Trishakti Industries Ltd — Q4 FY26

Trishakti Industries Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=4gdWyAkKRDw Published: 2 weeks ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to Trishaki Industries Limited Q4 and FYI 26 results conference call. 0:10 10 seconds As a reminder, all participants line will be in the only mode and there will be an opportunity for you to ask questions after the presentation 0:18 18 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your Touchstone phone. 0:26 26 seconds Please note that this conference is being recorded. Before we begin, I would like to point out that this conference call may contain forward-looking 0:34 34 seconds statements about the company which are based on the beliefs, opinions, and expectations of the company as date of this call. These statements do not 0:43 43 seconds guarantee the future performance of the company. It may involve risks and uncertaintities that are difficult to predict. I would now like to hand over 0:52 52 seconds the floor to Mr. Rajnish from Confired Leap partner. Thank you and over to you sir. 0:58 58 seconds Thank you. Good day ladies and gentlemen. Myself Rajish Mishra from Kali Partners. We represent the investor relation and public relation for Three 1:07 1 minute, 7 seconds Shaki Industries Limited. On behalf of Kpali Partners, I warmly welcome you all to Three Shaki Industries Limited Q4 1:14 1 minute, 14 seconds FY26 earning conference call. The company is today represented by Mr. 1:18 1 minute, 18 seconds Duan, the CEO of the company. I would now like to hand over the call to Mr. 1:23 1 minute, 23 seconds group for his opening remarks. Thank you and over to you sir. 1:28 1 minute, 28 seconds Thank you Rash. So uh thank you and uh good evening everyone. I am Dub Javar uh chief executive officer of Thriaki 1:36 1 minute, 36 seconds Industries Limited. It is a pleasure to speak with you today as we close out what has unquestionably been the most 1:43 1 minute, 43 seconds transformative year in Thrishaki's recent history. Before I take you through our numbers, I want to spend a 1:51 1 minute, 51 seconds moment on the larger context because understanding where Tishaki sits within India's economic landscape is essential 1:58 1 minute, 58 seconds to understanding why this business is built the way it is and why we believe the best is still ahead of us. Over the 2:06 2 minutes, 6 seconds past two years, Kishaki has undergone a complete strategic transformation with new management coming into play. 2:14 2 minutes, 14 seconds What was once a diversified legacy business is today a focus pure play infrastructure equipment rental platform 2:22 2 minutes, 22 seconds built around owning critical assets and deploying them into long-term execution linked opportunities. 2:30 2 minutes, 30 seconds This shift is not incidental. It is directly aligned with what is happening in India today. 2:37 2 minutes, 37 seconds We are in the view of a structural multi-deade infrastructure buildout across roads, railways, renewable 2:44 2 minutes, 44 seconds energy, urban infrastructure and industrial capacity. Execution is accelerating at unprecedented scale. 2:53 2 minutes, 53 seconds At the ground level, all of this requires only one critical enabler which is heavy machineries. 3:00 3 minutes Behind every expressway pier, every refinary column and every wind turbine tower, there is a crane. And increasingly that crane belongs to 3:08 3 minutes, 8 seconds Thriaki. Today we operate a pure rental model deploying our own fleet across Maki tier one clients including L&T, 3:18 3 minutes, 18 seconds Reliance, Tata Shield, RVNL, NCC and many more others. 3:24 3 minutes, 24 seconds Our performance in FI26 reflects this alignment. revenue grew approximately 90% yearonear to 32.44 crores. Uh EIT 3:35 3 minutes, 35 seconds grew over 220% to 20 crores and 20 crores and 21 lakhs with margins of 62%. 3:43 3 minutes, 43 seconds Patch to that 7.66 crores with margins of 25%. 3:48 3 minutes, 48 seconds At the same time, we scaled our fleet from just eight machines in FI25 in FI24 3:55 3 minutes, 55 seconds to over 140 machines today with near full utilization. 4:00 4 minutes I would like to highlight one important point regarding our portability. 4:05 4 minutes, 5 seconds Our reported ETA includes 4.58 crores of subvention income classified under other income. However, we view this as 4:13 4 minutes, 13 seconds operating in nature as it directly reduces our financing cost and is integral uh to our business model. Even 4:21 4 minutes, 21 seconds on an adjusted basis, our margins remain structurally strong. Q4 FI26 was our strongest quarter to date with revenue 4:29 4 minutes, 29 seconds growing over three times year on year, giving us a strong exit momentum into FI27. 4:35 4 minutes, 35 seconds We also significantly outperformed our capeex guidance of 100 crores in FI26 by deploying 210 crores of fresh capex 4:44 4 minutes, 44 seconds during this year resulting in a sharp expansion in our asset base and rental run rate. 4:51 4 minutes, 51 seconds Our unitage remain robust with approximately 3% monthly gross yields at low cost of borrowing and targeted ROC 4:59 4 minutes, 59 seconds of 22 to 25% with our strategy to continued scale up. 5:05 5 minutes, 5 seconds Looking ahead, we remain confident in sustaining strong growth driven by continued fleet expansion, strong client relationships and increasing 5:14 5 minutes, 14 seconds participation in high growth sectors such as renewable energy and core infrastructure. 5:20 5 minutes, 20 seconds Before we move to the Q&A, I would like to thank all our investors, partners, and stakeholders for their continued support. With this, I would now like to open the floor for questions. Thank you. 5:31 5 minutes, 31 seconds Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and one on your telephone 5:40 5 minutes, 40 seconds keypad and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing star and one again. 5:49 5 minutes, 49 seconds Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. 6:00 6 minutes The first question comes from the line of Rohan, Mr. Rohan Ma from FCom family. Please go ahead. 6:09 6 minutes, 9 seconds I mute. Am I audible? Yeah, you're audible. 6:13 6 minutes, 13 seconds Perfect. Perfect. Great. Uh so thank you for the opportunity and couple of questions. So first on the industry side 6:20 6 minutes, 20 seconds I wanted to understand how do you see the overall industry for cranes as well as heavy equipment uh rental evolving 6:28 6 minutes, 28 seconds over the next two to three years across your key verticals where you operate such as renewables, metro, uh rail, steel and also the industrial capeex. 6:39 6 minutes, 39 seconds And uh are there any verticals currently where you're seeing early signs of either acceleration or slowdown or 6:47 6 minutes, 47 seconds moderation in order activity and how is that shaping your fleet procurement decisions going forward? 6:55 6 minutes, 55 seconds Yeah. Um yeah. So see for the next two to three years we are seeing the demand to be really nice. In today's time also 7:04 7 minutes, 4 seconds we are continuously every single day getting new RFUS for machines from 500 tons to 7 uh sorry for machines up to 50 7:12 7 minutes, 12 seconds ton to 750 ton as well. So currently the cape cycle is going really well uh for us right now we just feel that how much 7:21 7 minutes, 21 seconds more machines we can purchase at what uh rate is the major thing for us. The demand side is not the issue for us. 7:29 7 minutes, 29 seconds It's just that the availability of the machines will be an issue for us in future when it comes to more than 500 tons of machines. But honestly speaking, 7:37 7 minutes, 37 seconds my target for the first 400 crores of capex which we are going to do which we are doing this uh the capeex journey we 7:44 7 minutes, 44 seconds are on. We would like to be into the 50 to 250 ton machine category only because we feel that the more and more demand on 7:53 7 minutes, 53 seconds an industry basis not only on certain sector basis is way easier to keep your fleet utilization above 95% when it 8:01 8 minutes, 1 second comes to 50 to 250 ton machines. As in when you keep going above in the tunnel then obviously the ticket size goes 8:09 8 minutes, 9 seconds significantly higher but the uh demand is absolutely cyclic in those kind of 8:15 8 minutes, 15 seconds machines. So this is uh your this like this answers your first question. Can you please repeat your second question for me? 8:24 8 minutes, 24 seconds Yes the second question is any particular signs of slowdown or moderation are you seeing in particular sectors? Is that anything you're observing on that front? 8:34 8 minutes, 34 seconds Uh actually I personally don't see any kind of slowdown right now because uh new projects like uh for example uh let 8:43 8 minutes, 43 seconds me give an example uh in Reliance Industries last EGM they had announced that they'll be expanding uh into touch 8:52 8 minutes, 52 seconds with 5 and a half lakh acres uh expansion into renewable energy. So those projects which have been started 8:59 8 minutes, 59 seconds last year all the civil work is already done now and maximum in the next two to three months the cranes and manual requirements will also start coming. So 9:07 9 minutes, 7 seconds when these kind of uh uh like these kind of requirements are going to be generated this year then we don't see 9:14 9 minutes, 14 seconds any slowdown in demand rather we feel that the demand should skyrocket from here even further. 9:23 9 minutes, 23 seconds Got it. Got it. And when it comes to receivable uh I just wanted to check with you for FI26 your receivable days are I think above 200 days if I'm not 9:32 9 minutes, 32 seconds wrong and uh previously you spoke about that this should get normalized in FI27 9:39 9 minutes, 39 seconds uh so you know given uh you know Q4 has ended where do you see this number settling in that and also given the fact 9:47 9 minutes, 47 seconds that yeah yeah so also given the fact that you work with blue chip clients uh are you finding it difficult to 9:56 9 minutes, 56 seconds receive payment or time uh and uh any any change does that represent in our building cycles with tier tier one stands? 10:06 10 minutes, 6 seconds See uh answering to your question, I feel that uh currently the the fact that 10:13 10 minutes, 13 seconds we only tend to work with the tier one boot clients that gives us a significant 10:20 10 minutes, 20 seconds advantage in terms of the receivable days because when it comes to companies like Tata, Jinder, Reliance and all. So 10:28 10 minutes, 28 seconds it becomes very easy for me to get the payments on time because all these bigger clients they follow a very strict 10:36 10 minutes, 36 seconds uh uh path when it comes to payment cycles. The second thing is that uh when you go for tier 2, tier three companies 10:45 10 minutes, 45 seconds which are local EPC contractors then that is the real problem over there because over there your payment cycles 10:54 10 minutes, 54 seconds will not be below 5 months or so which we have seen on ground. So that is the only reason why we tend to only work 11:01 11 minutes, 1 second with the tier one bridge plans because of the because of this reason and maybe if sometime maybe 10 15 days there is a 11:09 11 minutes, 9 seconds delay then when it comes to these kind of clients we can go to any bank and get the bills discounted as well. So cash 11:17 11 minutes, 17 seconds flow for us is not an issue when it comes to these clients. Now if I go and discount some random uh local subcontractor's bills then first of all 11:25 11 minutes, 25 seconds the bank will not let me discount those bills. So this is also one aspect. 11:32 11 minutes, 32 seconds Right. Right. My question was specifically with respect to that given that you work with tier one clients. So why are we still seeing a receivable day cycle? 11:42 11 minutes, 42 seconds Oh yeah sorry I missed that. 11:56 11 minutes, 56 seconds Yes. Uh yeah uh so see answering to your first question the thing is that the 12:03 12 minutes, 3 seconds only reason why our trade receivable cycle is about 200 days is because there is a very small amount of family 12:10 12 minutes, 10 seconds settlement which we had when we were taking over the company in 2023. So that amount is not much. Even in this year's 12:18 12 minutes, 18 seconds balance sheet if you see uh we have written off 1 cr worth of uh trade receivables from uh that was an inter 12:26 12 minutes, 26 seconds transaction happening between us. That is the only reason why the trade receivables are above 200 days. But when you open the uh balance sheet properly 12:34 12 minutes, 34 seconds and then you see the under 6 months trade receivables very carefully if you see then you won't find a big amount or a big trade cycle over there. 12:45 12 minutes, 45 seconds If you deep dive just a little bit more then you'll get a better picture I feel. 12:52 12 minutes, 52 seconds Okay. Okay. Got it. And uh but in FI27 it will be uh it will be 12:57 12 minutes, 57 seconds normalized. So that I can assure you of Okay. Okay. And any particular date that you want to guide for FI27? 13:07 13 minutes, 7 seconds It will be done during FI27. 13:12 13 minutes, 12 seconds Uh I cannot exactly tell you a date uh because uh the settlement is supposed to be done in FI27 but I can guarantee you 13:22 13 minutes, 22 seconds that we are trying our best to get it done ASAP but it's not that big an amount. So yeah by name 13:32 13 minutes, 32 seconds oh yeah yeah it's under 60 days you can see yeah yeah yeah yeah yeah yeah yeah 13:39 13 minutes, 39 seconds and just one final question before I get back in the queue on the unbuild revenue side so I saw that uh on a six-month 13:46 13 minutes, 46 seconds basis uh it jumped from about uh 2 kores to about 4 and a half kes so I just wanted to understand uh what is exactly 13:54 13 minutes, 54 seconds causing this uh any delay in formal invoicing or what does it exactly? 14:00 14 minutes That's a really good question. See, first of all, we need to understand one thing very clearly that from X1 to H2, 14:08 14 minutes, 8 seconds if you compare our balance sheets, you will see that our fleet size has doubled. Hence, our unbuild amount has also been doubled simultaneously. Right? 14:17 14 minutes, 17 seconds We had got 125 crores worth of machines inclusive of taxes in H1 and now it has gone up to 250 14:25 14 minutes, 25 seconds odd crores. Right? So because of this reason the unbuilt amount has gone up. 14:29 14 minutes, 29 seconds Now what happens is that we tend to give results as soon as possible on a quarterly basis and because of that 14:38 14 minutes, 38 seconds reason in the first it takes us approximately 20 days to submit the bills as well to our clients because 14:45 14 minutes, 45 seconds when you're working with the blue chip clients or tier clients they have a lot of uh compliances. 14:53 14 minutes, 53 seconds uh for example in JSSL and general uh stainless they are very they have got seven layers of compliances which we 15:01 15 minutes, 1 second have to follow before we submit the bills we have to do the overtime calculation and there are many such uh compliance issues so because of that we 15:09 15 minutes, 9 seconds take 20 to 22 days in order to submit the bills so if and if I'm giving you all the results in the first three weeks 15:18 15 minutes, 18 seconds or in the first four weeks then we have to uh take out the number from our log sheets which is on the hourly basis that 15:26 15 minutes, 26 seconds how much are we getting paid on this very day. So that becomes really difficult for us but we still do it and we have to add it to the unbuild amount so that we can give a clear picture. 15:38 15 minutes, 38 seconds So whatever the unbuilt amount is there it is actually a calculation of our hourly rates include uh into the hours 15:46 15 minutes, 46 seconds machines have already worked in those very days. So it will always be there. I cannot tell you that the unbuild amount will just manage away from the balance 15:55 15 minutes, 55 seconds sheet. It will be here in X1 also, H2 also. Always. 16:03 16 minutes, 3 seconds Got it. Got it. So there is no foreseeable risk of any bad debt right off. You just wanted to confirm on that. 16:10 16 minutes, 10 seconds No, no, no. Absolutely. Absolutely. 16:14 16 minutes, 14 seconds Okay. Okay. Got it. Got it. I'll get back in the queue for more questions. Thank you. Sure. Sure. 16:20 16 minutes, 20 seconds Thank you sir. The next question comes from the line of uh Arishi Maheshwari from AKSA Capital. Please go ahead. 16:29 16 minutes, 29 seconds Thanks so much. Uh and congratulations Drove and your team. Uh good set of numbers. Uh I have two three questions. 16:36 16 minutes, 36 seconds Uh one is to understand that you mentioned the peak utilization is at 100%. Uh is this uh because of 16:44 16 minutes, 44 seconds considering only one usage in a day or uh you think double shift will uh you consider double shift till then uh reached at 100%. 16:54 16 minutes, 54 seconds No no if our machines are see whatever the contract is if we ideally sign contract for single shift only. So our 17:02 17 minutes, 2 seconds machines are always at 100% utilization only 100% utilization can be in a single shift also and in a double shift scenario also. So that is not relevant 17:11 17 minutes, 11 seconds to the use of the machines. If it is a double shift uh job which we are doing, we'll be paid more but the utilization will be the same. 17:23 17 minutes, 23 seconds So if you would have uh Okay. So if you use the machine for twice a day, wouldn't uh would your effective annual 17:31 17 minutes, 31 seconds neck yield increase uh merely by using twice a day? 17:36 17 minutes, 36 seconds Absolutely. Absolutely. If you're getting poured uh if you're getting paid more then it will uh probably uh like 17:44 17 minutes, 44 seconds the payback period for the machines will become even faster. 17:49 17 minutes, 49 seconds But that's a seasonal thing. Generally in the big uh when you're doing uh jobs which are going to be uh like the 17:58 17 minutes, 58 seconds contract uh tenure is going to be 2 three four years uh when the giga projects are being made then some mostly 18:06 18 minutes, 6 seconds during the monsoon times the numbers the machines go into single shift and post monsoon the machines go into double 18:14 18 minutes, 14 seconds shift but this is not a confirmed thing it's a very variable factor right obviously depends on the the requirement of the client at that point in time. I understand. 18:24 18 minutes, 24 seconds Absolutely. The second part was to understand this uh the nature of the subvention income. 18:29 18 minutes, 29 seconds Uh what is this uh can you explain what it is exactly? You mentioned on the slide uh 17 uh that this is linked to equipment financing. 18:41 18 minutes, 41 seconds Yeah. Yeah. Yeah. So see uh maybe see I can just tell you for now that it's a quite complicated structure. I can say 18:50 18 minutes, 50 seconds that it's a financing arrangement between the OEM banks and NBFCs we are working with. Uh if you want more detail about it, we can probably get on a call 18:59 18 minutes, 59 seconds or I can write an email to you regarding this. Uh maybe after the call. I see. I see. I see. Okay. Okay. Okay. 19:06 19 minutes, 6 seconds Now I realize uh this Okay. I'll I'll connect with you later on this one. Uh the third question was 19:14 19 minutes, 14 seconds to understand uh there's a defer tax liability that has been created. It's largely created in the difference of the tax taxes that you have to and because 19:22 19 minutes, 22 seconds of the depreciation that you use over in accounting books as well as on payment statement is that all is there anything else to that 19:31 19 minutes, 31 seconds that only and I'm really feeling happy that somebody has asked me this question. If you technically see the 1.7 crores of deferred tax liability. So see 19:40 19 minutes, 40 seconds how is it done? I'll tell you. So in income tax if we have got hypothetically 20 crores worth of depreciation, right? 19:48 19 minutes, 48 seconds And in the books we in the P&L we've got 12 crores worth of depreciation. So whatever my income tax lab is going to 19:56 19 minutes, 56 seconds be, it will be the it will be 20 minus 12. So 8 crores uh will be the amount which is a taxable amount. But when it 20:06 20 minutes, 6 seconds is deferred tax since in the income tax we are getting more depreciation which which is going to be carried over to the next year. So on that amount we it's 20:14 20 minutes, 14 seconds just an accounting entry. If you see technically we don't have to pay that tax but according to company law we have to mention that in the P&L hence our PBT 20:23 20 minutes, 23 seconds goes down our PAT comes down but this 1.7 crores is not to be paid to the government. That is the whole point. 20:33 20 minutes, 33 seconds Got it. I thought so just want to clarify. Perfect. Uh lastly, you know, there's on slide 15 uh is this the 20:40 20 minutes, 40 seconds projection that you've given for uh FI 2728 crane hiring revenue growth in rupees lakhs 62 and a half crores and then 90 crores in FI28. 20:50 20 minutes, 50 seconds Yeah. Yeah. Yeah. Absolutely. This is the in this projection your assumption is uh uh 400 crores of capix deployed by FI27 21:00 21 minutes uh with which uh you would be uh at yield of about 2.2 to 3% net yield uh 21:08 21 minutes, 8 seconds sorry gross yield up to 3.2%. Am I right on this? 21:12 21 minutes, 12 seconds Yes. Now see uh see there is a change in this uh thing. If you go to our Q3 presentation, Q2 presentation, Q1 presentation. 21:21 21 minutes, 21 seconds Sorry, can I ask you to come closer to the speaker so that it'll become more audible? Yeah, sorry. Uh, am I audible now? 21:29 21 minutes, 29 seconds Better? Yes. Okay, better. 21:31 21 minutes, 31 seconds Yeah. So, see over here in this graph, if you actually see properly, uh, FI26 is 33 crores, right? Right. 21:40 21 minutes, 40 seconds Uh but if you see the previous uh presentations which we have given since FI25 we have always given at FI26 we would 21:48 21 minutes, 48 seconds have done a net top line of 20 to 22 crores. Now since we have already reached FI26 and the numbers have come 21:55 21 minutes, 55 seconds in so we have outperformed that by almost 50 to 60%. So that is the reason why this particular number we have 22:03 22 minutes, 3 seconds changed and put it as the actual number which we have already achieved. Now coming to the FI27 numbers this 62 22:10 22 minutes, 10 seconds crores which we are talking about currently our ARR from uh from the last month is approximately 5 crores. So uh 5 22:20 22 minutes, 20 seconds crores per month billings actually reflect to a 60 to 60 2 crores billing for FI27 even if we 22:28 22 minutes, 28 seconds stop expanding here. So by that we mean to say that whatever figures we have given as in the future forecasting is 22:36 22 minutes, 36 seconds all the guidance we have given but till FI27 the 33 crores which we have written is actually the amount which we have already done. 22:46 22 minutes, 46 seconds So you'll have to actually see the previous quarters uh con uh the previous quarter's investor presentation to understand this better. 22:56 22 minutes, 56 seconds Okay. Okay. Okay. Okay. Okay. Got it. 22:59 22 minutes, 59 seconds Fair enough. Thank you so much. I I I'll reconnect with you if there's any more questions. Thank you so much. Absolutely. Beautiful. 23:08 23 minutes, 8 seconds Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. 23:17 23 minutes, 17 seconds I repeat, if you have any questions, please press star and one on your telephone keypad. 23:26 23 minutes, 26 seconds The next question comes from the line of Mr. Raguendra Singh any new minister please go ahead sir 23:33 23 minutes, 33 seconds no I'm audible yeah you audible yeah hi bro congratulations on good set of members so uh I most of the questions 23:41 23 minutes, 41 seconds were already answered so I just wanted to know more about the uh 4.58 crores of uh this 23:51 23 minutes, 51 seconds your subvention income uh what is the nature of that and how it is uh like uh you mentioned 4.58 crores in the other 23:59 23 minutes, 59 seconds income and in the TPT you have mentioned that it is in the nature of your uh regular uh revenue from operations. So just if you can clarify on that part that would be great. 24:09 24 minutes, 9 seconds Yeah absolutely. So uh see the I I can tell you in a summarized way that this is basically an accounting transaction 24:18 24 minutes, 18 seconds which we have we do with the OEMs NBSC and bankers which we are getting the machines financed from. So over there we 24:25 24 minutes, 25 seconds do get some kind of benefits in terms of interest rates and all which the bankers pass it back to us in terms of 24:31 24 minutes, 31 seconds subvention. So this is the reason why this entry has come on 31st March because the first three quarters are all 24:39 24 minutes, 39 seconds unodudited financials. So we have to take some provisions. But in Q4 when we receive all this amount at once. So that 24:46 24 minutes, 46 seconds sums up uh completely and is ballooned together. So that is the reason why this amount seems bigger but this is actually 24:54 24 minutes, 54 seconds part of our uh core hiring business itself. 24:59 24 minutes, 59 seconds Okay and uh so out of uh that that's thank you for answering that and one more question uh on the feed size. So 25:06 25 minutes, 6 seconds currently you have mentioned that you have around 143 plus fleet size and how uh like how many uh like what size of 25:14 25 minutes, 14 seconds fleet you have commissioned in the last 3 four months and it is uh under utilized or not uh put into the project yet. 25:23 25 minutes, 23 seconds Yeah. See uh if I be very honest with you all then uh since in the la from H1 to H2 we have bought almost 150 crores 25:32 25 minutes, 32 seconds worth of machines which we have almost doubled our capex in from H1 to H2. So that is the reason why the costs and all 25:40 25 minutes, 40 seconds have suddenly gone up but of course when you see our balance sheet the net asset base has become 290 crores now. So as and when all these machines come out 25:49 25 minutes, 49 seconds from CWIP like for example we have got some machines in CWIP also around 27 crores worth of machines. So all these machines have just now been installed. 25:59 25 minutes, 59 seconds So now in the upcoming quarters you'll see a very different picture altogether when it comes to topline and all because when we are doing when we are at a hyper 26:08 26 minutes, 8 seconds capeex expansion plan then whenever you do kex then the revenue takes little bit time to come because there's a lead time of one one and a half months. 26:16 26 minutes, 16 seconds because we have to do after purchasing the machine we have to do a lot of compliances we have to transport the machine the TPI happens then there are 26:25 26 minutes, 25 seconds many such things so because of that there is a general one to one and a half month delay in the revenue so whatever 26:32 26 minutes, 32 seconds capeex and all has been done in FI26 the real fruits will be seen in FI27 numbers 26:40 26 minutes, 40 seconds whatever capex you'll be doing this year will technically you'll have a 12- month run for FI in FI28. 26:49 26 minutes, 49 seconds So you can see the change in our balance sheet which is happening. We have gone from 36 crores of assets to uh 260 26:58 26 minutes, 58 seconds crores of assets. Uh so that's a very big jump. So because of that the cost and all is very difficult to get the 27:06 27 minutes, 6 seconds exact numbers right now. But now from Q1 F27 everything will be streamlined again. 27:15 27 minutes, 15 seconds Okay. And uh one uh last question from my side. So uh uh on your order book. So uh in the recent you have made a few 27:23 27 minutes, 23 seconds disclosure. So if you can quantify the amount uh what size of order book are you currently at and uh like how much is 27:31 27 minutes, 31 seconds executable over the next six to one 6 months to one year. 27:36 27 minutes, 36 seconds Yeah. Our FI27 order book is currently standing at 62 odd crores and uh whatever 27:43 27 minutes, 43 seconds sorry whatever overtime we will be generating will be added to this since it's a variable factor I cannot comment on that but currently our order book is 27:51 27 minutes, 51 seconds 60 cr and above for FI27 financial year okay okay thanks thank you very much 27:58 27 minutes, 58 seconds I'll call back in the queue sure thank you so much sir ladies and gentlemen if you have any questions 28:06 28 minutes, 6 seconds please press star and one on your telephone keypad. 28:11 28 minutes, 11 seconds I repeat if you have any questions please press star and one on your telephone keypad. 28:20 28 minutes, 20 seconds The next question comes from the line of Mr. Raviindra from Darak Kamay capital. Please go ahead. 28:27 28 minutes, 27 seconds Yeah thank you. Good evening uh the management. Thank you for today's opportunity. So the first question I have is hello. Am I audible? 28:37 28 minutes, 37 seconds Yeah, you're audible. 28:40 28 minutes, 40 seconds Hey. Oh, thank you. The first question I have, yeah, I've seen that in this quarter our margins have been dripped 28:47 28 minutes, 47 seconds quite significantly from the 60% benchmark that we have said. So do you have any comments on this? 28:55 28 minutes, 55 seconds Yeah, actually uh we have given guidance and clarification on that that uh the other income is actually part of our 29:03 29 minutes, 3 seconds core hiring business itself. And to prove that you can actually just turn the first page and see in the second 29:10 29 minutes, 10 seconds page that in the segmental revenue uh our core hiring business has that income but according to company 29:19 29 minutes, 19 seconds law we our auditors have to mention that as other income. 29:24 29 minutes, 24 seconds So that is why we have given a clarification on that. Yeah. So technically the margin table. Okay. 29:32 29 minutes, 32 seconds Yeah. 29:32 29 minutes, 32 seconds Okay. Can you quickly explain like you know to a to a non-accounting guy what what what a suspension income is uh specific to our line of business. 29:43 29 minutes, 43 seconds Yeah. So uh so when you work on a very higher capex model then you get some uh 29:50 29 minutes, 50 seconds benefits from the OEMs and the bankers as well where uh the interest payments uh when where there are some waiverss on 29:58 29 minutes, 58 seconds the interest in uh interest you are paying to the banker. So those wavers are actually called subvention. You can Google it out also it will say the same 30:07 30 minutes, 7 seconds thing. So in our industry also like in our PNLN also like this is the perfect explanation of what this is. 30:16 30 minutes, 16 seconds Okay. Yeah. Got it. So does that correlate anything with the uh increase in payables that we see like you know 30:25 30 minutes, 25 seconds which currently stands at around 159 or crores. 30:30 30 minutes, 30 seconds Yeah. So see when we are going on expanding in a very high spree then what happens is that that first of all I 30:38 30 minutes, 38 seconds would like to say that the demand on ground is too much right now and in the last two quarters we have doubled our 30:45 30 minutes, 45 seconds fleet. So when you are buying 150 200 crores of machines in a few months then you need support from the banking system 30:53 30 minutes, 53 seconds the OEMs also in order to make sure that those machines can be uh delivered on site properly ahead of time and the operations become smooth smoothly done. 31:06 31 minutes, 6 seconds Yeah. So that is the reason why uh this particular figure of 159 crores you can see right now but eventually uh it will 31:14 31 minutes, 14 seconds be blended to the uh uh just a second eventually it will be blended to the cash from financing activities. 31:22 31 minutes, 22 seconds So it's just that we are waiting uh I'm talking from balance sheet uh where 31:29 31 minutes, 29 seconds we have pro like under the other current liabilities we have posted 150 crores right yeah yeah yeah 31:37 31 minutes, 37 seconds is that yeah please please complete your question no go ahead I was specific to that 31:47 31 minutes, 47 seconds yeah so see when when whenever we are going through a very big expansion phase then this uh there is a we have to work 31:54 31 minutes, 54 seconds as a team the bankers the OEMs and uh us as the contractors as well. So in this case what happens is that some machines 32:02 32 minutes, 2 seconds have been delivered on site today some will be delivered in a few days. So the funding and all takes a lot of time. So 32:10 32 minutes, 10 seconds this particular time which is being taken those machines will stay in our uh trade payables but eventually it will 32:18 32 minutes, 18 seconds come to our asset uh it will eventually come to our borrowings the liability side. Okay. 32:26 32 minutes, 26 seconds It's just a matter of what Got it. Got it. So currently our debt to equity is already you know above one 32:35 32 minutes, 35 seconds right? Uh our non-curren borrowing is at 65. So when this gets translated so what by the uh by FI27 what what debt levels 32:44 32 minutes, 44 seconds can we assume because you know uh even that would if that number would have given it would have been uh very good along with our capex program and everything. 32:55 32 minutes, 55 seconds Yeah. So see every month a few uh like every month this is getting uh like uh 33:03 33 minutes, 3 seconds rooted out already. So by FI27 you will see a significant chunk. Right now it is very difficult for me to give you the exact figures. Maybe after the call we 33:12 33 minutes, 12 seconds can discuss properly where I can actually give you every single uh exact figure as well that in FI27 33:20 33 minutes, 20 seconds is going to my my intention was on a broad basis like you know it's a 400 cap cr. 33:28 33 minutes, 28 seconds So yeah what what numbers are you seeing eventually eventually in the next 12 to 33:35 33 minutes, 35 seconds 18 months this whole thing will move out to the other side of the balance sheet this I can tell you because we are it's 33:43 33 minutes, 43 seconds not that we are not going to buy any machines now right we are still purchasing machines on a weekly basis so 33:50 33 minutes, 50 seconds as and when we keep adding more machines some amount will go from left to right then again it will be added to left and then again it will go to the other side 33:58 33 minutes, 58 seconds of the balance it. So that is the reason it's almost impossible for me to give you the correct definition, the correct answer for it right now. Maybe once we 34:07 34 minutes, 7 seconds start uh once we start uh to slow down in terms of the capex we are doing then I can give you a better understanding but right now it's next to impossible. 34:19 34 minutes, 19 seconds Okay. Okay. But right now we are at 65 crores. Am I correct? Yeah. No it will say like that. Okay. 34:29 34 minutes, 29 seconds Okay. And what is our average uh you know cost of borrowing? 34:34 34 minutes, 34 seconds It's approximately anywhere in the range of 4 to 6% depending on uh this is a flat rate. So uh it's it's anywhere in 34:44 34 minutes, 44 seconds the range of 5% plus minus.5%. 34:49 34 minutes, 49 seconds Got it. So uh I I see that we have a plan of increasing fleet size towards north of 200. Uh can we uh map it like you know uh to a 100 cr deployment? 35:03 35 minutes, 3 seconds Absolutely more than that because now see we have expanded into the 100 ton machines. We have bought a a 35:13 35 minutes, 13 seconds good amount of machines. So now we are trying to focus on the 150 160 200 220 and 260 ton machines. So as in when we 35:22 35 minutes, 22 seconds start going for these machines like 10 of these machines will cost me a good 4050 crores. 35:32 35 minutes, 32 seconds Yeah. So my yeah my last question is uh I I see that we have given 35:39 35 minutes, 39 seconds ROC guidance of 20 north of 20% right but also in the same slide we we are stating that AIDA 35:48 35 minutes, 48 seconds expected Eida is 60% right on on on a revenue guidance of 100 crores so I think both are not in sync 35:58 35 minutes, 58 seconds right uh like you know if if if you see a ROC of 22% on a 400 cr asset base 36:04 36 minutes, 4 seconds right it's north of 80 crores whereas if you're targeting like yeah 36:11 36 minutes, 11 seconds yeah see now what the thing is that that when you actually it's not that that we are going to complete the 400 crores 36:20 36 minutes, 20 seconds expansion in the month of May right so when if for example we complete the 400 36:26 36 minutes, 26 seconds cr plan in the month of May then you can expect the ROC and all the numbers will change in the guidance but That's not 36:33 36 minutes, 33 seconds practical, right? So I already know that when the season comes, H2 comes, we'll be more aggressive that time. So that 36:41 36 minutes, 41 seconds time you will not get a full blend of the year, right? So that is the reason why our projections are very 36:48 36 minutes, 48 seconds conservative on the terms of those not being full year uh uh full year uh what do you say expectations. 36:58 36 minutes, 58 seconds If I would have completed the full 400 cr cex in this very month, then of course we would have given different guidances, we would have changed 37:06 37 minutes, 6 seconds everything. The whole PPD would have been changed. 37:10 37 minutes, 10 seconds Got it. Uh if if if you may I have one last question. That's it. Yeah. Yeah, sure. 37:18 37 minutes, 18 seconds Yeah. So I I've gone through our past uh like like uh uh the boom cycle of infrastructure from 20 you know uh in 37:27 37 minutes, 27 seconds the in the uh the earlier decade and I've seen the same strategy uh being taken by different equipment rental 37:36 37 minutes, 36 seconds companies out there you know uh leveraging high and then increasing all their capex and everything but uh I 37:44 37 minutes, 44 seconds think a significant downturn has occurred after that for nearly more than six to seven years, right? 37:52 37 minutes, 52 seconds Getting caught up with one industry or one customer uh concentration. So, how do you read that and you know what what 38:00 38 minutes what are we trying to do different uh in the next 3 to four years strategically to ensure we sustain longer time frame? 38:10 38 minutes, 10 seconds Yeah. Yeah. So, you're right to a certain point. The whole point of uh this particular thing is that we want to 38:19 38 minutes, 19 seconds do something very differently right but the point is that our logic is that we only enter those contracts where the 38:27 38 minutes, 27 seconds contract term is longer than uh in terms of tenure so if I'm getting a contract for 2 years or 3 years and I know that my equipment payback period is under 38:35 38 minutes, 35 seconds four years so that gives me a massive amount of safety right and according to our we have got more than 30 years of experience in this industry. So when we 38:44 38 minutes, 44 seconds see a site, we can actually understand that what is the kind of requirement the site needs and how long will it actually 38:51 38 minutes, 51 seconds take. Now if you see uh if suppose the piling work had just ended in a site the 38:58 38 minutes, 58 seconds civil work is already done. So now I know that if the site uh is a very big 39:04 39 minutes, 4 seconds uh site for example Reliance, Tata, R&D and all wherever they enter it takes 3 to four years for them to build a blast 39:12 39 minutes, 12 seconds furnace plant or anything like that. So we have to enter in a very sustainable way and we have to make sure that we 39:20 39 minutes, 20 seconds enter at the right time to do capeex is not a very difficult thing. You can just buy a machine left, right, center and 39:26 39 minutes, 26 seconds keep giving it to uh different sites but the actual art is to actually give in those particular moments when the first 39:35 39 minutes, 35 seconds phase has just started. Now for example uh Reliance is coming up with a 5.5 lakh acre expansion in cuts that is going to take 10 to 12 years uh to to be built. 39:48 39 minutes, 48 seconds So of course we our first target will be to do as much capex over there as possible. So you have to make sure that 39:55 39 minutes, 55 seconds when you are entering and where you are entering. So this is what we are trying to do different that we enter those sites in which we can at least give 15 40:04 40 minutes, 4 seconds 20 machines at the bare minimum. So the side uh is in our control. 40:11 40 minutes, 11 seconds This is the kind of practice which we are trying to do. 40:16 40 minutes, 16 seconds Yeah. But will will we slow down on the uh leverage uh post 2027 2028? 40:28 40 minutes, 28 seconds Yeah, I don't see the demand going down. 40:30 40 minutes, 30 seconds If the demand go down then obviously we don't have any option but we have to slow down right now. If you're getting good projects at a good uh timing then 40:40 40 minutes, 40 seconds why not enter it? That's the whole point for me. So I am looking it at from that 40:48 40 minutes, 48 seconds perspective. If I'm getting a good entry point then why not enter? That's the thing 40:55 40 minutes, 55 seconds and we are not working with government bodies also. So government spending is also not very directly linked to us. We are trying to keep most of our exposure 41:04 41 minutes, 4 seconds in the private sectors only what the private capex is being done. But I know that the private capex is also in a way uh related to the government spending. 41:14 41 minutes, 14 seconds But whatever projects have been started, it cannot be stopped midway because those are all visa projects. 41:21 41 minutes, 21 seconds Got it. So, so if in other way around like you know uh even uh if we see FI27 or FI28 which is 62 crores or 100 crores 41:31 41 minutes, 31 seconds you know what would our industry uh grouping would be for that revenue scale? 41:37 41 minutes, 37 seconds We are trying to uh keep most of our machines into d into a very good diversified field. Currently the 41:45 41 minutes, 45 seconds renewable energy space is growing like anything and the chemical uh space is also growing like anything. Uh so we are 41:53 41 minutes, 53 seconds trying to uh be as diversified as possible. Uh probably in a few more months new metro projects are also 42:00 42 minutes coming. So currently we have got very less exposure in metros. So eventually we'll make it more. 42:07 42 minutes, 7 seconds Can you add any numbers to the can you add percentages like to you know for the FI26 out of the whole 250 per fleet we have 42:16 42 minutes, 16 seconds given uh just a second I shall tell you the exact slide number as well you can 42:22 42 minutes, 22 seconds see on the 10th slide of our PPT you'll be able to see the exact breakdown of every single aspect every single industry. 42:34 42 minutes, 34 seconds Okay. Thank you for that. Yeah. Yeah. I think that's it from my side. 42:42 42 minutes, 42 seconds Thank you. Thanks a lot. Thank you. 42:46 42 minutes, 46 seconds Thank you so much, sir. Ladies and gentlemen, if you have any questions, please press star and one on a telephone keypad. 42:59 42 minutes, 59 seconds The next question comes from the line of Mr. Rahul Singha, an indigenous investor. Please go ahead. Hi Drew, first of all, congratulations. 43:09 43 minutes, 9 seconds I think the company has a is at a good juncture at this stage. Uh current growth yields are roughly 3% monthly. 43:20 43 minutes, 20 seconds My question is that how sustainable are these meals as the fleet scales and the competition potentially increases over the next couple of years? 43:33 43 minutes, 33 seconds Yeah. Uh see these rental rates are very much sustainable. I can say that with good uh confidence. It's just that the 43:42 43 minutes, 42 seconds 3% mark is mostly for the machines below 100 tons. when you go above 100 tons then your margins increases and your uh 43:51 43 minutes, 51 seconds top line decreases. So this happens only when you go way above 100 ton machines where the yields are low but the margins 43:59 43 minutes, 59 seconds are high. So these yields are when you see the net blended yield then you'll be able to see that it's very much sustainable like I can say that. 44:11 44 minutes, 11 seconds Understood. And one more general purpose question I had is uh in the coming two three years what do you see the 44:19 44 minutes, 19 seconds challenges that we can potentially face and uh apart from our core business do you see any scope for diversification into other segments as well. 44:32 44 minutes, 32 seconds Yeah. So uh see what we are trying to do is that that we want to have a very good uh very good diversification of our 44:41 44 minutes, 41 seconds fleet. It's not that that we like uh only want to have crawler cranes or truck mounted cranes or only man lifters 44:48 44 minutes, 48 seconds or only all-terrain cranes. So we are trying to make sure that we have got a very good diversification in the fleet 44:55 44 minutes, 55 seconds size in the fleet type. So when we have got around seven, eight or maybe 10 product portfolio uh products in our 45:03 45 minutes, 3 seconds portfolio then that helps us to make sure that our utilization rate always remains higher than our competitors. 45:11 45 minutes, 11 seconds So we currently we are focusing on this aspect only challenges I can only say that I think the operational challenges because at 45:20 45 minutes, 20 seconds the end of the day all these are heavy machineries there are breakdowns. There are downtimes currently we should not we 45:28 45 minutes, 28 seconds should not face these things because all our fleets are extremely brand new. All the fleets are less than 2 years old. So 45:35 45 minutes, 35 seconds that is the reason why I personally feel that for the next two to three years we should not have a lot of operational challenges. 45:45 45 minutes, 45 seconds Understood. Yeah, that's it from my side. Congratulations and best of luck for the future. Thank you so much. 45:53 45 minutes, 53 seconds Thank you so much sir. Ladies and gentlemen, if you have any questions, please press star and one on the telephone keypad. 46:02 46 minutes, 2 seconds I repeat, if you have any questions, please press star and one on the telephone keypad. 46:11 46 minutes, 11 seconds We have a follow-up question from Mr. Rohan Meta from Freecom family office. Please go ahead. 46:19 46 minutes, 19 seconds Thanks for the followup. Uh so just couple of bookkeeping questions. Uh I wanted to know what your gross block and mid block is as of uh the closing year. 46:29 46 minutes, 29 seconds Yeah. So our gross block of this year is approximately 258 crores. Uh this is 46:37 46 minutes, 37 seconds inclusive of GST because GST is a very big amount for us. Approximately 33 crores of our money is stuck in GST right now which is getting recovered 46:45 46 minutes, 45 seconds every month. So currently inclusive of taxes it is 258 groups. Net block I'll have to calculate and I'll tell you I 46:54 46 minutes, 54 seconds don't have the exact data but uh since all our machines are extremely brand new we can just do a basic uh 7 and a half% uh discounting on that. Yeah. 47:06 47 minutes, 6 seconds Got it. Got it. And couple of clarifications. So uh in your results uh what I noticed was that uh firstly if 47:14 47 minutes, 14 seconds you take a look at employee cost so the employee cost uh that has jumped uh quite significantly 47:22 47 minutes, 22 seconds uh along with other expenses uh this I'm uh calculating on a uh quarteronquarter 47:29 47 minutes, 29 seconds basis because the base is very low uh on a yi basis and uh even if let's say I 47:35 47 minutes, 35 seconds take the uh interest subvention income and I added to revenue. So your EIDA 47:42 47 minutes, 42 seconds comes to somewhere around 58%. So generally 58% was the margin that uh you did somewhere around September quarter 47:50 47 minutes, 50 seconds which is you know usually the monsoon quarter where the demand or the workflow is a bit on the weaker side and Q4 is 47:57 47 minutes, 57 seconds generally slightly stronger. So I just wanted to understand uh is there anything particularly this quarter that uh impacted uh the workflow? 48:09 48 minutes, 9 seconds Yeah, see uh when it comes to Q2 numbers, then you can check the transcript from that con also we had 48:17 48 minutes, 17 seconds clearly mentioned that we have bought uh approximately 75 80 crores worth of machines in a very short period of time 48:25 48 minutes, 25 seconds and we had to uh get the labors approximately 20 to 25 days in advance on on the sites. Again the same thing 48:33 48 minutes, 33 seconds has happened in this quarter also we have bought approximately in this quarter itself we have bought 60 to 65 crores worth of machines. So again the 48:42 48 minutes, 42 seconds same thing has happened that we have to pay for 20 25 days extra labor cost where we have to station the people 48:50 48 minutes, 50 seconds before. So uh as soon as you station the people uh for companies like Reliance and General uh and Tatastel as well it 48:59 48 minutes, 59 seconds takes approximately 3 to 7 days just to generate the gate pass of the operators and the helpers. So that additional uh 3 49:08 49 minutes, 8 seconds to seven days I have to pay the employees also right because they have already started working for me. So when we are doing a lot of capex then these 49:16 49 minutes, 16 seconds kind of things will keep happening. The exact same thing which had happened in Q2 has again happened in Q4 because we have got so many machines at once. 49:27 49 minutes, 27 seconds Got it. Got it. 49:29 49 minutes, 29 seconds In Q2 also if you see these the exact two line items had become significantly higher. So again like it's the same 49:36 49 minutes, 36 seconds thing that again these two line items have become significantly higher. 49:42 49 minutes, 42 seconds Right. Right. And on your cost of borrowing you mentioned 5% plus and minus 50 basis point. So that is inclusive of interest. Uh right? 49:54 49 minutes, 54 seconds Uh no that is not inclusive of its because if it would have been then my finance cost would have been uh uh like 50:01 50 minutes, 1 second it would have been uh like there would not be any finance cost on my P&L right if that would have been included. 50:10 50 minutes, 10 seconds Okay. Okay. 50:11 50 minutes, 11 seconds Yeah we can talk about it post the call because it's a very uh it's such a topic where I have to give you the exact 50:18 50 minutes, 18 seconds percentages exact numbers and I have to explain it to you in a very deeper way. 50:23 50 minutes, 23 seconds Sure, sure, sure. I'll I'll reach out to you. 50:27 50 minutes, 27 seconds Uh my final question would be you know uh you spoke about uh the fact that you don't see any particular demand issue. 50:37 50 minutes, 37 seconds uh but uh I just wanted to understand uh company specific as well as industrywide any two to three key risks uh that you 50:45 50 minutes, 45 seconds see uh at this particular stage which could sort of uh you know slow down the growth momentum 50:55 50 minutes, 55 seconds see the currently currently I'm talking about that the only issue which we can face is operational challenges but for 51:04 51 minutes, 4 seconds now all our contracts have been extended to 31st December. So for the next 8 n months, we don't have any problem with the order book. There are many contracts 51:13 51 minutes, 13 seconds which will be extended what from my experience I can tell you this that all these contracts will again be extended for another 12 months. But 51:21 51 minutes, 21 seconds currently on paper we just have it till 31st December. So in the short term we don't have an issue with the demand side 51:28 51 minutes, 28 seconds and any challenges. The only issue which can happen is operational issues. 51:35 51 minutes, 35 seconds So uh so this is what I can tell you right now. Got it. 51:41 51 minutes, 41 seconds The demand is going up every day. This I can tell you for sure. 51:46 51 minutes, 46 seconds Right. Right. Thank you. Thank you so much. That's all from my end. Thank you. Thank you so much sir. 51:55 51 minutes, 55 seconds The last question is coming from the line of Mr. Yash Junjuna Indig investor. Please go ahead. 52:02 52 minutes, 2 seconds Hi, am I audible? Yeah, you're audible. 52:07 52 minutes, 7 seconds Hi. Uh, firstly, thanks for the opportunity. Uh, I actually just wanted to understand, you just explained to the previous participant why your employee 52:16 52 minutes, 16 seconds cost was higher, but can I know why your other expenses also shot up drastically? 52:23 52 minutes, 23 seconds Yeah. So, when we purchase machines, so along with the machines, we have to purchase many other things for the 52:29 52 minutes, 29 seconds machines. Now for example uh a few spare parts and all these things for the machines we had purchased in FI24. So 52:37 52 minutes, 37 seconds those spare parts and all also we have to now the FOC's for those machines are getting over. So because of that these 52:44 52 minutes, 44 seconds the other expenses have gone up slightly but eventually when our top line also goes up in the next quarters in the 52:52 52 minutes, 52 seconds upcoming quarters then you'll be able to see that it's uh it's it blends in 52:58 52 minutes, 58 seconds because currently 27 28 crores worth of machines are were into CWIPS which is now being uh started. So currently we 53:08 53 minutes, 8 seconds are at zero CWIP. So all these machines also when start generating m uh revenue then all these numbers will still be the 53:15 53 minutes, 15 seconds same but the top line will go up. So that time you'll be able to see that it has been blended in a very nice way. 53:24 53 minutes, 24 seconds Okay. Got it. Um okay my next question is on the receivables end um like because on paper right now your 53:32 53 minutes, 32 seconds receivables look pretty high at about 205 days. What are your payment terms with these uh with these clients? How how soon do they pay? 53:43 53 minutes, 43 seconds See on paper we have got uh we have signed the contract with 45 days of payment with everyone but there are a few clients who pay in 30 days also. 53:52 53 minutes, 52 seconds There is a there are a few clients who pay in 45 days also. Sometimes when it comes to quarter ending especially March 31st everyone wants to carry cash in 54:01 54 minutes, 1 second their book. So that is the reason why they pay after 10 15 days which is fine but uh overall if you see our payment 54:10 54 minutes, 10 seconds cycle currently under 6 months is around 45 days. 54:18 54 minutes, 18 seconds So on average your payment terms are set at 45 days. Yeah. Yeah. 54:24 54 minutes, 24 seconds And uh will we see this receivable days come down uh as you uh because right now 54:31 54 minutes, 31 seconds I think you're uh there that there is some is there some receivables built in which are not related to the crane rental business. 54:41 54 minutes, 41 seconds Yeah, absolutely. That's a family settlement issue which we have it's not a very big amount. Uh so in FI27 that small amount will also be coming to us. 54:50 54 minutes, 50 seconds So once that happens then that trade receivable above 6 months will become zero. So then you'll be able to see that 54:58 54 minutes, 58 seconds uh not above 6 months above 60 days will become zero. So then my whole trade receivable cycle will come down. So it's 55:06 55 minutes, 6 seconds an internal adjustment which was done during the re restructuring of the company which we cannot help right now. 55:13 55 minutes, 13 seconds Yeah. But if you want to actually understand our core businesses uh data cycle, you have to see under 60 days 55:20 55 minutes, 20 seconds aging which will come in the Android. Got it. 55:26 55 minutes, 26 seconds Got it. Okay. And my last question was actually connected to some previous participant was trying to understand just I wanted to understand like I uh uh 55:35 55 minutes, 35 seconds you were saying that you are comfortable taking on debt as long as there is demand visibility but is there any internal uh I mean 55:45 55 minutes, 45 seconds benchmark you have in mind where you have kept a debt to equity currently your debt to equity is close to 2 is to 55:52 55 minutes, 52 seconds one so is there any internal benchmark that you've kept that okay no regardless of demand for for balance sheet health you will not take on more leverage. 56:02 56 minutes, 2 seconds See balance sheet health uh we will always be in this particular range only until unless we are expanding going on 56:10 56 minutes, 10 seconds expanding. The thing is that all our trade payables if you see also sorry all our uh repayments are also quite fast. 56:18 56 minutes, 18 seconds So we pay approximately 2 and a half% per month back to the bankers. So because our tenure of the yeah that's per month. So 56:28 56 minutes, 28 seconds all when you see from a quarter a month- on-month perspective every quarter we are approximately paying 7.5% of the 56:35 56 minutes, 35 seconds loan book. So that's very high because in our industry this is how it works. 56:40 56 minutes, 40 seconds People take a four year funding. So you ideally pay 2 and a half% every month but we take we have taken many two years and three years funding as well because 56:49 56 minutes, 49 seconds our internal approvals are very nice right now. 56:53 56 minutes, 53 seconds So eventually when you see as and when we are going on paying of our loans we will be adding more 57:01 57 minutes, 1 second but this debt to equity of around 1.5 eventually we will blend it out to be 1.5 because with our current order book 57:09 57 minutes, 9 seconds our this year's FI27's projections are very strong. So our debt repayment will also be significantly higher and we 57:17 57 minutes, 17 seconds expect really good financial uh stability also in the company. So when you actually see at the end of the year 57:24 57 minutes, 24 seconds when we are paid 40 45 crores worth of debt then approximately we can borrow at least 100 more crores right because the debt repayment is extremely fast. 57:37 57 minutes, 37 seconds Got it. So you you will try to maintain your debt below two two times equity. 57:45 57 minutes, 45 seconds Yes, you can say it in that prospect. Absolutely. 57:51 57 minutes, 51 seconds Got it. Okay. Thanks. That's all from my side. 57:56 57 minutes, 56 seconds Thank you so much, sir. In the interest of time, that will be our last question for the day. Now I hand over the floor to the management for closing comments. 58:07 58 minutes, 7 seconds Uh I would like to thank everyone for joining our call today. It was uh really uh nice chatting with you all. Uh and we'll keep doing it quarter on quarter. 58:18 58 minutes, 18 seconds We uh we are really I really appreciate everyone giving a good one hour time to listen to us to have good conversation. 58:27 58 minutes, 27 seconds So uh I would like to thank everyone. Yeah. Thank you. 58:32 58 minutes, 32 seconds Thank you so much sir. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation on using DSabas conference 58:40 58 minutes, 40 seconds call services. You may disconnect your lines now. Thank you and have a pleasant day.