 10 minutes, 32 seconds successful global rollout of our WDM uh products with 400 gig and 800 gig wavelength services 10:41 10 minutes, 41 seconds uh both in India as well as internationally. And we also continued the deployment of the world's largest satellite IoT network uh with our uh you 10:51 10 minutes, 51 seconds know the the vehicle tracking system solution. 10:57 10 minutes, 57 seconds We continued the innovation journey um with our new products and technology launches. Uh we launched our 64TR 11:06 11 minutes, 6 seconds massive myo radio 5G radio u during uh IMC at Indian mobile congress and it was 11:13 11 minutes, 13 seconds launched by the honorable MOC. We launched our WDM system our C plus LB 11:21 11 minutes, 21 seconds band uh capable WDM system which transmits over 76 terabits of uh data 11:27 11 minutes, 27 seconds over a single pair of fiber. uh that was also launched during uh IMC uh by the 11:34 11 minutes, 34 seconds ongo stage. We launched our cloud native converse 4G 5G core also during the year 11:42 11 minutes, 42 seconds and is undergoing trials at at multiple uh locations across the world multiple across multiple customer networks and uh 11:51 11 minutes, 51 seconds we at at NWC during the year we last year we launched our um our hypers scalable data center interconnect 11:59 11 minutes, 59 seconds platform which uh over a very compact form factor launches over 50 terabytes of uh data uh in a in a single footprint 12:08 12 minutes, 8 seconds and we also talked about uh we the patents filed during the year 147 uh patents are filed in FI26 and uh more 12:17 12 minutes, 17 seconds than 150 contributions to the 3GPP standards the evolving 3GPP [clears throat] standards. 12:28 12 minutes, 28 seconds Uh last year we had announced strategic partnerships with NEC and Rakuten and uh in the last financial year we kind of 12:36 12 minutes, 36 seconds went uh you know developed this partnerships further. Uh so we after we signed our first contract for the supply 12:44 12 minutes, 44 seconds of massive neighbor radios with NEC for an international deployment and with Rakuten Symphony we have partnered with 12:52 12 minutes, 52 seconds Open RAN solutions and we have uh multiple ongoing PC's across the world and one of them was completed successfully very recently. 13:05 13 minutes, 5 seconds uh a significant uh achievement was the expanding our wireless footprint both in India as well as internationally. We 13:13 13 minutes, 13 seconds covered new geographies about uh and uh the two deals we talked about are the 5G massive memo radio for the global customer and the open RAM deployments. 13:24 13 minutes, 24 seconds Uh we also uh signed up several new applications. we do successful PC's for 13:30 13 minutes, 30 seconds uh 5G private networks and uh also the 5G ran pilot for the for the coverage network. 13:42 13 minutes, 42 seconds So uh looking forward from a um future business outlook one of the we see that uh AI is going to be one of the uh 13:51 13 minutes, 51 seconds driving one of the killer applications which are going to drive the mega trends for network transformation 13:58 13 minutes, 58 seconds both in terms of the traffic in the network as well as uh transformation of the network architecture. So uh with the 14:06 14 minutes, 6 seconds rapid adoption of uh AI applications by 2023 AI traffic is predicted to be more than 60% of the total network that will 14:16 14 minutes, 16 seconds be running on the traffic. We'll have more than 100 million physical AI machines uh connected to the network by 2035. 14:26 14 minutes, 26 seconds The profile of traffic is going to change dramatically from the today's downstream heavy traffic to upstream 14:33 14 minutes, 33 seconds traffic where upstream traffic will outpace uh the downstream traffic uh networks uh the traffic that is of today 14:41 14 minutes, 41 seconds and that will require significant network transformation. 14:45 14 minutes, 45 seconds uh most enterprise will adopt uh AI heavily uh with the running geni workloads of the cloud and uh this is 14:54 14 minutes, 54 seconds also going to drive you know from the traditional compute um uh cloud-based traffic uh uh that is 15:02 15 minutes, 2 seconds that they say access is going to get transformed to an AI based uh uh you know access from the cloud 15:11 15 minutes, 11 seconds uh so with this trend the AI I this is going to drive a network infra infrastructure build super cycle uh and 15:20 15 minutes, 20 seconds that and which basically means that the current communication service provider network the CSP network will not be sufficient to handle the traffic growth 15:29 15 minutes, 29 seconds in the in the coming years and the other the transformation that will happen is 15:36 15 minutes, 36 seconds that close to 50% of the new AI traffic will be processed at the edge nodes where edge inferencing is going to play a big role. 15:44 15 minutes, 44 seconds in the architecture of uh of uh the global AI networks. There will be significant investments in new networks 15:52 15 minutes, 52 seconds with 400 gig 800 gig connectivity even at the access and at the edge to cater to the significant traffic growth and AI 16:01 16 minutes, 1 second is also expected to accelerate the adoption of 6G and AI technology will be natively embedded in in the RAM and edge and core of the network. 16:12 16 minutes, 12 seconds From a business impact um we'll see a lot of the convergence of not only access and back hole but also it will 16:19 16 minutes, 19 seconds converge with compute at the network edge to support uh the edge AI infrastructure and the edge inferencing uh workloads in the network. 16:30 16 minutes, 30 seconds Uh there will be significant scaling up of uh our optical solutions uh and packet switching and routing and 16:37 16 minutes, 37 seconds converging with uh uh with the edge compute um in in the in the edge and 16:43 16 minutes, 43 seconds access networks and the the data center connectivity will go to multi- terabit scale which is already uh scaling up to 16:51 16 minutes, 51 seconds that level but is going to scale up significantly to provide for the AI cloud interconnect. 17:00 17 minutes So we have built our current platforms to uh which will scale uh very efficiently for the networks of the 17:08 17 minutes, 8 seconds future to handle the the traffic capacities as well as the traffic characteristics of future networks. Our 17:16 17 minutes, 16 seconds uh new generation 5G products are being designed to uh to scale and evolve into 17:23 17 minutes, 23 seconds 5G advanced and uh 6G products with higher uh upink supporting much higher up capacities. 17:30 17 minutes, 30 seconds Uh our high capacity optical which is supports 1.2 terab per channel is going to scale to 1.6 terab and beyond uh to 17:38 17 minutes, 38 seconds support the terabit scale uh data center connectivity of the future. 17:43 17 minutes, 43 seconds Um our uh our edge multi- terabit edge node is going to again scale in capacity and interface and also going to 17:50 17 minutes, 50 seconds integrate with uh compute um uh you know uh capacity and uh compute infrastructure to support uh AGI 17:58 17 minutes, 58 seconds applications and our next generation access will evolve uh supporting further 18:04 18 minutes, 4 seconds convergence of wireless and wline access solution and AI will drive will be adopted in our network management all 18:12 18 minutes, 12 seconds across for driving automation for driving network management and fault prediction and network configuration and 18:19 18 minutes, 19 seconds driving a huge auto amount of automation and optimization of the of the network. 18:27 18 minutes, 27 seconds So the key takeaways for FI26 that it has been a year of consolidation and transformation for us. We did our 18:35 18 minutes, 35 seconds technology that we have developed in the past reached commercial scale of deployment uh in in in in very large 18:41 18 minutes, 41 seconds networks. Um we expanded our portfolio significantly and uh launched several state-of-the-art products in wireless 18:49 18 minutes, 49 seconds and wine. Uh we had several international wireless wins. um uh you know they were the starting uh point of 18:57 18 minutes, 57 seconds our uh international expansion for wireless business and we made progress with the initial strategic partnerships that we have that we had um launched with our with several global partners. 19:11 19 minutes, 11 seconds So u we are well positioned for long-term success. Uh uh from an industry point of view we see uh AI that 19:20 19 minutes, 20 seconds will drive a lot of demand for network buildown and as as a result for our equipment as well. We have a product road map which is well positioned to 19:28 19 minutes, 28 seconds leverage the future opportunities that we see and uh we have strong partnerships in place to expand our uh global customer footprint. 19:38 19 minutes, 38 seconds So uh before I end the presentation I do want to make a few comments about uh about uh or the financial results in 19:46 19 minutes, 46 seconds FI26. As we mentioned, this has been a year of transition for us after the execution of the massive BSNL projects 19:54 19 minutes, 54 seconds in FI25, which which gave us a significant amount of revenues and we needed a runway in uh FI26 to 20:01 20 minutes, 1 second consolidate and transition our business beyond BSNL and u several large customer 20:09 20 minutes, 9 seconds projects that we were actually planning for both for Wineland and wireless products have got delayed uh which 20:16 20 minutes, 16 seconds resulted in um uh significant revenue shortfall and the resulting financial loss. However, we have not we have not 20:24 20 minutes, 24 seconds cut down on the investments during the year because of our outlook for the future and and and the industry trend that we see. 20:34 20 minutes, 34 seconds Based on our F521 business outlook, we believe that our with our current investments and cost structures, we will be able to achieve uh better financial 20:42 20 minutes, 42 seconds results and net net. While it has been a tough year for us uh business-wise, much has been achieved to set us on a path 20:51 20 minutes, 51 seconds for the future. With that, I come to an end to our uh introductory remarks and open the floor for Q&A. 21:00 21 minutes Thank you very much. 21:02 21 minutes, 2 seconds We will now begin the question and answer session. 21:06 21 minutes, 6 seconds Anyone who wishes to ask a question may press star and then one on their touchstone phone. If you wish to remove 21:13 21 minutes, 13 seconds yourself from the question queue, you may press star and two. 21:18 21 minutes, 18 seconds Participants are requested to use handsets while asking a question. 21:23 21 minutes, 23 seconds Ladies and gentlemen, we will wait for a moment while the question cube assembles. Again to register for a question, please press star and then one. 21:45 21 minutes, 45 seconds Our first question comes from the line of Shilles Jahagdar from Invest Yagna. Please go ahead. 21:54 21 minutes, 54 seconds Uh hi, am I am I audible? Yes sir. Audible. 21:59 21 minutes, 59 seconds Uh so my question is that uh in February we got a massive memo uh for for 22:08 22 minutes, 8 seconds massive memo deal for 5G networks and also uh 4G network uh a deal for 4G 22:14 22 minutes, 14 seconds network in South Asia. So is there any data for quantify these uh orders or uh 22:23 22 minutes, 23 seconds deal so that uh we can consider the future outlook of this deal how how it will affect the revenue and 22:31 22 minutes, 31 seconds uh the overall financials and the uh timeline of this project. 22:37 22 minutes, 37 seconds Yeah. So sh you know typically we do not go into uh specific uh deal numbers and 22:44 22 minutes, 44 seconds all uh but lot of the massive myo 5G massive myo business will actually uh 22:51 22 minutes, 51 seconds get revenueed over uh over the uh coming over this current financial year in FI27. 22:57 22 minutes, 57 seconds Um some of the revenue of the 4G deal happened uh in the past financial year and uh we expect uh more expansion on 23:05 23 minutes, 5 seconds that during the current financial year but uh beyond that uh we do not share any deal specific uh numbers uh for any project. 23:15 23 minutes, 15 seconds Okay. And my second question was the BXL additional PO of 18,000 sites uh around 23:23 23 minutes, 23 seconds so the say the same P is delayed or uh and is there any update on this? 23:32 23 minutes, 32 seconds Yeah it is this is Sanjay Malik here uh so thank thanks for this question. So yes it is the same add-on PO which uh 23:40 23 minutes, 40 seconds which has been there. So the active discussions are still going on with uh 23:46 23 minutes, 46 seconds the SNL team on the sites on which they have to have these 4G sites and uh and 23:55 23 minutes, 55 seconds uh the configurations. So that discussion has been happening and quite active discussion. We are still keeping 24:02 24 minutes, 2 seconds our inventory here for delivering uh these sites uh in in a quick turnaround 24:10 24 minutes, 10 seconds once we get the PO. But yeah, as of now the discussions are definitely on. 24:15 24 minutes, 15 seconds Uh so uh just to add on so we have inventory. So the timeline for that order will be uh pretty much uh less 24:24 24 minutes, 24 seconds than the previous uh GS or spec. Sorry. 24:31 24 minutes, 31 seconds Uh so uh we have the inventory for the uh upcoming P of B. So the timeline I 24:39 24 minutes, 39 seconds just want to ask that the timeline would be much lesser than previous. 24:45 24 minutes, 45 seconds That's right. That's right. So because once one thing is that that the now the sites are commercial. 24:51 24 minutes, 51 seconds So uh it's it's already tested out. So once we receive the order, we have the inventory. So definitely the delivery time would be much faster. 25:01 25 minutes, 1 second Okay. Thank you. That's all from us. Thank you. 25:07 25 minutes, 7 seconds Thank you. Your next question comes from the line of prana Shatria from MK. Please go ahead. 25:16 25 minutes, 16 seconds Hi. Uh thank you for the positive. Uh my first question is regarding the order book. Uh I mean uh this 1500 odd crder 25:25 25 minutes, 25 seconds book uh you said almost uh 83% of that is coming from the uh India business. 25:31 25 minutes, 31 seconds Does that include the BSNL uh 4G project as well? 25:37 25 minutes, 37 seconds No this does not include uh the rational 4G project. 25:41 25 minutes, 41 seconds So this is purely bhatnet and other private telco uh whatever you might have. 25:48 25 minutes, 48 seconds Yes. Yes. This is our our customers both uh in India as well as uh international 25:56 25 minutes, 56 seconds uh for our wild line and wireless business but doesn't include the BSN 4G at all and uh should we assume that most of 26:05 26 minutes, 5 seconds this will be uh sort of aggregable in this year itself uh and hence uh you know potentially the revenue uh should 26:12 26 minutes, 12 seconds be uh somewhat similar if not higher than this number. I'm asking directly is not the exact number. 26:20 26 minutes, 20 seconds Uh yeah I I a good portion of this uh will be uh revenueed in this uh current financial year. 26:27 26 minutes, 27 seconds Okay. And uh second question is regarding uh you know the cost of goods sold. So the memory prices have gone up. 26:34 26 minutes, 34 seconds Does that impact the margins for your product at all? 26:39 26 minutes, 39 seconds Yes, there is the cost of memory does impact the cost of our products even though uh you know it's a even though 26:47 26 minutes, 47 seconds it's a small uh component of our product cost you know usually uh those are much 26:54 26 minutes, 54 seconds smaller component compared to the uh to the uh much much more expensive class A equipment that we use for for network 27:02 27 minutes, 2 seconds processing for for optics and all those kind of things but DS uh the cost And u 27:09 27 minutes, 9 seconds uh and also the lead time uh is also a challenge for us and we are addressing this in multiple ways because there are 27:17 27 minutes, 17 seconds newer products newer technologies which are out there and u you know we'll be uh we'll be addressing that and also as a 27:25 27 minutes, 25 seconds part of the increase we are also renegotiating our cost our prices uh with customers as well as for the new opportunities which are out there to 27:33 27 minutes, 33 seconds make sure that our we protect our margins. 27:37 27 minutes, 37 seconds Okay, because I mean you know the purpose to ask this question was to understand you know how much should we expect uh you know the margin 27:45 27 minutes, 45 seconds comparation at a contribution margin level because uh it's not only the memory even the chip prices have sort of uh in stock because you know that demand 27:54 27 minutes, 54 seconds uh for uh chips has also been higher so can you give some qualitative or quantitative number that you know how much could be the impact on the margins 28:02 28 minutes, 2 seconds uh yeah as as I said you know if As you ask the specific memory where the 28:10 28 minutes, 10 seconds increase has been the largest, right? I mean other other increases uh selectively has not been as uh as 28:17 28 minutes, 17 seconds dramatic as memory but thankfully memory is only a very small uh portion of our user. As you know it's like high volume 28:25 28 minutes, 25 seconds component. So even u you know large memories the cost of those that are not very high compared to the several 28:32 28 minutes, 32 seconds thousand dollars of uh bomb costs that we you know the the costs that we have of our product right upwards of many 28:40 28 minutes, 40 seconds many thousands of dollars so it's a very small component uh but nevertheless I think we are kind of making sure it is accounted in our cost and re and 28:48 28 minutes, 48 seconds basically renegotiating and reoffering our new prices with with the escalation to make sure that we protect our margin. 28:56 28 minutes, 56 seconds The same holds for other uh cost escalations which are there which are you know far more controlled and also in 29:03 29 minutes, 3 seconds very controlled by way in the sense that because we also have uh long-term pricing contracts with our suppliers also right so those transitions happen 29:12 29 minutes, 12 seconds very slowly and we have the window of negotiating uh prices on any new deals that we sign to account for the cost of 29:21 29 minutes, 21 seconds relation sir Last question from my side. Uh uh 29:28 29 minutes, 28 seconds since you're not uh giving any revenue guidance as such I mean last year you did give a revenue guidance. Uh uh how 29:37 29 minutes, 37 seconds should we look at uh the revenue growth for FI27 and you know margin given uh you know various uh uh I mean any 29:46 29 minutes, 46 seconds quantitative or qualitative color will be helpful. 29:49 29 minutes, 49 seconds Yeah. uh uh you know pron we've never given u revenue or any other uh financial number guidance in the past 29:58 29 minutes, 58 seconds and uh so I think we have to we will we will stick to that I mean uh we are not in a position to give any new guidance 30:05 30 minutes, 5 seconds uh however as I said we we are uh we have a stronger business outlook um and 30:13 30 minutes, 13 seconds as I talked about that with our all the investments that are made and with our positive business outlook we have continued the investments during in the year even though business didn't 30:21 30 minutes, 21 seconds materialize because we we uh figured out that the investments in product uh uh 30:29 30 minutes, 29 seconds you know uh evolution and building the new technologies was very important for our future business uh growth. So we 30:36 30 minutes, 36 seconds continued on that. So obviously our outlook is uh positive very positive for the future and we expect to see growth but as a practice we've never uh quantified in terms of numbers. 30:50 30 minutes, 50 seconds Thank you so much uh for all the answers. Wish you all the very best. Thank you Prof. 30:56 30 minutes, 56 seconds Thank you. Our next question comes from the line of British Polaria from Gir Capital. Please go ahead. 31:04 31 minutes, 4 seconds Yeah, thanks for the opportunity. Uh question is on balance sheet. Uh there's a good increase uh in intangibles under 31:11 31 minutes, 11 seconds development from 400 to 950 crores. Uh what does that particularly? 31:21 31 minutes, 21 seconds Yeah. So I think uh intangible under development commonly consists of our uh product development effort and also uh 31:30 31 minutes, 30 seconds related to uh the uh the IP or the technology license or the technology 31:37 31 minutes, 37 seconds transfer that we did uh with NEC uh early part of or or towards the end of the previous year and that is uh partly 31:46 31 minutes, 46 seconds getting reflected in the intangible under development. So that energy investment was about 550 odd cr. So 31:54 31 minutes, 54 seconds everything has been done or still it is to be done. 31:57 31 minutes, 57 seconds Uh a large part of it is done. I think uh it it is linked to milestones and uh and I think balance milestones we expect 32:04 32 minutes, 4 seconds to uh get done within uh within the next couple one or two quarters. 32:10 32 minutes, 10 seconds Yeah. With the commercialization of all the investments that we made uh which are as part of the intelligible assets all of them uh will uh will get uh 32:20 32 minutes, 20 seconds capitalized as when we have commercial uh visibility and uh commercial adoption of all the new technology and products 32:28 32 minutes, 28 seconds that we've developed including uh this licensing. 32:31 32 minutes, 31 seconds So and from that IP only you got this first order from NEC customer. 32:38 32 minutes, 38 seconds Well, that was part of the uh part of the uh agreement with NC that we license some technology and we built uh radios uh for the future. Okay. 32:51 32 minutes, 51 seconds So, uh is this part part of the same agreement where you got the first order because your order book is 1500 cr and 32:59 32 minutes, 59 seconds 80% is India. So, that would be very small amount, right? 33:04 33 minutes, 4 seconds Yeah. Yeah. Yeah. As I said, we we signed the contract for the supplies and so uh the revenue for that business will 33:11 33 minutes, 11 seconds actually happen in a 527. So it is part of the same partnership even though the two contracts are separate. The the 33:18 33 minutes, 18 seconds technology licensing contract and the this supply contract are different completely. 33:24 33 minutes, 24 seconds Okay. So uh when do we see the revenue from this technology agreement? 33:30 33 minutes, 30 seconds Yeah. No, no, from this new contract with NC, we'll see the revenue for that in the in this uh in FI27. 33:39 33 minutes, 39 seconds Okay. During the current financial year. 33:42 33 minutes, 42 seconds Sure. Sir, as this bit comes bit complex, uh could you at least give us some sense that what kind of or uh what 33:52 33 minutes, 52 seconds amount of opportunities you are chasing right now and by what times of this uh will getify or uh what are the 34:00 34 minutes milestones uh which we can look for it. 34:06 34 minutes, 6 seconds Uh again on this definitely we have been chasing quite large opportunities both 34:13 34 minutes, 13 seconds uh mill again from wireless perspective quite a few of those are international opportunities uh which we have built over last uh last 34:22 34 minutes, 22 seconds one year and if you would have seen that we have started uh quite a few trials also. 34:29 34 minutes, 29 seconds So again difficult to give give the overall size of uh size of the funnel number but it is it is substantial and 34:39 34 minutes, 39 seconds those will be getting again um ordered in in the coming year and then yeah 34:46 34 minutes, 46 seconds revenue booking also should happen from that in the coming year. Sure, I understand your uh constraint in 34:54 34 minutes, 54 seconds commenting further but just to take it bit forward uh will this opportunity 35:01 35 minutes, 1 second will be multiples of what you got in DSNL 35:09 35 minutes, 9 seconds multiples of what we got in BSNL the original one it would not be that uh 100,000 site kind of thing uh but 35:18 35 minutes, 18 seconds because you know that numbers outside India are uh little bit smaller as compared to the SNL. 35:25 35 minutes, 25 seconds But uh I think from our product perspective, reference building perspective and coming to the 35:33 35 minutes, 33 seconds international international wireless area. I think that would be very very significant. 35:41 35 minutes, 41 seconds Sure. And uh regarding you know R&D spend for FI27 uh will it uh remain means uh is there 35:49 35 minutes, 49 seconds any cut down or are you still uh going strong on your R&D investments whatever you are looking for? 35:58 35 minutes, 58 seconds So we uh we will continue our R&D investments but obviously we will tailor 36:04 36 minutes, 4 seconds it to u the business uh outlook that we have and how we see the business 36:11 36 minutes, 11 seconds maturing. Um so as I said we will be uh optimizing it to make sure that we get much better financial results. Uh but as 36:19 36 minutes, 19 seconds of now we we we plan to continue with our investments because the the business outlook that we see uh in FI27 36:27 36 minutes, 27 seconds um should be we should be able to achieve by better financial results even with our current investments and cost structure but uh we will keep optimizing 36:36 36 minutes, 36 seconds that as we as we see the business progress uh during the year. 36:41 36 minutes, 41 seconds Sure. And one final question on receivables. Where do we see this number going uh in FI27? 36:51 36 minutes, 51 seconds I think uh on reservables uh the two uh two points make one is the number that you see uh needs to be looked at in 36:59 36 minutes, 59 seconds context of the uh corresponding advance that uh that we've received uh as part of the BSN 4G order which which is uh 37:08 37 minutes, 8 seconds which is currently showing up in current liabilities. 37:11 37 minutes, 11 seconds Uh having said that uh the uh we expect the uh collections or the remaining 37:19 37 minutes, 19 seconds collections from BSNL to significantly happen as uh during this current financial year. So uh so we expect uh 37:28 37 minutes, 28 seconds the receivables to progressively come down over the next couple of quarters. 37:32 37 minutes, 32 seconds Uh obviously this will also increasingly be a function of also the incremental business uh uh scale up that happens over the next few quarters. 37:41 37 minutes, 41 seconds Yeah. Uh that I understand but the entire BHL 4G will be collected in this year. 37:48 37 minutes, 48 seconds Uh a significant portion of that should get collected this year. 37:52 37 minutes, 52 seconds Okay. That's again also linked to milestones and uh those progressively are getting complete. So we expect that 37:59 37 minutes, 59 seconds to uh you know lead to collections uh over the next few quarters. 38:05 38 minutes, 5 seconds Yeah. Uh that's it from my side. Thank you. Thank you. 38:14 38 minutes, 14 seconds Your next question comes from the line of Pesh Kumar from Pitu Financial Services. Please go ahead. 38:23 38 minutes, 23 seconds [clears throat] 38:24 38 minutes, 24 seconds Hello. Good evening. Am I audible? Yes. 38:29 38 minutes, 29 seconds So first of all I had a complaint like uh the timing for the con call was 7:15 and we started around 8:15 and the 38:36 38 minutes, 36 seconds results were uh I mean the presentation was out at 8:13 or 8:12 so so we didn't get any time to read or analyze the 38:44 38 minutes, 44 seconds presentation before the conc call and this has been repeated for past 7 8 quarters. I requested four five quarters earlier 38:51 38 minutes, 51 seconds also that time should be given to the investors to analyze and read the report at least but uh still the same story. 39:01 39 minutes, 1 second Uh yeah, I think this this time especially we had a lot of problems in uh uploading and that uh took a lot more 39:09 39 minutes, 9 seconds time. So we had to progressively delay and again once again I apologize for the entire delay and the short window between the upload and the start of this 39:18 39 minutes, 18 seconds call. We'll make sure that it doesn't happen in the future. 39:22 39 minutes, 22 seconds Thank you. And secondly sir um congratulations on the patents that you have got in this quarter and the developments that you've got on the 39:30 39 minutes, 30 seconds product side. Well, the the presentation that you gave was too technical for a layman uh like me. So, it sounded like 39:37 39 minutes, 37 seconds Greek and Latin for me. But whatever you said, I mean, congratulations for that. 39:41 39 minutes, 41 seconds But as an investor, if we see the financials, I'm pretty disappointed with the way it pages is going. And I believe 39:48 39 minutes, 48 seconds the shareholders uh money is been taken for granted. I do not see any progress in the in the financials. Even now you 39:57 39 minutes, 57 seconds you're not able to give any kind of clarity on the future that we hold. Um pretty bad situation that we are in right now. It's very disappointing. 40:10 40 minutes, 10 seconds Uh I agree. I think u of course as as part of the company and it management I mean it's been disappointing for us also 40:18 40 minutes, 18 seconds as well. uh uh uh there were a lot of um uh business that uh as you said as I 40:27 40 minutes, 27 seconds mentioned that we had uh planned for uh based on which we had made investments that got uh delayed and um yeah so uh we 40:36 40 minutes, 36 seconds are we are we think that this after this BSML project this has been a year of transition for us and going forward uh 40:44 40 minutes, 44 seconds with all everything that we have done and invested in that we should be looking at a much more uh better and predictable uh financial results going forward. 40:56 40 minutes, 56 seconds I just wanted to say like see share price has come down from uh the lifetime high of 1495 to it came down in the 41:03 41 minutes, 3 seconds range of 300 also. I understand that market forces are there that drive the share prices apart from the financials but you know you should take care about 41:12 41 minutes, 12 seconds the shareholders money also and some guidance should be given about the future. This is just my my recommendation lest I leave up to your wisdom. 41:23 41 minutes, 23 seconds Sure, we'll we'll take this into account. Thank you. Thank you so much. 41:30 41 minutes, 30 seconds Thank you. The next question comes from the line of Prattab Maliwal from Mountain Trafance Private Limited. Please go ahead. 41:38 41 minutes, 38 seconds Uh hello. Hi. Am I audible? Yes, you're audible. 41:44 41 minutes, 44 seconds Yeah. Hi, sir. Thanks for taking my question. I just wanted to have a clarification regarding that earlier participants question regarding the NEP 41:51 41 minutes, 51 seconds deal for the supply of the massive MIMO radio. So is that part of our current order book of 1500 crores or is that yet to come in as you said that it'll be 42:00 42 minutes revenueed out in FI27. So is that already part of our order book? 42:05 42 minutes, 5 seconds Okay. So for this uh deal actually so that basically means that we are entering this account uh with uh with NC 42:15 42 minutes, 15 seconds uh so there is the first PO which has been received which is part of the 1500 cr and as we go along there would be uh 42:23 42 minutes, 23 seconds uh the the the purchase orders would come as the rollout progresses through the year. 42:31 42 minutes, 31 seconds Okay. And this would be can you give us any idea of how we kind of understand that this will scale up because you know 42:39 42 minutes, 39 seconds as you're saying that the outlook for FI27 is that we'll get some better results this you know because FI26 has 42:46 42 minutes, 46 seconds been a year of transition. So can you give us some idea on how this is expected to scale up? 42:53 42 minutes, 53 seconds Uh you mean this particular deal or the overall business in general? 42:58 42 minutes, 58 seconds both sir but in particular the NEC deal because as you're saying that he get some follow on purchase orders as well so what can we expect the scalability to 43:06 43 minutes, 6 seconds be uh as I mentioned we yeah so it all basically depends upon 43:14 43 minutes, 14 seconds the roll out which uh which uh the customer does so as the rollout happens then uh then yeah the new purchase 43:22 43 minutes, 22 seconds orders uh keep coming so difficult to again give a number projection on it But I would say I think the follow on orders 43:30 43 minutes, 30 seconds would be again better than whatever we have as of now. 43:35 43 minutes, 35 seconds Okay. Now just one thing when I look at our FI26 we've had a bad loss of approximately 43:42 43 minutes, 42 seconds 900 crores. Now FI27 as you're saying that you know it'll be a year of transition and we get better results. What is our path back to profitability? 43:51 43 minutes, 51 seconds Can you give us some understanding on that front? 43:56 43 minutes, 56 seconds Uh yeah, I think uh we expect much better business in um FI27 44:05 44 minutes, 5 seconds uh based on um the opportunities that we see and uh with that and with uh we will 44:12 44 minutes, 12 seconds also manage our costs at the current level and optimize as required to uh make sure that we get to we have a path 44:21 44 minutes, 21 seconds to profitability because uh you know this has as I said this has been one of year where business got delayed but we didn't want to compromise on our 44:29 44 minutes, 29 seconds investments for the you know for the future opportunities but uh going forward I think uh we will ensure that 44:39 44 minutes, 39 seconds um you know one part of it is uh the business which is out there and our cost structure which is there they are in line and we do expect that u you know 44:48 44 minutes, 48 seconds from the business outlook that we see in FI27 uh we should end up with much better uh financial results And we'll also as as the business 44:56 44 minutes, 56 seconds progresses we will uh monitor and optimize our costs accordingly. 45:02 45 minutes, 2 seconds Are we expecting to be p positive in FI27? 45:07 45 minutes, 7 seconds Yeah, we don't give uh financial guidance but uh yes that's the goal. 45:13 45 minutes, 13 seconds Okay sir, thanks for taking the question. 45:17 45 minutes, 17 seconds Thank you. The next question comes from the line of Dil Javari from Crown Capital. Please go ahead. 45:26 45 minutes, 26 seconds Uh hello uh good evening sir. Thank you so much for taking my question. Uh sir as I understand you're not going to give 45:33 45 minutes, 33 seconds any guidance but uh with regards to just our uh inventories and receivables. So 45:40 45 minutes, 40 seconds that's putting a serious strain on our you know balance sheet. Uh what is the 45:48 45 minutes, 48 seconds company's aim regarding that? I understand even if we if I net off the the current liabilities for receivables 45:54 45 minutes, 54 seconds that still is like nearly double the revenue that what we've done in FI26. 46:00 46 minutes So just wanted to understand like uh what do we expect out of this and what is comp has company you know modeled out 46:10 46 minutes, 10 seconds if you know BSNL order is even delayed by another year because that's not in our hands right so the PO we so what is 46:17 46 minutes, 17 seconds the inventory level is will there be deterioration will there be some other write off that we need to take so what do you feel is the you know realistic 46:25 46 minutes, 25 seconds outlook that we can have with regards to our inventories and receivables sir So I think on receivables I uh I broadly 46:34 46 minutes, 34 seconds clarified uh uh in response to the earlier question. Uh we are expecting to 46:41 46 minutes, 41 seconds uh uh to get the balance collections from uh the SNL significantly during this year and that should lead to uh 46:50 46 minutes, 50 seconds improvement from a receivable standpoint. 46:53 46 minutes, 53 seconds uh on inventory also I think uh uh as you alluded to I think the last part of this is also coming from the from the 47:02 47 minutes, 2 seconds advanced procurement action that we took for the BSN add-on order. Now right now we we are uh we continue to be uh in 47:10 47 minutes, 10 seconds discussions with them with respect to uh uh to getting the order and uh uh and you know obviously the inventory 47:19 47 minutes, 19 seconds here is uh is uh is something that gets used in the radios that we sell and and those can potentially also be sold to 47:27 47 minutes, 27 seconds other customers. Uh but uh uh I think uh so that's that's where it is. I think 47:35 47 minutes, 35 seconds for the for now I don't think uh we have uh uh any further clarity with respect to the BSNL addon order. 47:44 47 minutes, 44 seconds See uh the inventory for these products uh the BSNL 4G products are not unique to BSNL. I mean there are like uh 47:53 47 minutes, 53 seconds wide range of radios for 4G and 4G upgradeable to 5G which are applicable for uh customers uh for any any kind of 48:02 48 minutes, 2 seconds customers right so many of the opportunities that we are positioning ourselves uh internationally uh in the private 4G networks and all 48:10 48 minutes, 10 seconds those kind of things they all use the same uh products. So you know the inventory will also be used for many of 48:17 48 minutes, 17 seconds those opportunities uh you know when they when they convert. So it's not very unique to BSNL. However, I mean uh as 48:26 48 minutes, 26 seconds you have noted that most of it had been procured for BSNL. So significant part of it will go along with uh BSNL add-on 48:34 48 minutes, 34 seconds order but uh independently they will be consumed along with other business opportunities uh that we have uh globally. 48:43 48 minutes, 43 seconds Uh okay. Uh fair enough sir. And just another question regarding like a cash 48:49 48 minutes, 49 seconds generation ability sir. So even in the current year I think we've been able to only generate around the 135 crores of 48:58 48 minutes, 58 seconds cash. So that takes in account of all the change in inventory advances that we've gotten and on based of that I 49:06 49 minutes, 6 seconds think we have invested uh I think uh around 700 KES in uh intangible assets 49:12 49 minutes, 12 seconds right sir so majorly if I if I'm not wrong our investment in intangible is 49:19 49 minutes, 19 seconds debtf funed what is the rationale behind that because I don't know if this is 49:28 49 minutes, 28 seconds sustainable at a certain level right so if we are not going to be p positive in FI27 we are we might be you know our funding 49:37 49 minutes, 37 seconds are intangibles with debt but we it will take tax time to you know get traction we'll get orders we'll get minute orders 49:44 49 minutes, 44 seconds but in that time I don't want that our company's balance sheet deteriorate so much that you know we have bigger issues 49:52 49 minutes, 52 seconds than you know research and development s so any comments on that sir No, I I agree uh with your observation. 50:02 50 minutes, 2 seconds You know, uh the point is that since we are in a uh the deep tech space 50:09 50 minutes, 9 seconds uh you know being in a situation where you uh don't invest in technology evolution is a is a higher bigger risk 50:18 50 minutes, 18 seconds for the future of your business u than the other way around. Right? So from that point of view we took in FI26 we 50:26 50 minutes, 26 seconds took the call of that even with the business shortfall that we see with the transition that is happening and with 50:33 50 minutes, 33 seconds the technology that we needed to develop to leverage the future that we'll continue with our investment uh and and we have done that and as you see we have 50:42 50 minutes, 42 seconds launched many products which will uh help us uh for the business of the future but I think going forward in FI27 50:50 50 minutes, 50 seconds as I said the financial diligence of investments versus uh returns and revenues and all will be uh far more 50:59 50 minutes, 59 seconds tighter because I believe the significant investment has gone in and we have achieved much of the goals that 51:05 51 minutes, 5 seconds uh we had in we had in mind uh so in 527 and beyond it'll be a more much more um 51:12 51 minutes, 12 seconds you know well balanced investment that will happen uh in line where with the business outlook which will and also 51:20 51 minutes, 20 seconds which will continue to evolve and monitor very closely. 51:24 51 minutes, 24 seconds Fair enough. So just one last question from my answer. We right now we are at around 1,500 Kores of order book. Uh if 51:32 51 minutes, 32 seconds you may or any kind of target of the order wins that we want now I'm not saying specifically for this year. Maybe with the new technologies over a period 51:40 51 minutes, 40 seconds of 3 years what is the target that we can have in terms of order wins because even if some kind of direction we can 51:48 51 minutes, 48 seconds get like you know in this that would be really helpful sir. 51:53 51 minutes, 53 seconds Well uh as I said the investments have been made uh with with an eye of on 52:00 52 minutes significant growth um you know because uh and uh and this significant um growth 52:08 52 minutes, 8 seconds will be you know of course um over year-over-year numbers you know if you leave out the one of BSNL uh project 52:16 52 minutes, 16 seconds those kind of projects will come and there will be spikes in our business when they happen but uh you know if you look at the business trend without those 52:25 52 minutes, 25 seconds one-off projects kind of thing what would you see we will you know uh definitely you know hopefully see uh 52:32 52 minutes, 32 seconds business growth um on on top of uh what we have seen earlier in FI 24 and uh and 52:41 52 minutes, 41 seconds uh and and so on so uh that's that's all I can say I think the the overall uh growth in our opportunities there will 52:49 52 minutes, 49 seconds be a significant growth growth in our opportunities there will be a lot more investments happening from operators from enterprises from ISPs and so on and 52:59 52 minutes, 59 seconds uh we are well positioned over there so we obviously this investment has been made um you know with a business which 53:07 53 minutes, 7 seconds is several several multiples of what we have done in FI26 right so that's basically the uh outlook based on which 53:16 53 minutes, 16 seconds we have made all the improvements okay that is okay that's That's all on the bus. Thank you. 53:25 53 minutes, 25 seconds Thank you. The next question comes from the line of Shahidar from University. Please go ahead. 53:33 53 minutes, 33 seconds Uh, hi sir. I was in again. Uh, so I was uh I had a question about uh data center 53:39 53 minutes, 39 seconds connectivity business. So uh TCS is actively building data centers uh actively participating in data center building. 53:50 53 minutes, 50 seconds Uh they have a plan of 1 G. So do we have uh certain benefit of being a Tata 53:57 53 minutes, 57 seconds group company and we can get an CO from CCS in somewhere. Do we have a benefit 54:05 54 minutes, 5 seconds uh not in terms of uh amount but in terms of being a group company? Uh that's what my question was. 54:16 54 minutes, 16 seconds Um well I mean um uh independent of uh being a group 54:23 54 minutes, 23 seconds company I uh we are um uh you know engaged with uh not only TCS but other 54:31 54 minutes, 31 seconds of this uh data center uh builders for our products and uh we have seen uh you 54:39 54 minutes, 39 seconds know what a lot of our success in optical has been as part of those data center buildouts. So TCS is yes one of 54:46 54 minutes, 46 seconds our uh important uh customers as well for uh for that for data center applications and yes we are closely 54:55 54 minutes, 55 seconds engaged with them with uh with their future business uh uh uh with the business future business plan plans uh 55:03 55 minutes, 3 seconds but I'd like to highlight that they are not the only one for uh our data center uh business related growth. 55:11 55 minutes, 11 seconds Okay. Thank you. That was my question. 55:14 55 minutes, 14 seconds Yeah, thank you. The next question comes from the line of Arabic Jane from Walford Financial Services Limited. Please go ahead. 55:24 55 minutes, 24 seconds Um, hello. Can you hear me? Yes, we can hear you. 55:28 55 minutes, 28 seconds Yeah. Yeah. Hi. Hi. Hi. So, uh, so over the over the last year we filed on couple of patents. So I just wanted an 55:36 55 minutes, 36 seconds idea regarding when do these patents generate revenue for us and what is the rational behind filing so many patents. 55:44 55 minutes, 44 seconds U so what's the future outlook regarding these patents? 55:49 55 minutes, 49 seconds Yeah see as a uh deep tech company uh we need to file patents to uh one is to protect our inventions 55:58 55 minutes, 58 seconds um so that uh our innovations are not uh replicated uh easily. Uh the second part of this is that especially in the 56:08 56 minutes, 8 seconds wireless space there is a lot of uh uh the patents that go into what are called the standard essential patents. These 56:15 56 minutes, 15 seconds are patents which are used for uh building uh the uh you know the as per 56:21 56 minutes, 21 seconds the new standards of 5G or 5G advance or 6G uh based on uh 3GPP standard evolution. So as a wireless company uh 56:30 56 minutes, 30 seconds and also uh from our other business, we need uh this patent portfolio to be you know both from a point of protecting our 56:38 56 minutes, 38 seconds innovation as well as a defensive uh portfolio where um you know where you 56:45 56 minutes, 45 seconds would be um you know cross-licensing uh patents from other companies which are absolutely essential in nature as 56:54 56 minutes, 54 seconds far as developing uh your wireless products and technology are concern. 56:58 56 minutes, 58 seconds concerned. So these are as I so in summary both in terms of protecting our innovations and also for giving us a 57:05 57 minutes, 5 seconds solid base for uh being able to cross cross license patents and technologies with other uh technology developers. 57:15 57 minutes, 15 seconds Okay. 57:16 57 minutes, 16 seconds And this is more than a direct monetization of the number of patents that we have. It is monetization in a little uh indirect way. 57:26 57 minutes, 26 seconds Oh okay. Thank you. 57:31 57 minutes, 31 seconds [clears throat] 57:32 57 minutes, 32 seconds Yeah, we have we have time for one last question. 57:35 57 minutes, 35 seconds Sure, sure. Thank you. Our next question comes from the line of Raja Kumar Vaginatan from RK Invest. Please go ahead. 57:44 57 minutes, 44 seconds Yeah, good evening. Can you hear me? Yes sir, can hear you. 57:49 57 minutes, 49 seconds Yeah, thanks for the opportunity. Uh, so just couple of questions. So the first question is uh is it [clears throat] reasonable to expect a break even in FI27 and a bad positive in FI28? 58:03 58 minutes, 3 seconds That's uh that's the goal. I mean we not give guidance but that's uh really the goal. As I said, FI26 had been a year of 58:11 58 minutes, 11 seconds investment and uh FI27, we expect to see far better financial results in terms of uh uh with the business outlook that we 58:19 58 minutes, 19 seconds have and uh with the investments and the expense control that we will have in our within the company and the expectation 58:27 58 minutes, 27 seconds is that uh yes financial turnaround um as as as quickly as as possible you know 58:33 58 minutes, 33 seconds starting five starting with a 527 Okay. Okay. And the second question is 58:40 58 minutes, 40 seconds on this uh elongated BSO that you have with the BSNL order. So uh do you expect 58:48 58 minutes, 48 seconds that uh elongated BSO even for the order that that is under execution because you have still not collected about 3,000 58:55 58 minutes, 55 seconds crores. So will the same issue will happen in the current order as well? 59:01 59 minutes, 1 second Uh no you're talking about uh the collections from the upcoming order type of things they for addon order are you sir what you're talking about 59:10 59 minutes, 10 seconds yeah there are two issues the one the what whatever that is outstanding that you have shown in as of March 26 uh that 59:18 59 minutes, 18 seconds you said that you will be able to collect significantly in FI27 so my question is the order that you are executing which is about 1,500 the 59:27 59 minutes, 27 seconds orders on hand that you mentioned right so so there also the DSO will be elongated DSO or there you expect the collections to happen uh much faster. 59:37 59 minutes, 37 seconds Yeah. So two things. So number one out of this 1500 crores of order book BSNL purchase order is still not part of that 59:46 59 minutes, 46 seconds because as we said that we are we are still in discussion to get that into the purchase order. Second, uh the 59:54 59 minutes, 54 seconds collection for this should be faster than the original order because first time uh we we kind of uh delivered the 1:00:01 1 hour, 1 second product, tested it, then there is acceptance testing and then there is uh kind of rigorous testing against 1:00:08 1 hour, 8 seconds integration with their existing elements and all that. So those things will not be there when we go for this uh add-on 1:00:16 1 hour, 16 seconds PO because these add-on POS would be same technology similar products to be integrated or to be installed. So the 1:00:25 1 hour, 25 seconds delivery time and installation time and acceptance time would be much faster. 1:00:32 1 hour, 32 seconds Okay, got it. So the last question is can you give me what is the total headcount as of March 26? this March 25. 1:00:44 1 hour, 44 seconds So, uh total uh headcount is roughly about 2300 employees and that is uh broadly remain the same uh compared to the previous year. 1:00:55 1 hour, 55 seconds Okay. Thank you so much. 1:00:59 1 hour, 59 seconds Thank you ladies and gentlemen. With this I now hand the conference over to the management for closing comments. 1:01:08 1 hour, 1 minute, 8 seconds Yeah. So, uh thank you Mo. So, uh thanks everyone for uh for attending the call 1:01:15 1 hour, 1 minute, 15 seconds and u uh and for all your questions. Um you know again once again and uh first of all once again my apologies for 1:01:24 1 hour, 1 minute, 24 seconds starting this an hour later than the scheduled time. uh and and secondly uh as you've seen the results of FI26 1:01:32 1 hour, 1 minute, 32 seconds um you know the key takeaway I want you gentlemen to have is that yes the results have been uh quite disappointing 1:01:40 1 hour, 1 minute, 40 seconds but at the same time you have to uh you know we are positive about our future based on which we have made substantial 1:01:48 1 hour, 1 minute, 48 seconds investments uh during the year to make sure we are our products are are ready and uh technologically 1:01:56 1 hour, 1 minute, 56 seconds uh ready and capable for the the business and the technology transitions that we see. So, uh we look forward to a 1:02:04 1 hour, 2 minutes, 4 seconds much better future and with that uh mindset the investments have been made and uh uh hope to uh you know work with 1:02:12 1 hour, 2 minutes, 12 seconds you all and uh connect with you all in future again and uh deliver a much better uh FI27. Thank you. 1:02:23 1 hour, 2 minutes, 23 seconds Thank you. 1:02:24 1 hour, 2 minutes, 24 seconds Yeah. On behalf of ICICI Securities Limited, that concludes this conference.