Texmaco Rail & Engineering Ltd — Q4 FY26

Texmaco Rail & Engineering Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Lys90MOW-Tk

0:01 1 second Ladies and gentlemen, good day and welcome to the earnings conference called Q4 FY26 of Text Moral Engineering Limited hosted by ICIC Securities. 0:13 13 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 concludes. 0:22 22 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:29 29 seconds I now hand the conference over to Mr. 0:31 31 seconds Naven Syria from ICICA securities. Thank you and over to you sir. 0:38 38 seconds Thank you Shalendra. Uh good afternoon all. Uh I welcome you all to the Q4 FY26 0:46 46 seconds conference call of Texmeco Rail and Engineering Limited. From the management we have with us Mr. Indrajit Mukhajji, executive director and vice chairman. 0:57 57 seconds Mr. Sudhipto Mukharji managing director group CFO Mr. Pramm Gupta company CFO 1:06 1 minute, 6 seconds Mr. Keshor Kumar Rajgara and also the deputy CFO of the company Mr. Sepanka. 1:13 1 minute, 13 seconds So without any further ado, I hand over the floor to the management for their opening conference. Over to you sir. 1:22 1 minute, 22 seconds Uh good afternoon everyone. This is Indrajit Mukhaji. I have been uh it's always been pleasure talking to you every quarter. 1:32 1 minute, 32 seconds this is also will continue like this and you will have more pleasure uh when we talk because of our advancing and our 1:41 1 minute, 41 seconds growth. So having said that uh I'd like to welcome once again to today's earning 1:48 1 minute, 48 seconds call of textural and engineering limited. We shall be predominantly 1:55 1 minute, 55 seconds discussing the financial performance for the for the quarter just passed which is the fourth quarter and the full year results of financial year 2526. 2:07 2 minutes, 7 seconds Uh I also will we will also discuss with you uh of our growth plan and uh some of 2:14 2 minutes, 14 seconds the uh milestones which we are achieving or we are yet to achieve. 2:20 2 minutes, 20 seconds uh the financial results and presentation materials have already been filed with the to 2:27 2 minutes, 27 seconds stock exchanges and I'm sure that you had the opportunity to review them ahead of our discussion today. 2:36 2 minutes, 36 seconds During uh quarter 4 FI26 uh we demonstrated strong operational 2:45 2 minutes, 45 seconds performance reflecting the effectiveness of our focused execution, disciplined financial management and 2:55 2 minutes, 55 seconds commitment to our long-term growth strategy. 2:59 2 minutes, 59 seconds uh in spite of various challenges we continue to improve our operations, maintain stability and drive value for our stakeholders. 3:11 3 minutes, 11 seconds Uh we are steadily enhancing our position as a as the leading 3:18 3 minutes, 18 seconds provider of rail and infrastructure solutions and uh with the expanding range of 3:25 3 minutes, 25 seconds capabilities across manufacturing, engineering, rail systems, technologydriven services. 3:35 3 minutes, 35 seconds These efforts reinforce our vision for sustainable growth and our dedication to 3:43 3 minutes, 43 seconds meeting the evolving needs of our CLA clients and the market. Having given a 3:50 3 minutes, 50 seconds brief overview, let me uh take you through some of the important uh parameters 3:58 3 minutes, 58 seconds uh or some of the important performance parameters of Q4 uh of FI 2526. 4:07 4 minutes, 7 seconds We reported a revenue from operations of 1,167 cr reflecting although it's been a it's 4:15 4 minutes, 15 seconds reflecting at 13.3% compared to the same quarter last year which you know and we have explained earlier why it happened 4:23 4 minutes, 23 seconds primarily due to the challenging marketing conditions. 4:29 4 minutes, 29 seconds Uh we also uh we despite all despite this difficult conditions which all of 4:36 4 minutes, 36 seconds you know despite this revenue drop the company 4:43 4 minutes, 43 seconds resilience aida for the quarter stood at 116 crores which is is about 4:52 4 minutes, 52 seconds 10%. which represents a year yearon-year improvement of almost 1.2% basic point 5:01 5 minutes, 1 second 1.2 percentage uh profit after tax stood at 58 crores 5:09 5 minutes, 9 seconds reflecting a pat margin of 5% which also an increase of 206 basis point compared to the same period last year. 5:19 5 minutes, 19 seconds Additionally, direct expenses decreased 0.8% QQ which really made made us to 5:27 5 minutes, 27 seconds turn out the stalling performance underscoring the success of our efficiency and 5:34 5 minutes, 34 seconds effectiveness improvements. These margin expansions highlight our ability to manage costs effectively improve 5:42 5 minutes, 42 seconds profitability under any circumstances. Now let me turn into the financial year. 5:50 5 minutes, 50 seconds In the financial year of 2026, we reported a revenue from operations of 4,377 5:57 5 minutes, 57 seconds cr which once again is a decline of 14% compared to the last year. 6:04 6 minutes, 4 seconds Uh from the profitability perspective, AIDA for the year was 450 crores with an AIA margin of 10.2%. 6:14 6 minutes, 14 seconds While profit after tax was 194 crores translating into a margin of 4.4%. 6:21 6 minutes, 21 seconds In our conference, in our investors calls earlier, we had mentioned that one of the very major impediments that we 6:28 6 minutes, 28 seconds pass through is because of uh challenging positions in the supply chain with special emphasis to 6:37 6 minutes, 37 seconds sorry with a special emphasis to availability of wheel sets which hamper our performance in the quarter one of 6:46 6 minutes, 46 seconds F52526 performance during was uh impacted 6:55 6 minutes, 55 seconds lower level as I said because of the supply chain issues uh and rail and grid energy which is our 7:04 7 minutes, 4 seconds which we normally call our khalindi division's performance. However, the good news is that the infra which is the 7:12 7 minutes, 12 seconds electrical business, electric electrification business which also we term as bright power division has grown by 66%. 7:21 7 minutes, 21 seconds To a revenue of 610 crores with a debit margin of 10.8% and it shows uh phenomenal growth for days to come. 7:34 7 minutes, 34 seconds The company has remained focused on maintaining a strong balance sheet driving cost optimization 7:42 7 minutes, 42 seconds uh throughout the year and as a part of this strategy our cash flow improved. 7:48 7 minutes, 48 seconds The net debt decreased to rupees 4 444 crores reflecting a disciplined financial management and a focus on reducing leverage. 8:00 8 minutes The net debt to equity ratio improved from 0.22 8:07 8 minutes, 7 seconds in FI25 to 0.21 in FI2 in H1 of FI26 8:15 8 minutes, 15 seconds and further strengthened to 0.18 in the end of FY26. 8:20 8 minutes, 20 seconds This consistent reduction in debt levels underscores our commitment to enhancing financial stability, ensuring long-term growth and improving shareholder value. 8:32 8 minutes, 32 seconds It it puts us into a uh in into an unique position uh to satisfy our growth 8:39 8 minutes, 39 seconds aspirations for the coming years. On the operational front, we delivered 2,196 8:46 8 minutes, 46 seconds Fred cars in Q4 of FI 2026 while the foundry divisions recorded a 8:54 8 minutes, 54 seconds total volume of 8,964 metric tons. For the full year, company delivered 8,372 9:02 9 minutes, 2 seconds freight cars, which could be lower than last year where we had a record numbers, but still we are one of the top primary 9:09 9 minutes, 9 seconds manufacturer of freight cars and possibly one of the high one of the high market shareholder. 9:16 9 minutes, 16 seconds Uh the foundry division achieved a 34,000 metric ton performance. 9:22 9 minutes, 22 seconds The performance of both the quarter and year- wise was impacted strongly by global supply chain disruptions which 9:31 9 minutes, 31 seconds affected production schedules, shipping transportations on export, imposition of US tariffs also uh 9:40 9 minutes, 40 seconds destabilize some of our very strong business with the US and these had no doubt certain amount of adverse effect 9:49 9 minutes, 49 seconds on our volume which as you understand could was beyond our control. 9:56 9 minutes, 56 seconds Uh there is one more subject which I have to uh uh which I have to uh say to 10:02 10 minutes, 2 seconds you that you would have noticed from our published results that the company has 10:09 10 minutes, 9 seconds created a provisions for contingencies of 700 crores from its free results. We 10:17 10 minutes, 17 seconds would like to talk about this before we discuss all other excitingives 10:26 10 minutes, 26 seconds around adjacencies and breakaway growth business in context of ongoing 10:34 10 minutes, 34 seconds geopolitical tension and trade uncertainties which includes 10:39 10 minutes, 39 seconds energy supply, shipping, transportation, uh supply chain. We have seen instances 10:48 10 minutes, 48 seconds of large contracts not meeting their expected outcome due to these uncontrollable external factors. 10:57 10 minutes, 57 seconds Keeping this in mind current keeping it keeping in mind of this volatile and un uncertain micro macroeconomic situation. 11:08 11 minutes, 8 seconds The company wanted to start the next phase of texbaco or transformation of texaco as you can 11:16 11 minutes, 16 seconds call texaco 2.0 zero journey with adequate safety net. Accordingly, as a risk mitigation measure, our risk 11:25 11 minutes, 25 seconds management committee, audit committee and and the board and the management decided that it would be most prudent to 11:33 11 minutes, 33 seconds make a contingency provisions against any possible unforeseen circumstances. 11:41 11 minutes, 41 seconds I must tell you that this has no cash impact on this on on because of this provision. 11:47 11 minutes, 47 seconds It is it is an exercise in strengthening our balance sheet and improve our improving our risk-taking cap capability as we bid to win large contracts. 11:59 11 minutes, 59 seconds Overall, the company believes the provision enhances financial resilience, transparency which is very important, 12:07 12 minutes, 7 seconds long-term sustainability while preserving visibility of the underlying operational performance and supporting 12:14 12 minutes, 14 seconds continued growth. In this respect, I also must say that there's a huge amount of claims for our projects which are 12:22 12 minutes, 22 seconds pending and these are the one which takes a little bit of time. So we need to hold some patience. 12:30 12 minutes, 30 seconds The company believes that this contingency provision is a maximum potential risk under the worst case scenario. 12:39 12 minutes, 39 seconds As we get more visibility of implementation of the ongoing and the future contacts, contracts and 12:47 12 minutes, 47 seconds realizations of significant claims that it has in relation to the ongoing project. There will be scope for 12:55 12 minutes, 55 seconds potential savings out of these contingency provisions. And I already have mentioned of some huge claims also 13:03 13 minutes, 3 seconds which are lying which we are working on with our v with our customers. 13:10 13 minutes, 10 seconds You would also have noticed that the statutory auditors have thus qualified their report. This 13:17 13 minutes, 17 seconds has been done only on account of provision being adjusted against the free reserves instead of taking it from the profit and loss account which the 13:26 13 minutes, 26 seconds management believes is the right thing to do as the which we think the taking out from the reserves is the right thing to do and as the contingency provision 13:35 13 minutes, 35 seconds is not related to any specific risk or within any specific time frame. As we 13:42 13 minutes, 42 seconds commence our journey on for FI 2027 13:49 13 minutes, 49 seconds with a refreshed strategic path, we are looking forward to scaling the railways business profitably even as we 13:57 13 minutes, 57 seconds complement its cyclical nature with nonlinear growth drivers across new and nent 14:06 14 minutes, 6 seconds industries. Uh dear investors, I think there are great stories to say because 14:13 14 minutes, 13 seconds it's just our story. It's reality. Our future looks absolutely strong and we 14:21 14 minutes, 21 seconds are sitting on a very strong solid foundation. 14:26 14 minutes, 26 seconds As we go forward, you will see that while we are excelling our dependence on 14:33 14 minutes, 33 seconds the wagon industry, we also are ensuring at the same time that our over dependence uh is take is reduced because of the cyclical nature of the industry. 14:45 14 minutes, 45 seconds We thus have our successful move into uh EPC projects, railway 14:54 14 minutes, 54 seconds related projects, adjacencies and also few other uh 15:02 15 minutes, 2 seconds related growth areas and and I think there should there is no one else who should be able to narrate this to you 15:11 15 minutes, 11 seconds other than the person who is making it to happen. So I would like to hand it over to our managing director Sudto Mukhaji to tell you what we are doing 15:21 15 minutes, 21 seconds how how we have all as a team agreed into a vision 2030 and this is just not a vision is 15:28 15 minutes, 28 seconds becoming a reality day by day. You will have more you will hear more good news about it. So Sudto thank you. Uh good afternoon everybody. 15:38 15 minutes, 38 seconds It's always a pleasure to connect with you. Uh so uh you must have uh noticed 15:45 15 minutes, 45 seconds or seen uh the documents we have uploaded as a presentation and the vision and the way forward for the 15:52 15 minutes, 52 seconds company. uh but to explain the rational and uh to uh paths to you uh the 16:00 16 minutes underneath uh thinking uh thought that we use this platform as a kind of interaction and uh a kind of 16:10 16 minutes, 10 seconds pitch from our end. So uh you know I mean of course uh while we are continuously doing and growing uh in the 16:18 16 minutes, 18 seconds course segment and we are differently approaching it. So in the whole theme of it what we have identified that of 16:26 16 minutes, 26 seconds course the predominance in the rolling stock freight rolling stock and its components while we have a uh robust uh 16:35 16 minutes, 35 seconds market domestic market in India but it always goes through such uh 16:41 16 minutes, 41 seconds cyclicalities uh uh which sometime takes it upward and sometime uh I mean you 16:48 16 minutes, 48 seconds need to take a seat back. Uh so we as a company uh I mean considering the 16:56 16 minutes, 56 seconds present situation we of course uh have to grow and the theme which we have picked for us is of course that uh we as 17:03 17 minutes, 3 seconds a company wants to grow in the top line uh at least 2x 17:09 17 minutes, 9 seconds and uh of course one of the large and biggest focus that uh we wanted to have 17:16 17 minutes, 16 seconds that we take our bottom line or the bitter percentages is meeting another. 17:22 17 minutes, 22 seconds So considering all of this, we uh took time and crafted very carefully after a thorough uh study uh a kind of a plan 17:32 17 minutes, 32 seconds which we called the text macro 2.0 where we have considered all kind of risks uh which could come in and what is the 17:41 17 minutes, 41 seconds volatility or whatever and in that way we have uh divided this theme into primarily three parts. One is 17:50 17 minutes, 50 seconds strengthening the core. Why we need to strengthen the core? Because uh this is one segment. Uh of course we admit that 17:58 17 minutes, 58 seconds there will be effect of cyclicality. But uh if we see that the uh relevance of 18:04 18 minutes, 4 seconds railway is cannot go away and in the present circumstances uh overall uh such 18:11 18 minutes, 11 seconds an efficient and sustainable energy solution where it uh has always a positive impact uh on the uh commodity pricing or the GDP growth of a country. 18:23 18 minutes, 23 seconds uh so it will always be irrelevant uh and that's why we we we thought of focusing more and more on the capability 18:31 18 minutes, 31 seconds of us and of course drisk the business which we call as a strengthening the core. So strengthening the core is of 18:39 18 minutes, 39 seconds course uh will also involve certain inclusions of certain product lines having the design and engineering 18:47 18 minutes, 47 seconds capability and also to reach to uh newer regions. And second uh theme of the uh 18:54 18 minutes, 54 seconds vision is of course the synergistic diversification in the way forward that how we uh take take the company uh to 19:02 19 minutes, 2 seconds multiples of of the top revenue and the growth. So there of course uh we have carefully analyzed that what is going to 19:10 19 minutes, 10 seconds change in the way forward and the fund flow uh so far the government expenditures are concerned and we all 19:17 19 minutes, 17 seconds know that there is a huge uh reliance and uh importance and uh fund allocation is happening in and around the uh safety 19:26 19 minutes, 26 seconds and uh network uh of the railways and also uh in and around the passenger mobility segments. So in the whole 19:35 19 minutes, 35 seconds ecosystem and while we have a infrastructural division which is uh now uh has a tailwind of growth. So we 19:44 19 minutes, 44 seconds always have felt that rather than having uh technology products within the 19:53 19 minutes, 53 seconds company which gives us an leverage and advantage to work around the ecosystem and the supply chain. So uh while we are 20:02 20 minutes, 2 seconds uh remaining dedicated to give give a total solution in and around the passenger mobility or the railway safety 20:11 20 minutes, 11 seconds network. So uh there the focus is of course in uh also to have the propulsion and also to have this uh I mean other 20:20 20 minutes, 20 seconds power electronic items and also in signaling including uh coverage and uh electronic interlocking image tag DPWs. 20:29 20 minutes, 29 seconds So all of these makes us a more complete and uh strategic flare where we have more control over the ecosystem while we 20:38 20 minutes, 38 seconds deliver or to deliver. Then uh of course we felt that uh railway has always 20:45 20 minutes, 45 seconds remained a very uh efficient, lucrative, sustainable business vertical. uh while 20:52 20 minutes, 52 seconds we uh want to focus uh and continue to focus uh and uh work together making us a prominent uh technology company in and 21:02 21 minutes, 2 seconds around that we felt that in the whole process of it we needed to also look for uh a kind of a breakout diversification 21:11 21 minutes, 11 seconds which uh actually uh helps us mitigate a lot of risks and uh we can always find 21:17 21 minutes, 17 seconds out some uh sunshine uh sector and which is also on a technical 21:24 21 minutes, 24 seconds maturity index maybe little uh sounds little breakout but there is a lot of integration on the engineering side of 21:31 21 minutes, 31 seconds it. So we chose uh defense as part of it. Of course, we have focused on the digital uh business while uh we have 21:41 21 minutes, 41 seconds launched our global capability center and uh that we have now uh of course you all know that we have launched a uh 21:49 21 minutes, 49 seconds platform called invaries.ai AI uh which is uh powered by service now uh which is 21:56 21 minutes, 56 seconds uh one of the global largest uh company and uh also who works for companies like Nvidia and all and uh we are taking the 22:05 22 minutes, 5 seconds integration support of AI through that and we are here to uh provide service in and around railway uh as well as the 22:14 22 minutes, 14 seconds whole value chain of a business to start with and then we are uh going uh into different path uh to provide service all 22:23 22 minutes, 23 seconds over the globe. Uh so this this remain the theme and as part of the vision 2030 road map of the text 2.0. Uh so 22:32 22 minutes, 32 seconds therefore we are not only strengthening our core business but also investing in the development of future ready growth engines. 22:40 22 minutes, 40 seconds So in addition to our focus on the uh wagon and rail infrastructure as I have mentioned uh you can see that we are 22:48 22 minutes, 48 seconds scaling up uh on the strategic opportunities uh which is emerging areas uh into the signaling safety system 22:56 22 minutes, 56 seconds cover system uh propulsion technologies metro and urban mobility. So these are of course all you will agree that are 23:05 23 minutes, 5 seconds expected to play a key role in the modernization uh of the whole uh railway network and there is a huge global 23:14 23 minutes, 14 seconds traction in and around that if you along with it just not to have a transaction 23:20 23 minutes, 20 seconds mindset but to embive uh and uh the technology and develop the capability in and around this and have a control over 23:29 23 minutes, 29 seconds the ecosystem. it makes us a distinct uh player in the whole uh system. So we are 23:36 23 minutes, 36 seconds proud uh to be an Indian company uh being in this horizon and coming up as a global uh solution provider as a 23:45 23 minutes, 45 seconds complete solution provider with a technology backup. So I mean the theme with remains very strong and our comm 23:54 23 minutes, 54 seconds commitment to excellence supported by the ongoing investments in technology and human capital that of course 24:02 24 minutes, 2 seconds positions us uh navigate the challenges and the uh pursue the growth opportunities more holistically. 24:11 24 minutes, 11 seconds uh so these efforts are intended to drive long-term value uh which is uh I think that will be very appreciated and 24:20 24 minutes, 20 seconds uh uh more of a bulletproof I think for the interest of the all the stakeholders and then the company so in the way 24:28 24 minutes, 28 seconds forward of course we are looking forward to make this text macro 2.0 go uh in new 24:35 24 minutes, 35 seconds which we of course want to achieve in next uh 12 to 36 months. 24:43 24 minutes, 43 seconds Thank you uh for the patient hearing. So of course we can have uh questions and answers now. 24:55 24 minutes, 55 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the test on telephone. 25:05 25 minutes, 5 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies 25:14 25 minutes, 14 seconds and gentlemen, we will wait for a moment while the question cube assembles. 25:28 25 minutes, 28 seconds The first question is from Kona Limagarda from Jeff. Please go ahead. 25:35 25 minutes, 35 seconds Yeah. Hi sir, thanks for the opportunity. I hope I'm audible. Couple of questions from my end. Firstly, on the wagon side of things, uh what is the 25:43 25 minutes, 43 seconds kind of visibility that you have with respect to new orders from railways? Is something been discussed out there or is it like completely blank? I mean if you 25:52 25 minutes, 52 seconds can throw some color on that before I move to the next question. 25:56 25 minutes, 56 seconds Uh hi. Uh thank you for asking. uh we we believe very strongly that uh Indian railway or the Indian rail story will 26:05 26 minutes, 5 seconds remain robust and I repeat that you all have seen that there have been a 26:12 26 minutes, 12 seconds significant large order uh first time in the history of the country was award 26:17 26 minutes, 17 seconds awarded uh in the year 2022 23 and uh of course due to our execution rate because 26:26 26 minutes, 26 seconds we remained the highest uh supplier to Indian railways. Uh so the railway uh order portfolio uh you you you may not 26:36 26 minutes, 36 seconds may be hearing more but uh it's poise to come because you see that the as per the national rail plan uh the kind of 26:43 26 minutes, 43 seconds achievement India and uh Indian railway wants to achieve. Uh so uh there is a 26:50 26 minutes, 50 seconds huge uh requirement is going to come and uh we we believe that in near terms it should be not no less than a range of 26:59 26 minutes, 59 seconds 1.5 to two lakhs of wagons and it is further getting boosted because last one and I mean one and a half I two years 27:08 27 minutes, 8 seconds rather uh if the wagon order has not come government has very carefully uh worked uh to deconest the whole uh 27:17 27 minutes, 17 seconds railway tracks So many uh double lines and corridors have been announced and we are also happy to let you know that the WDFC and EDFC are also coming into operation. 27:28 27 minutes, 28 seconds Some some of them are already into operation and the whole integration will happen. So it's is the new uh wave of the uh cycle is uh all poised for start. 27:40 27 minutes, 40 seconds So we have a great hope and it can come any time. So sometime a little bit of silence is not a bad news. uh so we we 27:48 27 minutes, 48 seconds always believe that a lot of work is happening behind and uh you will see that flow of orders will come in. Second 27:56 27 minutes, 56 seconds is that government is also encouraging private uh companies to invest and participate into this system and uh lot 28:05 28 minutes, 5 seconds of uh there is a lot of traction I mean in terms of if you see that the commodity like cment steel also mobile 28:12 28 minutes, 12 seconds so everybody uh wants an efficient system of transportation and everybody wants to have a sustainable way of transportation and everybody wants to 28:21 28 minutes, 21 seconds have a reduction of logistic cost. So railway has remained the most efficient 28:27 28 minutes, 27 seconds solutions within the country and uh I mean lot of investments are coming in and around it and a lot of private wagon 28:37 28 minutes, 37 seconds orders are coming and railway is also working to come up with lot of policies for introduction of new design wagons. 28:47 28 minutes, 47 seconds So in a in a combination and as a whole it gives us a huge hope uh that there will be a good momentum of rolling 28:55 28 minutes, 55 seconds straight rolling stock procurement in the country for a longer time. 28:59 28 minutes, 59 seconds Uh sir uh just on that railway order right you know uh is have have any builds been called out or is it uh something still not yet been there? 29:09 29 minutes, 9 seconds Uh we have not seen any uh carving out. uh so we we rather find it as as a very strategic move uh because the whole 29:18 29 minutes, 18 seconds national rail plan I mean if we uh as a lay man if we convert it into the uh 29:25 29 minutes, 25 seconds percentages of achievement uh target was made because that was the first disclosed published document of the 29:32 29 minutes, 32 seconds government that the railway motor share they wanted to have around 47% uh so far the whole logistics of the 29:41 29 minutes, 41 seconds country and we we remain still at the 27 28% mark uh because all these sectors 29:48 29 minutes, 48 seconds are equally growing and if you see that of late recently prime minister has again asked people to go for railway so 29:58 29 minutes, 58 seconds I mean overall the system is that I mean uh say those three lakh or four lakh of 30:05 30 minutes, 5 seconds lagans could not be procured at a go so there was a first stage which came out around 1.3 1.4 lakh of wagon from 2022 30:15 30 minutes, 15 seconds to 23 the balance are to come and which you believe will come very soon. Sure sir. My second question is on your 30:22 30 minutes, 22 seconds vision 2030 plan. So uh I mean uh see with respect to you know your diversification into wheels or even the 30:30 30 minutes, 30 seconds metro and everywhere right? Especially something like a wheels couple of your peers have already ventured out there. 30:37 30 minutes, 37 seconds Uh do you think you are little late to the party and if and there could be a potential war supply scenario out here? 30:44 30 minutes, 44 seconds What's the right to win here for the company? If you can elaborate a bit please. 30:49 30 minutes, 49 seconds So very good question. Uh first of all the whole intent is not to copy and uh our strategy uh to enter into the will 30:59 30 minutes, 59 seconds uh segment uh is not being envious to uh play in the same ground. uh so it has a 31:07 31 minutes, 7 seconds in the coming days you will get to know of course it helps us uh in our internal consumption and there are some uh kind 31:15 31 minutes, 15 seconds of assured of tech uh business opportunities we are uh working around so it's going to help us as a whole uh 31:24 31 minutes, 24 seconds and uh we we see the business in a different light and different uh playground perhaps 31:33 31 minutes, 33 seconds yeah we have considered uh the supply demand situation sir uh as Sudto says we are just not jumping into a bandwagon. 31:41 31 minutes, 41 seconds So uh we have looked at uh the supply demand and the the product which is going to be uh that we are going to be 31:51 31 minutes, 51 seconds preparing or making it ready for this one of our designed uh uh movement to 31:59 31 minutes, 59 seconds the adjacency railway adjacency. it's not come out of certain one day thought. 32:05 32 minutes, 5 seconds So one to answer I mean in the strategy uh regarding your first point of course you have asked me specifically on the 32:13 32 minutes, 13 seconds railway wagon Indian railway back wagon order perhaps but for text macco if you have seen that we are we are also 32:20 32 minutes, 20 seconds consciously focusing uh as a de percentile share uh that while we want 32:27 32 minutes, 27 seconds to remain uh the uh leading position so far supply to Indian railways are concerned and at the same time uh 32:36 32 minutes, 36 seconds increasing our reach to uh new other geographies and also to cater to the private segment uh is also the theme of 32:44 32 minutes, 44 seconds the whole growth story and uh in I mean today I'm happy to let you know that uh our whole order book uh if you if you 32:52 32 minutes, 52 seconds analyze the wagon so around 70% is from private I mean this is of course we whatever we are talking on the earning 33:00 33 minutes call uh on 31st March but one of the recent uh few developments I can mention that uh the company is progressing very 33:08 33 minutes, 8 seconds strongly in the African continent and in uh I mean we had had seen some major uh 33:17 33 minutes, 17 seconds order wins including uh the Cameroon now the South Africa and we are expecting few more so for us wagon order for the 33:26 33 minutes, 26 seconds core business I mean we find that it will going to remain uh very very uh niche and uh very close to our heart. 33:35 33 minutes, 35 seconds Sure sir. Thank you very much and all the best. Thank you. 33:40 33 minutes, 40 seconds Thank you. The next question is from Pervves Kaji from Noama Group. Please go ahead. 33:47 33 minutes, 47 seconds Uh hi, good afternoon sir. Thanks for taking my question. Uh so wanted some more details on the uh South African 33:54 33 minutes, 54 seconds order that we uh announced yesterday. uh the order mentions that uh we need to supply some 2200 wagons, some 30 diesel 34:03 34 minutes, 3 seconds locomotives uh by FI28 and uh there's also some 15-year maintenance partnership involved. Uh so 34:12 34 minutes, 12 seconds couple of questions on this one uh of this 4,000 odd crder uh is it all to be 34:20 34 minutes, 20 seconds delivered over the next two years or is there some maintenance component also included in this uh 4,000 cr order? 34:29 34 minutes, 29 seconds Good afternoon Mr. Paris. Uh so uh thank you for uh flagging the question. Uh so it's a complete uh solution providing 34:38 34 minutes, 38 seconds contract right from uh design to uh maintain the whole uh life cycle which 34:46 34 minutes, 46 seconds they define as 15 years. So to answer you the pricing is inclusive of all uh 34:52 34 minutes, 52 seconds of the uh rolling stock uh or the wagon and the maintenance uh of it for 15 years. And regarding delivery, yes uh 35:00 35 minutes the delivery has to be completed within uh as of now uh as per the letter of the award by the financial year end 2028. 35:10 35 minutes, 10 seconds But there could be some modifications depending up on the situation at the customer end. It may be uh less also, it 35:18 35 minutes, 18 seconds may be more also. So that provision is there but in terms of the delivery time. 35:23 35 minutes, 23 seconds So it is not based on us but we are taking it as a financial year in 2028. 35:30 35 minutes, 30 seconds Uh so on this order what kind of revenues do we expect to book over the next two years with FI 27 and 28? 35:40 35 minutes, 40 seconds I think this is very far an answer. you know the uh 35:45 35 minutes, 45 seconds order value. Uh so definitely that is that is going to be the uh bucket as of now. 35:56 35 minutes, 56 seconds Uh and lastly uh who will do this locomotive part? I mean we obviously have capabilities on the wagon side but 36:04 36 minutes, 4 seconds uh for the locomotive uh production do we tie up with someone or how will this 36:10 36 minutes, 10 seconds be handled? So we have our uh strategy and process in place. Now at this point of time we are not able to disclose 36:18 36 minutes, 18 seconds everything but definitely we have accepted the uh award and definitely uh we are eligible to do that. Hence we got 36:26 36 minutes, 26 seconds it. So we will you will come to know uh and uh I will be happy to uh I mean once we once we progress you will have I mean we'll be happy to let you know. 36:36 36 minutes, 36 seconds See right now there is a little bit of disclosure issue. So we'll come back to you. Sure. 36:43 36 minutes, 43 seconds Uh and and just for my knowledge, I mean I know our contacts with Indian railways have commodity uh pass through. Uh now 36:51 36 minutes, 51 seconds considering that the global supply chain situation is quite volatile. Uh this 36:58 36 minutes, 58 seconds contract also does it have raw material cost pass through or is it a fixed price contract? So there is a lot of uh this 37:06 37 minutes, 6 seconds kind of global uh this thing I as I I cannot be too specific now because it is in a envelope of the total value. Uh so 37:15 37 minutes, 15 seconds many things in the way forward has to be worked out because there is a lot of uh stuffs involved into it including 37:22 37 minutes, 22 seconds localization and all. So all these things are getting worked out and uh to answer you very straight the risk is very well covered. 37:33 37 minutes, 33 seconds Sure. 37:36 37 minutes, 36 seconds Thanks. And thank you. 37:41 37 minutes, 41 seconds The next question is from Mr. Karan from Ait Sya. Please go ahead. 37:50 37 minutes, 50 seconds Hello. Yeah. Yes sir. You are audible. 37:53 37 minutes, 53 seconds Yes. No. No. My question has been answered. Yeah. Thanks. Thank you. 37:59 37 minutes, 59 seconds The next question is from Dashil Javi from Crown Capital. Please go ahead. 38:05 38 minutes, 5 seconds Uh hello. Uh good evening sir. Thank you so much for taking my question sir. Firstly congratulations on a great order on our 38:13 38 minutes, 13 seconds results sir. So sir just wanted to understand like with our current order book as a new author how would we look 38:21 38 minutes, 21 seconds at SI 27 sir as a whole year sir in terms of our revenue and 38:31 38 minutes, 31 seconds Uh so I mean we we definitely envisage a growth and uh in terms of top line and a 38:39 38 minutes, 39 seconds very good achievement in terms of uh growth in the bottom line also we cannot be too specific for a forward-looking 38:46 38 minutes, 46 seconds statement but I can tell you that uh now we have also come out with a uh vision document that where exactly we want to 38:54 38 minutes, 54 seconds be and definitely this is not that is going to happen on the only on the last year. So we see that there will be 39:02 39 minutes, 2 seconds incremental progress in the whole journey and you will find it uh there is a significant uh improvement in uh both 39:12 39 minutes, 12 seconds uh okay sir uh not anything specific but in tender in terms of margin like we've 39:19 39 minutes, 19 seconds done around 9% so can we aim for at least you know 10 to 11% in the next how would the margin trajectory been I don't 39:27 39 minutes, 27 seconds want any exact numbers but if you because the South Africa order is also come up. So is that more margin decorative? How could we just look at 39:35 39 minutes, 35 seconds you know our pad orbit or whatever margin you were able to you know discuss? You are you are very right and I'm I'm so happy that you have narrated 39:44 39 minutes, 44 seconds it so nicely and our uh vision 30 document I mean whatever I have spilled out as a as a target or a vision that we 39:53 39 minutes, 53 seconds want to uh 2x our top line but at the same time we want to sustainably remain 39:59 39 minutes, 59 seconds on the uh mid of the uh I mean uh 40:05 40 minutes, 5 seconds mid uh team uh of the VA uh So uh that is the journey which we want to do and 40:13 40 minutes, 13 seconds definitely uh the answer is that we will see good improvement over and above whatever we have achieved in this year 40:20 40 minutes, 20 seconds uh in the coming years but to be basically kind of forward looking you can appreciate you know that I can't speak 40:27 40 minutes, 27 seconds no no worries uh no worries about that sir and just uh on the lines like in terms of our new products or something 40:35 40 minutes, 35 seconds we're going into you know a lot of different segments so number one like to build that will we need any more kipex 40:43 40 minutes, 43 seconds that you know we have outlined I think we've outlined 200 K for a defense but for metros and everything will we need 40:49 40 minutes, 49 seconds any more other kex and uh and with regards to that sir like uh what about our debt position will we increase that 40:57 40 minutes, 57 seconds also or how will we try funding our new so you have seen that you have significantly improved on the uh debt 41:05 41 minutes, 5 seconds position and it is today uh I think a little more than 400 cr and on a ratio 41:12 41 minutes, 12 seconds it is uh less than 0.2 and uh we are very hopeful that we will generate good amount of 41:20 41 minutes, 20 seconds money out of the businesses while we have our growth plan intact. Yes, there will be requirement of capex and uh that 41:28 41 minutes, 28 seconds capex uh in spite of that capex we expect that our uh ratio should remain within the range uh and uh we'll have a 41:37 41 minutes, 37 seconds good trajectory not disproportionate okay sir I just wanted to understand 41:45 41 minutes, 45 seconds like what's our interest cost in general because I think we are you know doing around $120 of interest for the full 41:53 41 minutes, 53 seconds Right. So just wanted to understand in terms of interest what is uh uh you know what is the rate of interest that we are 42:01 42 minutes, 1 second getting or you know we are also very you know a plus. So how can we you know focus a bit on reducing that sir. 42:08 42 minutes, 8 seconds Yeah. So Kishor we'll come back to you on the interest one point just I wanted to add on the capex side of it. Of course uh you have seen now that the 42:17 42 minutes, 17 seconds board has approved for a 200 capex for uh our uh defense business. So we'll be 42:24 42 minutes, 24 seconds progressively assessing and uh doing the way we are going and eating to the market. uh but in I mean what what we 42:33 42 minutes, 33 seconds have we have seen that we have uh I mean we will be coming back to you and letting you know that what is the kind of stuff we research but on a on a 42:42 42 minutes, 42 seconds envelope as of now it should be within uh 1 1500 cr for the 42:50 42 minutes, 50 seconds what sir over till 2030 yeah 43:00 43 minutes But our finance cost also include the bank guarantee commission LC charges. So that is not only related to interest. 43:10 43 minutes, 10 seconds Okay. Okay. So lot of high school I have some more question. Thank you so much. All the best. 43:18 43 minutes, 18 seconds Thank you. 43:20 43 minutes, 20 seconds The next question is from Abino Bandari from Bandan AMC. Please go ahead. 43:25 43 minutes, 25 seconds Yeah thanks for the opportunity. Just uh jumping on this u uh South African order once again. Just wanted to understand um 43:34 43 minutes, 34 seconds was it a internationally uh competitive bidded order or a negotiated order? Uh what kind of peers were there uh along 43:42 43 minutes, 42 seconds with us if it is what if it was a competitively bidded order and uh you know what played to our strengths in winning this order? Just some more 43:50 43 minutes, 50 seconds understanding on that. I would rather love to uh mention to you because I am also not privy to the all the 43:59 43 minutes, 59 seconds competition what our customer has chosen from. uh but yes uh Tex Maku uh is the 44:06 44 minutes, 6 seconds only company in India who has uh the supply track record of 16 uh countries in the world and uh we have the 44:15 44 minutes, 15 seconds capability of producing uh various standard uh bogis and wagons 44:25 44 minutes, 25 seconds of various gauges right from M gauge cape gauge standard gauge broad gauge 44:32 44 minutes, 32 seconds And uh we have the credential of AR. We have the credential of other 44:38 44 minutes, 38 seconds uh continents uh and our products are successfully running so far as a 44:45 44 minutes, 45 seconds qualification is concerned and this is not the only order which Tex Makco has won. This is uh one of the largest of 44:54 44 minutes, 54 seconds course in the history uh by any Indian company. uh but our products are already 45:01 45 minutes, 1 second running uh in that sector successfully over the years and the ages and uh when 45:08 45 minutes, 8 seconds we go to such international uh competition yes we compete with Europeans we compete with Chinese to 45:16 45 minutes, 16 seconds name few and uh sometime of course you also have a local competition 45:23 45 minutes, 23 seconds sure that's helpful and just uh some more understanding on if there such similar prospects uh lined up for uh us 45:32 45 minutes, 32 seconds or the Indian industry as such across the globe just to understand on that piece. 45:39 45 minutes, 39 seconds So as I said that we work on multicontinent and we are already existing there and we have this 45:45 45 minutes, 45 seconds qualifications. So definitely I mean text macro as a company will look forward and is engaged in various uh 45:54 45 minutes, 54 seconds such business prospects. I can't talk about other. 45:58 45 minutes, 58 seconds Got it. Got it. Thank you, sir. Uh, congratulations and best wishes. Thank you, sir. 46:04 46 minutes, 4 seconds Thank you. The next question is from Sanjep Mukharji from SKP Securities Limited. Please go ahead. 46:12 46 minutes, 12 seconds Yes sir. Thanks for taking my question. 46:14 46 minutes, 14 seconds Uh sir uh my first question is like uh to create a text macro 2 uh uh aligning 46:22 46 minutes, 22 seconds with the vision your vision uh way of 2030. Uh so uh how much capex incremental capex do you need sir? 46:32 46 minutes, 32 seconds I think I have just answered it. 46:36 46 minutes, 36 seconds Uh it was not audible actually it was 50. 46:40 46 minutes, 40 seconds I said that see we cannot predict a specific number for the entering into the defense business. Now the board has 46:48 46 minutes, 48 seconds approved about 200 cr uh but this the whole bucket can be I mean we can we can 46:56 46 minutes, 56 seconds predict a range of 1,500 to 2,000 cr as of now. But uh I said and we promise that as we progress in each and we'll 47:05 47 minutes, 5 seconds come back to you and let you know what is the kind of estimation we have done. All right sir. All right. Thank you. 47:11 47 minutes, 11 seconds Because because lot of stuffs have to be done and it's in a progressive manner and it could also have a very I mean frequently we have to come back to you and you will get to know. 47:21 47 minutes, 21 seconds Okay. Okay sir. And my next question is how much uh uh wagons were produced in Jindal uh means text waste uh how much 47:30 47 minutes, 30 seconds wagons uh so you have asked me actually to be very honest we have started looking at the consolidated 47:37 47 minutes, 37 seconds uh vehicle number which unit has produced because it's a unit of test macro now so we have to see that but on a consolidated number I think this this 47:46 47 minutes, 46 seconds year we have produced uh 8,000 what is the total Okay. 3,400 approx or 8,350. 47:58 47 minutes, 58 seconds So, uh one thing I must tell you that we have to uh I mean we as a company has started believing in that we have to come out of this vehicle number because 48:07 48 minutes, 7 seconds when we started talking about this the whole industry was manufacturing commodity wagons uh which railway initially first 48:16 48 minutes, 16 seconds entered. Okay. So now there is a whole matrix change in the game and uh I mean as I have said about the text macro 48:25 48 minutes, 25 seconds story that uh in automobile, in steel, in cement, in aluminina, in petroleum, 48:33 48 minutes, 33 seconds then all of the specialized wagons we are manufacturing and we are uh doing this export wagons. So each wagon food 48:41 48 minutes, 41 seconds grain. So all of these are unique numbers and at at a point of time I think we are making 11 types of wagons. 48:49 48 minutes, 49 seconds Uh so this was never never really seen and because we are we have that kind of an infrastructure we are able to do. So 48:56 48 minutes, 56 seconds more than the uh wagon numbers or the vehicle units what we are looking forward is the quality and the uh 49:03 49 minutes, 3 seconds delivery we are making. So volume to value is the journey. I mean very I'm very thankful for you to ask this 49:10 49 minutes, 10 seconds question. So that's what is the one of the fundamental theme of uh text macro 2.0. Whatever we will do, we will more 49:19 49 minutes, 19 seconds look for value internal internally as well as externally. Understood sir. Helpful. Thank you sir. 49:28 49 minutes, 28 seconds Thank you. The next question is from Mr. 49:31 49 minutes, 31 seconds Naven Sadu from ICI securities. Please go ahead sir. 49:35 49 minutes, 35 seconds Yeah. Uh thank you for the opportunity sir. Uh two quick questions. One was regarding the South African order. Will 49:43 49 minutes, 43 seconds it be fair to assume that significant portion of the revenues will acrue largely in FY28? I know uh you didn't 49:52 49 minutes, 52 seconds give a precise answer to the previous question on on this but at least directionally or to a large extent is it fair to assume that since we have just 50:00 50 minutes received the order a bulk of the revenues would be booked in FY28 since our endeavor was to like you know finish this or meet this order by FI28. 50:11 50 minutes, 11 seconds You are right as of now. Yes. 50:15 50 minutes, 15 seconds Uh right. Uh thank you. And uh one thing one thing just to mention to you that uh while that South Africa order is 50:24 50 minutes, 24 seconds covering that uh presently we are uh serving Cameroon and we are expecting you for this we are 50:33 50 minutes, 33 seconds we are exporting wagons to Cameroon now in this financial year primarily right that's also a substantial large order 50:41 50 minutes, 41 seconds and uh that's also comes with maintenance and we are also expecting few more which the delivery will also include in this year. 50:52 50 minutes, 52 seconds Understood. So, so just from a like you know run rate point of view, it it seems then that given the exit order book, 51:00 51 minutes it's possible that FYI 27 can be a little softer versus 26 and 28 then can be a meaningful jump. Is that a correct understanding? 51:10 51 minutes, 10 seconds No. 51:12 51 minutes, 12 seconds Okay. I said that we will grow in the top line and bottom line both in this financial year compared to last year. That's our work which is going on. 51:20 51 minutes, 20 seconds Understood. Uh second then my question was around the announcement uh for into defense segment. So I would just request 51:29 51 minutes, 29 seconds to throw some more light into this as to what exactly are we are we trying to like you know uh do here which verticles 51:36 51 minutes, 36 seconds are we like you know looking at and when can we possibly expect the first commercial order in this particular space. Thanks. So uh the company is into 51:45 51 minutes, 45 seconds advanced stage of uh technology tie-ups into certain very strategic segments 51:52 51 minutes, 52 seconds which may include uh autonomous uh kind of vehicles and other 51:59 51 minutes, 59 seconds stuffs. uh so uh if I apologize and I believe he will support me uh not to I I 52:08 52 minutes, 8 seconds am not in a position to disclose today in this call but uh within within few weeks uh you will get to know as things 52:17 52 minutes, 17 seconds progress in each uh of this the board has uh of course sanctioned the budget because there are some outflow uh will 52:25 52 minutes, 25 seconds also happen along with it. So we are pretty certain that in this financial year we will see uh positive step forward towards that. 52:35 52 minutes, 35 seconds Understood. Helpful and thank you. Thank you. The next question is from Mr. 52:42 52 minutes, 42 seconds Ashok Sha from UNESCO family office. Please go ahead. 52:52 52 minutes, 52 seconds My question. Yeah. Yeah. Thanks for taking my question sir. 52:55 52 minutes, 55 seconds Uh are we ready for any acquisition in the W sector if the any private uh company is making it because W is always 53:05 53 minutes, 5 seconds in demand and there is always shortage. 53:10 53 minutes, 10 seconds We while in all of the business se segments what we have indicated we are open for meaningful uh collaboration and 53:17 53 minutes, 17 seconds acquisition tool. uh we are of course working on certain uh prospects but if anything comes we remain open. 53:25 53 minutes, 25 seconds Thank you sir. Thank you. That's all from my side. Thank you. The next question is from Mr. 53:32 53 minutes, 32 seconds Rupesh Tatya from Long Equity Partners. Please go ahead. 53:37 53 minutes, 37 seconds Uh hello sir. Thank you. Thank you for the opportunity. Uh my my question sir is on wheel set shortage issue that 53:44 53 minutes, 44 seconds industry was grappling with. uh can you give some view about where how how this issue will you know play out in FI27 and 53:53 53 minutes, 53 seconds FI28 is it fair to assume that there will be no major shortage in let's say from second 54:00 54 minutes half of FY27 uh once once the large order comes 54:06 54 minutes, 6 seconds I can answer you from the uh I can answer you from the current uh 54:14 54 minutes, 14 seconds macroeconomic scenario and the various states government is taking uh so uh as 54:20 54 minutes, 20 seconds of now or the policy guidelines what government has uh so uh the will we are 54:27 54 minutes, 27 seconds dependent on we remained historically dependent on Indian railway supply because it was mandated for Indian railway uh ordered wagons. 54:40 54 minutes, 40 seconds Now uh when the private is increasing we have to see that what is the level of what is the policy decision government 54:48 54 minutes, 48 seconds takes in terms of uh allowing us import or they insist us buying as of now they say that Indian railway has enough 54:57 54 minutes, 57 seconds capacity and they can supply uh so we are yet to check this and uh I mean 55:05 55 minutes, 5 seconds we'll be very happy to uh not to uh import if things uh works out in that way as of now it's going smooth. There 55:13 55 minutes, 13 seconds was off and on it comes on but uh there have been a ramp up in terms of the 55:19 55 minutes, 19 seconds capacity by Indian railway also. uh so it's it's a kind of a mixed answer I do 55:26 55 minutes, 26 seconds not have right now but for Xmappo you see that uh we have uh as of now a good 55:34 55 minutes, 34 seconds backup in terms of the private orders and with the exports coming in and we are not dependent exactly uh on this 55:42 55 minutes, 42 seconds crisis uh so in that way we we should not encounter much as of now 55:49 55 minutes, 49 seconds okay okay thank you for that answer sir the the second question sir is uh the private sector in India right specifically I'm asking about India uh 55:58 55 minutes, 58 seconds what what would be our uh market share and and can you give uh you know some idea about the opportunity 56:08 56 minutes, 8 seconds so I think uh in the private sector overall uh target we are in the range of 56:16 56 minutes, 16 seconds anything around 40% as of now uh 40 to 45% and it changes 56:24 56 minutes, 24 seconds the scenario changes but when it's a more of a specialized type wagon so our percentage has gone up and uh so we feel 56:34 56 minutes, 34 seconds that this uh continuity will remain and we will improve upon if not uh remain 56:42 56 minutes, 42 seconds remain here I mean that's a that's a good share because the volume in the private is increasing but but but the the size is like let's 56:50 56 minutes, 50 seconds say 10,000 vacants a year In the private sector sir it it depends. There was uh around 10,000 sometime it is 7,000 but we feel 56:59 56 minutes, 59 seconds that uh on a consistent basis it can remain in the range of 12 to 15,000. 57:07 57 minutes, 7 seconds Okay. Okay. And then the final question sir I mean this large uh wagon tender that is expected 57:14 57 minutes, 14 seconds in in your assessment what would be you know the latest time by which the tender will be out Q3. Q3 is is latest. Is is that a fair assumption to make? 57:26 57 minutes, 26 seconds Uh first of all sir, it may come at a go or it may be divided into few uh 57:33 57 minutes, 33 seconds tranches also but the requirement will remain even if it comes at a go or if it 57:40 57 minutes, 40 seconds comes every year it hardly matters. But we know there is a uh need and requirement of consistent if I even 57:49 57 minutes, 49 seconds divide it into year I mean year wise so there will be a requirement about 25 to 57:54 57 minutes, 54 seconds 30,000 wagon for the coming uh 5 to 7 years and uh even whatever wagons 58:03 58 minutes, 3 seconds retires you know that's also in the range of around 10 to 14,000 peranom so I mean combining I mean on a worst case 58:12 58 minutes, 12 seconds scenario there should be requirement of around 25 to 30,000 that's what we feel 58:19 58 minutes, 19 seconds uh to ramp up the railway share and I feel that government is quite actively working but when it will come how it 58:27 58 minutes, 27 seconds will come what would be the priority uh you and me we are in the same state we can't just comment on that okay okay thank you thank you for 58:35 58 minutes, 35 seconds answering my question sir and all the best thank you thank you the next question is from herit from IC SI securities please go ahead sir. 58:46 58 minutes, 46 seconds Yeah. Hi uh thanks for the opportunity. 58:48 58 minutes, 48 seconds Uh so just couple of questions. So firstly on uh the real estate plan that we have mentioned in our results press 58:57 58 minutes, 57 seconds release. So uh we have some land bank and we uh plan to develop a real estate project uh on it. Um and we have also 59:04 59 minutes, 4 seconds created this new vertical. So if you could throw some light on how big uh this land bank is and what could be the rise of opportunity. 59:13 59 minutes, 13 seconds So basically it is that uh is you can put it in a theme of landband unlocking. 59:21 59 minutes, 21 seconds So there are so many uh unutilized things or in and around. So for making 59:29 59 minutes, 29 seconds our say balance sheet stronger or to utilize it properly. I mean that that was the 59:36 59 minutes, 36 seconds whole theme of it be realistic. No actually this is absolutely just supplementing uh Surito just so in 59:44 59 minutes, 44 seconds addition to these questions that we have uh uh reorganized and restructured our operations as a result uh we have some 59:53 59 minutes, 53 seconds prime land which has come up. It is not a distress sale of land. So it's a it's just that it has kind of come up which 1:00:00 1 hour is a good value and the competency requirement for development of land is totally different from uh making wagons. 1:00:08 1 hour, 8 seconds So we decided that uh this would be a separate business division and I don't think this division is going to be a long continuing one because we don't 1:00:17 1 hour, 17 seconds have that much of land but whatever we have we will uh uh we will start developing it. as you know that the 1:00:24 1 hour, 24 seconds Bengal has some issues on the land uh sealing act etc which I hear is going to 1:00:31 1 hour, 31 seconds be uh going out because today there's a press statement given by the BJP president but uh whatever it happens so 1:00:39 1 hour, 39 seconds when uh we come to that situation we will start uh developing this land through our uh own uh development 1:00:47 1 hour, 47 seconds company. So this is the scenario. It's not that we are selling land to uh sort of uh get money out of it but we uh it's 1:00:54 1 hour, 54 seconds a good option since we have restructured we have got good land at premium places why not we develop 1:01:02 1 hour, 1 minute, 2 seconds uh understood and so secondly uh on on you know our last month's announcement of the launch of enviries and the foray 1:01:10 1 hour, 1 minute, 10 seconds into GCC so I believe we had done a soft uh launch towards the end of 2025 in Faridabad um you know So just just 1:01:19 1 hour, 1 minute, 19 seconds wanted more color on this. I mean if you could tell. 1:01:21 1 hour, 1 minute, 21 seconds It's a very interesting project actually. We are uh uh we we are launching we have actually already 1:01:28 1 hour, 1 minute, 28 seconds launched a uh AI platform uh with uh in collaboration with an international 1:01:35 1 hour, 1 minute, 35 seconds American company which is also a partner of uh Nvidia. 1:01:40 1 hour, 1 minute, 40 seconds uh so uh we have access to most of the cloud and we will also have have access to AWS and Microsoft of the cloud the 1:01:50 1 hour, 1 minute, 50 seconds basically we are uh this GCC will be working on portfolios instead of going 1:01:56 1 hour, 1 minute, 56 seconds into a huge amount of uh backto back wallto- wall kind of an uh services we 1:02:05 1 hour, 2 minutes, 5 seconds will work on specific portfolios for example rail solutions rail design. Then we also we look into the the CRM the 1:02:15 1 hour, 2 minutes, 15 seconds customer management then we also look into cost reductions in production automation operation maintain efficiency 1:02:24 1 hour, 2 minutes, 24 seconds as we say through monitoring and then getting data. So this is going to be a very interesting 1:02:31 1 hour, 2 minutes, 31 seconds one. It's not going to be only we are also looking at the fertilizer use how we can reduce water consumption in field 1:02:40 1 hour, 2 minutes, 40 seconds how can optimize farmers. So it's a government weather. This is a this is an 1:02:47 1 hour, 2 minutes, 47 seconds interesting uh yeah also we have a furniture unit but we are there we need to do lot of to 1:02:57 1 hour, 2 minutes, 57 seconds bring in the service as well as the afterale service is is lacking. So we are all putting it together and going by 1:03:05 1 hour, 3 minutes, 5 seconds portfolio instead of getting into a world. However, however we shall it will 1:03:13 1 hour, 3 minutes, 13 seconds also be available. This is not only for internal use, we are also going out to market. So I expect that this is going 1:03:21 1 hour, 3 minutes, 21 seconds to be one of the major major growth area for us. 1:03:25 1 hour, 3 minutes, 25 seconds So yeah that was precisely the question you know. So is is the primary goal to digitize your own internal manufacturing process or you know largely of the ads 1:03:33 1 hour, 3 minutes, 33 seconds group or you know vision to build a standalone you know commercial AI services business 1:03:41 1 hour, 3 minutes, 41 seconds ultimately the vision is that it will be a commercial AI right now it has been anchored by text because there are lot of internal work also we need to do 1:03:48 1 hour, 3 minutes, 48 seconds however it will also go to go to an it will be go to market in fact it will have lots 1:03:56 1 hour, 3 minutes, 56 seconds of opportunity ities and we started already uh bringing in number of seats. 1:04:02 1 hour, 4 minutes, 2 seconds We don't want too many number of seats but as happening in today's GCC we start everyone starting with an optimized 1:04:09 1 hour, 4 minutes, 9 seconds number because as you have the AI you can cut down on the numbers of people and that's exactly what we are doing. 1:04:18 1 hour, 4 minutes, 18 seconds Understood sir. Thanks and all the best and we have got a we have got very strong team actually working for us. uh we have a very very strong team on this. 1:04:30 1 hour, 4 minutes, 30 seconds Thank you ladies and gentlemen. We will take this as a last question for today's call. I now hand the conference over to management for the closing comments. 1:04:39 1 hour, 4 minutes, 39 seconds Over to you sir. 1:04:42 1 hour, 4 minutes, 42 seconds Well, this is Indrajit Mali once again and I'll have to uh thank the investors 1:04:50 1 hour, 4 minutes, 50 seconds from the bottom of my heart because I know that you are asking these questions because you love the company and you want the company to prosper and it is 1:04:59 1 hour, 4 minutes, 59 seconds our duty as the uh operators of the company as a management of the company 1:05:05 1 hour, 5 minutes, 5 seconds to give you uh correct precise information but I also have to say that 1:05:12 1 hour, 5 minutes, 12 seconds somewhere we couldn't have given you exactly the exact numbers that you wanted because we also are bound by 1:05:20 1 hour, 5 minutes, 20 seconds certain guidelines uh with our uh partners confidentiality disclosures. So we also have to sort of 1:05:28 1 hour, 5 minutes, 28 seconds do a uh uh we have to be some something doing a balance walking while we want to satisfy with all your questions and tell 1:05:37 1 hour, 5 minutes, 37 seconds you what we are doing but at the same time somewhere we have to restrict certain uh discloer of information. So 1:05:45 1 hour, 5 minutes, 45 seconds if we have not satisfied uh you on this then this was completely and please I do 1:05:52 1 hour, 5 minutes, 52 seconds apologize I on behalf of all my colleagues and friends. However, I see you can see that your company is poised 1:06:02 1 hour, 6 minutes, 2 seconds for growth and we are we are transforming as you have seen we are transforming we are reducing the the uh 1:06:11 1 hour, 6 minutes, 11 seconds the cyclical on onto the risk of cyclical type of business. We are moving 1:06:17 1 hour, 6 minutes, 17 seconds into uh the uh sust sustainability is one of our major areas what we are going 1:06:25 1 hour, 6 minutes, 25 seconds because uh this s sustainable sustaining growth is very important as you start exporting because it becomes also very 1:06:33 1 hour, 6 minutes, 33 seconds important from the environmental sustenance as well as whatever we want to do we want it for a long term 1:06:41 1 hour, 6 minutes, 41 seconds long-term sustaining we just don't want it to be just one opportunity and do it. So everything is very well thought out. 1:06:48 1 hour, 6 minutes, 48 seconds We had many many sessions of strategy before we came to this. We also have uh taken the uh services of the top 1:06:57 1 hour, 6 minutes, 57 seconds management gurus of the world. you know the people who are considered to be the uh the topmost management advisers uh 1:07:06 1 hour, 7 minutes, 6 seconds and they work mostly in the US and Europe and we also have uh interacted with them uh to sort of see whether we 1:07:13 1 hour, 7 minutes, 13 seconds are making any mistakes or not so that we don't have mistake having said this I wish to thank all of you uh for spending 1:07:22 1 hour, 7 minutes, 22 seconds your time with us thank you thank you everybody thank you on on behalf of ICIC 1:07:30 1 hour, 7 minutes, 30 seconds securityities. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you. 1:07:36 1 hour, 7 minutes, 36 seconds Thank you. Thank you.