BEML (NSE:BEML) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day and welcome to the BEML Q1 FY twenty seven Earnings Conference Call. As a reminder, all participant lines will be in a listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0 for the touch tone phone. Please note that this conference is being recorded. I now have the conference over to Mr. From BEML Thank you and over to you sir. Thank you, Steve. Good afternoon, everyone. On behalf of BEML Limited, we welcome you all for the Q1 FY twenty seven conference call of BEML Limited. I take this opportunity to welcome the management of BEML represented by Mr. Shantanu Roy, Chairman and Managing Director Mr. Anil Jarat, Director, Finance Mr. Devi Prasad Setappati, Director, Human Resources Mr. Sanjay Song, Director, Mining and Construction and Mr. Rajiv Kumar Gupta, Rail and Metro and Mr. Sanjay Deghade, Director, Defense and Aerospace.

1:05 We will begin the call with a brief overview by the management followed by a Q and A session. I will now hand the call to Shantanu sir for his opening remarks. Over to you sir. Good afternoon. Are you able to hear me, Harshita? Hello? Yes, sir. We can hear you, sir. Please go ahead. Good afternoon, all our investors. Thank you again for remaining invested. The last quarter has been quite an improvement, probably the best first quarter we have had in the last decade or so with a top line growth of 29%.

1:55 This growth was led by a tremendous turnaround in the Rail and Metro segment, which grew by 178%. And mining was muted, it went down by 14%, mainly because some of the projects where we are already L1, the contract finalization has got deferred. And in defense, overall, we did a 25% improvement over the first quarter of the last financial year. The first time probably, again, we have hit a positive EBITDA ever. And the overall loss has gone down by almost 50%.

2:46 The inventory the overall working capital also has improved. And the value added per employee also has gone up by around 8%. So these I'm sure you already have worked out these numbers. I need not repeat all this. We are currently sitting at an order book of around INR 16,000 crore, a little more than INR 16,000 crore. We are looking at an opportunity size of INR 35,000 crores to INR 40,000 crores, mainly led by the Metro and the Rail and of course, Defense and the Mining, as I talked to you, currently, we are L1 in around INR 900 crore value of tenders.

3:35 And we have a very healthy export order book currently at around $115,000,000 and we should end the year with an export order book of around $200,000,000 So looking at the performance of the first quarter, I expect similar or better growth in the second quarter and the quarters thereafter. So now we are ready to take any questions that you have. Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on your touch tone telephone.

4:21 If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking your question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question comes from the line of with Shri Capital. Please go ahead. Hi, good afternoon. Am I audible? Yes, sir, you are audible. Yes, good afternoon once again, and thanks for this opportunity.

5:08 Congratulations on good set of numbers. I have one simple question, sir. Basically, a couple of years back, we had demerged, you know, surplus assets of our company into a different company. And now in the previous year, you have taken some 300 acres of Mysore and some 36 acres of Bengaluru land back on lease from the same company. So can you please explain as to what is the rationale of that? What are the for what duration have we taken and what kind of plans do we have for that asset? So as you rightly said, first BEML Land Assets Limited was carved out as a fully owned subsidiary. And some three years back, it was listed as a separate company.

6:11 The land that we have decided to take on lease will be used for our production activities, some futuristic some expansion activities as well. And for example, the Land at Bangalore, we have already started utilizing for the current production of LHB coaches of the high speed train. Mysore will be utilizing it more for aerospace. Recently, we got an order just a couple of days back for the fuselage of light combat helicopter from HAL. So we will be utilizing these lands, which were line unutilized basically, even though it is a part of BLL.

6:58 So by paying a small rental, we will be able to utilize that and produce the equipment and systems from leased land and add to the sales revenue and the profitability of the company. Now this lease is for it's a ninety nine year lease currently, but it will be reviewed after five years or even before that, depending on the next course of action that comes out of the current process of BLL. So this being a BEML conquer, so it's not correct on my part to talk about what BLL is going to do or BLL's plans are.

7:56 But this is the precise reason we decided that let us take these land on lease till at least we start our new production unit at Bhopal. And also at the same time, just a few days back, you might have read that Chhattisgarh, the cabinet has approved allocation of around 80 acres of land to us near Villaspur in a place called Mungal. It's a very well located and nicely located land, which is around 70 kilometers from Raipur and 50 kilometers from Villaspur. It lies somewhere in between. It's adjoining the state highway and the nearest railhead is around 40 kilometers.

8:45 So the development of these places will take some time. So in the meantime, we'll be utilizing a line which is already available with BLL and adjacent to us. So that is the thought. And once we get into more projects, for example, in aerospace, we are looking at advanced medium combat aircraft where we will be bidding shortly with our partners. So if that happens, then we will be needing more space here. And Bilaspur the plant will be used for our wheeled mining equipment, the trucks, the water sprinklers, motor graders and all. And the idea is that we should be near to our customer, our mining and mining equipment especially.

9:35 80% goes to Coal India and its subsidiaries. So that is a place which is accessible to all the customers within twenty four to forty eight hours. And that is one of the reasons you might have heard earlier also and we have shared that Villaspur, we are going to create a hub and spoke model already the construction of the hub is almost ready. That will be used as a central place for spare parts and for servicing all our customers from there rather than doing it from our units that are a few thousand kilometers away, more than a thousand kilometers away from our customers.

10:23 Got it, sir. I think that's very helpful. Just supplementary small follow-up on that. So basically, both these places, as you mentioned, will be utilized for the production purpose. And as you mentioned, with Bengaluru, you have already initiated the production over there, and by Suru, you are planning to start soon. What kind of CapEx will be involved at both these places, sir, any understanding? Mysore, we are yet to formulate the CapEx, whereas at Bangalore, the last month, all our esteemed investors who were here, you have seen the production has already started. And I think it's almost a month now. And in one month, we have made great progress.

11:09 So the CapEx the overall CapEx, I mean, cannot say that for this particular tract of land, what is the exact CapEx, it may be hardly INR 3 crores, 4 crores of CapEx, not more than that. But the overall CapEx that we have put in, Aditya, it's in the range of around INR $2.50 crores. That is for the entire high speed train complex. Got it. Thank you so very much and all the very best. Thank you. Thank you. The next question comes from the line of with Intel. Please go ahead.

11:58 Hello. Am I audible? Yes. Sir, actually, I wanted to ask about the Mumbai Corporation tender. So is there I mean, has that tender been canceled or what is the situation because it's been delayed for so long, sir? It has been canceled. That is what has come to us. Okay. And sir, just some days back, I heard you in an interview where you talked about a INR 40,000 crore bidding pipeline. But sir, per our understanding sir MRVC itself was supposed to be 20,000. So how come like we are still expecting a 40,000 crore bidding pipeline and if you could give that breakup of the pipeline that would be great sir?

12:45 You are very right that INR 40,000 crore had two components. One was MRVC, the other is the MEML, which is still alive. And but apart from that, we have some six tenders which are live for the metro. And the six tenders are the Chennai Metro, Delhi Metro RS-twenty, Delhi Metro RS-twenty one, UP Metro extension, Mahan Metro that is Pune, Nagpur and there is another one. No, Puji will come, but just give me a sec.

13:40 Yes, MMRDA Line twelve where we have already paid. The ordering is yet to be done. So the six metro projects are there. Now apart from that, it's a the market is very dynamic. So currently, we are working on export opportunities for the metro sector. The export opportunity size is around INR 15,000 crores. We are working in two export opportunities. I'll not be able to share with you the country, but it is around INR 15,000 crores. Apart from that, we as you all know, we already have submitted the bid for 16 train sets for the B-twenty eight, that is a two eighty kilometer for our high speed train project.

14:36 So considering all this, overall INR 20,000 crore of order inflow, I'm talking only about the rail and metro, whatever opportunity we discussed. So INR 20,000 crore is from the entire or the entire company from all the business verticals. Now defense, we will have we are looking at a horizon we are looking at a number of around INR 4,000 to INR 5,000 crores, which is definitely going to come to us. And apart from that mining construction, INR 900 crores via L1, we are bidding for another INR500 crores to INR600 crores of tenders, and we are bidding for a big export opportunity from West Asia. I hope the numbers tally, correct?

15:26 Yes, sir. And sir, can I get one more question? It was regarding the HEML, sir. I mean, NMDC has a big CapEx plan forward and a large component of that is going to be the heavier moving machineries. So are we getting any inquiries on that front sir for the You see we are already wherever there are opportunities for us, there we are bidding. So it's not only an MDC, it's Singrani, Collieri, it's Coal India and its subsidiaries. So recently, this month itself, we got two orders from Coal India and its subsidiaries for some mining equipment. We also are looking at some export orders from the for the in the next two to three months, which is apart from the tender where we are going to participate shortly.

16:17 So this opportunity that I'm talking about from exports is from The Middle East and it is apart from the tender that we are participating for in the West Asia. And sir, in the near to midterm, anything on the Goliath crane or the cutter section dredgers, I mean on the marine side, is there anything expected in the medium term? You see, these are all developmental projects. Let me give you a picture. So looking at tunnel boring machine, the design itself will take one year to one point five years, followed by the development phase and the manufacturing. And it will take us at least three years to develop a tunnel boring machine.

17:05 Before that, I mean, which it will go for a bulk production. As far as the Gulad crane is concerned, more than the Gulad crane, we are focusing on the SPS, that is a ship to shore crane. And again, the entire cycle, the process cycle, it will take us at least three to four years. So it's the I would say, nothing in the short term, but yes, medium to long term. So medium term, I'm taking as three years and long term is five to six years. So we can expect once the development happens and we go for the bulk production, something sizable will come in three to five years from these two segments.

17:52 And sir, anything on the dredgers, cutter section dredgers, had done some tie up we had done first time. So, auto section, already we have submitted our offer for some for a few numbers of auto section measures. And we expect that the ordering will be done in the coming two to three months. It should be done. Okay, sir. Thank you so much, sir. Thank you. The next question comes from the line of Jyoti Gupta with Ashika Broking. Please go ahead. Good evening, sir, and thank you for the opportunity. Request, if you could put the corporate presentation, quarterly presentation, whatever possible information that can be given, that will be great.

18:44 Second thing, I wanted to know, we had flat margins in quarter one. What are we I just wanted to have an FY 'twenty seven outlook in terms of revenue. What are you estimating revenue growth to be EBITDA margin for the full year? And where are we? And what about the revaluation reserves? Last quarter, we had a major quarter four. Do you still think there could be some impact of that? Because a lot of our exports are locked in. So could there be because of foreign currency fluctuations, should you will that impact these financials going forward? Some light on that, please. Right. So yes, sir, we will on a quarterly basis, we'll put our presentation that we will do.

19:39 Anyway, next time we have this, it will be, I think, a physical meeting with all our assumed investors. On numbers, so as I mentioned, this the first quarter was around 29% growth, and I expect a similar growth in every quarter. So overall, CAGR should be I mean, for this year, it should be high 20s if all goes well. And it should go well because we have the executable orders now. All the orders that we had, it has reached the stage of bulk production. For example, the LHB, the one day sleeper, we are going to complete shortly.

20:26 The high speed also, we will start delivering during this financial year. The Metro Bangalore metro has already yesterday, we had the CRS inspection. And very shortly, it will be put into commercial use. And this year, we should expect at least 20, 25 trains for Bangalore. So plus we are already L1 in many of the tenders of for HEML and defense, there is a pipeline, which is continuous. So with that, this year, the revenue I'm quite bullish about the revenue as far as the EBITDA is concerned. So 24%, 25%, we did around 13%, 13.3%. Last year, because of a one off correction, it went down. But this year, my expectation is we'll again get back to at least 13% of EBITDA.

21:18 And your last question was regarding the impact that we had in the last quarter. So whatever impact was there, we have considered it. And this year, when we start realizing the sales, I think I have mentioned it in one of the discussions earlier as well. Since these contracts are in foreign currency, one is a deemed export. So when we took the contract and now when we are executing with the sales, we realized there at least a 50% to 60% improvement in exchange rate variation. So my guess is that the losses that we have already booked, so it will get mitigated to at least 20%, 25% in this financial year and maybe more in the coming years. So there will not be any impact, but there will be a positive impact once we start realizing the sales for the projects, which are in foreign currency.

22:18 Great. One last question. What is the development on the groundbreaking ceremony which happened in Bhopal? I think from that, we're expecting in eighteen months, the plant would be commissioned and will start producing. What's the status on that Bhopal project? You see eighteen months from the start of the construction. Construction is yet part. We have already completed the boundary wall. We have tendered out the civil part, and we'll be finalizing it in, I think, next two to three months. At the same time, we are working on arranging the debt finance for this project.

23:05 So the day the construction begins, after that, eighteen months' time, we will be able to roll out the first equipment and the total time which will be required for completing this project will be around twenty four months. You see, we did the if I give you the example of Aditya, we did the groundbreaking on September 1 and April 25, the plant was inaugurated. So it was ready. Bhopal will be done much faster than that. Great. Sir, could you also give me a breakup of the segment wide breakup of revenue? We have seen that the consolidated level, I believe defense was 35% rail and metro is 24% mining and construction 41%.

23:54 Does that stand corrected? Or correct me if my numbers are slightly skewed. I think your numbers are correct. I can only give you the growth vertical wise. So Rail and Metro has grown by 178%, Defense has grown by 25% and Mining and Construction, that is the segment has gone down by 14%. And is this going to is the proportion likely to remain? Jotima, can you please come back in the queue for further questions? Yes. Thank you. Thank you. The next question comes from the line of with NBG Investments. Please go ahead.

24:45 Yeah. Good afternoon, sir. My question was on the segmental breakup of the revenue. So with my previous participant had asked, I... May I make a request that why don't you recognize, you know, these three segment as a segmented report them as a a no segment on the segment reporting. So that will be very helpful in terms of revenue and the margin. And second question is, how do you see this next pile down the line? So we are exempted from segmental reporting. That is number one.

25:31 Number two, I'll be happy if instead of these three verticals, are hyped off as three separate companies and BEML becomes a holding company, then it becomes easier for us, right? I think you will I hope you will agree. The mix five years down the line, already the trend is there from this year itself, from 2025, 2026 itself. Know, average contribution to top line has been 45%, highest was twenty sixteen, twenty seventeen when it contributed 61% to the top line. And 2526, it went down to 40%. The contribution from defense and rail metro was 60%.

26:21 So the trend will continue and the trend should be, in my opinion, and it is also evident from the order book opportunities and our aspiration to grow, it should be around 65% to 70% rail metro and defense and 30% HEML. So current, the book 65% is rail metro only. So that I think that tells the story. And can this defense go up to 50% or more? No, I don't want to speculate, but as of now, I don't like that. It's better that we talk about rail and metro and defense together. So it will be around 65 to 70.

27:06 In that defense may go up to 50, rail may go down to 20, but I don't see that possibility immediately looking at the opportunity size in rail. And sir, one last thing from my side that which verticals has a high margin potential? Sir, all verticals have a high margin potential. Again, if you look at the biggest margin contributors, it is number one, the sustenance, that is the spare parts and services. The second highest contributor to margin is exports. Okay. Okay. Not in terms of defense, railway or mining assistance.

27:51 It is applicable for all. Finance has the highest margin and exports follows it very closely. You. I think this is very helpful. Thank you. The next question comes from the line of Sagar Gandhi with Invesco Mutual Fund. Go ahead. Good afternoon, sir. Am I audible? Yes. Yes. Good afternoon. You are very much audible. Yeah. Thank you so much, sir. Sir, if you can highlight the size of the opportunity that we can capitalize on specifically from the high speed rail project, which is the project.

28:42 If my understanding is correct, You are the prime rolling stock manufacturer for this program. So even that government has very keen to operationally this project over the next one year or so, how large an opportunity it can open for us? You see the Mumbai Ahmedabad corridor already, the number of trains is fixed. We are mandated to build two trains of two eighty kilometer per hour. And after that, what is in the public domain is have submitted an offer for 16 trains. Now when it happens, how much it happens, only time will tell. But yes, once we deliver these two trains and they undergo all the tests and all, it will open up a huge opportunity for us for the upcoming seven corridors.

29:35 And in my opinion, the upcoming seven corridors will require at least 600 trains. And the 600 trains, it can open up around 50% of that market for us because I don't think one single company will be able to cater to these many number of trains. So there will be two companies at least will be supplying the rolling stock for the forthcoming high speed train projects. But it is in the next ten years, it's a ten year pipeline, ten to fifteen years pipeline. But it's a huge opportunity. It's not only about the domestic seven high speed train corridors, but it also opens up the export market. Wherever there is a high speed train requirement, at least we can tie up with somebody.

30:26 And we will India as a country and BEML as a company will be at different level. So that the biggest gain from the rolling stock being manufactured, designed, developed, everything done here in the country. Perfect, sir. So on the two train sets which you're already building, the prototype one, where is it in the, what you call, execution stage? I mean, is it done? Is it certified? Where is it in that? No, no. How it can be certified so quickly? We have just started the production. I guess you were not there when with the other esteemed investors who visited. So we started the production sometime in April.

31:16 And when our investors visited in July, so we had started building some modules and all. Now we have reached the level of the complete shell, the car body, what we call it, the car body shell, we call it, right? So we have reached that stage. So every stage has a since it's a clean sheet design, every stage has a lot of checks, balances, design validation, then some tests are to be carried out. And once we deliver the train, which we expect four to five months from now, maybe five months from now, the first train, then it has to undergo extensive testing at depot and the mainline.

32:11 And before the train goes out from our factory, it will also undergo extensive test at the car level, at the basic unit level. So basic unit is four cars make one basic unit and the complete rate level at the train level. So only after this testing is done, which may take, I mean, next year by this time, the testing should be over, then only we can say that, yes, it is too early. It is too early in the day. But we are quite confident. We are confident we are on the right path. Okay. Thank you so much, sir. Thank you. Thank The next question comes from the line of Amit Anwani with BEML Capital. Please go ahead.

33:04 Hi, sir. Good afternoon. Good afternoon. Sir, my first question, again, a follow-up on high speed rail. And we said that probably by next year, we'll be done with the testing. So just wanted to understand what is the kind of per coach cost of production and what is our scope in that. And once the testing is done, if I take just probably just two, three years view, any expectations on what kind of HSR order which can come to you? And you highlighted the long pipeline, but anything in near term, we expect that probably can come since there are lot of corridors and BPS are getting prepared. So anything on that would help.

33:53 So I just mentioned that for the Mumbai Andhraj corridor, we have submitted our offer for 16 train sets and decision will be taken based on which we'll further we'll execute further trains. As far as the other corridors are concerned, it is very it is too early for me to speculate also, right? It will be speculation and it will be wild speculation. But what is important is that we will be ready. We'll be ready for that. We have already started working on the three fifty kmph, that is the next level that I expect the new Hauri dose to be. As far as the cost of production is concerned, you see it's a development stage.

34:40 And we ourselves are not I mean once the train is manufactured, it is tested, then probably I will be able to comment on the cost of production. And as how much it is ours, it is 100% Us. It is 100% Indian, including the IP, intellectual property is Indian intellectual property. And it is 100% Us. Right. So even the propulsion systems are locally sourced and all other things? Propulsion is locally sourced, sir. Understood. So second ballpark probably compared to 180 kmph range like one day Bharat, like it will be 1.5 x or two x kind of costing for this SSR?

35:28 It will not be correct on my part to give you a ballpark figure because it is not that 160 kilometers per hour is X, so two eighty kilometers per hour will be minus 160 divided by something from percentage that much X. It does not work like that. It exponential basically. As the speed goes up, it is exponential. Right. Understood. Second question, sir, on the CapEx. So what's the CapEx outlined? And you highlighted probably we're increasing capacities on the rail and metro side. So on the CapEx segmental wise, what's the CapEx expectations this year and next year? And for the rail and metro, I think we were talking about taking the numbers from some two fifty units. The capacity was supposed to go to three fifty, 400. So any change in that number since we are now also preparing for HSR over next three, four years?

36:28 So yes, this is the question. No, there is no change in those numbers. In fact, once Aditi is since Aditi is fully operational now, so first, we'll focus on HSR and then we will shift we'll go for the pulp production also of the HSR as and when it comes. But we are also utilizing HSR facilities, which are available for our other projects as well. As far as the CapEx is concerned, so I just mentioned, Aditya, we have infused around INR250 crores of CapEx. The overall CapEx plan, the last year, last year CapEx spend was around INR379 crores, which was the highest, probably in the last fifteen years, twenty years, I don't know, we to check that data.

37:16 This year, we have planned around INR 600 crores plus once Brahma starts, so that will be another around INR 900 crores or so. But it will not happen this year. The spending will go into the next year and maybe year after that, it will be spread over. Plus, the new unit at Chattisgarh, their land has recently been allocated to us. It's a very good tract of land and very apt for a heavier moving machinery. So there, we are working out the CapEx. And maybe in the next three to four months, we'll work out what kind of CapEx we would like to infuse there. So that is essentially will be the total CapEx plan for the next four years or so, four to five years, I guess.

38:10 Right. So lastly, if you could share the order book, order balance breakup segment wise as of today and full year order inflow expectation this year? So the order availability, 65% is the order from Rail, 25% from Defense, 4% from Mining, 6% from Esports currently. This year, the order infusion of $11.81 till now, defense has given us 50%, mining has given us around 25% and around 35% has come from the exports. The overall order inflow this year, again, my expectation is 65% to 70% will come from rail and metro and some 20 odd percent should come from defense and around 5% from international business and mining another 5% to 6%, but mining whatever comes, it goes out also.

39:17 So that is how it will be. All right. What's the kind of absolute number for order inflow this year? Expectation? Order inflow expectation is INR 20,000 crores, sir. We will try for INR 20,000 crores. We expect that with around 40% probability, we should have INR 20,000 crores of order. Understood, sir. Thank you so much, sir. All the best. Thank you. Thank you. The next question comes from the line of Sachin Maniar with 3B Investment Managers. Please go ahead. Hello. Hi. Good afternoon, sir. Can you hear me?

40:02 Yes, yes. Good afternoon. Yeah. Hi. Sir, on the recent order on from HL for light combat helicopter or for the fuse large, can you help me? Or how far... This is for how many numbers? Because what we understand that HL is making almost one fifty six numbers over four, five years. So would you expect the repeat orders from the same? Repeat order, don't think so, but let us see. So it is 60% of the total 156 numbers that we have received. Right? So it's around 90, 92 numbers. And I'm sure you know the fuselage is the complete shell basically, the helicopter shell. Correct. Okay. Okay. So this this will be spread out over four, five years. Right? This order would be Yeah. I think three years.

40:56 The exact quantity is 48 numbers. Okay. 48 numbers. Okay. Sure. And sir, second question, if you can help me, what would the R and D expected this year? Last year, you guys increased your spending to INR $2.51 crores. So how are you looking for this year? In terms of the percentage of the top line, it should be around 7%. And if we do a 25% growth, then it should be something more than INR300 crores. Thank you. The next question comes from the line of with NPG Investments.

41:50 Please go ahead. Yeah. Sir, I have two questions. One is from macro perspective that what are the concern and challenges that gives you worry? The concern and challenges that keep keeps you worried is, you know, how to maximize our shareholder wealth. From business perspective? From result perspective is? No, no, from business perspective. So business perspective is, number one, to grow consistently with a CAGR of 20% number two, to have a healthy EBITDA margin of at least 17% to 18 and number three, to reduce the working capital to reduce our debtors, to reduce our inventory.

42:46 So these are the three major challenges. And once we do that, then obviously, our operating ratios, our these inventory ratios and efficiency ratios, all this will be all right. It will enhance the shareholder wealth and add more value. So second question was about the working capital and as you rightly said, this is part of your concern areas. So what steps you are taking to improve the working capital cycle? So the What can help you what can help you to improve it?

43:34 You see, working capital has got two components. One is the inventory, the other is the debtor. So one of the major part of the debtor has been, if you look at our revenue spread quarter to quarter, it is generally ten percent first quarter, twenty percent second, thirty percent third quarter, forty percent fourth quarter. In fact, last year, the fourth quarter was almost 45%. So when it when so much revenue is due in the last quarter, then the debtor goes up substantially, correct? And also, the inventory, it will it also keeps piling up till the end we carry inventory so that the last quarter we can make some sales. So two things we have targeted, and this year probably it will help us.

44:26 We should start the year with a healthy executable order pipeline, which when I say executable, so it is ready for bulk production. So fortunately, this year, we opened like that. And the main idea is to have a sustainable pipeline. So next year also, we should open like that. So once we do that, by second quarter, if we are able to do even 35% of the total revenue planned, it will help us in a big way. So and if we are able to do around 70% also by the third quarter, in the final quarter, we'll be left with only 30%, correct. So it will help in bringing the debtors under control to a great extent. It will help in keeping the inventory also under control, inventory consisting of raw material, semi finished goods, finished goods.

45:23 So these are the steps we are taking in with the tighter inventory control management, more focused approach, planning the inventory in such a way that the long lead items, it should be available with us, at the same time, increasing our value of production. The value of production enhancement goes a long way in improving our margins. So these are the steps we are taking. Understood. This is very helpful. Thank you. The next question comes from the line of with BEML. Please go ahead.

46:09 Sir, my first question regarding sir, can you write on to your program on marine engine? Marine engine, we are not doing anything currently. We are exploring, but nothing concrete has happened till now. So we are focusing on the land system engines for the defense application. We are working out. We are exploring various partners what type is needed. So currently, we don't have any concrete marine engine. Okay. Okay. Awesome. And next question, as you mentioned here, you have looking to 5 to 6,004 thousand to 5,000 order in different segments. This is includes after Pinaka order to us and order will come, this include this one also? Supporting question?

47:08 No, no, Pinata, I have not we have not considered. Sir, we have not considered. Have some orders in the pipeline. One is the ARB calling already you are all aware that DIC has cleared two thirty numbers. Then we have a command post vehicle, then we have the we have self propelled carrier, then we have some tank transporters, then high turbot multiple vehicle where he fielded the vehicle. It has successfully cleared the winter trials. Now it will go for summer trials. He's a Hello?

47:56 Yeah. But we are expecting Hello? Yes? Yes. So my question is, sir, is it simply after the QFAM because they are the yearly expecting this year already for the full year. So please, have got your sense how much order will come to BEML for some 40%? Something in the range of INR $606,100 crores, 100 to 700 crores. So this is a for the for the regimen or for full? Oh, it is for full. Okay. Okay.

48:41 Right, sir. Right, sir. Right, sir. Thank you, sir. Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to Mr. Harshita Kapadia for closing comments. Thanks, Steve. We would like to thank the management of BEML for giving us this opportunity to host this call. We would also like to thank all investors and analysts for joining this call. Any closing remarks and Shantanu sir, you want to share with investors? No, I think we are very lucky to have such learned investors who have continued investing in the company and very, very interesting questions, very interesting queries.

49:31 So my only request is that remain invested in the company and we'll try to create as much value as we can for all our investors, for all our shareholders. Thank you very much. Thank you. On behalf of BEML, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.