Unimech Aerospace and Manufacturing Ltd — Q3 FY26

Unimech Aerospace and Manufacturing Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=vlrXHdlgJQI Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Q3 and FY26 earnings conference call of UniC Aerospace and Manufacturing Limited. 0:11 11 seconds As a reminder, all participant lines will be in the listener 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 then 0:25 25 seconds zero on your Touchstone phone. Please note that this conference is being recorded. I now hand the conference over 0:33 33 seconds to Mr. Prashil Gandhi from Anandraati Shares and Stock Brokers Limited. Thank you and over to you sir. 0:40 40 seconds Thanks Steve. Good morning everyone. We welcome you all to Q3 FY26 earnings conference call for UniCake Aeros. 0:50 50 seconds We have with us Mr. Anil Kumar Putin chairman and managing director Mr. Mr. 0:55 55 seconds Rashnik Khan Balaraman full-time director Mr. Ram Krishna Kamaloja wholetime director and CFO Mr. Maniputan 1:04 1 minute, 4 seconds full-time director Mr. Priam SV full-time director and Mr. Akash Jaswal AGM investor relation I would now hand 1:12 1 minute, 12 seconds like to hand over the call to Mr. Anil for his opening comments uh over to you sir. 1:19 1 minute, 19 seconds Good morning everyone and welcome to Unim Aerospace and Manufacturing Limited's Q3 FI26 earnings call. Thank you for joining us today. 1:29 1 minute, 29 seconds Let me begin uh by brief addressing the quarter gone by for Q3 FI26. Revenue stood at rupees 34 cr lower than our 1:38 1 minute, 38 seconds historical run rate and profitability was slightly above break even. This was largely on account of temporary slowdown 1:45 1 minute, 45 seconds in the order pickup in our aero tooling segment driven by exceptionally high US tariff during the quarter and seasonal 1:52 1 minute, 52 seconds effects in December. However, I am pleased to share that the external movement external environment sentiment 1:59 1 minute, 59 seconds has meaningfully improved since the positive macro development wiz tariff reduction which happened earlier this 2:08 2 minutes, 8 seconds month with the tariffs reducing to 18% from 50% effectively immediately. 2:14 2 minutes, 14 seconds Importantly, India is now among the most favorable favorably tariff manufacturing nations for the US within South and Southeast Asia. 2:22 2 minutes, 22 seconds This development significantly improves customer economics, encourages rebuilding of inventory at customer 2:29 2 minutes, 29 seconds warehouses, restores confidence in order flows. We believe this marks a clear turning point and we expect order 2:36 2 minutes, 36 seconds normalization and better traction from here on. 2:40 2 minutes, 40 seconds As we have consistently highlighted, the softness witnessed in the business was never structural. the elevated tariffs which had temporarily pushed customers 2:48 2 minutes, 48 seconds to move from inventory-led procurement to essential drop shipment only ordering and deferring non-urgent tools. These 2:57 2 minutes, 57 seconds constraints are easing and discussions with customers indicate a more constructive ordering environment ahead. 3:04 3 minutes, 4 seconds Most importantly, I would want to highlight we will continue to remain deeply embedded within the customer ecosystem supported by strong technical 3:13 3 minutes, 13 seconds credentials, high switching costs, long qualification cycles. These fundamentals continue to provide long-term revenue 3:20 3 minutes, 20 seconds visibility and stability for us in the business. Our efforts to place strategic mitigates over the last several months 3:28 3 minutes, 28 seconds is also strongly progressing. We have accelerated multiple initiatives to structurally direct the business and position unime strongly for the next growth phase. 3:40 3 minutes, 40 seconds The free trade warehousing zone as indicated during the previous earnings call. We continue to advance the FPWZ 3:49 3 minutes, 49 seconds establishment. The facility setup is largely complete and we are currently awaiting certain regulatory approvals. 3:55 3 minutes, 55 seconds We are pursuing these actively and expect to conclude the approval process subject to regulatory timelines during this quarter. 4:05 4 minutes, 5 seconds Once operational, once FWZ is operational, this will allow us our customers to build and maintain duty-free inventories of a engine and 4:14 4 minutes, 14 seconds airframe tools. Ensure regular and predictable order flows, reduce lead times and logistics friction. For unex 4:21 4 minutes, 21 seconds perspective, this will support our tooling revenues from any future tariff war even as we benefit from recently 4:29 4 minutes, 29 seconds reduced tariff regime and makes us even more critical strategic partner strengthening our book. While derisking 4:37 4 minutes, 37 seconds the business, we have also made solid progress in order intake aing business. 4:43 4 minutes, 43 seconds Ground support equip in the aerrolling business. Yeah, ground support equipment orders worth of 35 cr. Nuclear business we have won couple of orders amounting to about 68 cr as of February 12th 26. 4:56 4 minutes, 56 seconds The order book stands at 210 cr which is a record quarter intake double from our past order bookings. 5:05 5 minutes, 5 seconds This gives us a good visibility as aggregation accelerates. 5:10 5 minutes, 10 seconds International expansion Saudi Arabia. As part of our global footprint strategy, we have entered a strategic alliance in form of joint 5:18 5 minutes, 18 seconds venture with the youth of bin Ahmed Kano Group, one of the oldest and most respected diversified family owned businesses, business conglomerates in 5:27 5 minutes, 27 seconds the Middle East with a strong legacy spanning over 135 years. They operate across multiple sectors including shipping and logistics, travel and lure, 5:36 5 minutes, 36 seconds industrial and energy solutions, machinery, chemicals, oil and gas services, power and water and real estate. This will be secondary of our 5:45 5 minutes, 45 seconds UNICE as we have established controlling rights in the JV. I believe you would have taken a note of our exchange announcement last month. Happy to 5:54 5 minutes, 54 seconds indicate we are progressing steadily on the JV to be positioned in Tam Saudi Arabia with an initial focus on oil and 6:01 6 minutes, 1 second gas components followed by gradual expansion into utilities, energy and aerospace. This initiative aligns 6:08 6 minutes, 8 seconds strongly with Saudi vision 2030 localization mandates rising regional demand for precision 6:17 6 minutes, 17 seconds manufacturing. We believe this platform can unlock meaningful growth over the next 3 to 5 years while expanding UNIM's addressable market beyond India. 6:26 6 minutes, 26 seconds Speaking about business performance aero tooling Q3 was impacted as we could 6:33 6 minutes, 33 seconds not ship many orders due to elevated tariffs and year end holiday slowdown. 6:38 6 minutes, 38 seconds Our inventory buildup remains strong at the end of the quarter three which positions us well for the monetization and improved revenues in this quarter. 6:49 6 minutes, 49 seconds With tariffs now favorable and FWZ progressing we expect a gradual and sustained improvement in order flows as 6:56 6 minutes, 56 seconds evidenced in the February. So far we have received orders worth rupees 4.2 million just in the first week of February from our customers. 7:07 7 minutes, 7 seconds precision components and assemblies. Our focus continue to build our offerings serving a variety of industries in this precision segment. Not only limited to 7:15 7 minutes, 15 seconds aerospace, we continue to progress steadily in the segment and as we as typical for this segment given the long 7:22 7 minutes, 22 seconds qualification cycles. We will need some uh patient effort to develop this 7:30 7 minutes, 30 seconds vertical. However, encouraging indications include increased FIA requests post completion of FIA. In the previous quarters, we have received 7:37 7 minutes, 37 seconds additional FIA requests for 24 new parts. Higher FA conversions for semiconductors OEMs. We have already received production orders. Though small 7:46 7 minutes, 46 seconds current though small currently will be meaningful in the next two years for the production order received, we have a 52 weeks visibility also. 7:56 7 minutes, 56 seconds Additionally, in FI27, we will see a lot many qualifications uh activities happening, rising RFQ 8:04 8 minutes, 4 seconds complexity, advancing long-term agreements, discussions with TR ones and OEMs. 8:11 8 minutes, 11 seconds In the nuclear segment, we have already secured 68 cr worth of orders with some order some more order awards expected 8:19 8 minutes, 19 seconds towards this fiscal year. Our bidding activity continues across various nuclear and other programs offered by NPCI, NTPC and NSC. Optimistically with 8:28 8 minutes, 28 seconds the new Shanti bill being introduced, private sector participation will improve sustainability. Our presence in 8:35 8 minutes, 35 seconds this segment, we will see healthy growth in the years to come. 8:43 8 minutes, 43 seconds Business approach for the next quarter. 8:45 8 minutes, 45 seconds Despite the headwinds encountered during the most of FY26 and considering the recent geopolitical developments announc 8:53 8 minutes, 53 seconds announced earlier this month, we have we continue to work toward exceeding last financial year's revenue, addressing 8:59 8 minutes, 59 seconds logistics and shipment complexities and subject to FW operationalization. 9:06 9 minutes, 6 seconds Our operation operational readiness remains strong as of end of February. 9:10 9 minutes, 10 seconds Rupees 30 cr worth of goods already manufactured and ready for shipment. This includes the FG and FG inventory. 9:16 9 minutes, 16 seconds Another rupees 60 to 70 cr under production including some engine trans orders giving stable prospects for this quarter. 9:25 9 minutes, 25 seconds Before I hand over to Ram, I would reiterate our long-term vision remains intact despite facing periods of 9:32 9 minutes, 32 seconds near-term volatility with our strategic direction unchanged to build Unimix into a global globally competitive high 9:40 9 minutes, 40 seconds precision manufacturing platform across across aerospace and defense energy industrial and emerging technologies. 9:46 9 minutes, 46 seconds We're even more constructively optimistic supported by tariff normalization, FQW operationalization, position segment steadiness, healthy 9:55 9 minutes, 55 seconds nuclear order inflows, new customer qualifications translating into uh meaningful revenues. 10:02 10 minutes, 2 seconds With that, I will now hand over to Ram to walk you through the financial performance. Thank you. 10:11 10 minutes, 11 seconds Thank you. Good morning everyone. This is uh Ram Krishna CFO holding director. 10:16 10 minutes, 16 seconds Let me take you through our financial performance for Q3 FI26 and uh share our perspective on the outlook. 10:24 10 minutes, 24 seconds Before talking about the numbers, I want to briefly touch upon the recent external developments and how they position us going forward. Tariff 10:31 10 minutes, 31 seconds pressure which have been a significant drag through most of this year have now eased with the recent reduction in cross country tariff rates. We expect this 10:40 10 minutes, 40 seconds shift to meaningfully improve the operating environment and restore the momentum we had anticipated at the start 10:46 10 minutes, 46 seconds of the year. We also foresee a gradual release of different demand and pick up in order distribution as customers start 10:54 10 minutes, 54 seconds building inventories. This aligns with the structural multi-year expansions of all global aerospace industry. 11:02 11 minutes, 2 seconds Additionally, ongoing US India, EU India trade discussions are evolving favorably and we see these bilateral arrangement 11:10 11 minutes, 10 seconds strengthening long-term market access for Indian aerospace suppliers. Overall, these changes reinforce our confidence 11:17 11 minutes, 17 seconds in a stronger operating trajectory ahead. Coming to financial performance [clears throat] revenue wise, Q3 FI26 11:26 11 minutes, 26 seconds revenue stood at the 34 course compared with 61 course in Q2. taking YTD revenue to 159 crores. The sequential decline 11:35 11 minutes, 35 seconds primarily reflects as an mentioned deferred customer uptake, inventory rationalization as key customers, seasonal execution delays. Our A2 11:45 11 minutes, 45 seconds segment contributed 77% of revenue over over the 9 months period and remaining being Christian segment. 11:54 11 minutes, 54 seconds With regard to margins, despite a soft quarter, grass margins remain strong at 71% for Q3 and 68% weighted level 12:03 12 minutes, 3 seconds underscoring the resilience of our cost structure. Subcontracting costs were elevated this quarter at 7.3% but this 12:11 12 minutes, 11 seconds is largely function of lower revenue absorption. Importantly, YTD subcontracting costs improved to 6.8% 12:19 12 minutes, 19 seconds reflecting sustained internal efficiency gain. AITA margins came in at 4.6% for 12:25 12 minutes, 25 seconds Q3 and 25% for 9 months period. We expect the margins to improve meaningfully by year end as revenue normalization normalizes. 12:36 12 minutes, 36 seconds Um breaking down cost dynamics further employee cost maintained 12 crores versus 13 crores last quarter supported 12:43 12 minutes, 43 seconds by tighter workforce planning and controlled hiring. Other expenses remained stable at 10 crores reflecting continued cost decline. Depreciation 12:52 12 minutes, 52 seconds rose to 6.9 crores versus 6.3 crores in Q2 due to capitalization of four new machines and additional rate of use charges from the expanded facilities. 13:04 13 minutes, 4 seconds Finance cost increases increased marginally to 1.6 crores on account of higher working capital usage during this 13:10 13 minutes, 10 seconds quarter. Net profit stood at 2.4 4 crores for the quarter and 37 crores at 13:17 13 minutes, 17 seconds the YTD level impacted by lower revenue at the absorption on a largely fixed cost base. I want to emphasize that we 13:25 13 minutes, 25 seconds consciously maintained operation readiness and full capacity rather than cutting cost in anticipation of normalization something that is now 13:33 13 minutes, 33 seconds beginning to reflect in the micro environment. Looking at working capital as indicated earlier working capital consumption continues to rise in line 13:42 13 minutes, 42 seconds with our manufacturing model and customer schedules. The usage of working capital bank limit increased to 70 crores compared with 50 crores in Q2 as 13:50 13 minutes, 50 seconds we continue to production despite slower order pickups. Looking ahead we expect working capital requirement to stabilize 13:57 13 minutes, 57 seconds in in the 150 to 160 days range which is uh appropriate for the scale and the nature of our business. Coming to assets 14:06 14 minutes, 6 seconds and capacity utilization, capacity utilization for the quarter was around 50% with the annualized machines availability exceeding 7 lakh hours. Our 14:15 14 minutes, 15 seconds ongoing capacity additions are strategic and future oriented enabling us to transition towards higher value assemblies and more complex component 14:24 14 minutes, 24 seconds manufacturing. FI's progress remain encouraging and utilization is expected to improve steadily as demand picks up 14:31 14 minutes, 31 seconds and precision component business started progressing meaningfully. Fixes turnover for Q3 stood at 1.4 times reflecting lower utilization in this quarter. 14:41 14 minutes, 41 seconds Coming to new joint venture uh in Saudi Arabia as mentioned during the quarter we formally established caruji a capital 14:50 14 minutes, 50 seconds display platform designed to scale in a high demand energy ecosystem. 14:54 14 minutes, 54 seconds Couple of key highlights of this JV is UNIT is going to have 51% stake in the JV and investment of USD 30 billion will 15:03 15 minutes, 3 seconds be deployed by two JV partner in phases across three years to match demand and utilization. The investment in 15:11 15 minutes, 11 seconds predominantly uh assetbacked with advanced efficiency capacity and such processes enabling strong asset productivity and operating leverage. We 15:20 15 minutes, 20 seconds are targeting USD 30 million revenue by year five supported by 35% margin and 20% flat margin consistent with the high 15:28 15 minutes, 28 seconds pressure nature of the business. The venture is expected to achieve operation breakdown by year three. From a capital efficiency standpoint, this JV enhances 15:37 15 minutes, 37 seconds medium-term ROC potential and diversifies our geographical and sectoral exposure. 15:44 15 minutes, 44 seconds Coming to outlook with tariffs now addressed and demand gradually improving Q4 FI26 is expected to show recovery 15:53 15 minutes, 53 seconds with a deeper order pick up expected to towards the end of the quarter. The order index has already picked up and 16:00 16 minutes our order position as of now is 210 highest ever in history. This helps in building higher revenue for this Q426. 16:08 16 minutes, 8 seconds The operationalization of FTW facility will materially enhance deliveries and improve revenue realization. Regarding 16:16 16 minutes, 16 seconds revenue, we are expecting a decent business in the coming quarter as Anil mentioned and targeted to surpass the revenue of last year 240 crores. Overall 16:24 16 minutes, 24 seconds year year and margin are expected to uh touch at the bit at 25% and at 25% level. While uh near-term recovery 16:33 16 minutes, 33 seconds remain gradual, our medium-term outlook is significantly stained. We expect FI57 to make a return to structurally higher 16:40 16 minutes, 40 seconds growth and improve financial performance. 16:44 16 minutes, 44 seconds To conclude, temporary volatility does not alter long-term fundamentals or the scalability of unimic model. So with 16:51 16 minutes, 51 seconds that, I'll hand over to Rajani for the strategic green field and inorganic growth updates. Thank you. 17:01 17 minutes, 1 second Thank you Ram. Good morning everyone. 17:04 17 minutes, 4 seconds Let me briefly update you on our strategic initiatives and inorganic growth progress. Our inorganic strategy continues to be discipline and capability. 17:14 17 minutes, 14 seconds We are evaluating a strong pipeline of Christian manufacturing and advanced engineering opportunities across India, 17:21 17 minutes, 21 seconds the Middle East, Europe and the United States. Our filters remain consistent. 17:27 17 minutes, 27 seconds technology strength, operating synergies, margin quality, cultural fit, and clear long-term value creation. The 17:36 17 minutes, 36 seconds focus remains on strategic fit and scalability rather than only size. 17:42 17 minutes, 42 seconds A key development this quarter is the formation of our strategic joint venture in Saudi Arabia with Yusf bin Ahmed Kanu 17:51 17 minutes, 51 seconds to build an advanced Christian machining and remanufacturing platform in Dhama. 17:57 17 minutes, 57 seconds This gives us a locally anchored manufacturing base in a priority market aligned with localization and industrial 18:05 18 minutes, 5 seconds development programs. The platform is being built in a phased manner and is designed to scale with customer 18:13 18 minutes, 13 seconds qualifications and demand. Beyond near-term revenues, this JV is strategically important as a regional 18:22 18 minutes, 22 seconds energy sector manufacturing hub and a foundation for future expansion. 18:28 18 minutes, 28 seconds Coming to da technologies where we increased our stake last quarter to 30% from 16%. 18:37 18 minutes, 37 seconds Progress continues to be encouraging progressing towards early commercialization and scalability. 18:43 18 minutes, 43 seconds Some key technical milestones that I want to call out includes high-speed 18:50 18 minutes, 50 seconds micro gas turbine demonstrations achieving bench test for 65,000 rotations per minute for D500 19:00 19 minutes and continued advancement in hydrogen and propulsion programs garnering interest from NMRL gaining high 19:09 19 minutes, 9 seconds functionality and durability for hydrogen anode blower. 19:14 19 minutes, 14 seconds This positions as us well towards certification and production. The hydrogen anode blower and microurbine 19:22 19 minutes, 22 seconds platforms are seeing growing customer and defense sector interest. With qualification and testing underway and 19:29 19 minutes, 29 seconds initial orders in place, these solutions are positioned as indigenous alternatives to imported systems. Our 19:37 19 minutes, 37 seconds exclusive manufacturing arrangement with DEAS micro gas turbines and subsystem position us well to participate as these programs move into certified production. 19:49 19 minutes, 49 seconds Overall our inorganic agenda is advancing across strategic JVS technology investments and selective 19:57 19 minutes, 57 seconds acquisition opportunities. We remain focused on disciplined execution and will keep the market updated as these 20:04 20 minutes, 4 seconds initiative translate into tangible milestones. 20:07 20 minutes, 7 seconds Operator, we can now open the floor for questions. Thank you. 20:17 20 minutes, 17 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star 20:25 20 minutes, 25 seconds and one on your touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 20:32 20 minutes, 32 seconds two. Participants are requested to use handset while asking a question. 20:38 20 minutes, 38 seconds Ladies and gentlemen, we will wait for a moment while the question cue assembles. 20:52 20 minutes, 52 seconds The first question comes from the line of kum with n. Please go ahead. 21:00 21 minutes Hello. Good. Good morning. Hello. 21:04 21 minutes, 4 seconds I'm so thanks for thank you for the opportunity. My question is we'll get to 21:12 21 minutes, 12 seconds the order book. Right now we have mentioned that 210 cr of total order books. So excluding the nuclear one can you stallize the split of 142 cr order? 21:26 21 minutes, 26 seconds Yes. Cable rightly understood. So 210 cr order book includes the nuclear office. Yes. 21:34 21 minutes, 34 seconds Which is a 68. Yes. Yes. Yes. Sure. 21:41 21 minutes, 41 seconds Can you tell the split of 142 remaining order book? 21:46 21 minutes, 46 seconds So primarily it includes a uh the tooling business uh small portion will be precision. 21:59 21 minutes, 59 seconds Okay. 22:00 22 minutes And uh on the mean like um around the Q1 we have mentioned that we are already in discussion with the semiconductor space. 22:09 22 minutes, 9 seconds uh so like at what stage right now we are and uh means and how many quarter we expect those kind of results in our financials also. 22:21 22 minutes, 21 seconds Okay. Well, this is Rajnik speaking. Uh so as part of the new uh as the semiconductor business uh we we are in 22:28 22 minutes, 28 seconds the process of getting qualified on FAI and we do see 52 weeks of uh you know 22:35 22 minutes, 35 seconds order visibility uh with a firm order of about 3 months and uh what we're doing 22:43 22 minutes, 43 seconds uh is that we're adding more and more FIS as we speak. uh we are also qualifying additional uh FAIS and we 22:52 22 minutes, 52 seconds have conversations with our customer to do more um so from a quantum perspective 22:59 22 minutes, 59 seconds for the qualified ones that is already uh qualified ones we're looking at about $.5 million in the next year but you 23:09 23 minutes, 9 seconds know we're looking at adding more but I mean the way you should see this is that this basically gets us an entry 23:16 23 minutes, 16 seconds into a high volume manufacturing for a semiconductor uh market and that basically opens door uh to this market. 23:27 23 minutes, 27 seconds Okay. And so like uh right now I have seen in our industry presentations we have both the front like precision and 23:34 23 minutes, 34 seconds the arrow cooling. So like in future are we focusing on the precision part majorly or the arrowing like MRO side only? 23:43 23 minutes, 43 seconds Good question. We are pro we are focusing on both. We continue to basically uh look at both aerero tooling 23:52 23 minutes, 52 seconds as well as the Christian segment. As you see uh there's been a lot of investment done on Christian segment that we are also focusing on including nuclear. So 24:01 24 minutes, 1 second we will be focusing on all this and trying to capture more. 24:06 24 minutes, 6 seconds Okay. And my last question is from Mike right. uh in uh Q1 or Q2 we have mentioned that after securing the 24:15 24 minutes, 15 seconds nuclear order in FI26 we won't be bidding for the further order so is that same position apply right now or uh we 24:24 24 minutes, 24 seconds will be bidding for the next upcoming also uh cable so the bid will continue to happen what we had tried to indicate is 24:32 24 minutes, 32 seconds uh after a substantial order intake we'll uh consider to take a pause for a 24:38 24 minutes, 38 seconds moment to continue because those orders we'll also have to fulfill by through delivery. Once we have continued the 24:47 24 minutes, 47 seconds scale up uh and the production order goes through, we will continue to keep building. There is a good opportunity 24:54 24 minutes, 54 seconds pipeline uh in the nuclear space that we are addressing and eyeing for and we'll continue to have that order bidding 25:02 25 minutes, 2 seconds process throughout. So in summary, cable uh uh we will continue to uh look at 25:09 25 minutes, 9 seconds bidding because I don't believe that we've come to a point where you know we can't digest. We we we are hungry for more. 25:17 25 minutes, 17 seconds Okay sir. Thank you and all the best for future. Thank you. 25:26 25 minutes, 26 seconds The next question comes from the line of Gotham with Leo Capital. Please go ahead. 25:32 25 minutes, 32 seconds Good morning. Thank you for taking my question. Uh my first question is on uh which are the other Indian manufacturers 25:41 25 minutes, 41 seconds that would be that we would be competing with and how large would they be in terms of uh revenue and uh product range 25:51 25 minutes, 51 seconds in uh related to us? 25:56 25 minutes, 56 seconds Uh which are you talking about? uh for both arrow tooling and precision segment. 26:04 26 minutes, 4 seconds Okay. From a a tooling standpoint, we don't believe there are much competitors in India. Uh this is something that 26:12 26 minutes, 12 seconds we've told from the beginning. Uh we will continue to work and compete with the western uh companies. Uh on 26:21 26 minutes, 21 seconds precision, there are several you know manufacturers in the spray. Uh we will continue to work with them. We've even 26:29 26 minutes, 29 seconds worked on you know talking to them and you know looking at potential collaboration opportunities on the nuclear side. There are a handful of 26:37 26 minutes, 37 seconds people that you know some publicly listed some not. Uh and those we will continue to basically work with. 26:48 26 minutes, 48 seconds Uh so is there any name that you could give for these two three segments that you have mentioned? 26:55 26 minutes, 55 seconds uh for the tooling like I said nobody in India uh see uh I'll just add on to this for 27:02 27 minutes, 2 seconds tooling there are might be smaller players but uh not that we can count out in the nuclear space though as uh Mr. 27:11 27 minutes, 11 seconds Rajni mentioned we do see some players uh if I should say MTAR can be one of those being the listed player and then there are certain players in the 27:20 27 minutes, 20 seconds unlisted space also segment and precision segment you see it's a wide industry so there are uh various uh 27:28 27 minutes, 28 seconds components that we'll be addressing and manufacturing so it can be a wide space to compete with 27:36 27 minutes, 36 seconds all right and uh okay thank you and my second question is uh Are we the suppliers for Indian defense programs to 27:44 27 minutes, 44 seconds aerospace industry and how large is this business for us and in that who do we compete with? 27:52 27 minutes, 52 seconds Even though that's our aspiration to be into uh sorry Gotham that's our aspiration to be into but uh as of now 27:59 27 minutes, 59 seconds we are uh not present but we are continue to explore all these opportunities. So [clears throat] Gautam 28:07 28 minutes, 7 seconds uh while uh the Indian defense is an entry point that we are basically looking at and you know there are few uh 28:17 28 minutes, 17 seconds that we are actually working on. Uh there is some uh you know Israeli uh defense firms that we work 28:25 28 minutes, 25 seconds with as well. Uh currently our defense offering is a small one but we see there are multiple opportunities. We are 28:33 28 minutes, 33 seconds looking at tenders and stuff and we are slowly increasing position. Understood. Thank you so much. 28:45 28 minutes, 45 seconds Thank you. 28:47 28 minutes, 47 seconds Ladies and gentlemen, you are requested to limit the questions to two per participant. 28:53 28 minutes, 53 seconds The next question comes from the line of Anik Madwani with Step Trade Capital. Please go ahead. 29:00 29 minutes Yeah. Hi S. Yes. 29:04 29 minutes, 4 seconds Yeah. So I just uh won the clarification on the outstanding order book. So uh uh am I right? You have you mentioned uh 29:12 29 minutes, 12 seconds with 210 K order book is is the outing. 29:19 29 minutes, 19 seconds Okay. So as per your last uh guidance you will be uh crossing around 300 29:26 29 minutes, 26 seconds corresp. So are you in line with the guidance or is there any deviation in uh previous guidance? 29:36 29 minutes, 36 seconds I'll just give you that was an aspirational number that we have targeted. It's always good to have uh aspirations and we'll continue to work 29:44 29 minutes, 44 seconds towards it. Uh this quarter what you have seen is one of the best quarters in terms of order intake also and where we 29:51 29 minutes, 51 seconds are standing right now is the 210 cr order book. We were talking about nuclear orders also to be incoming and this is what we have started to receive. 30:00 30 minutes So it's a good meaningful traction that has been built over the period what we were talking about and we have come to a good scale. Having said that though the 30:09 30 minutes, 9 seconds target is to grow our order book uh to a substantially higher level but we'll see and keep the market informed as and when our order book grows and whatever order 30:18 30 minutes, 18 seconds intakes comes in. So uh so an I think your question was more of uh how are we 30:26 30 minutes, 26 seconds going to hit the forecast of 300 course is that your question? Yes. Yeah. 30:31 30 minutes, 31 seconds Okay. So so what we'll need to remember is that the context that we basically you know called out this forecast were was a very 30:40 30 minutes, 40 seconds different context compared to uh the context that we were living in this whole year especially with the US. Um 30:49 30 minutes, 49 seconds now while that has been lifted and we see more you know we feel a lot more positive we have another you know 45 30:58 30 minutes, 58 seconds days to go and we don't think you know that kind of a number is something that 31:05 31 minutes, 5 seconds we will be able to do it however as Anil basically uh told you uh we we are looking at about 90 to 100 cr this 31:14 31 minutes, 14 seconds quarter Okay. And and what was the major reason? 31:20 31 minutes, 20 seconds I mean um I can see previously you have mentioned that you are expecting around 100 to,000 crores in Q3 and Q4. So till 31:30 31 minutes, 30 seconds late you have only received around two or 200 crores of orders. So what 31:37 31 minutes, 37 seconds challenges the company is facing uh to know get the orders? 31:44 31 minutes, 44 seconds An so there was an indication on how the bidding process has happened and to what uh uh contracts that we had bid for. So 31:54 31 minutes, 54 seconds while we indicated previously that we had bid for close on 800 crores worth of orders in the nuclear space uh that was 32:02 32 minutes, 2 seconds an indication that we have given and we were optimistic on the fact that we will be able to qualify at least uh 20% to 32:10 32 minutes, 10 seconds 30% of that order bid. But as you are aware uh the bidding process is in our hand but the order qualification or the 32:17 32 minutes, 17 seconds intake uh is not uh that we can call out always and hence in that line we have received some orders uh continuing to 32:26 32 minutes, 26 seconds the fact that what we were trying to get into this space with that is number one subsequently as what Mr. Rajni Kant also 32:35 32 minutes, 35 seconds mentioned uh given this year has been challenging in terms of tariffs. So anything on the tooling side was 32:43 32 minutes, 43 seconds challenging for uh quite part of the year which has now been resolved and as we have been talking about the first 12 32:50 32 minutes, 50 seconds days uh of February itself has reflected in a good order inflow. 32:56 32 minutes, 56 seconds With that thing in place, we are still seeing a 200 cr order book, which is a decently placed order book as on now. 33:04 33 minutes, 4 seconds And we'll continue to build. We have some more time for this order uh for this year to end. We'll continue to add up orders as and when we receive. 33:14 33 minutes, 14 seconds And to be uh precise and summarize this, there has been no further challenges that we think we'll be witnessing. 33:21 33 minutes, 21 seconds tooling business will continue to see a strong traction in the NPCL or the nuclear business. We'll have to keep a 33:28 33 minutes, 28 seconds patient view and we'll see uh and keep you informed as and when the orders comes through. 33:34 33 minutes, 34 seconds All right. All right. So lastly uh can I just uh uh the business I mean I just want the beration of your tooling 33:42 33 minutes, 42 seconds business and uh other segments. So in terms of topline I mean how much uh have you received from your tooling business 33:49 33 minutes, 49 seconds and going forward how much it will be uh know increasing? 33:55 33 minutes, 55 seconds Okay just to give a bipation on both the businesses for this 9 month period 77% was being contributed by the tooling and 34:03 34 minutes, 3 seconds this uh other part was coming from the precision component which includes uh nuclear as well. In terms of order book 34:10 34 minutes, 10 seconds bifurcation as you see 210 cr stands off as of today out of which 68 cr is coming 34:17 34 minutes, 17 seconds from nucleus. I should say 130 135 odd crores from the tooling business and balance whatever uh is left is coming from the precision business. 34:30 34 minutes, 30 seconds Okay. and and and you will be uh maintaining your margin going forward right after the declaration 34:39 34 minutes, 39 seconds on the gross margin levels. Yes, we are confident to maintain this year. You might see a dip on the IITA margins and 34:48 34 minutes, 48 seconds the fat but going forward next financial year onwards you will see a healthy growth. 34:55 34 minutes, 55 seconds It's a function of it's it's a function of the cap capacity utilization as you know uh there's a lot more capacity that 35:02 35 minutes, 2 seconds we basically deploy and from a utilization standpoint we are at around 50%. And as we increase capacity 35:11 35 minutes, 11 seconds utilization, you will see the margin actually becoming better. 35:15 35 minutes, 15 seconds And when should we expect that to uh stable? I mean uh in coming year FY27. 35:22 35 minutes, 22 seconds Yes, in the next year. All right. In the next year. 35:28 35 minutes, 28 seconds Got it. Yeah, that's it. Thank you. 35:34 35 minutes, 34 seconds Thank you. The next question comes from the line of Bala Subramanyam with Arian Capital. Please go ahead. 35:42 35 minutes, 42 seconds Good morning sir. Uh thank you so much for the opportunities. So earlier we mentioned uh free trade warehouse own operations are expected from Q4 F26. 35:53 35 minutes, 53 seconds I think US also have been reduced the tax from 15% to 18%. So I'm trying to understand uh like what is the tax or 36:00 36 minutes inverted uh duty chain uh benefit here uh compared to uh uh earlier uh around 36:07 36 minutes, 7 seconds trip logistics model. Earlier we used to send uh Europe or Asia Asia and then transfer the goods to uh US 36:15 36 minutes, 15 seconds destinations. We could teleate uh more on uh uh free trade own. 36:26 36 minutes, 26 seconds Okay Mr. 36:27 36 minutes, 27 seconds Oh yeah. So pre-trade warehouse as as we mentioned uh definitely you know even 36:34 36 minutes, 34 seconds post tariff also this is a good strategy you know that will support company like us who are dealing with the US you know 36:42 36 minutes, 42 seconds uh while um the the strategy is like this this free trade warehouse you know 36:49 36 minutes, 49 seconds um is is going to be the logistics hub for my customers who want to move kind of significant portion of their US 36:58 36 minutes, 58 seconds inventory which is going to be consumed out of US uh going to be you know kept in in India and from India uh this is 37:08 37 minutes, 8 seconds going to be shipped to various countries. However the consumption that is going to be in happen going to happen in US has to be shipped from India to US 37:16 37 minutes, 16 seconds only which will definitely attract you know the kind of tariff of course not 50% now it is 18%. So from customer 37:24 37 minutes, 24 seconds point of view this logistic alignment will save them one the kind of you know even though it is a lower tariff at 80% 37:33 37 minutes, 33 seconds which they can save. Second thing duration wise timeline wise you know they can they can uh reduce the timelines. Third one there could be you 37:41 37 minutes, 41 seconds know potential logistics uh you know fright car saving also would be there. 37:45 37 minutes, 45 seconds So my top customers got convinced and then you know they are you know kind of 37:52 37 minutes, 52 seconds uh inclined to have this strategy in place. So free trade warehouse is the you know the buildup restarted. It is 38:00 38 minutes well progress now almost completion. We are waiting for you know approval from the uh ministry as well as local 38:07 38 minutes, 7 seconds government you know. So that is a kind of uh challenge as of now but remaining all things under control. want to add on 38:15 38 minutes, 15 seconds to what Ram said this in addition to the tooling business we seeing uh customers from the Christian business also you 38:24 38 minutes, 24 seconds know appreciating this uh free trade warehouse uh that we have and that could potentially house all the FGS as we go. 38:32 38 minutes, 32 seconds So we we think that this is a very sound investment. 38:37 38 minutes, 37 seconds Okay sir. So my last question uh we did a cape tax of nearly 56 cr in 9 months and [snorts] the JV part uh estian uh 38:46 38 minutes, 46 seconds Saudi J we had a commitment of $14.7 million. So this funding is expected through internal acrals or we are 38:55 38 minutes, 55 seconds planning to take any data or any other arrangements. And secondly in US uh we are targeting uh some uh JV especially 39:04 39 minutes, 4 seconds in aerospace enterprise and if you could uh share what is the update uh uh on US uh JV side. Thank you. 39:14 39 minutes, 14 seconds uh coming to the Saudi investment uh uh GV so while overall investment is good 39:22 39 minutes, 22 seconds with 30 million so profit contribution comes from us so we have uh a cash reserve of you know a good amount is 39:30 39 minutes, 30 seconds there which is year mark for you know investment in green field as well as M&A we are going to utilize from from this fund I don't think you know at this 39:39 39 minutes, 39 seconds stage we we need any kind of borrowings no to to fund this project. So we have you know internal money is sufficient. 39:46 39 minutes, 46 seconds Coming to other joint ventures you know what you mentioned. So we are you know uh okay as a strategy definitely we 39:54 39 minutes, 54 seconds wanted to uh have a you know setup beyond you know India as Saudi we started and maybe probably in US or some other country definitely will happen and 40:03 40 minutes, 3 seconds uh discussions and you know the plans are already there and you know at appropriate time we'll definitely will announce to the market. 40:12 40 minutes, 12 seconds Okay sir. Thank you. 40:19 40 minutes, 19 seconds Thank you. The next question comes from the line of Tahir Hyderabad Wala with Godwan. Please go ahead. 40:28 40 minutes, 28 seconds Hello sir. 40:30 40 minutes, 30 seconds Good afternoon. Thank you for the opportunity sir. 40:33 40 minutes, 33 seconds Thank uh sir I have two question. uh first sir I wanted to understand what is the uh role of our uh subset way I know 40:42 40 minutes, 42 seconds because we are operating in the uh same segment and business model is also same. 40:47 40 minutes, 47 seconds So what they are doing that their scale is much larger than us and they are growing much faster than us. If you can throw some 40:57 40 minutes, 57 seconds right. So uh when you know long ago when we applied for special Amazon approval 41:04 41 minutes, 4 seconds land a lotment no so we have no clearly bifurcated export business no from the 41:11 41 minutes, 11 seconds mix of glo you know domestic and export know we called out the export business and formed a new entity uh to shoot for 41:19 41 minutes, 19 seconds the SCZ requirement and that's the reason a new entity formed and even as of now you know our strategy is to 41:26 41 minutes, 26 seconds remain focused on export winners into this zone and domestic into you know the other entity and this will continue for forever. 41:36 41 minutes, 36 seconds Okay. Uh mean the reason the reason you're seeing the difference in uh the numbers is because we are a 95% export business and you'll 41:45 41 minutes, 45 seconds see that you know much of this revenue actually flows into you know make which is a subsidiary. 41:50 41 minutes, 50 seconds Okay. Okay. Uh second question sir on the if you can uh explain on the uh nuclear segment like what do we do in 41:59 41 minutes, 59 seconds the nuclear segment uh and we have said that we have bidded in Costa 2 we have bidded around 800 cr for the uh nuclear 42:07 42 minutes, 7 seconds projects nuclear segment. So if you can uh give us a bidding uh winning rate or 42:14 42 minutes, 14 seconds anything on that front right. So in uh nuclear we have been 42:21 42 minutes, 21 seconds into nuclear business last to three and a half years. So we we we manufacture you know electromechanical subsystems for nuclear uh uh reactors. 42:33 42 minutes, 33 seconds largely you know uh you know we we we we are qualified for around you know kind of 10 kind of various subsystems we 42:41 42 minutes, 41 seconds qualified. So uh we have been participating you know various tenders since uh last 8 months. uh most of the 42:50 42 minutes, 50 seconds things you know like you know we we have some some we won 68 course as we mentioned uh and some more are yet to open and wherever you know we we are we 42:58 42 minutes, 58 seconds are not successful mainly you know u of course government you know we we L1 and L2 concepts are there so which is not in 43:05 43 minutes, 5 seconds in our control so however uh unime has you know always you know the philosophy and margins certain threshold margin 43:13 43 minutes, 13 seconds below we cannot code so wherever which of the projects are you know kind of high margin yield or decent margin yield you know such projects only we'll quote 43:21 43 minutes, 21 seconds or you know wherever we quote we wanted to make decent profits so even if it be we are not able to win that's okay but 43:28 43 minutes, 28 seconds you know the ECC is like you know good margin is always our you know DNA 43:40 43 minutes, 40 seconds manufacturing side uh we have a total land bank of around 2,000 square ft area 43:47 43 minutes, 47 seconds across four wheels So if you can throw some light where do we see capacity expansion going forward or or this plant will be sufficient for how much and when 43:56 43 minutes, 56 seconds we see the capacity to reach around 70 80%. 44:02 44 minutes, 2 seconds Sorry question you could not clear hear it clearly. Uh sorry I can add a little bit. Uh I have a question on the 44:10 44 minutes, 10 seconds manufacturing side. Manufacturing plant capacity side like what is the revenue capacity to this current plant uh which 44:17 44 minutes, 17 seconds we have around 2 lakh 43 square and when do you see 44:23 44 minutes, 23 seconds utilization which is 70% kind of see the right way to look at is not the 44:29 44 minutes, 29 seconds facility size but how much of the uh asset turnover that we can generate. So 44:36 44 minutes, 36 seconds while we understand that there has been uh lower utilization of the existing machinery setup uh as on date if you see 44:45 44 minutes, 45 seconds the fixed asset investment it is close to over 210 cr uh we and the current 44:52 44 minutes, 52 seconds asset turns is 1.4 four times. Uh and this is because of a primary reason that this year has not been uh this year's 45:01 45 minutes, 1 second performance has not been to what we had expected because of tariffs. Going ahead, we had uh taken a target to 45:08 45 minutes, 8 seconds increase this asset turns to over three times. Now when we move that up uh with a and further investment is also 45:16 45 minutes, 16 seconds anticipated. You can understand close to around 40 50C cr investment will also be added up to the existing gross law and 45:24 45 minutes, 24 seconds with that uh the target will be to have a three times asset terms. 45:31 45 minutes, 31 seconds Okay. Uh when I'm sorry to interrupt I would request you to please come back in the queue for further questions. 45:39 45 minutes, 39 seconds Oh thank you. 45:41 45 minutes, 41 seconds The next question comes from the line of Nishad Desai with RR Investments. Please go ahead. 45:50 45 minutes, 50 seconds Yeah. Hi sir, good morning. Uh, so I have two questions. Uh, my first question is that we produce more than around you know 4,500 plus SKUs. So what 45:59 45 minutes, 59 seconds impact could that have? Could this many SKUs have in terms of our scalability? 46:09 46 minutes, 9 seconds Uh so we basically built systems in place which is uh you know digital nature that uh from a scalability we're 46:17 46 minutes, 17 seconds not really concerned we we've actually increased capacity we've built digital systems we we want to scale we don't 46:26 46 minutes, 26 seconds think uh you know the the the number of SKUs will affect uh scalability in any kind of negative way in fact it's going 46:34 46 minutes, 34 seconds to be positive that way my utilization gets better and we looking at increasing this SKU number. 46:43 46 minutes, 43 seconds Okay. Uh G sir. So secondly, you know, we are actively diversifying into energy sector even semiconductor as well. So 46:51 46 minutes, 51 seconds what exactly is the thought process behind it? Because the aerospace opportunity in front of us is extremely massive. So this diversification like 46:59 46 minutes, 59 seconds how is it a better idea rather than trying to migrate upwards of the value chain in terms of the aerospace sector itself. 47:09 47 minutes, 9 seconds So uh what's sorry what's your name is that 47:16 47 minutes, 16 seconds m okay n um you know we've [clears throat] been through uh co we've 47:23 47 minutes, 23 seconds been through tariff regime and one thing that has taught us is that while we will 47:30 47 minutes, 30 seconds basically you know push the throttle in the current industry it has also taught us that diversification is the right 47:38 47 minutes, 38 seconds strategy whether it is industry geography you know so it is basically that thought process and if you really look at it 47:46 47 minutes, 46 seconds from a capability lens all these industries are all fungeible and we are only going after the ones where we have 47:54 47 minutes, 54 seconds the capability and we think that there is actually growth I mean you're seeing that there is a huge AI push where semiconductor is basically the shovel 48:03 48 minutes, 3 seconds for the you know gold gold rush and similar you're seeing that in energy as well right so uh we don't want to miss 48:11 48 minutes, 11 seconds out having said that it doesn't mean that you know we are diluting our focus on aerospace the aerospace focus 48:18 48 minutes, 18 seconds continues and we are actually uh you know working with both tier ones OEMs and should hear something good down the 48:27 48 minutes, 27 seconds quarters got it sir thank you so much all the very good thank 48:37 48 minutes, 37 seconds Thank you. The next question comes from the line of Zitsha with Dwan Nirvana Capital. Please go ahead. 48:50 48 minutes, 50 seconds Yeah. So uh my question pertains to the uh uh space uh I mean currently almost 48:58 48 minutes, 58 seconds around 70% plus of revenues comes from tooling and predominantly from export size uh export side and we hear a lot of 49:06 49 minutes, 6 seconds tailwind happening in the Indian domestic aerospace sector. I mean there are a lot of new programs coming up new 49:14 49 minutes, 14 seconds aircrafts going to be manufactured here also the after lot of sourcing is going to be increased from domestic market and since you said 49:22 49 minutes, 22 seconds there are hardly any domestic players present in India. So how do you view this opportunity for a domestic segment ever? 49:37 49 minutes, 37 seconds Okay. So your question is relating to uni make focusing on domestic side each 49:45 49 minutes, 45 seconds uh sector wise first sector you know a tooling uh uh the old business particular 49:54 49 minutes, 54 seconds opportunity is uh out of you know India only while late India you know opportunity you know started in terms of 50:02 50 minutes, 2 seconds MRO sector you know uh it started so such opportunities definitely you know are tapping our door and know we we we 50:10 50 minutes, 10 seconds we are participating that and going forward when Indian MRO sector grows definitely this is this is going to be a positive news for uni that's first thing 50:19 50 minutes, 19 seconds second thing you know with regard to precision components uh uh segment in of domestic business while most of the OEM 50:28 50 minutes, 28 seconds business is coming from overseas um the uh component side system side you know the defense opportunity still is 50:37 50 minutes, 37 seconds something untapped have to know we are not we are not you know um seen the opportunity. This is something we started focusing on that and if we have 50:46 50 minutes, 46 seconds we find a proper entry into defense domestic you know this is definitely you know is going to add lot give us bigger opportunity 50:54 50 minutes, 54 seconds and other nuclear side and energy side energy side you know our focus is mainly into nuclear especially nuclear energy 51:02 51 minutes, 2 seconds especially only into domestic side and overseas presence is yet to start and uh 51:09 51 minutes, 9 seconds other energy uh opportunities which is the oil and gas you know side you know is is as of now uh Saudi focus is there 51:17 51 minutes, 17 seconds Indian side we haven't find any opportunity so there is a mix of you know uh kind of domestic and you know exports and domestic domestic tractions 51:26 51 minutes, 26 seconds we start seeing it every stage and uh uh the time process like you know we might find a better opportunity in this domestic as well as you know apart from 51:34 51 minutes, 34 seconds the overseas side so yeah uh definitely if if it comes it's going to be good news for Sure. 51:42 51 minutes, 42 seconds Uh and actually if you can uh you said there is more opportunity in the export side of especially of the uh uh legacy 51:51 51 minutes, 51 seconds business that aerospace tooling. Uh so sir can you uh tell us what's the kind of market opportunity uh both 51:58 51 minutes, 58 seconds domestically and in exports for this segment I mean the market size for us to tap into and secondly know given that we 52:06 52 minutes, 6 seconds are more I mean over the period we more focused towards defense domestic business as well as m business being 52:13 52 minutes, 13 seconds picked up in India and all so would the revenue mix kind of change from what we are currently at around 75% export uh to 52:20 52 minutes, 20 seconds domestic uh if you can both discussions Good good question. So uh the aero 52:28 52 minutes, 28 seconds tooling the market opportunity is you know um kind of two billion two and a half billion kind of market and which is growing significantly over the year as a 52:37 52 minutes, 37 seconds industry is picking up you know at the global level know adding more field and major programs. While that side of the 52:45 52 minutes, 45 seconds you know segment has you know a kind of decent growth and which is a niche sector and especially tooling and uni focus you know a dedicated focus will 52:53 52 minutes, 53 seconds continue but in addition to that know as we have entered into precision component segment which is a higher market you 53:00 53 minutes know size which is more than 800 billion kind of market size you know so which is uh uh you know kind of you know segment 53:09 53 minutes, 9 seconds which we have recently entered and having bigger opportunity. So um which is a kind of that that's that's how I think slowly you know u kind of new 53:18 53 minutes, 18 seconds vertical added and entering into higher market segment side um with regard to um energy side I I think 53:27 53 minutes, 27 seconds energy is also equally bigger opportunity so kind of more than 500 600 billion kind of opportunity so equally it gives a 53:36 53 minutes, 36 seconds good prospects know for for us to when we enter Yeah. 53:42 53 minutes, 42 seconds Yes. On the revenue mix over next 3 to four years. Good. So with regard to Yes. Uh sorry. 53:49 53 minutes, 49 seconds So with with regard to revenue mix you know eventually the good part know is uh we we are not sticking to one segment 53:56 53 minutes, 56 seconds and we are you know slightly adding more more more segment more vertical and also slightly diverse is also happening. No 54:03 54 minutes, 3 seconds the revenue mix has to change and for a good cause you know and uh over the 3 years no the the 54:11 54 minutes, 11 seconds 77% aero tooling you know will become 65 and 35% will become precision component in next 3 years or maybe 6040 also can 54:20 54 minutes, 20 seconds happen okay and the export domestic would that also change sir 54:28 54 minutes, 28 seconds uh yes as of now you know 95% export slowly you know domestic also will get added you know and we are know kind of 54:35 54 minutes, 35 seconds guessing 80 to 80 20% ratio in in a 3 years time sure sir thank you so much yeah 54:47 54 minutes, 47 seconds thank you ladies and gentlemen this will be our last question it's from the line of Aushmag 54:54 54 minutes, 54 seconds and individual investor please go ahead Hello and thank you so much for giving me this opportunity. 55:05 55 minutes, 5 seconds So my question is in regards to the uh ratio in which we are doing exports. So like what do we expect in future in 55:13 55 minutes, 13 seconds terms of the percentage of exports going to US and to EU nations. 55:22 55 minutes, 22 seconds uh we started our business being an export oriented unit and that will continue to be a predominant part as 55:30 55 minutes, 30 seconds mentioned by Mr. Ram in his previous uh statement going forward next year you might see 55:36 55 minutes, 36 seconds 80% uh to still be as export business for us and the balance 20% will be from 55:43 55 minutes, 43 seconds the domestic okay and in regards to that how much percentage are we expecting from US 55:50 55 minutes, 50 seconds exports and uh from other countries see the target is to reduce the uh 55:57 55 minutes, 57 seconds geographical exposure uh We are predominant with US currently but uh going forward you will see a substantial 56:06 56 minutes, 6 seconds reduction. It cannot be very firmly confirmed what will be the number. So as and when the business grows uh you will see reduction in the US market exposure. 56:18 56 minutes, 18 seconds So the guideline is to ensure that there is actually a balance and harmony while while having said that if there's 56:25 56 minutes, 25 seconds actually a business coming from more business coming from us we are not going to say no to okay got it thank you and all the best for the future. Thank you. 56:37 56 minutes, 37 seconds Thank you ladies and gentlemen that was the last question for today. I now hand the conference over to the management for their closing comments. 56:46 56 minutes, 46 seconds Thank you operator. Uh thank you everyone for your questions and your continued time and engagement with us. 56:52 56 minutes, 52 seconds To summarize, while this uh quarter reflected the impact of temporary external advents, the situation has already begun to improve meaningfully. 57:01 57 minutes, 1 second The recent tariff reduction and better customer sentiment. Our order book remains strong. Our strategic mitigates such as the FWZ are nearing operational 57:10 57 minutes, 10 seconds readiness and our diversification across Christian components, nuclear and international markets is progressing steadily. 57:16 57 minutes, 16 seconds What remains unchanged is our core strength with deep customer integration, high technical capability and long qualification driven relationships which 57:25 57 minutes, 25 seconds continue to give us confidence in the durability of the business model. We remain focused on discipline execution in the coming quarter, 57:33 57 minutes, 33 seconds converting our ready inventory and order pipeline into revenues and building a stronger and more resilient unimate for the long term. Thank you once again for 57:41 57 minutes, 41 seconds your continued trust and support. We look forward to updating you in the next again in the next quarter. Thank you. 57:50 57 minutes, 50 seconds Thank you on behalf of Anandati Share and Stock Brokers Limited. That concludes this conference. Thank you for joining us and you may now disconnect the lines.