Aditya Infotech (NSE:CPPLUS) Q1 2027 Earnings Call

0:01 Ladies and gentlemen, good day, and welcome to the Aditya Infotech Limited q one FY twenty seven earnings conference call hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions at the end of today's presentation. Please note that this conference is being recorded. I would now like to hand the conference over to mister from ICICI Securities Limited. Thank you, and over to you, sir. Yeah. Thanks, Manu. On behalf of ICICI Securities, we welcome you all to q one FY twenty seven results conference call of Aditya Infotech Limited.

0:49 We have with us today senior management represented by mister Aditya Khemka, managing director, mister Anup Nair, director strategy and business development, mister Yogesh Sharma, chief financial officer, and miss Deepika Dhube, head of investor relations. Now I hand over the call to the management for initial comments on the quarterly performance, and then we will open the floor for question and answer session. Thanks, and over to you, Aditya, sir. Thank you, Anurag, and good afternoon, everyone. Thank you for joining with us today. I'm pleased to welcome all our shareholders, investors, analysts, business partners and stakeholders to discuss Aditya Infotech Limited's performance for the first quarter of FY twenty twenty seven.

1:37 This quarter reflects the strength of our business model, disciplined execution and our continued focus on innovation, market expansion and operational excellence. I'm pleased to share that we have commenced FY twenty twenty seven on a strong note and remain confident in our growth trajectory for the year ahead. Let me begin with our financial performance. I'm pleased to share that the Q1 twenty twenty seven FY twenty twenty seven revenue stood at $140.02 crores, which is up 89.5% year on year, driven by strong traction by CPPLUS brand in the overall AI revenue.

2:24 IP products made up 79% of CPPLUS portfolio. Our gross margin stood at 30.8%, up eight basis points year on year, with CPPLUS contribution rising to 87% of our revenue. Margins moderated slightly from Q4 due to the exhaustion of lower cost inventory. EBITDA stood at INR $20.08 crores, up 220% year on year, with margins improving by six zero four basis points to 14.8, supported by a favorable product and brand mix as well as better operational efficiencies. Adjusted TAD stood at INR142.2 crores, up 332.5% year on year, attributed to lowering our finance costs by 59% year on year and better cost efficiencies.

3:22 The CPPLUS brand continued to maintain strong momentum and contributed approximately 87% of our overall Q1 revenue. The IP products accounted for nearly 79% of CPPLUS portfolio, which reflects the increasing adoption of higher value and intelligent AI surveillance solutions. Beyond growth, our focus has been on improving quality of earnings and capital efficiencies. Our working capital metrics also showed meaningful progress with reduction in inventory and data days resulting in the improvement of cash conversion cycle to sixty four days. At the same time, our balance sheet remains robust with debt to equity reducing sharply to just 0.07 level.

4:13 These metrics highlight not only growth, but sustainable and profitable growth. This year marks as an important milestone for Aditya Infotech. On 08/05/2025, Aditya Infotech Limited officially debited on the stock market under its flagship security brand CPPLUS with an oversubscribed IPO that listed at a significant premium. On the back of an exceptional year of business and margin growth, Aditya Infotech valuation has grown over five times to touch nearly almost crores. We would really like to thank all investors and shareholders for their confidence and trust in our journey.

4:59 Our major step in our growth journey has been the inauguration of our new corporate office and R and D center on 08/02/2026. This facility combines a modern workplace and experience center as well as highly advanced innovation and testing laboratories. It strengthens our product development capabilities, improves team collaborations and reinforces our commitment to innovation led growth. We currently have three operational R and D centers now, including Noida, Ahmedabad and Taiwan, and we will shortly be opening a new one in Bengaluru. Our market share stood at 43.3 in the Indian video surveillance industry in FY twenty twenty six as per the Frost and Sullivan report.

5:52 We are pleased to see strong gains in our market share with our position effectively doubling over the period shown. This reflects the growing acceptance of our products, wider channel penetration as well as our ability to address evolving customer requirements across all major vertical segments. Manufacturing remains a key strategic pillar. Our housing and enclosure expansion is progressing as planned and is expected to become operational by Q3 of this financial year. We are also advancing on our Karappa Greenfield expansion and the land acquisition for same is in final stages.

6:39 The Karappa facility currently supports a capacity of approximately 2,500,000 units per month, providing a strong foundation for future growth. We are also developing a second manufacturing cluster in Veta Noida, and the land bank already has been identified and applied to the authorities for allocation. In parallel, our localization incentives continue to move forward. We have incorporated Coriant Cable Technology Pvt. Ltd, a joint venture with Orient Cables for manufacturing of network LAN and CCTV coaxial cables. The proposed facility in Rajasthan will cover approximately one lakh square feet and is expected to start commercial production by end of this financial year.

7:30 During the quarter, we continue to scale our manufacturing capacity to meet growing demand. This month, we are adding three more FA lines and one MI line. And with this addition, we have a total of 42 FA lines, four MI and 12 SMT lines by the end of August. Innovation remains central to our future growth. We are actively exploring to expand into new categories, including machine vision cameras, drone camera modules, industrial autonomous mobile robots and home IoT products, such as video door phones, door locks and smart doorbells. We are also broadening our professional portfolio through CPPLUS Pro series of high end AI powered solutions, global shutter cameras and explosion proof products.

8:22 Several of these offerings are currently under final stage of development and targeted to launch by the Q4 of this year. We also accelerating the rollout of NexiveW brand and expanding the product portfolio further under the second brand in the coming months. This enables us to serve a wider range of customers and increase channel partner coverages. A key strategic initiative is our enhanced focus on enterprise, government and AI driven opportunities. We are moving towards a top down demand generation model. This involves identifying target accounts, engaging customers directly, securing empanelment at the design stage and fulfilling projects through a strong system integrator and channel ecosystem.

9:16 This approach enables us to influence demand and specification at an earlier stage, improve specification wins and advance our position with the value chain. Dedicated teams in demand generation, presales, business development and vertical solutions are helping us deepen customer engagement and strengthen our position in larger, higher value projects. Artificial intelligence represents one of the most significant growth opportunities ahead. We are progressing through multiple stages across government, enterprise, small and medium sized businesses as well as strategic market segments. These stages range from proof of concept and commercialization to development and evaluation.

10:04 Our objective is to build scalable AI powered solutions that leverage our existing market presence while opening entirely new avenues of growth. As we continue to scale, building leadership depth remains a priority. Over the last year, we have strengthened our leadership teams through key appointments, including the head of credit and general counsel. Our CHRO will join shortly and recruitment for the head of merger and acquisition is progressing. Alongside this, we are building a stronger second line of leadership across marketing, finance, product management and sales functions. These initiatives will ensure leadership continuity, accelerate execution and support sustainable long term growth.

10:57 We also remain focused on strengthening supply chain resilience and procurement flexibility. Our engagement with a diversified base of SoC, memory, flash and sensor suppliers has helped reduce concentration risks and enhance our ability to navigate periodic disruptions across the global component ecosystem. We continue to follow a multi sourcing strategy to manage these risks and ensure greater supply chain resilience. To conclude, Q1 FY twenty twenty seven represents a strong start to the year. We have delivered exceptional growth, expanded profitability, strengthened our balance sheet, advanced our manufacturing strategy, accelerated innovation, and laid the foundation for future opportunities in enterprise solutions and AI.

11:55 As we move forward, our focus remains clear, delivering sustainable growth, strengthening market leadership, investing in innovation and creating long term value for our shareholders. Thank you once again for your continued support, trust and support. We look forward to sharing another successful year with all of you. Jayan, thank you. Thank you. We will now begin the question and answer session. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles.

12:56 We have our next question. First question from the line of Dhruv Jain from Ambit Institutional Equities. A couple of questions. So first question is on what's the kind of size hikes that you have taken in this quarter? And I think Aditya saw a little bit to the fact that the low cost inventory is over. So just wanted to understand if there is now a gap between the prices that you're seeing and if, I mean, what is the kind of price hike that you're taking? What extent? That's my first question. So, you know, we are, you know, trying to not pass the whole price hike at one go in the market because the cost hike in DDR and SOC has been phenomenal across all product categories and not only CCTV.

13:49 I think we have so far created well and it is showing in our numbers also. And we're doing it on a monthly scale or a two month scale or some products in a quarterly scale. So product to product, it varies. It has varied from between 10% to 20% so far. And as we move forward in the Q3 and Q4, we are watching carefully with respect to the cost escalations and then passing in a gradual manner to the customer. So we don't pass inflationary shock to the consumers, which might infect some consumption temporarily. So, so far, we have not seen any consumption effect in a major way. And we hope that we are able to mitigate the inflationary pressures in the coming future.

14:37 So my second question is on backward integration. So with two of your key backward integration projects coming through this year, what's the ideal margin improvement that one should expect in possibly FY 'twenty eight? And, you know, in connection to that, you know, what are the other form cost components that you seem to be able to do it in house so for this margin improvement trajectory can continue? So, Dhruv, we are doing several activities on backward integration, will be it housing enclosures, cable connectors, lenses. And in the future, we'll also plan their PCBs locally with third party partners supply chains. I think all of these will have certain basis points additions, and we are working and we've also worked on certain numbers what it can add. It will be early to make a comment on how much it will be, but in each of these categories, we will have some strengths within the organization with the scale of manufacturing and the scale of localization.

15:41 So I would probably not like be able to comment exactly what percentage of margin improvement will happen. But yes, there will be a couple of basis points in the coming future as we scale up each aspect of the localization. And which products you mentioned there, PCB, for any other, you know, couple of other products that you see in the next phase of backward integration that you look to do? See, all I can say is whatever is possible in India, we are, as a company, trying to do that. So what is today not possible and it's not a, you know, a core to our business, we are not doing. So something like a semiconductors or a passive electronic product components, we are still not entering into localization because it's largely dependent on KGD, fab, and other things.

16:32 But everything else, we are step by step moving towards that. Then we... As we progress towards the end of this financial year, all of this will be kicked off in high scale. So we are already doing it through third parties, some here and there trials and other things, but high scale manufacturing in house will kick off in Q3, Q4 of this year. Got it, sir. And just one question, if I may. So you spoke about entering new product categories and expanding your target market. If you could just speak a little bit about that in terms of, you know, legal product categories, what's the kind of addressable market that you're trying to cater to? Any any other details would be great. A lot. Sure.

17:18 So we're doing couple of things in different segments of the On the enterprise government segment, we are doing... We're creating a series of products, which we will call CPPLUS Pro series. Now these are products developed by our Taiwan R and D centers, and these are on the highest end category of SoC, the components, stuff like that. So this you can, you know, compete with the highest category of global brands and the features are, like, really top notch. So this will largely address to the high end government, high end enterprise demand, which was a little bit of a a vacuum that the last leg was missing and we are plucking that. And this will also challenge a lot of global brands because their costs are much higher and CPPLUS will offer a much better value proposition to our customers with such such high specs. That's one.

18:09 Second, on the home and IoT space, we are expanding more categories for smart home and secure home. On access to the home like door phones, doorbells, know, stuff like that is what we are expanding door locks maybe in these three categories we are expanding. And third, we are looking at more futuristic industrial automation like industrial robots, ADRs, those kind of products, machine vision cameras, which are very high speed, highest precision cameras on manufacturing lines, and also drone gimbal cameras, which we have already started studying. And soon, you know, we hope to bring that in in order in the coming years. So right now, the drone gimbal cameras is not being manufactured much in India to best of our knowledge.

18:55 And I think we are, as a company, best positioned to do the cameras for the drones. So these are the new categories and initiatives under exploration. Some are at and all of them are at different stage of go to market strategy. Thank you so much. Thank you. Thank you. We have our next question from the line of Rosha Chaudhry from Aditya Billasol Life Insurance. Please go ahead. Hi. Thank you for the opportunity. I'll get for a good set of. Follow-up on the group's question. The new initiatives which we are taking for new categories...

19:42 You Sorry. I could not understand if you can repeat, please. Is it better now, sir? Yeah. Much better,. Yeah. So on the new category initiative, what kind of TAM could expand for us once we, you roll out all these categories? So,, everything is... You know, all... Like, we're working on three or four different ones. Every every will have... Your category will have a different possible TAM. So the Pro series, of course, has a large decent TAM, which is being catered by global brands right now, And we wish to enter and capture a size in that segment, which was largely the percentage of market catered by the global brands.

20:31 The home IoT is a new market development. Doorbells, door locks, these are things which eventually be... We believe should be part of every home, but it's a market to develop. And, of course, potentially in the next several years could be a great time. And and the industrial automation and all, we are exploring right now and drone camera. So we are working in, you know, developing the market starting reports and all and also the product development and supply chain on those categories. But the work already begun and taking good progress. So would it be fair to assume it could add additional at least INR 5,010 thousand crores of opportunity? I hope so. Me.

21:18 At least, I can't comment today, but these are good adjacencies is all I can say. And we, as a company, have good expertise on these technologies. And whatever add ons expertise required, are building. We're building even teams for the go to market on each of these specialized lines. So I think we as a company have always tried to develop future technologies earlier to the market, and that's what these new initiatives are in line with that, that we eventually evolve as a market leader only. Okay. And on the margin profile side, see, I heard what you said on gross question, but qualitatively, with all the backward integration initiatives, the tech tie up, which we have and increasing our revenue share from the own brands and IP camera.

22:14 And I'm sure other initiatives you would have taken plus price hike, which may give some operating leverage as well. So with all these initiatives, there any further scope from here on a meaningful scope to lift the margin profile of the overall business? Moshev, I think we have given our guidance for the year, which is 14% to 15% EBITDA. We, in quarter one, stand by that only. I think we have a 14.8%. We, at this moment, would stick to the guidance and, yeah, internally, we work on try always try to beat the guidance. But I think we we will probably more... Comment more on that after the half year, half year results.

23:01 Sure. Thank you so much, Tim. All the best. Bye. Thank you. Thank you. We have our next question from the line of Anuj Kashyap from Eight Capital. Please go ahead. Hello. Good afternoon, team. I'm audible? Yeah. Anuj, maybe if you can be a little louder, it'll be better. Okay. Okay. Okay. Okay, sir. So just I wanted to know, sir, that, like, we have established a 43% market share, like, is it under our control? So, as a brand or as a strategy, do you... Are we seeing that there is a moat around our brand?

23:53 And and, sir, why I'm asking this question? Because, sir, recently, government, like, it has allowed Chinese firm into the transformer side of the electrical equipment side. Before it, Indian side was protected. Like, supposedly, we see the government passes some orders and allows Chinese firm again into India. So do you think, sir, that our brand, like, is able to build a a moat around like whether it's price wise, value wise or like any of the strategies? I wanted to know about it. Yes. So Anujai, this is Anoop here. So yes, so in all our presentations also, we have been talking about the levers that we have, and we believe there are multiple levers. One is, of course, the strength of the brand. It's almost synonymous with the category, the distribution reach, and we focus quarter on quarter in increasing that, whether it's the distribution reach or the direct connect with SIs and end customers.

24:46 Of course, the manufacturing, which we think is unparalleled, we have often spoken about our plans and expansion plans here. We have the third largest factory in the world. The R and D, which is also evolving into great strength for us, which is also allowing us to broad based sourcing and the manpower and the management depth that we spoke about. So all these are modes which are playing itself out. And even now, if you look at the STQC that you're talking about, there are almost 40 plus plants, which we think have got impenetrable. So it's not as if there is no competition. There is competition, but we are sticking to our execution plans and the market shares across categories. We map it, and we are comfortable with where we are placed right now. And with regards to the other things you said, see, CCTV is a priority sector for the government, and we do not see any deviation from policy from the government side at the moment.

25:54 You may press star and one. Next question is from the line of from IIM Capital. Please go ahead. Hi, sir. Thank you for the question. Regarding our joint venture for cable manufacturing, So how much would be the cable, let's say, as a percentage of raw material or sales when we give guidance of revenue of 60,000,000,000 to $65,000,000,000 for FY 'twenty seven? Yes. Hi, Madhit. So yes, there's two parts of the cable strategy. We spoke about that the JV will manufacture, of course, CCTV cables and networking cables. And also then we spoke about component of the camera, which is the harness cables and all. So the first two that we spoke about is sold in CPPLUS brand more as an attached business to the BOM. So it's not it doesn't go within the BOM. So that's the first priority for the JV. That we would say is not is less than 5% of the overall business.

26:50 And at the second stage, yes, the JV will get into helping us localize in terms of the CCTV, the cable cameras and the harness cables. But the amount of optimization and the backward integration that can happen is minimal in some percentage points. I think we can speak of that in in the future calls. I think it will be single digits. Got it, sir. Just to clarify, 5% of business means 5% of revenue. Right? Of CPPLUS' revenue as the cables business. That is the accessories attached business that goes along with the CPPLUS brand. And that would be how much of 60 to 65,000,000,000? See, currently, what we spoke, we are we are saying that CPPLUS is almost 87 percentage of the overall company. So you can do your max. Okay. Okay. Got it, sir. Thank you so much.

27:45 Thank you. We have our next question from the line of from Capital Advisors. Please go ahead. Yeah. Thank you for the opportunity. Am I audible? No. No, Shubham. You need to speak with your handset. The line for the participant got disconnected. We have our next question from the line of Saurabh Shah from AUM Fund Advisors. Please go ahead. Hi, sir. Thank you for a great set of numbers. One question was from a sourcing side, how much of your BOM is imported equipment?

28:34 In terms of the chips and all that from and from which country, if you could please clarify? So, right? Yes. Yes, Saurabh. Hi, Aditya. So Saurabh, BOM wise, if you look at the critical parts, which are the semiconductor based solutions are all largely from Taiwan because most of the fabs are from Taiwan. These are companies which are Japanese, Korean, African American, or Taiwanese. And as per the Indian law, it's... You know, now you are not allowed to use any anything on semiconductor from Chinese. So all our supply chain is from Taiwan, and that's almost 35% of the bomb. Another 15, 20% is passive electronics. Now those come from both Taiwan and China.

29:22 The other parts which are housing enclosures, cable connectors, and soon we are now... We are already doing trials for lenses and few other categories. Now that will be localized. So I would say 55%, 60% import solution and a 40% domestic would be is something we are in probably once all these localization initiatives kick off in the next two quarters. Thanks. What period of the next two, three years do you expect that to change? And especially as you said you're looking at newer areas? Yes. I think after like I said, everything what is possible, AI and CPPLUS is moving in that direction or already doing it in India. Now in the next few years, there is a lot of talk of fabs coming in.

30:10 If fabs come in, semiconductor can be sourced locally because, like, even us, we are also working with India design companies together to develop India based chips also. So if fabs come up, it all depends on that. And the scale comes up, we can localize. If the spare PCB scale, which a lot of companies are making come up, we can localize. So those are the two initiatives we feel can be done. Lenses is one we are taking the initiative as a company to build a completely backward integration plan. Right now, we are setting up a trial as an automatic client to produce few lakhs, but we are working parallelly on a fully automated plant. If that works out, then that could be localized. So these are future possibilities, but early stage to make comment that will it be done or not.

31:00 Sure. Last question from my side. Going forward, how do you see the current I mean, from the sourcing issues, the currency exposure, how are you currently managing? And any changes to that you anticipate making? Because obviously, the last couple of quarters... Yes. Sorry. A company, we follow a practice of hedging our bets on the ForEx exposure. We've been doing that for maybe more than five, seven years or I don't remember how many years already. So currency, of course, affects the costing, but we are, as a company, hedging it on a weekly basis. So every week, we hedge the currency and we build it as part of our costs. So can we just explain that a little bit more? Firstly, you have inventories, which obviously helps with the currency depreciated by competitors. But if you have committed sales values and you have to import some parts, then do you get caught on the wrong foot?

31:55 And can you just explain what is the value you hedge, for example? And how do you kind of lock in sales to effect that? So sort of we have a complete detailed policy on our hedging, where it is reviewed by the Board and it's adjusted. So like Aditya was just mentioning, we have not gone below 85% of our complete receivables at creditors at any point in time. So according to the trends and what we see, it keeps getting adjusted between 85% to 100%. And any particular quarter, that's a policy that currently we would be at 90 percentage plus levels of ForEx covers. So in a way, that insulates us from any volatility in the ForEx market. Hope that answers your question. You know, it's like what he meant is after subscription, what happens is every weak shipment, we try to block it in the coming weeks. So we try to keep that hedge of 25% to 90%.

32:47 Okay. Good to hear. Thanks. Thank you. We have our next question from the line of from ICICI Bank. Please go ahead. Hi, sir. Thank you for giving me the opportunity. So, sir, a couple of questions I have. One is, sir, since April 26, the government has banned the Chinese products in the component. So just want to know the impact on the company because of such banning. So, see, what happened is it's... The government came out with the STGC norm where you could not use Chinese semiconductors and and Chinese memory in developing CCTV products, and their products had to be completely cyber secured, well tested by government of India.

33:52 This norm actually came out on 04/09/2025, not 2026. In March 2026, what they came is that they had allowed the old inventory to get cleared. So after 04/01/2026, the old inventory, even if you have, you could not... You are not allowed to sell. So they gave good ten, eleven months to clear the inventory. But those fact the stoppage of selling Chinese component based products on the semiconductor side happened in 2025. So it's almost down one point five year of the transition. And the market has, of course, pumped a lot of old inventory in the beginning of 2025, 2026, which is all exhausted. And now I think as Anoop also mentioned, there are almost 40 plus brands in the market who are certified and selling certified ER products.

34:49 The supply chain side and the cost escalation side, there are challenges, which I think a large organization with the ability to secure semiconductors like us as a... Is in a better position to mitigate, and some smaller players are grappling through those challenges. So so that is what is happening in the market. And we as a company have constantly focusing to continue to grow our market share, which we are showing in every quarter results that we are delivering. And we are strong and confident to do that in the coming quarters also. Okay. Thank you, sir. And another question is, sir, is there any impact of like the Middle East prices on other raw material procurement or any supply chain? No. We don't have any impact on the Middle East crisis, thankfully, on the supply chain at this moment. We have not faced any such issue, barring some impact on the ForEx, which we co hedged.

35:49 And freight and logistics. Okay. Thank you, sir. And the last question from my side is, I just want to know about the sustainability of margins because now since, as you mentioned that the low cost inventory has been exhausted as of now? So, Sawam, we have already answered this question that we stick to what we have guided for the year. And the price rise that's happened on the supply side is a pass through, but there might be a time delay as because we are gradually passing it to the market. But we stick to whatever we have guided for the year, and internally, we'll try to overachieve that. Thank you so much, sir. Thanks a lot. Thank you.

36:35 We have our next question from the line of Shivam Thurat from Capital Advisors. Please go ahead. Hi. Am I audible now? Yes. Yes. Okay. Thank you for the opportunity, sir. My first question is I just wanted to know what is our current capacity and what kind of capacity would like to be doing? Yes. So Shubham, our current capacity is at about 2,500,000 units per month. And currently, our capacity utilization should be at between 85% to 90%. Month on month, it slightly varies based on the supply chain and all, but it's currently at about 85, 90% utilization. It. So since utilization is at higher end, we are planning for the capital, I understand.

37:25 So do you have any time line around the CapEx when we will be ready with the newer capacity? And what capacity are we trying to add? Yes. So we have broadly spoken about almost doubling the capacity in the next three years. And we are doing an intermediary land expansion we have acquired in Karappa. So that be where the first expansion happens. And then we are looking at the land bank in Greater Noida, which will be our second manufacturing cluster. So there will be a gradual work up in capacity that you will see quarter on quarter. Then I understand, sir, that you mentioned we are passing on the price increase gradually. So just wanted to understand how much average pricing that we have already taken and how much more we will need to take in order to pass on the whole pricing?

38:15 Shubhrant, again, answered this question. We have been taking it month on month. It's different across categories. But on average, I think by the end of this H1, we would have taken almost a 15% to 20% price increase. And then we'll keep reviewing it month on month and quarter on quarter. For the whole year, we had almost guided that it might be around 25% price increase. So we keep monitoring it quarter on quarter. Okay. And the last question from my side is, we... I understand that we are launching... We are entering into some new products category. Any broad time line around when we will be launching these products at any rate? So we have discussed about different set of categories. So one on the enterprise side where we spoke about CPPLUS Pro, which is coming out of our Taiwan R and D and other sources. That is the most closest time line, which should be live by the end of Q3 and the beginning of Q4. The same similar kind of timelines are for the home IoT category that we spoke. The third category in terms of the AGV, home robots, industrial robots and the cameras for the drones, that is more at an exploratory and study stage. So we will come back to you when we can sort of commercialize that.

39:26 Okay. Just one final question. So how much is that r and d cost as a percentage of revenue currently? Shubham, currently, R and D is something which we are heavily investing into, and we do not budget for that as percentage of revenue. It's more at the moment. It's more for us, and it's a strategic initiative. So we are expanding. So we do not look at this as a percentage of revenue. Currently, whatever is needed as investments on that side, we are going ahead with the same. Okay. Understood. Thank you, Sameer. That is Sameer. Thank you. Thank you. We have our next question from the line of Udit Rajuwala from Motilal Oswal. Please go ahead. Yes. Hi, team. Good afternoon. And firstly, congratulations on another great set of numbers.

40:15 Sir, one, mentioned about... Hi, sir. So so you mentioned about this enterprise range of CPPLUS where you mentioned, you know, we are doing it in at a global standard. So just wanted to check, you know, domestic, all are doing, I mean, phenomenal job. How did... How much do you know this will help us in exploring the export opportunity and what are the plans there, if any? Yes. You're right. So this is essentially the portfolio that will go into the export opportunity that we are looking at. Export, we mentioned, is on our table and it's on our in our plans, but it's slightly longer term in terms of maybe the next eighteen to twenty four months is where you will see in terms of significant numbers coming in. Currently, with the supply chain constraint and the capacity expansion that are happening, so that's where we are focusing on. And the portfolio by then will get sort of released in the Indian market and field tested. And then you'll see us focusing on export opportunities.

41:12 Okay. So that's still on drawing board, but, anything to twenty four months, we may think of meeting that also as a on a regular lever for that. Yep. Yes, Aditya. Alright. Yeah. The rest have been answered, sir. Thank you so much. All the bye. Thank you. We have our next question from the line of from Equintis Wealth Advisors. Please go ahead. Hi, sir. Thank you for the opportunity. Sir, last time, I think you mentioned there was a lot of issues around chip sourcing side over on other industry trend. What are we seeing now? What is it? How is it playing out now? Maybe last time when we spoke maybe with Anupas, somebody else, the situation was that we have chips sourced till March of next year. Maybe if you could indicate how secured are we as of today, that would be helpful. And the second question is on the other expenses side. I think it increased from $9.50 crores to $11.70 odd crores. So anything material to read there or nothing nothing material as today?

42:21 It's a chance. Yeah. This is Anup here. So the first question, yes, we had... You know, we had spoken about that as a strategy on the SOC and memory side. We continue to cover for three to four quarters. So that's... We are continuing as a policy. The supply side constraints still continue. The price hikes are still going on. From the commentary that we are hearing from the global sources, it's expected to continue for some more time. But we are fairly covered in terms of our relationships and our sourcing strategy there. So yeah, I think in terms of how we are managing, I think we are pretty comfortable. Your second question was around? The other exercise. But just before that, so we are we are just covered till we are covered till next June. Maybe I can assume that? Or so, Shyans, we are talking about March or June. We are talking about a sourcing strategy where, you know, we give projections to those vendors and we cover. So cover doesn't mean that, you know, I can tell you it's March or June. It's a strategy. We keep rolling forecast going with them. So that forecast is for anything for between three to four quarters.

43:21 Got it. Got it. Nothing material in terms of disruption in terms of sourcing? No. No. Got Got it. Yes. And second question was on the other expenses side. Yes. So there's there's nothing it's more or less in line. So some of the expenses, there's a seasonality to it. For example, there's a marketing expense. It might not be in line with the 20 revenue, which has to happen in the first quarter. Are some IPL and which also maybe your marketing expense would be at maybe 30, 32% of the whole year. So... And some of the, you know, other expenses in... Are in line with the inflationary, you know, like appraisals and multiple things. So there's nothing there's nothing all in that. It's all in line. Got it. Got it. Fair enough. Thanks. Thanks, Aditya. Thank you. All the best. Thank you. Thank you.

44:09 Ladies and gentlemen, that was the last question of the day, and I now hand the conference over to the management for closing comments. Thank you. Thank you all for attending this call. You know, we believe we'll have... We'll begin the further calls, and we'll continue to deliver results that meet the expectations. Thank you. Thank you. On behalf of ICIC Securities Limited, that concludes the conference. Thank you for joining us, and you may now disconnect your lines.