Dhruv Consultancy Services (NSE:DHRUV) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Dhruv Consultancy Services Limited Q1 and FY 'twenty seven Earnings Conference Call hosted by Kirin Advisors. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then 0 on your touch tone phone. I now hand the conference over to mister from CarenAdvisor. Thank you, and over to you, Caren. Yeah. Yes. Thank you. Good evening, everyone. On behalf of Caren Advisor, I welcome you all to the q one FY twenty seven results conference follow-up through Consultancy Services Limited. From the management team, we have mister Dhruv Gauthay, chairman miss, managing director. Now I hand over the call to miss for the opening remarks. Over to you, ma'am.

0:54 Good evening, everyone. I welcome you all to the earnings call of Dhruv Consultancy Services Limited for the quarter one of FY twenty seven. I am pleased to share with you all an update on our business performance, the key developments during the quarter, and our priorities for the year ahead. Dhruv Consultancy Services has built a strong position as an infrastructure consultancy, providing end to end services across design and engineering, project management, and technical advisory. Over the years, we have developed deep expertise across highways, bridges, railways, metros, airports, ports, and other infrastructure segments as well. This is supported by our experienced team and established relationships with government and institutional clients.

1:39 Quarter one FY 'twenty seven was an important quarter for us as we continue to strengthen our core business while also expanding into new infrastructure related opportunities. During the quarter, we secured multiple orders across highways, railways, consultancy assignments while also receiving strategic entitlements that expand our ability to participate in a wider range of assignments. On the order front, we received a total orders of INR 90 crores in the first quarter of FY 'twenty seven, some of them being INR 19.34 crore order for authority, engineering and project management services for 140 kilometer Roghart, Dhruv Dhruv Helv Consultancy order for a low of this construction supervision in Uttar Pradesh. We also received an order for 8.34 crore from NPRDC for independent engineer services for the Ujjain, Dharawara Windfield Highway.

2:33 We recently also received a 40.92 CR assignment from OBCC or or Corporation, which is the highest ticket size ever tagged by the company. Another key development during the quarter was our institutional clearance through strategic entitlements. We were empaneled by BMC for product management consultancy for municipal infrastructure works for a period of five years and also by India Exynbank for DPR at technical advisory work and lenders independent engineering. These entitlements provide us with additional avenues to participate in larger and more diversified infrastructure assignments. We also entered into the wayside amenities segment through a fifteen year lead based development and O and M project. We also acquired a 55...

3:23 We we have formed an SPV in which 55% of the stake remains with Dhruv Consultancy in Dhruv Private Limited. This will strengthen our new infrastructure vertical of Wayside amenities. We believe this initiative can create an additional long term growth avenue while leveraging our existing project management and infrastructure capabilities. Coming to the financial performance, q one f y twenty seven recorded net sales of 15.44... 15.55 crore and a total income of 15.95 crore. While the quarter's financial performance reflects the nature and timing of project execution, Our focus remains firmly on strengthening our execution capabilities, converting our project pipelines into revenue, and building a more diversified and resilient business.

4:13 Looking ahead, we remain focused on our core strengths in transportation infrastructure technology while expanding into newer areas. Our international strategy also continues to focus on markets like Africa, Southeast Asia, Gulf, and South And Central Asia. Overall, we believe Dhruv Consultancy is well positioned to benefit from the continued development of India's infrastructure ecosystem. Our priorities are clear, strengthen our order pipeline, improve the execution, diversify our service offerings, expand our addressable market, and create long term value for our stakeholders. With this, I would now like to hand over the call for moderator for the question and answer session. Thank you. Thank you so much,, ma'am. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on the touch tone telephone.

5:05 If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. First question comes from the line of Mehul Shah with VS Ventures. Please go ahead. Yeah. Hi. Good afternoon. Am I audible? Yes. You're audible. So I just have, like, couple of questions. So Yeah. Q one, if I... '27 total income is around 16 CR. Yes. With, like, several new mandates secured during the quarter. So, like, what revenue guidance would you say for f y twenty seven that we can achieve?

5:53 Yeah. I will tell you about the overall financial performance first. So the revenue of 15 crore that... $15.16 crore that we have reported, this particularly is for quarter one. And if you have seen for the past twenty two, twenty three years, the q one and q two have remained, say, 30 to 40% of our... Your revenue. And q three and q four have remained on the higher side in terms of revenue mainly because of the monsoon season, and this is the season for the works award. So, usually, the q one... Entire q one goes in securing new orders, q '2 goes in mobilization, And q three and q four, we start recognizing these revenues.

6:40 So it is difficult for me to give any numbers as the the doesn't allow us to do that. But, definitely, then q one and q two, q three, q four over the past years or so also, if you see, have been much better. Okay. And so Yeah. Are you, like, investing in, like, any structured or training or certification program to, like, develop the expertise in the newer areas? Yes. Like, the. Yes. So we have two kinds of training that is going on. First is a training known as skill bridge. So all the key personals who are working on NHI projects right now are being empaneled on the skill bridge portal where NHI officers themselves are interviewing these candidates in detail so that it's it's kind of an empanelment. So once a key a key person who wants to work on any project or who we want to propose, we get them approved on the SkillBridge portal where their detailed interview happens for that lot of preparation and...

7:48 Is to be done because he's thoroughly scrutinized by an NHI officer. And once he is approved, then he can be posted anywhere on any NHI project. So that is one kind of training that is happening. Secondly, at our head office, we have a staff of around 80, 85. So they are being trained on a monthly basis for project management. We are also in the process of developing AI dashboards so that currently, we are executing close to 70 plus assignments. So with this implementation of AI dashboards, the project management will be much simpler, and those technology front trainings are right now going on in the head office. So as you mentioned, you have, like, multiple projects going on. So how are you, like, tracking the quality control and mechanism?

8:40 And, like, to ensure the projects are completed within the time. Yeah. So project... Completing the project on time is not our prime responsibility. Yes. We are responsible, and we help with the approvals as fast as possible. So our responsibility comes there when it comes to giving faster approvals. The project milestone... Achieving the project milestone remains with the contractor. Of course, we have to track those milestones and inform the authority whether the milestones have been completed or not. Secondly, our way of working is that we deploy manpower at the the site location, the project site, around... At an average of 14 to 15 key professionals plus sub professionals plus support staff are deployed on the site with an average work experience of fifteen years.

9:34 These are all civil engineers. Most of them having master's degree, some of them PhD also. These are deployed at site for monitoring the progress, the quality at the site. A real time communication happens with our head office on a day to day basis, where our head office team, which comprises of general manager, deputy managers, and managers, all these having an, again, average work experience of fifteen... Ten to fifteen years. Above them, we have a CEO and CTO who are monitoring these projects over the GM. So real time communication in between the site team and the head office team happens. All approvals are routed through the top management only. That is how we ensure that quality control is in place.

10:25 K. And so recently, you have received, like, two, three orders. One was, I think, from NHEI, and one was from Railway. Yeah. To Railway. So what is the execution timeline for that? So at an average, the execution timeline is three years construction, and post that, three years DLP, which is a defect liability period, or you can call it a maintenance period. Okay. So when can I But 70, 80% revenue comes in the construction period, and balance 20% comes in the defect liability period? Okay. Okay. That's all. I will join back with you. Thank you. Sure, sir. Thank you. You.

11:15 Our next question comes from the line of Neha Patel with Visible UltraSource Limited. Please go ahead. Hello, sir. Am I audible? Yes. Yes. My question is India. Ma'am, I'm sorry to interrupt you, but your voice is breaking. Yes. Yes. Okay. Sure. Am I audible now? Hello? Yes. Yeah. Yes. Better. Okay. So my question was, with the India Asian Bank in government covering DHRUV, CSR, and lenders independent engineer services, what new type of clients or project that is allowed to to access? Sir, can you answer this? Yeah.

12:06 See, you might be aware. Exim Bank mainly has a role given by the government of India Reserve Bank to fund the projects outside India being executed by Indian contractors. So our strength of the execution in civil construction is in Middle East, then Iran, Iraq and Afghanistan. So even part of Southeast Asia partly. So there in Indian contractors like L and T, Ashoka, Bitcoin and many others, they are executing the projects outside India for which they need a funding. Sometimes it is on PPP mode, sometimes it is on BOT mode.

12:53 So like in India, entire process has to be followed by the bank that is first is due diligence, then loan syndication, financial close and waiting the DPR and waiting the bid submitted, waiting the bid win by the contractor. So that is part one of the services is waiting of the DPR, which is given by the exam bank normally to the consultants which are impaneled. This is part one. Part two, they also appoint us as a independent engineer on similar such projects where the work is going on on PPP mode. Okay. And my next question is for multiple projects.

13:41 How does the project management and billing process differ from project awarded by or other central government agency? Normally, lenders, engineers, fee are loaded by the bank on the concessionary financial close or contractors financial debt loan. So the payment comes through bank, but it is released by the contractors or concessionary. Through bank, we are getting the payments. Normally, in Indian condition, it is 2 lakh rupees per month roughly for visit on the site once in a month for two, three days inspection. And also sometimes it is a specific site visit based on the specific approval given by the bank to the consistory like revision in concession period or extension of time, etcetera, etcetera. So fee in international market is much better than Indian market.

14:43 It is roughly 4 to 5 lakh rupees per month. Okay. As per the previous execution time plan, what percentage of this q one order do you expect to be executed and recognized as a revenue of $5.27? See, any... Our... Any of the order is having the... Work order is having the range of three year construction and three years defect liability period. So we have a strong order book already without Q1 add on is about $2.50 crore. The projects which are there are at mid level or at finishing level or some of them are completed or might get completed. Few of them are at different liability level.

15:30 So based on the existing order book itself, we can say order book in two years. So that is, say, 300 crore of the order book is there. So two third of that is 200 crore. That has to come mini... As a minimum in period of two years. So that is a rough calculation what I can say. But this year what happened, we have already got about 90 crores to 100 crores orders in Q1 only, wherein if you compare the last year, it was for entire year, it was INR 90 crores to 100 crore. And in q one itself, we got that order. And again, in q two, which is in running condition, we have got additional $60.65 crore of the orders in our kitty.

16:21 So what I can say specific answer to your query, roughly 15 to 20% of the order book gets converted into the revenue. Okay. Sorry. Are you having any specific DHRUV, DHRUV, DFR, or lenders, independent Internet opportunities emerging from Middle East, Iran, or Iraq? And could this become a meaningful part of international business? Yeah. Mozambique, we are already impaneled right now in this second quarter. For one assignment, Ghana, we are the most preferred bidder or we are the winner, but turnaround timing in the timing international market is very, very slow. So because of that, orders are getting converted after four four months or six months of declaration.

17:12 In Saudi Arabia, we are trying to get some private assignments. We have started submitting the bids. One or two bids we missed because of this warlike situation. Right now, we won there. But we are hopeful of getting 10 to 15% of our order book from the international market. Okay. And if you want to go to an operating loss of 3,000, how quickly can margin if our revenue project moves into the execution? Basically, this is only a paper loss, which is correction in the estimates you might be aware. Our revenue is based... It is a index type of accounting system, and our revenue is based on the accounts...

18:04 Sorry. Our revenue is based on the expenditures done on particular project. So this estimate is corrected because of many factors, mainly the change in the policies by the client. The main client is, of course, Like network survey vehicle scope was removed from our assignment, and it is given separately to someone else as a policy and all over India, not to... Alone to Dhruv. So this has start... This has resulted into reduction in the work order, which was given initially, and we corrected ourselves in a timely manner so that it should not be a wrong presentation to the investors and to the lenders.

18:56 So this is a paper loss, what is the 3 or 4 crore, what is there in Q1. But now the bids we are submitting are with a better profit margin for three reasons. And we already won... We are each one already in two or three such assignments. We have rated number nine in India among the 100 consultants. And out of that nine, above above up nine, there are six to seven consultants which are bidding not bidding regularly or they are bidding rarely. So this rating has given us a bigger advantage in the sense that rating has been given first time a weighted to the technical score. So now we are scoring technically much better marks, and we are loading better and better topics.

19:48 So just I will quote one example in the Assam. We have won the six kilometer long bridge assignment across River Brahmaputra, And we are H1, of course, Lecroc acceptance yet to be assured. But we are H1. In that competition, there were four bidders. One bidder was 12 crore, another bidder was 13 crore, third bidder was 20 crore, our bid was 33 crore. Still within the assignment. So you can understand we are best positioned today for better profitability and whatever loss occur to cleanse up the the balance sheets and the p and l. Okay. Actually, when the stronger order including q one, should you know if there expect a meaningful improvement in revenue and profitability from Yes. Yes. Definitely.

20:45 Definitely. Thank you. Our next question comes from the line of Priya Jan with Green Capital. Please go ahead. Priya, you may please proceed with the Yes. Sure. Hi. I I have few questions with me. Yeah. Yeah. So the thing is after securing this new job or the assignment, what new capabilities or domain expertise is do building internal needs for railway consultancy? Yeah. So, presently, we have a dedicated team working for the railway sector.

21:31 Only for this particular assignment, we have to deploy 108 manpower at this project. So deploying such... Deploying and recruiting such huge manpower is a big task, and our recruitment team is doing their best for it. So such high level... High expert manpower, all of them working from the... For the railway sector only. So all these manpower coming in will further strengthen our railway sector. And as we all know that the union budget, since last two to three years, the focus has been railways along with the highway sector as well. So we see ourselves establishing ourselves prominently in the railway sector as well as we have done in the highway sector.

22:20 So one question on financial side. Like, q one operating margin was minus 23%, if I'm not wrong. What quarterly revenue run rate is required for the company to return to the positive and sustainable operating margin? Margin? So there are two factors that that this loss has occurred. One being there are certain tax reversals that have been done, which is not in our control, which is controlled by the income tax department. Second being the lower... The current revenue base is insufficient to absorb the large size assignments that we have currently got. So the operating cost structure with right now that the company is operating is pretty high. So profitability is sensitive to the execution scale. So once... With these new orders, as and when they start converting into into revenues, the losses will be absorbed.

23:17 Good to hear. Uh-huh. Yeah. That's it from my side. Looking forward to your updates. Yeah. Thank you. Next question comes from the line of with Shah Consultancy. Please go ahead. Am I audible? Yes. Yes. Go ahead. Question is eight point thirty four four hours MBRDC assignment for the independent engineers service in. So Yes. What is the role of Dhruv during the different stages of Greenfield Highway project? So this is a independent engineer assignment wherein we are responsible to track the the milestones, then the quality of the assignment, then the drawing approvals, the design and drawing. Although in case of independent... It seems this is a project of independent engineers, so it is DOT project. Hence, the investment has been entirely done by the contractor and not by the government.

24:31 So our role remains lesser than that of authority engineer, but, again, the final approvals and the milestone certification, billing certification is being done by us only. So throughout the construction as well as a defect liability period, we will be deploying manpower at the project site who will observe and provide inputs to our head office, and our head office team then reports to the government. So we act as a eyes and ears of the authority, and that is why as a project management consultant, our our responsibility remains to ensure quality, then material certification from where the material is being brought conducting, whether tests are being conducted properly on the material, checking adult lab lab lab testing equipment, everything, then issuing approvals from the government side.

25:29 All that is being handled by IT. Okay. As a number of projects across states are increasing, what system has through... Put in a place to maintain the consistent quality and project monitoring across various geographies? Yeah. So right now, as I said that we are in the process of building AI dashboards. Right now, we are executing 65 to 70 assignments in a... In the entire financial year. So which is the which is the highest compared to any consultancy firm in India, even though there are... We are rated on number nine, but none of the consultants in India today have such large assignments that Dhruv Consultancy has.

26:19 So we want to build dashboards. We are in the process of building dashboards wherein the entire... In each in each and every project, what is the current status of the project, how much manpower has come, how much material utilization has happened. So there is a detailed schedule given in the contract document of the contractor. So the entire schedule is being tracked by the AI dashboard, which we are in the process of development. So in another... So this will further enhance our capability to take not... To do not just 60, but maybe one twenty assignments in a year. So this will strengthen our operational efficiency. Okay, ma'am. And my last question is, as the numb... As the large proportion of workforce is being engineers and... So what currently is being biggest challenge in recruiting and retaining specialized engineering talent?

27:19 As far as retaining, there is not much of a challenge because we have a huge database of engineers, and we being a listed company, hardly one or two of our competitors are listed. So that gives us a very big advantage when it comes to the employees selecting our company as their... That is why we are able to bag big big number of assignments because as you know, the consultancy is mainly manpower driven. So the more talent we can attract, the more number of projects that we can take. So challenges as such are not much, but, yes, now with every manpower, we are trying to build their expertise with the growing world. Now that technology has also advanced to quite a higher level. So we are trying to... We are in the process of currently upgrading all that.

28:10 And, hence, a combination of the younger generation as well as the older generation is required. So those are the things that are going on on the manpower front. Okay, ma'am. Thank you for answering the question. You. Thank you. Our next question comes from the line of with Phoenix Capital. Please go ahead. Hello. Hello? Hi, ma'am. What kind of technical capabilities are required for lender engineering assignments that are different from drone regular projects to provision work? So for lender engineering, basically, there is nothing extra expertise that is required, but for a certain contractual understanding is more necessary.

29:05 So we have certain manpower senior... Our senior management is a combination of government officers as well as people who have worked in the private sector. So this helps us have... These people have gained very good contractual knowledge for a period of twenty five, thirty years that they have worked in this field. We presently have it in the airport sector also, the railways, and the highway sector also. So for lender engineering, there is no extra special expertise that is asked by the government. With the existing manpower, we can definitely deliver the services. But certain different contractual as well as financial understanding of how projects are to be executed, say, whether in a PPP model, whether in a HAM model or a BOT model, the...

30:01 Checking the financial viability of the project for which, again, we have a BPR team which does the same. They prepare the feasibility report which takes takes the technical as well as the financial feasibility. So all this can be done with our in house team also. Okay. Now that you have secured the and project Dhruv. Are you planning to build any new technical capabilities or any specific railway expertise now? So railway expertise, like I said, we are in the process of hiring hand... Around a 100 manpower for executing this railway assignments. And every week, hiring is going on, which is why our operational costs are quite high. Our employee costs have risen quite higher.

30:52 With respect to extra expertise, I would say we are conducting certain trainings with respect to building information modeling, which is BIM. Again, it's an environment. It's not a software as such, but where we are trying to have an interface between the projects team and the design team because design approvals remains our core expertise and the core deliverable when it comes to PMC projects. So that is why we we are... Rather than enhancing specifically for railway projects, we are in the process of enhancing overall for highway, railway, airport, and other multisector projects overall with building interfaces and AI dashboard, having BIM training, which is, again, right now, we are having only three-dimensional BIM.

31:42 But if you see on an international level, people are having four d, five d, six d BIM also. So I want to reach to a level where we can compete to fix the BIM also, and then there is another thing called as digital twin. So once we reach to that level of technical capability, we would be able to build any assignment worldwide. For this one forty kilometer project, how are you planning to structure the team? And will you mainly use your existing employees, or you will also hire people specifically for this project? No. So for the project to deploy on the site, all the manpower needs to be hired externally.

32:31 Either some of them will be on contract basis, but total manpower recruitment being done is 108. So all these manpower have been proposed during the bid itself. The... We don't have an... I mean, we cannot decide how much manpower or what kind of manpower needs to be deployed. That is laid out in the contract in the RFP document itself at the time of tendering. So we don't have much control over it. As the contract document asks us to deploy, that level of expertise and that kind of experienced people need to be sourced out from the market and deployed. And our team has already done that 60, 70%.

33:18 Say in another month's time, we should be able to commence the project. So with the stronger or... Order in queue, has there been any change in the type or size of project Dhruv is now looking to target? Yes. So, like, this 19.34 CR assignment, then we already received the 40 CR assignment from OBCC. Another few orders that are in pipeline where still the evaluation is going on are all 20, 30, 40 CR only. So you can see that ticket size being increased from five to 10 CR to 20, 30, 40 CR, ma'am. Hello? So are you seeing any larger ticket ticket projects coming up in FY 2020 compared with Yes.

34:11 Yes. The projects you secured during FY 2020? Previous financial years. Yeah. So... And already you can see the results of projects which already LOA has been received are 19 crores, 30 crores, 40 crores, those kind of assignments. Minimum, I think, would be 8 crores. So we are moving towards that bigger ticket size assignments now. Like, sir, I mentioned that our rating has improved. The... And it's a... Has rated all the consultants that they are working. So we have been rated nine out of the 100 consultants that is there, which gives us a huge technical advantage to bag large size assignments. K. So how has the receivable cycle been in q one, and are collections keeping pace with the progress of the project?

35:01 So collections are typically the same right now. You can say minimum sixty to ninety days. Very few... I think a few states, say, in the Northeast or where accessibility becomes an issue, the... It might go up to one twenty days, but not more than that. Okay. Thank you. Thank you so much. Yeah. I wish you all the best. Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and 1. The next question comes from the line of Mehul Shah with BS Venture. Please go ahead. Yeah. Hello. I'm audible?

35:46 Yes. Yeah. I just have, like, couple of questions on the project. The research and the project has a tenure of around fifteen years. So when do you expect the commercial operations begin, and when can it, like, contribute to the revenue? Waste side amenity projects, we have got one assignment right now on paper, which is converted into agreement. We have one... Four assignments. The first assignment agreement is signed on August 4.

36:35 And today, they are giving physical position of the site. So from today, our concession period of fifteen years starts. Now we have selected such a site wherein 50, 60% construction is already in place, which is done by the NHRUV their contractors and concessionary. So main challenge or main, you can say, activity on critical path is installation of a fuel pump, which needs minimum four to five months. So we are expecting to start the revenue of first wayside amenity project somewhere, I can say, in the month of February next year. Okay.

37:23 Okay. So February of next year, you can expect? Yeah. Okay. And, sir, following this 55% acquisition, are you evaluating any additional waste side amenities project, or are you focusing on the existing project first? Existing project, we concluded. Now we have... We are winner for another three projects. One is near London City, one is near Lapur City, one is near Solapur City. All three are big cities. So these three letter of acceptance are expected anywhere in month of September. And again, it will be have a same cycle, seven to eight months to complete the balance work of constructions or activation of the fuel pump and revenue shall start after seven, eight months from the date of position. Sir, are there any, like, major project mobilization or approval completion delays expected in next nine months that could, you know, affect the revenue recognition for this FY '27? No. No. No. It is it is actually...

38:28 What happened happened in last year or this year first quarter is basically correction of the estimate. So nothing big challenges there. Our total order book is INR 600 crore. And the correction happened is about INR 30 crores, 35 crores, which is completed now, and it is less than 5%. So now we don't expect any big challenge or any threat or any surprise for current year. Okay. So what revenue you are expecting by end of FY 'twenty seven? If you see again our unexhibited order book today stands at 300 crore. The assignments are to be completed in three years. So you can mathematically calculate since I cannot make a forward statement.

39:15 Yeah. Okay. Okay. Okay. Okay. Got it, sir. Thank you. Bye, sir. Thank you. Our next question comes from the line of with Kapoor and Company. Please go ahead. Yeah. Madam and thank you for the opportunity. Firstly sir, hope I'm audible first. You can hear that. Yes. Sir firstly sir you mentioned the closing order book at 360 crore as on June 30. Unexecuted unexecuted order book, 300 crores. Yes. 300 crore, and that that will be executable over a period of three years. Three years. Yes. Okay. And, ma'am, you mentioned that 20% is... 20 to 30% is what gets executed in h one, and then the balance 70 is for h two. These are the numbers for for us to work out? Not for these new assignments.

40:09 New assignments, the vision will start after two quarters. Okay. From the date of delivery of the orders, the execution will start from two quarters. Okay. Yes. Yes. Yes. The mobilization takes time. So, initially, the CapEx is certain... Little higher. That is why q one and q two don't perform well profitability wise. But q three and q four, once the billing starts as we have... These projects are good in margins, That is why q three and q four should be better. Okay. Ma'am, even just on a conservative basis and just to understand other... As a minority shareholder, which is why am, how are the... How is the profitability trend likely to shape up? So the the... You are you are very well versed and aware of of the current...

40:58 What is the current market cap and how Yes. Brutely the stock prices have corrected. So that is on... Mainly on account of our... Whatever the reason, the the losses that we have posted on the PVT level. Yeah. So if you could give us some color, how is the... That line item going to shape up only? Not more forward looking, but the context so that we, in the case, can get some fullest where is the company Correct. Progressing in terms of profitability. Correct. Correct. No problem. So while if you see q one, also, you compare it to q four, so q four had a 8 karan revenue, q one has a 15 karan revenue, and compared to the losses also, they have definitely improved compared to q four. Now while you made q one remained loss making, the operating loss, if you see, reduced more than 50%.

41:47 So alongside, there has been an improvement, like I said, in the revenues also. So what happens is that the project management plus the employee expenses alone are roughly 15 crores, which is slightly above the operating revenue, adding to it the finance cost, the depreciation cost, the administrative, and the total expenditure what we have reported comes to 20.41. So the principal issue in q one is, if you can see the operating leverage, our technical and the project delivery is a comp... It is a combination of fixed cost and variable cost. So, presently, the revenue recognition policy also that we follow, like, sir, we're saying we follow in India, which is a combination of unbilled revenue plus the billed revenue.

42:35 So the cost base that is there is not adequately absorbed. Since we are a large firm, we have a high employee cost, and we need to keep securing orders in large numbers in order to sustain this cost. Now what happened last year, in the whole year, we got orders worth 100 crores. This year, only in three quarters, we got 100 crores. So the cost base... The the kind of hiring that we had to do, the kind of investments that we had to do in the project CapEx were relatively higher. So as the execution scales up from the order secured, improving the utilization and the cost absorption, this will be our top priority for the coming quarters. So we are not just focusing on securing more orders, but we are trying to now start recognizing these orders in billing. And once the billing starts converting, there will be a margin improvement margin improvement.

43:33 So this billing is expected to start somewhere in q three. Thank you. Participants will have the queue. Ladies and gentlemen, anyone who wishes to ask a question may press 1. Reminder to all the participant, if you wish to ask a question, you may press star and 1. As there are no further questions from the participant, I would like to hand the conference over to Mr. Karan Thakur from CarenAdvisor for the closing remarks. Thank you, and over to you, Career. Yeah. Thank you. Thank you everyone for joining the conference call of Dhruv Consultancy Services Limited. If you have any queries, you can write us at research@CareerAdvisors.com. Once again, thank you everyone for joining the conference call.

44:21 Thank you,. Ladies and gentlemen, on behalf of Dhruv Consultancy Services Limited, that concludes today's call. Thank you for joining us, and you may now disconnect your lines.