Ceinsys Tech (NSE:CEINSYS) Q1 2026 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Ceinsys Tech Limited Q1 FY 'twenty seven Earnings Conference Call hosted by Aeriehan Capital Markets. 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 Mr. Ritesh Kadar from Aryan Capital Markets. Thank you, and over to you, sir. Hello, and good morning to everyone. On behalf of Aryan Capital Markets, I thank you all for joining me to the Q1 FY 'twenty seven Earnings Conference Call of Sciences Tech Limited.

0:48 Today from the management, we have Mr. Kaushik Khona, Managing Director, India Operations Doctor. Abhayakimatkar, Managing Director Ms. Amitasaksena, CFO. So without any further delay, I'll hand over the call to management for their opening remarks. Over to you, sir. Thank you, Ritesh. Am I audible? Yes, sir. We can hear you. Thank you, and good morning, everyone. It is a pleasure to welcome you to this earnings conference call for the first quarter of financial year twenty twenty six-twenty twenty seven. Let me first thank our host for today's conference call, Mrs. Ariane Capital. In the interest of some of the people who may be new to the company, let me first start by giving you a brief overview of the company first, followed by the performance highlight for the quarter under review.

1:38 CEINSYS Tech, which is rebranded to CEINSYS Tech while the corporate name remains as Sciences Tech Limited. We are a leading technology solution provider in the IT enabled sector, providing engineering and technology solutions in the infrastructure domain. We are acclaimed for our expertise in geospatial engineering as well as other engineering services solutions. We offer a broad range of geospatial intelligence services, including data creation, data analytics, decision support system and enterprise web solutions. After the acquisition of mobility business of Allegro in 2022, we acquired a geospatial business of VTS in USA in 2024, which was a majorly operating in telecom domain. Since then, we are identifying some more targets for inorganic growth to expand our horizon into the domain where the company is already operating.

2:26 That is the geospatial engineering services and the technology solutions for which the company has already mobilized almost around 28,000,000. We serve prestigious global clientele that include large corporates, OEMs, asset management companies and government bodies, highlighting its robust reputation in both geospatial and manufacturing sectors. With offices in India, in U. S, UK and Germany, the company combines local expertise with a broad international reach. Additionally, the company has initiated and invested into a development of product solutions focused on infrastructure vertical and emerging technologies through a vertical focus on the artificial intelligence and machine learning and embedded electronics. This vertical emphasizes development of the AI enabled applications and solutions to enhance our delivery for the existing domains at the outset and then reflecting the company's commitment to innovation and maintaining a competitive edge in the dynamic technological landscape.

3:22 Now let me come to the financial and operational highlights for the first quarter of the financial year twenty twenty six-twenty twenty seven. We are going to discuss about the consolidated numbers. For the quarter under review, operational revenue stood at INR 158 crore, registering a marginal year on year growth of 1%. EBITDA increased substantially by 27% on year on year basis to INR39 crores, with EBITDA margins improving to 24.4%, representing an expansion of five zero five basis points over the corresponding period last year. This improvement was supported by continued gains in the project delivery efficiency with EBITDA increasing sequentially for the eighth consecutive quarter. Profit after tax stood at INR 31 crore, which was a marginal decline, while PAT margin stood at 19.6%, a contraction of around 59 basis points year on year. In terms of segmental performance, our Geospatial Engineering Services revenue for the quarter increased by 30% year on year to INR94 crores, while Technology Solutions side revenue declined by around 25% year on year to INR 63 crores.

4:24 For the benefit of all, the mix between the Geospatial Engineering Services and the Technology Solutions side keeps on changing based on the execution phase of each project. As a team, the company aims to enhance its Technology Services segment revenue and aims to go beyond 51% of the total segment revenue. Moving to our operational performance, the quarter saw continued momentum in our order inflows with the company securing fresh contracts worth INR143 crore during the period. Our order book stood at INR99-zero crores at the end of quarter, providing a healthy base for the revenue visibility going forward. We continue to see encouraging tractions across our key business verticals. Our international geospatial mobility business showed a meaningful improvement during the quarter with new business development opportunities and contract awards gaining momentum.

5:13 This progress is encouraging as we continue to expand our presence across international markets and leverage our capabilities across geospatial engineering and mobility solutions. We are also taking deliberate steps to build the capabilities in emerging technology areas. We have approved an investment up to INR 25 crore in joint venture with AI Fabric USA to be incorporated to create a sovereign AI neo cloud in India for Indian government, citizens and companies focused on cyber security, services and defense to offer GPU as a service, model as a service and AI service to build or lease data center capacity. This initiative is aimed at creating capabilities in an emerging technology segment, while complementing our existing technology strength. On the domestic front, our engagement with government led programs also continues to strengthen.

6:02 We have received a letter of intent from the Director of Urban Administration and Development, Madhya Pradesh for the selection and appointment of a manpower agency for beneficiary led construction vertical under the Pradhan Mantriyawas Yojna with a total contract value of approximately INR 67 crores, which is going to be gained over the next three years. This contract enables application of enterprise solutions based geospatial technology and also application of AI. We also strengthened our presence in Water and Smart City Infrastructure segment. We received we recently received a letter of intent from Bandana Municipal Corporation Council for a supply, installation, commissioning of a consumer domestic ultrasonic and electromagnetic AMR water meters under the number of 2.0 with an order value of approximately INR 17 crores.

6:48 This project is to be executed over a period of twelve months and further strengthens our capability in smart water management solutions. Our recent order wins also demonstrate the breadth of capabilities across our business. In the Mobility segment, we have received an order of approximately INR 4 crores from EKS, INTECH India for design planning and simulation of four production lines to be executed over three months. We also secured international order through our U. S. Subsidiary Technology Associating for the beta development of hybrid power transfer case for Emotive Mobility USA valued at around INR4 crores. The routine contracts for Mobility continue, which are not built in the order book. In our Geospatial business, we continue to deepen our engagement with international customers. Our earlier engagement with CECON includes NVMe and drive supply as well as AI powered building and road extraction, encroachment and asset monitoring through BRIC AI platform, along with enterprise geospatial imagery repository and AI feature extraction capabilities.

7:45 The aggregate value of these purchase orders was INR 30 crores. On working capital cycle stood at 164 days during the quarter, broadly in line with the levels seen over the previous two quarters. We expect recent we have received a recent government resolution issued by Maharashtra government towards allocation of funds for the dues related to IoT and other projects to support collections and meaningfully improve the working capital cycle over the next two to three quarters. Overall, we remain focused on converting our strong order pipeline into execution while continuing to diversify across geographies, business verticals and emerging technology opportunities. With improving traction in our international businesses, a healthy order book and new initiatives in AI and digital technologies, we believe we are building a stronger and more diversified platform for sustainable growth. With this, now I open the floor for question and answer session. Thank you.

8:41 Thank you very much, sir. We will now begin the question and answer session. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue has been. We have our first question from the line of Deepak Kolar from Sapphire Capital. Please go ahead. Yes, ma'am. Thank you very much, sir, for this opportunity. So just first up, wanted to understand this around INR 1,000 crores order that we had, what would be the execution time line?

9:29 And what sort of order pipeline we have order into target that we are looking at? So I will just give you the breakup of the order book. As I said, we have around INR $9.90 crore order book. The execution time line will be some orders have to be executed in three months, some six months, some twelve months and some of them have a plan up to eighteen months. There are certain orders which also have O and M, which goes beyond the CapEx position, which goes to two years or to five years the O and M position. So there are orders which have an execution timeline, which are different. On an average, the execution timeline weighted average will be between twelve to eighteen months. I hope I answered your question. As regards, Fanal, if Doctor. Abhay would like to comment.

10:20 No, no. Understand I'm continuing with what Mr. Koon has said. So we have the executions spread across next two, three years. The first twelve to eighteen months would be the CapEx and then later we will have three or four years of the OpEx. So that order book is going to get spread and we will have that revenue coming in through those. So on the funnel side, I mean, sort of funnel we have in terms of order book? From now onward? Yes, I mean, going forward, yes. Yes, going forward. So next two quarters looks very upbeat. And we as in last con call also, we said that we have a robust funnel.

11:11 We were and were L1, still few of them we were asking L1. We are about to receive our orders. Funnel is pretty strong and we'll see we are we'll surpassing our last year's number. That's for sure. I mean, I will maintain it and reiterate it. We have a very strong funnel. Across our order. Will it be possible for you to quantify? I mean, is the range of funnel that we are looking at? Exact number, I won't be able to tell you. But I think Mr. Khona has indicated you the kind of funnel and number, but not exactly the number. But definitely, we're surpassing already. He said that and you also said that we already crossed about INR 1,000 crore. So we will be achieving the similar kind of numbers. But I will pass this question to Kashyk ji.

12:08 Sir, just wanted to reiterate, we don't give the forward guidance because that's not within our policy, but we are as Abhaji already indicated, we have a strong funnel. In fact, the order book during this quarter, which is around INR143 crore also shows a substantial improvement from the order book as compared to the previous two quarters. And as Abhaji mentioned, there are few opportunities where we already bid, we expect the results shortly. So let's and as you are aware, as and when we get the substantial orders getting awarded, we also publish it to the stock exchange by way of routine declaration. So we'll keep you posted about that. Understood. And just one last thing from my side.

12:54 Now in terms of growth, I think this first quarter, we didn't see much growth rate. So what efforts we are doing to kind of improve our growth and what's the growth we might be looking, right? I mean, we have seen last two years very good growth in the range of 50%, 60% now. So how should one look at this year and what efforts we are doing to improve our growth? So as I said, we are on the target to not only increase the growth of turnover, we are also on the target to increase the margins and you would have seen that this quarter the margins have shown substantial improvement. The growth obviously will continue as the funnel is also getting build up. Some of the orders which I already mentioned were INR143 crore which was received have the execution time within three next three months, six months. So you will see the growth in next two to three quarters.

13:52 As I again reiterate and for the benefit of all the listeners, we don't give forward looking statements and therefore we will be restricting ourselves to mention about the numbers, but we are sure to have the continue the trend of the growth, which we have seen in the last two point five years. Okay, understood. That's very helpful, sir. I mean and that would be from my side. I would like to Thank wish all the best, you. Thank you. We have our next question from the line of Madhu Rathi from Counter Cycleval Investments. Please go ahead. Oh, thank you for the opportunity, sir. Firstly, I wanted to understand regarding our order book.

14:39 So last quarter, our order book was 880 crores, and that has moved to a close to $9.90 crores this quarter. But if I look at the order that we have received of INR 140 crores minus the order that we have executed of close to INR 148 crores, so this number is not matching. So if you could help me understand on the same? Thank you for your time and this question. I would just again clarify in the previous conference calls also we have clarified that not all the businesses go into the order book. There are certain run rate businesses, which we don't build in the order book. For example, the mobility business, we don't build in the order book. For example, the OEM products and services, we don't build into the order book. So therefore, there are certain business segments, which do not form into the order book and this quarter also almost I would say around INR40 crores around INR50 crores of the turnover was without the order book because they are the run rate business.

15:39 And this run rate business will continue. So there will be certain orders which flow into the order books and certain execution happens without the order book also. I hope that reconciliation, if you want, I can make a reconciliation and then give it to the IR agency who can then forward it to you. So opening balance The of eight question, just what needs to be understood is during this quarter, even after execution of INR 157 crore, we have increased the net order book by INR 110 crore, which I think is a phenomenal progress. Thank you for your question. And I will pass on the information on the IR agency. Got it, sir. So so this non order book business, sir, at what rate should... What percentage of our revenue was this number in FY '26?

16:29 And where do we see it scaling in FY '27? So candles become like right now it's going to onethree of our business, candles become to 40, what you have quoted over business during this year? So FY 2026, we had the business, which as I mentioned about the two segments, which are without the order book was INR130 crore, which includes mobility and the product solutions business. Besides there will be some orders, which is within the other existing domain, which are small run rate business, which don't go into the order book. But out of INR660 crore which we recorded last year, I think more than 20%, 22% or 25 was without the order book and which traction will continue. Got it. Sir, just a final question from my side, this Fabric AI partnership that we have created, sir, so what kind of sir, this INR25 crore investment, what is this towards?

17:23 And what will be the solution? Will we set up the whole cloud infrastructure for the government and will receive a payment and... For that, or will we just become, like, more of a EPC player for the sovereign cloud? If you could help us understand the direction in which you are planning to. So let me clarify. This is the initial phase of evaluating the business opportunity of setting up the AI cloud for the purpose of sovereign cloud for the government. And this is basically going to cater to the defense requirement of the government is our target. The proposed JV is between AI fabric of US Inc. And we with the contribution of 50% each.

18:12 Present situation is where we are contemplating to incorporate the JV, which should be done in next one point five months. And after the JV is formed, the complete due diligence and technical due diligence as well as the market due diligence will be carried out and then the phase of second phase of another investment of INR 20 crore from our side will be done. So that's the kind of present traction. We don't intend to be an EPC company. We intend to be the AI solutions company, that's the objective. We won't be catering to the EPC cost, the EPC part, but obviously when we build up our infrastructure, some of the infrastructure will be kind of constructed through EPC contractors also. But our business will be AI solutions, not the EPC.

19:07 Got it. Sir, so will we be providing something on the geospatial lines only to the defense sector through this cloud that we are setting up for the government or will it be more like our data analytics or something on that front? No. It will... As of now, it will be a kind of technology platform which will integrate the geospatial as well as the satellite data as well as the enterprise solution, which will be user defined, oriented based on the requirement of the customer. So right now we don't we are not expecting ourselves to be only data analytics company, it will be a complete solutions company. But as we progress, we will then keep on kind of updating the investors.

19:53 Got it. Sir, just a final question from me, sir. How is the margin for our because our margins have improved, sir, what has led to this margin improvement? And sir, what is the margin for the order book business versus the run rate business from the mobility and product solutions? So how does the margin differ for these two segments? So margins are improving as you see. That is because we are scaling up on the kind of kind of maturity scale of the businesses. So we are earlier before three, two years we were into more of data acquisition, now we are into more of enterprise solutions. So we are, I mean, in a scale of growth, if typically a business is measured on the platforms like it's a scale one, scale two, scale three, scale four, which scale four is the highest. We would say we are between scale two to scale three and going up. So earlier the margins were, let's say, when we began before two years, margins were around 15% to 17% and we are now going up to 24%.

20:56 Second issue is before two years, we also enabled our technology solutions as a part of new domain, where the margins are slightly better. And therefore, the overall mix of margin will be improving. As regard the margin in the order book, obviously, they will be either the same or better because as we keep on executing, because of the improvement in the way we execute and the economies of scale, the margins are expected to improve, but we would as I said in the earlier question also, we don't give guidance about what will be the margin improvement. What was the next question? No, sir. I think that answers my question. But thank you so much and all the best. Okay. Thank you. Thank you.

21:43 Next question is from the line of Poojan Shah from Molecule Ventures. Please go ahead. Thanks for the opportunity, sir. My first question pertains to the previous participant. So I just want to understand if you can explain very limited. So let's suppose it's a fifty fifty JV, we are using 25 crores, and additional will invest 20 crores. So that will be the EP... That will be the infrastructure which will be setting up. Now I want to understand the second part is after the setting of the infrastructure, all the data we have collected will be stored over there and then we get in... So at at one type of task model we have been planning to do, or we have been thinking of in terms of annuity stream, which could help you to improve the yield?

22:37 What is our expectation in that part? Let me again clarify. Right now, the Board has decided and resolved to invest total INR 25 crore in two phases. First INR 5 crore towards incorporation of the company and second INR 20 crore once the due diligence of the business is done. The due diligence will include the technical as well as the market due diligence. What we have envisaged is to provide the solutions in the form of either the GPU as a service, model as a service or AI services. And this will be based on the building up of the data center for the purpose of serving the sovereign defense purpose of the country.

23:24 This is the right now objective. As we progress, I think it's still little far off to right now comment on what will be the business model and how we will structure the business model because the phase of due diligence, etcetera, will take another three to four months. And by that time, we will be able to freeze the business model. I hope I answered Got your it, sir. So basically, we are eyeing it in FY 2020 This message has been transcribed. Right. One moment while I notify the caller. Hello? Yes. You understood, right? Yes. Yes. Yes. Okay. Got it. Got it. First, my second question would be on the trade receivables. So just want to understand, we have been a notification from the government and that they have released some payment from JGM perspective.

24:16 So what are the trade receivables we have been stuck in and how much receivables we are expecting in going in a few months? And how is the traction going forward from JGM now? I would, first of all, answer the question on the overall parameter. If you see our working capital cycle this quarter is also one hundred sixty four days. And the same previous quarter, previous two quarters was also in the range of one hundred sixty two days, one hundred sixty four days. So we have maintained the working capital cycle, which means that whatever billing is happening is being recovered. That is first thing. Second thing, I also mentioned in our presentation, which is posted on the stoppage chain that recently, I would say before two weeks, the government of Maharashtra has issued a GR where they have said that the majority of the funds which was stuck earlier for the IoT related projects under the Jull Deaven mission, they have already resolved that the funds with major funds will be dispersed. And therefore, we expect as per the process which it takes, the time which it takes, we expect that in next two to three quarters and obviously before March 31, all the overdues of IoT project and other projects which are under the Jaldi one mission will be cleared, which will substantially bring down the working capital cycle. So this is what we are expecting. However, as I already mentioned, whatever we are billing, we are collecting, so there is no additional buildup of working capital cycle. Amitaji, if you would like to clarify. We have IoT

25:46 card data and this is from IT approximately UBR of around total amount of 100 crores, and we are expecting to get these funds by end of third quarter, most probably. So these we have that thing in mind, and we have the clarity from the government also that these funds will get released very soon. And in terms of action, if you can if you can tell something? So if you look at our execution and in the past two quarters of conference also, we have mentioned that while Gulgeven Mission projects continue to be executed, our the focus now is also going into various other domains.

26:31 So for example, transport or energy or other geospatial and recently if you see the wins which we have had, which is under the Madhya Pradesh urban development urban and administration development department, there also it is more of a geospatial. So we are taking conscious call to see that we have bid for those opportunities where there is more clarity of the funds, budget allocation is already there and funds are already arranged for by the government projects. So we earlier we had a setback for some time till November 2025 for the issues of JALDI-one mission, but now since November 25, we are not seeing any buildup on that and things are more manageable. I hope these things are clarified.

27:16 Got it, sir. And I want to understand the Allegro visibility. So how it's been panning out? What are your expectation in terms of growth? And what is the current challenges which we have been facing over there? So I think it's been at least from twenty twenty five December onwards, we are seeing positivity in the mobility business. As you may recollect, Allegro was acquired and then it's already since merged with the company. So right now, Mobility is a division. The only thing which remains out of this company is a JV, which is Allegro, which is a JV with Grammar AG of Germany, where we are 70 stakeholder and 30% is Grammar. These results of Grammar are these results of Elegram are not consolidated because they are a JV. Now as regards mobility, things are looking better. In fact, Grammar also has seen that there is an improvement in the order book for the calendar year 2026 and that is a general improvement overall in the mobility business. So we are expecting some more traction in the mobility. On the international side, I think the wholly owned subsidiary, has mobility as well as geospatial, we are seeing that there is a substantial improvement in this quarter as compared to the previous year same quarter.

28:38 Even the... Decline has also increased for our overseas business in this quarter, even the margins have improved in that business. So we we foresee a good traction in the US subsidiary also in this coming year. Got it, sir. And last last time when in last conferences, mentioned about the RFID of the transport, which we have been planning to scale ramp up on. Is that tendering being started or it's still in under the approval from the government and it will start sooner? No. So as regards the ITMS and the ATMS business on the transport, which is the intelligent traffic management system, We have already gathered the capabilities in some of the cases where we did not have, we already tied up with the partners.

29:30 And we are already in discussion with the government for some more opportunities. So we expect some positive developments in the next one or two quarters on the transport domain. Got it. And then my last question would be, so recently, we have seen order book pipeline has also increased by 1,000 crore. And while we without our order reflections, it more or less stays around 20%, 25%. So are we expecting a significant revenue in FY 'twenty seven? The reason being, first of all, our order book is conversion is twelve to eighteen months and other than that, my order book doesn't include 20% of the order, new orders. So so do you expect a significant 902,000 crore mark in FY 'twenty seven?

30:23 I would just refrain from giving any guidance on the for the future. But our as you rightly observed, there is an improvement in the order book. There is execution time line also of twelve to eighteen months in majority of the project. So we are trying to push the execution to increase the kind of level of execution to have the continuous growth as we have seen in the last two point five years. Won't be able to give you guidance on what will be the turnover for 2627. Got it. Thank you. Thank you so much. I will join the conference. You. Thank you. Next question is from the line of Rohit from MAPL. Please go ahead.

31:15 Sir, my question will be on this growth side for FY 'twenty seven. Sir, you mentioned INR $9.90 crores of order book we are yet to execute, right? Yes, sir. Sir, should we assume like 30%, 40% of this order book will get executed because you have given weighted average of maybe twelve, eighteen months? Sir, how should we think of execution of order book in this financial year? I have already mentioned that the majority of the orders have the execution timeline of twelve to eighteen months. I think as we progress, some of the orders obviously will get executed. Beside also mentioned earlier that some of the orders have the execution timeline of three months, six months from the date they have been received.

32:02 So obviously there will be execution within this year itself. To what percentage, whether it will be 30%, 40% or 50% order book in this financial year, I won't be able to give you guidance. But yes, we are on track with all the milestones which are as per the order book. We are not behind any of the milestones. So we should be able to progress as per the time lines mentioned in the order book. Okay. And sir, on this drivers of this growth, which segment do you think will lead for us? Are two or three major initiatives which we are seeing. One is the geospatial enterprise solutions, we are seeing good traction. In fact, in the buildup of order book of INR143 crores, majority of the orders have come from the geospatial enterprise solutions.

32:49 Besides, we are also expecting a traction in the transport domain because there we see a lot of opportunity and we also kind of gather capabilities to execute our bid for them. And therefore, these are two major domains. Besides, we also see the opportunities, the energy for which some of the opportunities we are also tracking and that satellite defense related data collection and analytics as well as the enterprise platform for those kind of services. So these are some of the traction which we continue to monitor. And as you already know, we are into all the infrastructure domain. So the opportunities in each of the domain continue to be tracked. I hope I answered your question.

33:35 Yes, yes, sir. Understood. And sir, on the margin front, we'll be able to maintain this 22, 23% margin? This quarter, we have clocked 24.4%. So I guess we should be able to do that. Next question is from the line of Puneet Singh from Counter Cyclical PMS. Please go ahead. Hi, sir. Thank you for this opportunity. I have a question regarding the order book itself. So in the last conference call, you mentioned that we are in three large orders whose values were around $3.50 crores, INR 400 from correct me if I'm wrong, which is more than the total order intake last year.

34:30 So I just want to understand, are you on track for that? Did you mention by the end of Q2 or in Q2, we should receive these orders? So Yes, we are on track. In fact, one of the order which we already got was that INR 67 crore worth of order where we were L1, which we mentioned at that time, although we didn't give the name. And we continue to have other opportunities apart from the two which are already in pipeline out of the three mentioned in the previous call. So we continue to bid for the new opportunities and the funnel keeps on increasing. As and when the final orders are awarded, because once if you can understand and appreciate the bid process itself, typically once the bids are called for invited and finally, even if the bids are kind of registered, the evaluation technical evaluation and the award of the contract typically takes two to three months.

35:28 Sometimes it exceeds two to three months also. So therefore, we are on track. We should be able to expect something more. Doctor. Abhay, if you would like to add something? Yes. You rightly mentioned the last time also, we had mentioned that we are eliminating three or four of those orders. Other one very very very small, so we didn't need any mention, but, yes, one of that 67 crore had already come in. Two more are in the offering. One of the order may come this quarter... Will come this quarter. Because there is a huge process, you know, going to board and then, you know, giving the final order. So there are a few more tenders just we got those open. The commercials are yet to be open. So another two order group lined up probably in this quarter if those goes well. So we have very strong pipeline and strong closure anticipating in this and next quarter. So we will definitely surpassing those.

36:28 And it's a pretty strong buildup for next two quarters they've already created. So some of the tenders are going to get published. One tender has already got published. So there's a strong pipeline. That's what I can update. Got it. So I mean, on this, we can assume that, I mean, we can close about $3.50 crores order book intake by Q2. Is that a fair understanding? Sir, as I said, we don't give any guidelines, although the funnel remains to be substantially big. The finality of awarding of an order has a lot of process. So it will be wrong for us to give you any futuristic guidance because that's not as per our policy. But as I said, you can observe that from the last quarter where we had an order book closure of INR $8.80 crores.

37:22 This quarter, we are INR $9.90 crores after execution of INR 157 crores. So obviously, there is improvement, right? And we expect that to further improve. And as we will keep on registering as and when we get the orders. Correct. So sir, in FY 2025, when our order book increased significantly, there was one large order worth INR350 crores itself. I want to understand how is the I mean, bid pipeline currently directionally? Are there such orders are there such, I mean, tenders rooted currently, which which have such large sizes? Or I mean, directionally, as an investor, we would like to just understand, I mean, not an exact figure, but is the, I mean, tenders currently, which are floated right now, are they comparable to the, I mean, demand environment in FY 'twenty five or a bit, I mean, slower than that, if you can help us understand how the situation is. Yeah.

38:20 So I will put some light on that, that one of the case, but we we are building up such cases wherein we can see every... So such cases take one or one more than one or two years buildup and, you know, data and everything approved and you need a national kind of program. And those were projects, so we could get that. But however, we... After that, we have built up some of the projects. We have built that capability, and we may see such projects coming in next one or two years. We can anticipate to get one of those in this year, fingers crossed. I cannot put the number over there, but if not fourth quarter, first quarter of next year, we will definitely have one of such kind of projects.

39:06 And we are definitely building up this one of the projects, which can be really game changer for us every other year. Probably, you may find such project coming in. And we are we are the... We are having specialized team to carry out such kind of mission projects wherein we can we can get good kind of revenue. So those are there definitely. It's not the only one of the project in 2025 we got. We will have such projects coming in every other year. I hope I am answering. Yes. Great to hear that. So secondly, in terms of our acquisition, we had raised funds, I think, two years ago to for the acquisition. But it has been delayed since two years. So I just want to understand, I mean, what proactive measures are we taking to expedite this process?

39:59 And I mean, are we currently evaluating any companies for acquisitions? Or should we expect something in FY 2027 in this regard because it has already been two years since we have been trying to do this? Yes. So I will just state this. When we talk about the raising of INR $2.38 crores for equity, it was not just equity, it was expansion, new opportunities, equity and all. And one of the major kind of initiative which we recently took, which I also talked about and where even the Board meeting discussions were also posted in the stock exchange. We are evaluating to kind of set up a JV, which will be into the building of a sovereign AI cloud, where their primary purpose will be to go for defense contract with the government. Now that if that rectifies that also will have a larger business investment opportunity, which can be evaluated after the due diligence is already completed, which may take three to four to five months. So as of now, while that was one opportunity, we are also simultaneously evaluating few opportunities where we can get maybe a higher return than what we are already getting and therefore it's taking time. We don't want to invest just for the sake of investing. We want to see that the investments are in line with what we are doing, either it is vertical integration backward or vertical integration forward within our line of business so that it enables the margin expansion.

41:29 So we understand kind of your question. We hope that we should be able to give you some kind of visibility about what new investments we are making shortly. Got it. So, sir, I mean around INR300 crores of funds have been lying idle with us since two years. And if we look at our current share price, I mean, it has it is trading at very reasonable valuations. So, I mean, why don't we just consider some some capital allocation like a share buyback, which also, I mean, shows our confidence in our own company and gives a signal to the market as well. And also for the long standing shareholders, it will be, I mean, beneficial because EPS will be increased permanently because of shares being extinguished from the market.

42:25 So why don't you consider a share buyback? So that I mean, companies available are... Sir, the solution which you are getting is a temporary thing. Share buyback generally happens when you have cash surplus from operations. Whatever funds we have is the promoters who are listed in the company because they're confident about the growth and the future prospects of the company. So the funds which we have arranged is for the growth and development of the organization rather than for this buying back of shares. However, the funds have been idle since two years, and we have not been able to successfully allocate few opportunities, but you will appreciate, Ki, we don't want to invest just because we have funds. So we don't want to invest into an opportunity, which is not going to give us a margin or profit margins or something like that, which we are right now in. The business which we are going to... We were exploring, if that is going to reduce the overall margin of the company, we decided not to go for those acquisitions.

43:29 And we are looking for some good opportunity wherein we can sustain with our margins also along with the investment. And just to clarify, out of INR $2.30 crores, INR 130 crores has been received in March 26. So I mean, it's just for a clarification. Is the last quarter only. INR 100 crores was received in September 24, but I think the majority fund has been received now. But I think we are on track to see that they are properly used. They are properly invested and we can generate the revenue in long term over those funds. Got it, sir. I hope that, I mean, you make the best decision, and I trust the the the management to do that as well. All the best, and thank you very much. Thank you. Thank you. Thank you.

44:16 I remind you to all the participants, if you wish to ask any questions, you may press star and 1. We have our next question from the line of Keshav Gaurav from Counter Cyclical PMS. Please go ahead. Sir, I wanted to understand that if we look at our March 31 balance sheet, we have a huge unbilled revenue of around $3.20 crores, which is, like, 50% of our stand alone revenue of last year. Sir, and if we see in the first quarter numbers also the stand alone numbers, the revenues are by and large flat. So when exactly will this unbilled revenue will it be billed? That is unbilled revenue, major portion is of JJM things and which we have clarified in our just few in one of the calls that we have got the clarity from the department and this amount will be billed in this next two quarters and this unbilled revenue will automatically go down in next two quarters once we have this funds from the JZM projects.

45:22 Understood. Understood. Unbilled revenue is already getting converted into billing and other things, and we are that cycle is moving. It is just because of JHM, which last two or three quarters, it is getting piled up. But then once... As was she... She has already shared that we have clarity from the government, now we can expect to have these funds very soon. Yeah. And more on from milestones, usually, the UBR gets nullified in the last quarter because government gets funds and major milestone gets closing those. So you will find that UBR, you know, getting majorly reduced in the last quarter. It's it's a historical figure. You you can go and see that. And of course, government is going to release this JGM funds in in this quarter itself. Sir, now the second concern is that, sir, if you look at our stand alone EBITDA last year, it was upwards of INR 170 crore.

46:15 But if we look at stand alone operating cash flow, it was a tenth of that, like INR 19 crore. And if we look at the past three years also, the cash conversion from EBITDA to cash flow, it is very miniscule. So so though I understand the nature of the business is working capital intensive and the top line has also grown, so so but after adjusting so what is your view? Can we see some significant jump in operating cash flow in this year's balance sheet? Sir, I think your observation is perfectly correct. The only as a part of, I would say, general submission is that when a company is growing at the rate of 50% CAGR, because of working and you rightly observed, because of working capital keeps on getting invested.

47:08 Secondly, you just mentioned that UBR. So obviously, when the UBR also gets filed up because of the specific reason, which are also getting addressed, therefore, the cash from operation was small. However, as our CFO, Amitaj, already clarified, we expect this financial year to have a better maybe how much better, obviously, we will not be able to pin down a number, but we should certainly have a better operating cash flow in this financial year. Now sir, if you look, sir, I appreciate the answer you gave to the previous participant. And sir, even if we don't find a good acquisition opportunity, it is best not to do acquisition even though we might have raised capital for that purpose.

47:55 Sir, now... But the concern is that if we look at our stock price from April high of over 1,200 rupees, now it is below 800 rupees, whereas the general market trend is the opposite. So so there is no smoke without fire. So I'm trying to understand that at this market cap, the stock is trading at seven times EBITDA. So now when we are looking to acquire any company, so are we looking to... What is the EV EBITDA that we are looking to pay for acquisition target? Because our own stock is trading at seven time EV EBITDA. So now if we go and acquire some outside company for 15, 20 times EBITDA, then I mean that is value disruptive.

48:41 Either we find acquisition target which is trading below seven time EBITDA. Then it will be a basically value accretive acquisition. No, I think it's a good observation. I would only submit that first of all, there is no smoke and there is no fire. So I don't think that analogy fits here. Maybe it's a good opportunity for somebody to buy more. I'm not recommending that because I don't it's not I'm not in that official position to do that. Question is, at what rate of EBITDA we will evaluate? Obviously, we will evaluate based on what additional EBITDA percentage we are able to acquire. And most of these deals in this kind of segment of industry are driven EBITDA multiple or turnover multiple.

49:31 Typically, the acquisitions, whether it is domestic or foreign, they have the EBITDA multiple ranging between anywhere between five to seven to 10 depending upon what kind of phase of that company is in. And we will obviously evaluate what how much that will add to our top line and bottom line, which should be incremental. So we appreciate your suggestion and we are perfectly going to ensure that the shareholder wealth improves as for any decision which we take. Sir, lastly, if we see then in mid November, Mr. Praneesh Murti resigned and since then only the stock price has been in towards late spend. So is it a coincidence or there is something more to it? And why exactly did he resign within a year of getting appointed?

50:20 Sir, resigned in the month of April 2026 and not November 2025. So there is a correction in the date, and there is no relevance of share price and exit of mister. He has resigned because of his personal reasons. So there's no correlation between November 25 or share price going down. He has resigned in April 26. If you can just go and check the No, madam. So I'm talking about April 26 only. If you look at our stock price on 04/17/2026, the stock was INR $12.30. And I believe Mr. Muthi resigned in April 16 or thereabouts, basically mid April. So from... Maybe it's a coincidence. I'm...

51:06 It just maybe the dots don't need to be joined over here. Sir, I appreciate all your answers, and Thank best of luck to you. Thank you. 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 all for participating in this earnings conference call. I hope we have been able to answer your questions satisfactorily. If you have any further questions you would like to or you would like to know more about the company, please reach out to our IR managers, Valorum advisers. We would again once again thank Aryan Capital for hosting this conference call. Thank you. Thank you, sir. Thank you. On behalf of Aryan Capital Markets Limited, that concludes the conference. Thank you for joining us, and you may now disconnect your lines.

51:58 Thank you. Thank you.