Prostarm Info Systems (NSE:PROSTARM) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Prostarm Info Systems Limited q one FY twenty seven earnings conference call hosted by. As a reminder, all participants will be on a listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then 0 on a dash tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rohan Banwal from Alliance Capital. Please go ahead. Good afternoon, everyone. On behalf of Capital Market Limited, I thank you all for joining the meeting. To interrupt, sir. Your line is not clear properly.

0:51 Am I audible? Yes, sir. Now go ahead. Hello and good afternoon everyone. On behalf of Korean Capital Market Limited, I thank you all for joining to the q one f twenty seven earnings conference call of Prostarm Info Systems Limited. Today, from the management, we have mister, the executive officer and full time director of the company. Mister, chief financial officer. So without any further delay, I'll hand over the call to the management for their opening remarks. Open, over to you, sir. Yeah. I'm Ram Agarwal. Good afternoon to everyone, and a warm welcome to all of you for joining our earnings conference call for the first quarter of the financial year 'twenty seven.

1:40 For some of you who may not be familiar with the company, let me begin by giving you a brief overview of the company. After that, our CFO will take you through the financial and operational performance of the period under under review. Prostarm Info Systems Limited was established in 2008 with the objective of becoming the power electronic solution provider. Over the years, we have evolved from being a specialized equipment supplier into a comprehensive power solutions company with a strong manufacturing and service capabilities. Today, we focus on designing, manufacturing, assembling, and servicing energy storage for the lithium equipment.

2:29 Our product portfolio includes nuclear systems, solar hybrid inverters, lithium battery packs, several controlled voltage stabilizers, isolation transformer, battery energy storage systems, and other other power solutions product, etcetera. In addition to our manufactured products, we also execute solar EPC project, system integration solutions, and provide value added services such as installations, AMCs, technical solutions, etcetera. As the engine power ecosystem continue to evolve, we have started expanding our capabilities beyond conventional power backup solutions into fast growing segments such as battery energy storage system.

3:23 With increasing renewable energy penetration, rising investment in grid modernization, and growing demand for reliable power infrastructure in c and I space. We believe this business will be a key driver of our long term growth. To support the to support the growing opportunities across our business, we continue to strengthen our manufacturing footprint Alongside our existing manufacturing facilities in Pune and Navi, Mumbai, we are setting up a 1.2 gigawatt hour battery energy storage system manufacturing facility at Raja Haryana. This is in the final stage of commissioning and is expected to become operational shortly.

4:11 We are also establishing a new UPS manufacturing facility in Gujarat, which is progressing as planned and is expected to commence commercial operations during the second quarter of financial year twenty seven. These facilities will significantly enhance our manufacturing capabilities, expand our product offering, and strengthen our ability to cater to the growing demand across both conventional power solutions and emerging energy storage application. Our confidence in the business is also reflected in our healthy order pipeline. As of 06/30/2026, our order book stood at approx $10.85 crore with an additional 5 crore under 11 status.

5:04 Taking the order book... Total order book including the 11 order status is around thousand 90 crore. The order book is well diversified and with energy storage systems accounting for the largest share, providing us with strong execution visibility and reinforcing our confidence in the company's growth trajectory. Looking ahead, we remain focused on strengthening our execution capabilities, expanding our manufacturing footprint and delivering innovative power and energy storage solutions that create long term value for our customers and stakeholders.

5:50 With that, I now request to mister Rashid to take through the operational and financial performance of the quarter. Thank you, Ramjit, and good afternoon, everyone. Let me take you through the financial and operational highlights for the quarter for the first quarter of the financial year 2027. Revenue from operations for the quarter stood at INR 76 crore, representing a 38% year on year growth, while revenue moderated sequentially. This was in line with the seasonal nature of our business. As the first quarter typically witnessed lower order activity for an execution cycle of the previous financial year. EBITDA for the quarter stood at INR 7 crores with a EBITDA margin of 8.55%, reflecting an improvement of one twenty six bps over the corresponding quarter for the previous year.

6:46 Profit after tax stood at INR 5 crores, registering a 136% year on year growth, while PAT margin improved to 6.05%. The improvement in profitability during the quarter was supported by high revenues and improved operating leverage leverage. At the same time, given the project led nature of our business, quarterly margins may vary depending on the mix of project executed, execution time line, and revenue recognition. We, therefore, continue to focus on maintaining healthy profitability over the medium term through disciplined project execution, cost optimization and operational efficiencies. From the operational perspective, we secured several strategic orders during the quarter, including a battery storage project worth approximately INR 11 crores from a reputed corporate customer and a solar EPC order worth approximately $1.55 crores from Solarium Green Energy, which is a listed company.

7:43 These orders further strengthens our execution pipeline and reinforce our growing presence across the clean energy ecosystem. We also continue to make steady progress on our strategic expansion initiative. Our 1.2 gigawatt hour battery energy storage system manufacturing facility at Sharjah is in the final stage of commissioning, while the UPS manufacturing facility in Gujarat is progressing as planned. Both facilities are expected to become operational during the second quarter of FY twenty seven and will significantly enhance our manufacturing capabilities. In parallel, the implementation of SAP and Salesforce is nearing completion and is expected to be operational by the end of first half of FY 'twenty seven, further strengthening our operational efficiency and our digital drive.

8:30 As Ramzi highlighted earlier, the company continues to maintain a healthy order book, providing strong execution visibility for the coming quarters, backed by our expanding manufacturing capabilities and robust order pipeline. We remain confident of sustaining our growth momentum. Looking ahead, we remain optimistic about the long term opportunities across the power solutions and battery energy storage ecosystem, supported by our integrated business model, strengthening execution capabilities, and continued investment in manufacturing infrastructure, we are well positioned to capitalize on these opportunities and deliver sustainable value for our stakeholder. With that, I now open the floor for question and answer session. Thank you very much.

9:19 We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on the touch tone telephone. If you wish to remove yourself from 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 is handled. The first question is from the line of Ajith Agarwal from Step Trade Capital. Please go ahead. Hello. Hello. Yes, sir. My question is my first question is about the Q4 deferred orders. You guys indicated that Q4 revenue shortfall was primarily...

10:14 See application. Sorry. I see the apology. Your voice is not clear. Yes, sir. Hello? Hello? Hello? Yes, sir. Please. Yeah. So sir, in the previous conference call, you had indicated that Q4 revenue was primarily an execution timing issue with around INR 43 crore of Ardani, 7 crore of sale and 13 crore of Southeastern sales order deferred to Q1. So how much of these deferred order has actually been executed and build in Q1? And how much of this of this three order which I have mentioned, which we mentioned last time, 36 crores has been executed and the remaining majority would be built in quarter two, meaning related to Adani, it's almost built, related to sale and southeastern railway that would be built in Q2 and q three.

11:21 Q two, majority will be built up in q two, and some part of the order related mainly to southeastern railway would spill over to q three because they are giving sites to us. So as on... When they would give us the site clearance, it would be installed. Okay. And, sir, even after the deferred q four orders, the q one revenue is only 76 crores. It is 27% lower sequentially. Q4 revenue of $10.04 crores. What is the reason behind this decline?, if you look at the number, then if you have the major order, which is... Which we done is only of... Is of 36 crores related to Adani. The rest has been the normal order execution, which has been done. And generally, quarter one is always on the lower side. If these two billings, which of INR 20 crore would have been done, in Q1, it would have been something around INR 96 crore of revenue.

12:22 Okay. So it is in line. It is in line. Because if you look at quarter one last year, it was 55 crores against which we did $76.77 crore. So the spillover is still existing in our books. Okay. And what what is the order in Q1? Total order as on... Is thousand 90 crores. If you remove the best developer order of $8.55 crores, remaining order is of 236 crores in hand, plus there has been dealer business, which is around something around 10 crores per month. You add additional 70 crore. So this is the number roughly which is there in hand as of today.

13:18 Means 306 or 307 crore additional order is in hand other than the order which we have participated. Okay. Okay. And post June, there has been some more order which we have won, which is which is also offered significant size, which has been born post June. Okay. And the last question is about the market strength. So you have guided for the margin of 12% to 13% That will be that. So Actually, that is that is still maintained. Actually, that is still maintained. You have 12 to 13% margin what we told. We've always specified it is order to order and then year...

14:03 Based on the yearly number. Right now, we are sitting on only 76 crore of turnover. So your fixed cost to turnover ratio is always high. So that's the reason of the lower margin. But on an year basis, yearly basis, where our h two is always on the higher side, this margin would equate to 12, 13%. Okay. Okay. Got it. Yeah. Yeah. You see my past trend as well. I always speak on the overall year wise revenue mix. Quarter to quarter, it get changed because of the order mix that we have. Okay. And what will be the guideline for FY twenty seven? As mentioned earlier, minimum 25% growth is what we are targeting. Okay.

14:50 Okay, sir. That's it. Thank you. Yeah. Thanks. Thank you. The next question is from the line of from Purple One Vertex Ventures LLP. Please go ahead. Yes. Thank you, sir, for this opportunity, and congratulations for Firstly, with regards to working capital days, our working capital days had increased sharply last year to one hundred eighty five days, from days in April 25. And you did see that Sir, I don't see your voice. Your voice is not audible properly. So what is target for working capital made by March 27?

15:38 And can you quantify the amount of cash which will be released from working capital improvement? Yeah. Good., thank you so much. Firstly, capital cycle, it was one eighty five days in quarter four, FY twenty six, which had improved to one hundred and sixty eight days in quarter one. And even the cash flow from operating activity, which was negative at 49 crores, it it improved to it improved to around 15 crores negative. So there has been significant improvement in the cash flow from operating activity as well as on the working capital side. And with the further unlocking of some of the major realization which is happening, which which we told you last time.

16:24 So some collection had happened in quarter one, and remaining major amount will be collected in quarter two. So you would find a major unlocking of the working capital. So by the end of March twenty seven, what target working capital day should we assume, sir? Around around one fifty days. One five zero. One five zero. One twenty to one one twenty to one fifty in between, I'm saying, because if I do it in the month of March, so data goes up, so capital gets locked. Because we refer to a one particular date number, the continuous number. So around one twenty to one fifty days as what I had mentioned earlier. Same... On the same track. Understood, sir. Alright. One twenty to one fifty days.

17:13 Okay. So for the FY '27, now we've got this $8.75 per base orders in hand of which eight fifty four are all developer projects. So is it would you be able to guide revenue recognition project wise and or cash flow contribution from this Bihar, KPTCL and Adani. So how much of this, you know, $8.75 crore do you expect in FY twenty seven revenue and EBITDA? This is $8.57 crore is is a is a developer business. Right. So here, you would get a 60... I would give you project by. One is Bihar project. In Bihar project, we are able to get yearly cash flow of 16 crore for spread over twelve years along with the capital subsidy of 32.40 crore.

18:03 This is for Bihar West project. Okay. This is a developer model, rental model. Second is Karnataka project. Here, the total cash flow on year basis would be around 46 crore... 45.72 CR spread over next twelve year with the capital subsidy of around 81 crore. So if you add this two project, it comes around 853 crore. Now related to Adani, which you had mentioned, Adani mostly we have built. That's a straight EPC business, so it is not a developer model. That billing we have done majorly in quarter one. So that... This is the breakup of the EPC. And, additionally, we have received one more EPC order, which is of around the... I'm not naming the name of company considering market not conducive.

18:52 So that is around 12 crore of another solar EPC business for 8.36 megawatt hour. Right. Sir, so for FY '20 business. Yeah. Sir, for FY '27, then from the developer projects, how much revenue do you expect from the higher in KPM? In FY '27, there would not be any recognition because Okay. First, this project would go for completion. Gotcha. But, yes, there would be an EPC billing coming up on the standalone balance sheet. Understood. Understood, sir. And Sir, if there is... We have best EPC will be done by Prostarm Info Systems Limited. So that EPC revenue would come on the books, but not the recurrent rental business would come on the books.

19:41 Right, sir. And so you guided for about 25% minimum revenue growth for f seventy seven. I find that correct. Right. And, sir, on cash flow from operations, do you expect this year to end positive or is this thing which will be negative? Yes, sir. We have already moved in that direction. And as I told you, even it was 49 crores negative last year, it has come down to 15 crores. But at times, decide about how it behaves. But we are doing it, and that discipline is coming on the books. We have started working with the partner. We have started working with our national distributor. Like, last month... This month, we have taken one order of around 7.5 crore, and that billing is not rooted to us directly from system integrator, but it is it is rooted through national distributor.

20:32 So all this could result into a disciplined cash flow. And, yes, we are positive and very hopeful. We would convert positive in the the... In this... By the end of this financial year. Understood. The discount I'm sorry, sir. Sir, your line line is not clear properly. We can't hear you. Okay. Am I audible now? Yes. Yeah. No. I was trying to say that, sir, for this 1.2 gigawatt hour project facility, my understanding was that at peak, you can probably earn about thousand to 1,200 crores of revenue. Right? So what EBITDA margin do we expect from the manufacturing business, sir, realistically in FY '27 and '28?

21:22 This this manufacturing facility is of to start. So we would be commencing operation by the end of this... By h one... End of h one. And then it would gradually get stabilized. And... But, however, finally, there is also disturbance in the market as far as you must be aware regarding lithium sales, regarding export incentive, and dollar and freight movement. So all those factors are somewhat impacting the overall margin for this. So instead of focusing on the utility side of best application, we have start... We have started focusing on the c and I side of best application. On the c and I side, the margin is better as compared to the utility side.

22:08 You will you will decide you will find megawatt size installation, and then the C and I side you will find 500,200,300 kilowatt hour... Kilowatt size installation. So on on an overall basis, if I give you an example, last... In this current year, we posted around 26% of GP from best project which we did for Arani. So that would moderate to somewhat, but it would be better than the other core activity that we are doing. In that case, then, you know, let's say if we commence operations in end of h one, then what kind of utilization do we expect in FY twenty seven and FY '28? Because, you know, these are '22, it would not be more than 20, 25%. Okay.

22:54 Yeah. We had earlier mentioned about 25 to 50% considering utility market was also very attractive. But utility market, you would have seen the balance sheet of most of the companies. They are bleeding because of the utility result. Today, the result was also out for entry infra. You would have seen the number. You would have seen the number. You would have seen the Vikram Solar number. So there has been a margin erosion which has happened. So that's the reason. Considering our size, we are not focusing on utility at all. So that's the reason we are targeting that utilization would not be more than 25% so that we can concentrate on a high margin and c and I segment business. That is for f r twenty seven and for f r twenty eight and for f r twenty eight. '28, it should move to around 40 to 50%.

23:41 Okay. And that Yeah. Should more or less mean about 600 odd crore of revenue, up to 500 to 600 in '20 Around around 500 CR of revenue should be targeted. That's right. In FY '28. And, sir, the last question We should target this. It's not take care, Paragi. We should target this because, see, the one thing one thing to mention, capacity is already prevailing. Right? So it is about the opportunity which is to be... Which is avail... Which has to be available in the market. So what we are targeting, we cannot see factory utilization target your utility side. But our focus is not on utility. Our focus is completely on c and I. So the sizing goes down. That's the reason somewhat I'm not very confident on conveying the exact capacity utilization.

24:32 So this year end would actually decide about how next year capacity utilization would turn up. Gotcha. But this year, you're There are some more developments which are happening, which I cannot discuss with you right now. There's some more very good developments happening related to BEST. Once that is being officially announced, then we would declare that in market. This is for PROSTARM specific or, I mean, in general on the industry? PROSTARM specific. No. No. No. PROSTARM specific. Okay. Understood, sir. And so... And EBITDA margins, you said you... We would expect at, let's say, about 50% or 80... 70, 80% stable EBITDA margins from the C and I staff would be? Sorry, Paragi, I'm not able to understand. No, no, I was trying to ask you on this other facility, when you reach your optimal levels of utilization, what EBITDA margin do we expect from this manufacturing team?

25:26 This would be around 14 to 15% EBITDA margin. 14 to 15%. Okay. Yeah. And then last, you know, we have got this developer projects, which I guess, you know, we were trying to sell down, you know, probably close, but I... I'm not sure, you know, what's the status now. So you will require quite a bit of capital, both equity and debt, you know, for this this pipeline. Now having probably raised 43 crore preferential issue, would we expect, you know, another significant equity? Because I think we we initially said we'll not go for equity raise in the near term, but we have now gone for 43 crore. So do we expect any further equity dilution or significant increase in borrowing over the next one and a half to two years?

26:11 Borrowing can... If for Bihar project already we get signed up with State Bank of India. Okay. So it's... So that the date would come in the subsidy... SPV company, not in the flagship company. And there would be no personal guarantee or corporate guarantee for that facility. And that's a LC backed facility... LC backed cash flow from. Okay. And second related to Karnataka. In Karnataka, it... Just now, the matter got closed. What Ranji mentioned earlier, there was some disputes. So that dispute is not resolved, and it has turned favorable and favorable to KPTC. So we are expecting if that project we are targeting to sell off that project because that is very remunerative.

26:58 So that project we would target to sell off is our first priority. And if we are required to execute that project, still there would be a buyer coming in post COD. And if we are not able to do that, then all my date, whatever is going to come up here, Paragi, is backed by a fixed cash flow. See, one situation is any further equity dilution? Equity dilution would not be required. Over the next one and a half to two years. Okay. At least for at least for next one year. See, Parashi, it is again... It put... As of now, there is no such plan. There would not be dilution. But if we do some major expansion or some major CapEx based on the market opportunity, then in that situation, any dilution can happen that will be for the good.

27:46 Right. And it would not be for offloading something in the market. Even when we speak of the shared warrants, the promoter is not diluting its stake. It is the money which is coming in the company. Correct? So it is not going to the kiddie or promoter. So it is for the purpose of company, not for the benefit of promoter. No. No. No. I understand. But it does, you know, the more you get diluted, the difficult it becomes. So that's what it is. And If if any happen, it would be only for the expansion which we are going to do. So that would be a healthy healthy dilution. It would not be a stress dilution. Right. With some operating leverage this year, FY '27, can we expect about 10% price margin? No, sir.

28:31 It would be something around eight and a half to 9%. That is because cost is increasing. We are coming up with two of the factory, which you are aware, and both units would start operating. So, obviously, cost would go up. And even with respect to import, there would be an import... Import also going up for the storage for the storage side. So... And and my employee cost is also going up because we are hiring many manpower. If you compare our last IR, these are the current PR IR, you would find few more people on senior leadership being added. So all those... So that is for the... So all those operating costs would go up to some extent. Understood.

29:16 So about 8 and a half to nine. Yeah. Fair enough. Thank you so much, I'll come back in the future. Yeah. Yeah.. Thank you. A reminder to all the persons, you may press star and one to ask question. The next question is from the line of from XEquity Advisor Services. Please go ahead. Hello. Hello? Yes. Hi, Yusi. Yeah. Yeah. Congratulations on a good set of number year on year. I just wanted to ask what's the condition? You you you have been saying there is some hardship in the business segment on the utility part. Right? Yes.

30:02 So what when can we see actually, it took turn around in this year or the next year? Or it has totally died down right now? It's a legitimate thing. The market has a right down. Actually, market has not died down. All the bidder has taken a very aggressive call. They are knowingly, unknowingly out of aggression. They are quoted below cost price. Assuming that, they will negotiate and get a better deal from China. This has not happened. It's a... Basically, it is a... You know, your your geopolitical issues that are coming to India and China. We have holded solar imports from China.

30:49 We have done... We have brought lot of restriction. Maybe you can see as a on that, and they are imposed lot of restriction on exporting batteries to India. So they are... Recently, they are increasing the 2% tax on battery from September 1. So a lot of issues are happening. Lot of challenges are happening because nobody actually has has not been done properly. So if you ask me this market, the sector will go out further. But in a better way, whatever mistake, problems has happened, it will get rectified. People have now got aware, and many... The madness, what was happened in last one year, it has stopped. Now only serious player and company who would... Who actually understand best and can deal in best will only be in this sector only, which will actually take this whole sector of our side. But, yes, next six to eight months, you will see further more challenges.

31:56 But next financial year, I'm comfortable confirm, you will see a much better picture. Okay. Okay. Thank you. Thank you. The next question is from the line of Siddharth from ABC Capital. Please go ahead. Yes. Hi, sir. Good afternoon. First of all, congratulations for the striking results of the stat margin of around 6%, growth of from 3.2% on year on year basis. Sir, I have a specific question, sir, regarding from the trade receivables, sir. As I can see, sir, as of March 26, there was a huge chunk of trade receivables spending in the balance sheet, sir, around INR $2.54 crores, sir. How much of it is received, sir, in late, sir?

32:50 As of June, the outstanding has come down to INR $2.31 crores. And even post that, this is as of June because... And even as on today's date, it has gone down more below. This amount I'm not mentioning. So it does... It doesn't mean $2.31, what was there on March was on June 27. And as of August, August 15, it has come down more more below. And by the end of quarter two, the... You would find a significant drop in the overall data and numbers coming almost half of it. So, sir, basically, like, you are mentioning the one of the largest project of Puni CID. I guess the major chunk is the stuff on there only.

33:42 Yes. Yes. So we have realized big amount from there. Almost 46 crore is already realized from that project and... In quarter one. And major another amount is expected to be received before end of month of August. Okay. Yeah. So there will be like you will... Okay. Sir, my second question is regarding your, like, you have mentioned some order in handoff, 165 around out growth from Solarium Reenergy. So you are expecting this whole of this order to be exhibited by FY twenty seven only? 100%. Okay. And, sir, how much, like, is the risk... Is the realization part from this project in this year, sir?

34:30 Realization part? Yes, sir. Of this project, sir. Most most of it would be realized in the current financial year. Current financial year only, sir. Yeah. Yeah. Yeah. Okay. Sir, so you find any risks, sir, like greater risk, some kind of concentration risk on account of delay or delinquencies going forward, sir? Like, you are very 80, 85% or 90% of the debt is the stuff of one or two account only. Like, these are not Yes. Where this amount is, like, what I told, out of this $2.31 crore, the major amount is related to CCT and S project, but there is no risk of realization. It's a central government funded project. So there is no risk of realization. We also choose the customer very, very selectively.

35:16 And, Rajiv, we have been into government based business for more than fifteen years. So we understand this particular... Even... For example, I'm giving you last two... Last to last year, we did a single order of 94 crore. Every single penny was realized. So we understand this market, and we have been doing business with them. Additionally, what happened, this product is something which is very, very sensitive to all all player. So it also requires warranty. And so this product cannot be kept and without warranty, it would be supported. So service is also crucial in such cases. So Yeah. I proceed. Some plus minus can always be there in the market, but that amount is always discounted in the pricing that we do when we bid for any such category tenders.

36:06 Okay. And sir, you are also like issuing some convertible warrants around 43 odd growth. May I know, sir, what are the utilization part of from the proceeds of such warrants, sir? This amount we would be utilizing for working capital purpose. As you know, our Janjar factory is about to be ready. And even the Gujarat factory would be up and up and ready. So in both this facility right now, most of the UPS that we do are generally imported. Right? And then we do the customization part of it as as you would have known to my earlier commentaries. So now since the manufacturing time would go up because things would go in house, that's the reason we have looked for increasing the working capital requirement and the reason for share one issue.

36:58 Yes. Okay. And sir, one last question, sir, related to your EBITDA margin, sir. Like for this quarter one, it's around 8.5%. As you know, your H2 will be much better than 01/03. So you're expected to maintain the same margin level, sir? Yeah. Yeah. What was the... Yes. 12 to 13% margin would be maintained over the... Over... By the end of this financial year. Okay. Okay. Thank you, sir, and all the best for your coming part, sir. You. Thank you so much, sir. Thank you. Thank you. The next question is from the line of Prostarm, an individual investor. Please go ahead. Yes. Hello. Am I audible, sir? Yes,. You are audible. Thank you so much for the opportunity. So I had I had just two questions.

37:44 First was regarding the Raja facility that that we have. So its commissioning has been delayed, you know, later. So what caused the delay? And when can we expect the commission? See, there is no reason for the delay. Like we have holded the production, started the production from our own side. Looking at the market side, the cost of the company has gone up, logistic cost has gone up from China. So we have waited for some time to make the prices to bring under control. And we are very hopeful that by the end of the Q2, we'll commit our production. So these are tools change our strategy from the utility level to C and I. This is also one of the major reason.

38:39 Okay, sir. And second question that I had was regarding the BEST industry. There has been lot of pricing pressure across the industry. So how are we planning to remain competitive and also protecting our margins? And maybe what could be the strategy going forward to maybe get more and more or maybe get win more tenders over there? First of all, the pricing stress, the profit stress is on the utility sector invest. So that's the reason we have not bid it for any utility sector in last... Almost almost a year. Last time was really. So we are... Because taken a change in our strategy, and we are focusing on commercial and industrial, c and I.

39:31 So there are no much pressure of margin in this sector. And since this is a totally unorganized market in India, so we are trying to do a value added in this product and to work as a organized player in this segment. So we do not see any challenges in best for our... In our company, in our fourth fourth... Around near future. And as a strategy, when we are totally come out... Coming out of the the security sector, then we are to be out of this what the market is under totally strength. We have to be out of that. And C and I sector is a more booming sector, but as it is not organized, it is not... Awareness is not there in the market. People do not know much in the smaller sectors and mid mid sector.

40:25 So this, we are getting a good advantage and good start order opening also has started in the sector. Okay. Okay. That's it from Maher. Thank you, so much. Thank you. The next question is from the line of Ravi Kanna, an individual investor. Please go ahead. Hello, am I audible? Yes. Ravi. I'm audible. Yeah. Thank you for this opportunity. Just one question from my side. What are your expectations for the order order inflows and order book growth over the next twelve to eighteen months? Yeah. Ravi, right now, order what I mentioned is thousand 90 crores of orders in hand, and we have bid under evaluation of about 2,000 plus crore of bidders under evaluation where we have participated.

41:18 It includes two big orders of an... Of approximate value of around 1,800 crores. So if... Even if you remove that, then 2,200, there's something what is there. 2,200 minus. So 400 are the remaining bit which has been done by by our side. So this order means... If you look at the... If you remove the developer order, so it is currently at around $2.36 crore. This this product tandem would definitely keep on growing over next year based on the qualification that you're going to achieve and the number of bid participating that we are increasing. Okay, sir. And so what's happening now, the strike rate would also come from best as a space.

42:07 The system integrator solution as a space where we have entered into over last one year. So all those would start giving results apart from the normal order which we take for our manufactured power solution. Okay, sir. Thank you. Got it, sir. Yeah. Thank you. As there are no further questions from the participants, I would now hand the conference over to the management for closing comments. Over to you, sir. Yeah. Thanks all of you for participating in this earning earning conference call.

42:53 If you have any further questions or would like to know more about the company, please reach out to our investor relations manager at Valorum Advisors. Thank you. Thank you. On behalf of Aryans Capital, that concludes conference. Thank you for joining us and you may now disconnect your lines. Thank you.