Refex Industries (NSE:REFEX) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Refex Industries Limited Q1 FY 'twenty seven Earnings Conference Call. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand over to Mr. Parth Patel. Thank you, and over to you, sir. Thank you. On behalf of MUFG and Time, I welcome you all to Refex Industries Limited Q1 FY 'twenty seven earnings conference call.

0:47 On the management side, we have Mr. Anil Jain, Chairman and Managing Director Mr. Dinesh Kumar Agarwal, Old Time Director and Chief Financial Officer Mister Sunil Jain, head accounts and taxation. I hope everyone had an opportunity to go through our investor deck that we have uploaded on exchange in the company's website. I would like to mention a short disclaimer before we begin the call. This call may contain some of the forward looking statements, which are completely based upon our belief, opinion, and expectations as of today. These statements are not a guarantee of our future performance and involve unforeseen risks and uncertainties. With this, now I hand over the call to Mr. Anil Jay. Over to you, sir. Thank you very much, Pat. Good morning, everyone, and thank you for joining us for the Refex Industries earning call for the first quarter ended 06/30/2026.

1:36 We have entered FY 'twenty seven with a strong momentum across our businesses supported by a robust execution, a healthy order pipeline and continued progress across our strategic growth platforms. Let me take you through the businesses, the various segments and what we've done over there. Starting with our ash and coal handling business, it continued to deliver a strong operational performance during the quarter and remained the largest contributor to the company's revenue and profitability. Over the years, Refex has built one of India's most comprehensive technology enabled ash utilization platforms, providing integrated solutions occurred across the entire value chain, including ash ash evacuation, transportation, utilization, logistics management, and regulatory compliance, which is most important.

2:25 This integrated approach has enabled us to create a robust nationwide ecosystem for sustainable ash management and the most preferred vendor to go for thermal power plants. During the quarter, the business benefited from healthy execution across major project locations, supported by our growing order book, improved operating environment compared to the corresponding last year and sustained demand for integrated ash management solutions. During the quarter, we also witnessed intermittent diesel supply constraints and logistics disruptions arising from ongoing geopolitical developments. There were acute shortages of diesel supply at many of our locations, but we still managed to cover most of it. However, our diversified operations, extensive fleet network, technology enabled process and strong execution capabilities enabled us to maintain uninterrupted service delivery for our customers.

3:20 The industry fundamentals continue to remain strong, driven by increasing power demand, expansion of thermal generation capacity and greater regulatory focus on achieving 100% ash utilization. As customers increasingly seek integrated and technology driven partners who can deliver operational excellence along with regulatory compliance. Refex remains very well positioned to capture the emerging opportunities. Our integrated business model continues to strengthen customer relationship, improve revenue visibility and reinforce our position as a trusted partner for comprehensive management solution. Going forward, we remain focused on expanding our presence across broader ash value chain, including downstream value added applications, which we expect to contribute meaningfully over the coming quarters and years and create additional revenues for sustainable growth and value creation.

4:10 Moving to our wind energy business, we continued execution of customer project deliveries under existing order books during the quarter. As highlighted in our previous interaction, this business has successfully transitioned from the initial development and order book creation phase into an active delivery phase. We believe this segment has the potential to emerge as a significant growth engine for Refex, supported by the long term structural opportunity in gas and renewable energy sector, especially wind. A key milestone during the quarter was the successful erection of India's first 5.3 megawatt wind turbine by our customer, ATEX project site in Kopal, Karnataka. This was a very hard moment for all of us and for the country. This marks an important step towards the commercial deployment of our next generation ring to ring platform.

5:00 As we scale this business, we remain focused on further strengthening our manufacturing ecosystem, supply chain capabilities and execution excellence. Coming to our Mobility business, execution remains on track. The business continues to operate on an asset light model and has added a few new clients during the quarter, further strengthening our presence in the premium corporate mobility segment. The demerger process is progressing as planned. During the quarter, we received approval from the Honorable NCL team court to convene meetings of shareholders and creditors as part of the scheme arrangement. Pursuant to NCL's direction, the equity shareholders meeting has been scheduled for next month. Upon completion of the demerger, the mobility business will operate as an independent entity focused exclusively on premium, clean, reliable and sustainable mobility solution, such as SCORN's growth strategy, capital allocation framework and operational priorities.

5:53 We believe this restructuring will unlock significant long term value by enabling sharper strategic focus and enhanced execution capabilities, both for Refex Industries and Refex Mobility. Now I hand over to Dinesh Agarwal for taking you through the financial numbers. Thank you. Thank you, Anuj. I'll now take you through the financial performance of the company for the quarter ended 06/30/2026. On a stand alone basis, revenue for the continuing operations for the quarter stood at INR $6.19 crores compared to INR $3.51 crores in the corresponding quarter in the previous financial year, representing a year on year growth of 76%. EBITDA for the quarter stood at crore compared to INR39.6 crore in the corresponding quarter for the previous financial year. EBITDA margin stood at 17%.

6:49 Profit after tax for the quarter stood at INR 73.6 crores compared to INR 33 crores during the same period in the previous financial year, which represents a growth of 123%. PAT margin improved to 11.9% compared to the previous period in the same financial year. Our balance sheet continues to remain healthy and we remain committed to maintaining financial discipline, while simultaneously investing in the growth opportunities across our business. With this, I'd like to open or request the operator to open the floor for the question and answer. Ananya?

7:39 Yeah. Ananya? We can open the floor for questions. Hello? Thank you very much. We will now begin with the question and answer session. Session. The first question is from the line of Deepak Podar from Saphyr Capital. Yes. Am I audible, sir?

8:30 Hello? Yes. Yes. Okay. Okay. Thank you very much for this opportunity, sir. So just first step, wanted to understand this first quarter, what was our ash coal handling per day volume run rate? It is 65,000 to 70,000. 65,000 to 70,000. Okay, okay. And then how should one look at the scaling up, I mean, as we go through the... Q2 will be a little slow. Q3 and Q4 will be scaling up. Okay. And then by 4Q, this run rate, I mean, we are targeting one lakh tonnes kind of a run rate by 4Q? I get there to close to 90,000. Okay. Okay. And then INR 90,000 is the run rate that we are targeting. Okay. Yes.

9:17 Understood. And in terms of your wind business, I think we had got INR 300 crores kind of execution rate this quarter? Yes, INR $2.95 crores, we see. And were we able to breakeven at INR 300 crores? So what's the margin there in wind business? Margin, very, very small margin, but margin is there. I mean, we'll have a better margin in the following quarter also. Because it's part is on transit also part of the material. All billing has not happened, which will happen in Q3 and Q4. We'll have a better margin in the coming quarters. Okay. And this entire year, we are targeting, what, INR 1,700 crores, INR 1,800 crores kind of execution in wind? Yes. It should be close to INR 1,700 INR 100 crores.

10:05 And what should be the margins we target for this year as a whole for wind business? It should be around 5% to 6%. 5% to 6%. Okay, okay. Understood. And on your coal and ash handling business, I think we have maintained in the past a 30%, 35% kind of CAGR. But I think first quarter itself, we have seen a very good growth of close to 75%, 76% in spite of the issues you mentioned about the geopolitical issues. So how should one look at this growth overall for the entire year? We maintained the growth like past financial year. Always Q4 and Q1 always have a better result.

10:51 And Q2 will be little slower Q3 and Q4 again will be better. We'll be maintaining a better CAGR in the current financial rate. But I mean last year, I think we were at about 28% rate. So we'll do better than that this year, right? Yes, sure. Okay, understood. And just one last thing, can you throw some more light on the nature of this discontinued operation? I mean and by when this will go away, the loss from the discontinued operation? There is two things in the discontinuing operation. One is the refrigerant gas manufacturing, which is fully discontinued in the last quarter. And other one is the REFEX Mobility, that is green mobility business, which will I mean, I anticipate by Q3, end of Q3, it shouldn't go completely.

11:46 But by 3Q end, it will go off? So we'll not have any loss in our P and Ls from this business, I mean, post 3Q? Yes, yes. Okay. And where, I mean, discontinued in the sense we are just closing this down or how... No, no. Mean refrigerant gas business has been completely closed down, whereas the mobility will be a separate listed company. It will be a mirror shareholding will happen, and it will be a new company, new listed company will be or it will be operated under the new listed company. So it's a part of the demerger thing, I mean. Of the merger and demerger. Okay. I got it. That's very helpful, I mean, I would like to wish you all the best. That's it from my side. Thank you. You. The next question is from the line of Sudhir Bhaira from Bhaira Family Office. Please go ahead.

12:37 Yeah. Good morning, sir, and congratulations for good set of number year to year... Year on year. Sir, my... There are two queries. First, I think in turbine business, we did a good turnover. And I was just listening to your previous question by participants that you will be still able to maintain four to five to 6% margin on on turnover of 1,700 to 1,800 crore. So this is a 5% to 6% is the net margin or how it is? Because first Q1, there is no margin at all. In fact, there is EBITDA loss of INR 34 lakhs. Yes. It is a net margin, Sudhiravay. Thank you, Sudhiravay. It will be a net margin in the Q3, Q4, 5% to 6% of the net margin. By business, we speak only the net margin, we never speak EBITDA.

13:29 We'll by nature of our way we internally operate. So it is a net margin only. So the combined margin of Q1 and Q2 will tilt towards Q3 and Q4. Is it the right understanding? In the wind turbine business, yes. In wind turbine, I must. Yes. Yes. Yes. And one more question on your core business, where if we really look at the Q4 turnover and Q1, there is not much difference. You did what you did in Q4 and the same kind of $30.40 crore less you did in a Q1 of current financial year. But there is a big difference in the margin. Margin was much lesser in Q1 compared to Q4 of last year. In spite of the turnover being remains of 5% or 10% less than Q4.

14:19 So how do you see that happening or panning out? Martin, it's close to the same only, Swedi. Only there is a one time expenses of other expenses, it has been booked is the bank processing charges. Since we have taken over, and then we've got a better term from the Indian overseas bank and takeover of because of that. Can you quantify the number? What is that extraordinary? That is INR 4 crore. 4.4. Okay. Thank you and all the best. And we believe that you will continue to grow at the same rate which you have grown in the past two years. Thank you very much. Thank you. The next question is from the line of Udit Sahgal from Pinpoint X Capital. Please go ahead.

15:14 Good afternoon, sir. Regarding the wind power business, sir, how is the bid pipeline and the order pipeline going forward? Like for this year, we are targeting around 1,500 to 1,800. So how about next year? As of now, 2,060 crore of order is there in the hand. In that already INR $5.25 crore order has been executed. And the balance towards INR 1,300 crore order will get executed in the current financial. Advanced, there is few orders in the advanced stage of closure. And hopefully, we should close in next thirty days to sixty days time. Okay. And these would spill over to next year, sir, the execution for these orders? Or... No. This will completely will get in the current financial.

16:01 The no, I mean to say the new order that you get now? New order will spill over to next financial year. Okay. Okay. And do we and what kind of growth rate are we looking in the wind business, mean, if you see the last financial year, it was only two twenty five. And this year, it will be a very good one. So growth comparison in the initial year will be a wrong way to look into, but it will have a very, very good growth. Okay. Okay. Got it, sir. And regarding this coal and ash handling business, we expect to maintain the similar kind of margins going into Q2, Q3, Q4? Yes. Okay. Okay, sir. Thank you. That's it from my side.

16:49 Thank you. The next question is from the line of Pinaki Banerjee from AUM Capital Private Limited. Please go ahead. Good afternoon, sir. Thanks for the opportunity. Sir, my one question is like your core business, like in the form of fly ash or wind power are both concentrated at present wholly on the domestic side only. So are you thinking of expanding at the international level and what steps are you thinking of? No, it is only for domestic. Focus is as of now only to strengthen our presence in the domestic market. And there is no immediate plan for the export. It is only for the Okay, sir. And next question, sir, is how much of cash and bank are you having in your books now? Cash and debt?

17:38 Debt is almost I mean, if you see it is I mean, the net debt to zero level. I mean, whatever utilized debt is measurably towards the bank guarantee and the LCs. LCs, we have a good bank balance as of now. Okay. Okay, sir. That's all from my end. Thanks and all the best for the business. Thank you. The next question is from the line of Jasmine Surana from BT Capital. Please go ahead. Good morning, sir. My question is regarding the margin guidance you just given for action code handling. In the last quarter, you said that the 18, 20% margin gain will be sustainable going ahead. And right now, you said that the 12% margin will continue.

18:25 So maybe there's a confusion on my end, if you could please clear that? That's been margin we always mentioned that EBITDA margin will be 15% to 18% and net margin will be 10% to 12. That is what we speak always in the call. And current quarter, we have done 17% of EBITDA margin and we'll maintain the same momentum in the coming going forward. Okay. Thank you, sir. Thank you. The next question is from the line of Chintan Mehta from Puniskag Family Office. Please go ahead. Like, our technology partner are royalty payments or they are still working to us how the JV is structured and how much percentage of stakes we own and they own or going to own.

19:25 So if you can explain that structure of the joint venture and how we are reliable on technology on that. Technology is a direct transfer. They don't own any equity there. It is a complete transfer of technology. And that is I mean, debit partner do not own any shares there. And it is a complete we have paid the money for the technology transfer. Understand, sir. And we have a partner, they own 23%, and our company owns somewhere close to 76%, 77%. Okay, sir. Which partner and how the... I mean, what contribution they are going to bring and how much They they they they operate operations, and they are from industry.

20:10 They are from... They manage the complete operations of this. So their financial partner manages the complete operation? They manage the complete operations. Okay. And how much equity they infuse on it for the 23%? Yes. It has all been disclosed. If you go back and read the disclosure, it has all been disclosed. Understood. No problem. And sir, if you can explain the Silvaza unit economics, like how much capital we have invested there and how much capacity we are there and how much peak revenue we can expect it there? I can take this, Dinesh. So currently, in Sylvastra, it's a leased facility. We are not... The total CapEx standby is running on the level of repairs and maintenance, which is close to about INR 3.5 crores, 4 crores. It has a capability of about one gigawatt of manufacturing capability.

21:05 Again, in wind, if you see 100% components are not manufactured in your factory, it is like a automobile company where there are OEMs who make different parts and there's an assembly which happens at the center. So supply is a pure assembly plan where most of the components gets made around the from different parts of the country, they come there and they get assembled over there. All the design, etcetera, of the parts are owned by us. And this one gigawatt technically could mean roughly about $56,000 crores of revenue. So we are the turbine manufacturing, the parts manufacturing, not the wind blade manufacturers company. Correct? If I understood that. We make all of that, sir. We make the whole turbine, including towers, the nasal, and the blades. Currently, the blades are being imported, but the localization is under under progress. So in about six to twelve months, we'll have our own localization done in India.

22:01 Understood. Thanks, sir. And sir, my question is regarding this 300 karat turnover kind of turbine, and we are make to make breakeven. So let's say if I divide it in four quarter, each quarter would be 300 to 400 kind of, it could be no margin for So how we can make the explained earlier like Dinesh explained earlier, this is... We have just started operations. So there are a lot of pre operating expenses, pre... The new business development expenses, which are all taken into account now and written out as expenses. So as we progress towards the end of the year, we'll be able to achieve the margin that we have spoken about. Okay. Understood, sir. And, sir, in our air handling business, our 98,000 target per day if you can throw a road map, like f I twenty eight, f I twenty nine, kind of when we are going to achieve it or broadly.

22:52 And second, sir, on industry penetration. For example, how much industries penetrate, how many plants or something on data driven, like it's underpenetrated still on the Azure core handling side? Ramesh can take that. We'll be crossing 75,000 to 80,000 in the Q4 of this financial year. And currently, we are working in 42 thermal power plant. As penetration is, we are working in 30%, 35% of the thermal power plant in India to date. And there is a lot of potential for the future opportunities. If you can throw that on a lot of potential, like because of compliance, everyone wants to do that. But how much they are handling by themselves or not penetrated or not handling at all? If you can read the presentation which is uploaded, it is mentioned in that.

23:50 No. I I got it, sir, but there is a... If you have some broader, data or something, if you can No. Not right. No. Okay. Understood, sir. No problem. And, sir, if you can throw some mobility part, we are looking for any strategic partner in future if we get more capital after demerger? No, we are not. I mean, that is still under demerger and it's under the legal process. So currently, we don't have any plans of getting any partners. I think once the demerger happens and this runs as an independent entity, as a requirement of the business council, we will look at it, sir. Understood, sir. Okay. Thank you. Thank you so much, sir. Thank you. Thank The next question is from the line of Gaurav Ashok Bansali from Augment Enterprise.

24:49 Please go ahead. Hello, sir. My question is, what will our order book look like by q four, the consolidated order book? Very difficult to predict tomorrow. As of now INR $16.35 crore of coal and assembly order book is there. And out of $18.60 crores in the wind business, $5.25 crore is executed. And that is the remaining INR 1,300 crore of order book is there. Q4, we'll have a good order book. I mean, we are winning majority of tender now during last four months. Hopefully, we'll have a better order book on the Q4 of this. Okay, sir. Thank you. That's all from my side.

25:35 Good luck. Thank you. The next question is from the line of Murtaza from Pinpoint X Capital. Please go ahead. Hi, sir. Good morning. Thank you for the opportunity. As the earliest participant has asked, you had mentioned that some of the vendors are in advanced stages. So is it possible for you to quantify what kind of quantum either it's in the advanced stage or what sort of number is in the pipeline for the wind segment? I think it's very difficult to quantify because the inquiry could be in gigawatts, but the actual conversions, you know how it works in India. It's not very easy to predict the actual conversion. But, yeah, as and when we get orders, think we'll definitely announce it.

26:21 We do look at substantial orders this year. Definitely at least as maybe better than what we had last year. Understood, sir. And sir, once our mobility demerger is completed, so I just wanted to understand how are we planning to work with the capital allocation? And like would it be a bit more focused on the government side of things? Or would it be a bit more focused towards cash handling? Just wanted to understand that a bit better. You. See capital allocation for both the businesses will happen based on the requirements. I think the as the profitability and the revenue keeps growing, I think the capital allocation will be planned. Obviously, we'll require from time to time, we will keep updating the shareholders and the investors on which direction we're going. Currently, the focus is more on the ash handling business. There's not much of capital requirement in the wind business.

27:16 But as we do a lot of indigenization and a lot of growth and localization, so maybe if there are some capital requirement, it will be at the entity level. We will try and see if we can raise some working capital or term work on the banks. Otherwise, some some capital allocation from holding company could happen there. Understood, sir. And sir, I just wanted to also understand that we have already delivered our first turbines to a particular project. So I just wanted to understand what sort of feedback are we receiving from there? And how is it on ground? How is it working? It is it is it is completely installed. I think it's a 130 meter height turbine. The installation was done very well. It started operating, and it is giving the desired results as projected by us to the customer and the customer is happy and there could be a potential negotiation for our next orders from the same customer also.

28:10 Understood, sir. That's great. All right. Thank you very much. All the best for the future. Thanks. Thank you. Thank you. The next question is from the line of Suhani Singh from ROTH Capital. Please go ahead. Hello. Good afternoon. So I had a few questions. The cash and gold handling volumes were reported at approximately 68,000 to 70,000 tonnes per day. Could you provide an update on quarter one FY 'twenty six exit run rate and volume outlook for the year? Volume of adds, as we have disclosed always, we are doing close to 70,065 to 70,000.

28:59 Q2, it will slow down. Q3 and Q4, again, it will pick up. And there is capacity constraint is not there. I mean, it is like multiplying the fleet and the people. And we are expecting a good growth in the coming quarters. Okay. That's right. So sir, are you still confident of reaching the previously gained 90,000 to 95,000 tonnes per day, Ranjit? And what time line should we Yes. In the Q4 of this financial year, we'll achieve that. Okay. That helps. More question, sir. Last few. Could you provide some guidance on the profitability trajectory of the wind business, especially where does this segment stand today in terms of profitability?

29:45 Do you expect it to reach breakeven or turns off stable by 2527? Anil, you'll take it up. Yeah. I think we just spoke about this at least two or three investors that this business will achieve about 5% to 6% margin by end of this year, and this will become profitable by end of this year. The next question is from the line of Mahesh Sharma from Sharma LLP. Mister Sharma, your line is unmuted. Please go ahead. This participant's line is not being connected. We will move on to the next participant.

30:42 From Think Wealth. Please go ahead. So first of all, congratulations for good set of numbers. So my question is what is projected revenue in bill business for FY 'twenty seven? Any specified number for regarding this? I think we said that we have existing order books, which we'll complete this year, and that's the projection for now. Okay. That answer your question, mister? Yes, ma'am. Okay. Thank you. The next question is from the line of from Pinpoint X Capital.

31:28 A follow-up question. Hi again, sir. Just wanted to touch upon the pledge. So just wanted to understand, can you give an update on the current pledge level and what's the reduction trajectory going forward? We have done a disclosure last month. There is a reduction from the plays has happened. We'll be doing another disclosure in the next fifteen days. There is a further reduction of the plays has happened. And there is a continuous repayment continuous payment is happening. On a milestone basis, release of this fare is happening. And we expect certain fare will get released in the next two weeks' time. And it is going as per the plan. There is no challenge in that. And there will be regular visits of the release of the place.

32:22 The next question is from the line of Matin Shah from Individual Investor. Hello. Am I audible? Yes. Yes, Matin. Yes. Thanks for giving opportunity and the congratulations on posting good set of numbers. So the first question would be like, if I were to see the media release and the presentation, it shows basically, if I highlight mostly on the stand alone results. So I would just like to know why is that so busy because predominantly, I mean, not only are into ash and cold airing, but even the wind energy also reflects. I can understand the mobility is going to get demurred.

33:08 So if you can just elaborate on that, why highlight on the stand alone as of now? There is no specific thing. It is only mobility business is getting demolished. Wind business is getting stabilized. It is very, very new. Very new. It is the second quarter of operations in the wind business. And it is a right representation because in the same quarter in the previous financial year, wind business was not there and the mobility business is getting demerged. So it is a right comparison of apple to apple and because of that there is no other specific reason. If you see previous finance previous, I mean, year same quarter, it is only three twenty seven. And if I do a comparison of a consolidated number of 900, it will be a wrong comparison because wind business itself was not there in the previous year in the same time same quarter. That is the reason our focusing is only so that it is apple to apple.

34:12 Got it. So, forward, as in when the wind wind turbine sector, know, decent contribution, then we will probably we'll be showing consolidated numbers in the presentation as well, correct? Yes, Mr. Bayan, it is more of a giving a right comparison of apple to apple, nothing else. Mean, going forward quarter on quarter, numbers will keep adding up. Mean, like Q4 already wind is there. When we present Q4 of this year, consolidated presentations will be a right way to go. Understood. Understood. Also, second thing, I can see, I mean, really great traction in the ash and coal and in business as we started from 2018. And I've been seeing it scaling at the couple since last five years. And rightly you said in the previous conference also, the same kind of guidance that we have delivered.

35:11 So but I can see huge opportunity in this and we are also going very healthy in this. But as from my personal experience, whenever there is healthy margins and healthy TAM, we see the competition intensifying when other also comes to know about it. So how do you see the competitive intensity as of now and going forward in the actual Competition health is going to help, Nitin, right, because it will create more awareness among the customer, more awareness among the partners, vendor partners and it will help the business. I mean it is we are only organized business player in this industry. If few more come, it will help the business more than it is rather a competitor, it will complement us.

36:01 I mean, always mean, now we are discovering the market. I mean, somebody else also will work along with us to discover more market. It will help the huge gap of opportunities out there and opportunity is there for a few more players. It is not a challenge, it will be an opportunity. Got it. Got it. Also, I mean, since we have seen, we have almost entering up execution stage of wind turbine installation. And the typical problems that I have seen in this sector is regarding land acquisition and also last mile connectivity of power connection. So can you just elaborate on the few points for the ongoing projects? I mean how is it placed as of now regarding land acquisition? I can take them very well. So for us, it's very simple.

36:51 We are only a product supplier. We don't do any part of EPC at all. So the customer buys the product from us. Our job is to deliver the turbine, tower, and the blade to the wind site installation. Everything is not in our scope at all. So see, currently, the market has matured where all the IPPs have their own process of getting land and connectivity. They are... They have a separate installer to install it, and they have a separate regulatory people who can take care of the regulatory part of it. So all the wind turbine manufacturers have moved from the combined EPC business to a just supply alone business. Got it. Got it. So so you mean to say we will be fully paid here once we have supplied from Yes. Yes. Yes. That's it. There could be a 5% which could be waiting for the installation and testing to be completed to ensure that the turbine works. Otherwise, 95% of the money comes here.

37:43 That is a performance. Understood. And also, recently, I've heard regarding replacement of old blades by new ones and selected. Any pipeline order book are we seeing regarding this particular... We haven't got any orders for replacement still. It is still in discussion with various forums. But on ground, we have not seen any orders yet for us. Got it. Got it. It. Also, if I may ask one more question, if you don't mind. So since I've been more focused into wind sector earlier, unfortunately, we've seen a lot of birds getting killed because of the turbines as such. And recently, there is a development of converting one of the blades into black color or something like that. So is it something that the company is also looking out for, I mean, or thinking of something to preserve our nature as such?

38:39 Do we have any thought on that? No, definitely. As a Jain, we always believe that we should not harm anybody at all, any living being. Honestly, there's no technology in the world which can actually avoid killing of the birds. We definitely try our best to see the high wind velocity when the blades are there, the kind of speed at which it goes. 99% of birds nowadays don't come closer to the the turbines. I think the recognition of turbines has happened in that locality. But the 1% chance, I don't think anybody can help us. I mean, our intent will not be... Our intent will be to see whatever we can do to save that. Will definitely try our best. Got it. Got it. Got it. And also, last question, I mean, of now, I'll I'll comment in Qin. Recently, we saw, you know, a bit a bit up in the promoter stake assets.

39:27 So do we see further increase in the same? Know, I mean, quite just voice different, but if you can highlight on the same also. Sorry. Yes. I was thinking about the... When opportunity comes, will we keep acquiring from the market, Mr. Naji? As of now, to do the the market and do the acquisition. I mean, we see when there is an opportunity, we'll keep acquiring the shares from the market. Got it. And what is the realization in Ash and Coal Lending around ash and coal, is it same at INR $2.50 and 400 for ash and corn same or of the trade? It is per kilometer per ton. It is varies from INR $4.50 to INR 1,200.

40:22 Got it. It is purely a distance and renewal. Got it. Got it. Thanks a lot as of now and really appreciate and again, congratulation on good set of numbers. Really appreciate it. Thank you. The next question is from the line of from Puniska Family Office. Please go ahead. Hi, sir. Thank you so much again for the opportunity. I wanted to know the 5.2 megawatt turbine scope in the sector. Like, it's... You know, how how much market size it is and how... What the specification of it. It's a larger turbine than normal three megawatt that I got it. But how much visibility which we have on this technology in this size? I think the size is not... Size of the market is not determined by the by the size of the wind turbine. I think the wind industry itself is growing, and the government is having an ambition to achieve a 100 gigawatt by 2030.

41:23 So the market will keep growing. I think the better technology and better size will always get a priority. Currently, the market is not determined by the size of the turbine. Understand, sir. Okay. Okay, sir. And sir, just the last, I mean, just a clarification. You're talking about the net margin. It's a tight margin at wind level, 67%. This year ended, you are looking for, correct? Sorry, I missed that. Mentioned... Someone mentioned that at a net margin, wind business would be close to 6%, 7%. So net margin, we are talking about the tight margin this year in the closing. Correct? Yes. 5% to 6%. Yes. Yes. Okay. At tight level. Yes. Yes. Yes. Thank you so much, sir.

42:09 Thank you. The next question is from the line of from Pinpoint X Capital. Sir, there were some recent news articles regarding the railways being used for coal and ash handling. So how does that affect us, like positively or negatively? This is going to affect positively only. This is railway transport is there for a long time. And we have started also into the that is called RCR, Railcom Road. And it is going to help the complete industry. I mean railway came out with a discount in the tariff, freight tariff.

42:54 And it is going to help to take it to newer area like Northeast, where the power plants are less and the requirement for cement companies are there. And it will help us to transport more from West Bengal, Dharcan, Bihar to Northeast Of India. And it will help positively to the industry. And it is new revenue. It will add to our new number. I mean, in addition to the road, what we are doing, we'll be doing more in the railway also. Excellent, sir. And regarding the wind business, the whole industry seems to be in tailwinds like I think FY 'twenty six was the highest ever installation and FY 'twenty seven almost I think there's a target of nine to 10 megawatt.

43:43 So do you feel like I mean, there is a shortage of turbines is what we're hearing in the market. So do you feel the same tailwinds? Or is it business as usual? No. The tailwinds will be there because I think today the the renewable energy shifting towards one source to multiple source. Everybody is looking at installing wind, solar, and storage because government now needs around the clock power and not seasonal power. Seasonal power is actually causing a lot of grid stability. So I see that the next five, seven, ten years whenever the... I mean, it's not just I think for the next future, there will be a mixture of all three renewable energy, which will be installed. So I see there's a lot of tailwind in the sector.

44:33 We see, sir, the turbine makers, they are generally making 18 to 20% EBITDA. So what is our plan for backward integration? How much time will it take, and when can we aspire to reach those kind of margins? Okay, sir. The localization process is in place. I think twelve months from now, we'll have about 85% of the components localized. So we can see a similar margin two years down the line when the localization and the plant capacity increases. Excellent. And this localization, sir, we are getting done from, like, third parties or anything we are doing in house as well? No. Like I said, we are working with multiple OEMs across the country for developing our products. We own the technology license and design.

45:21 Like an automobile company, we have more than 56... 60 vendors who develop various products for us. And the blades will be manufactured in house. Restore will be developed in third party locations. So say from FY '28, we can see the margins increasing once the localization starts? Yes. Yes. Okay, sir. Thank you. Best of luck, sir. Thank you. Thank you. Ladies and gentlemen, due to time constraints, that was the last question. I now hand over to the management for closing remarks. To conclude, we're pleased to we are pleased with the progress achieved during the first quarter of financial year twenty seven. Our core business continues to execute well. Our order pipeline remains timely and our strategic growth platform continues to advance in line with our long term vision.

46:23 We remain focused on building sustainable business, creating long term value for all stakeholders, strengthening REFEX positions across key growth sectors. I'd like to thank all participants for this call for their continued interest and support towards the Refex. Should you require any further clarification or additional data points, please feel to reach out to our in house Investor Relations, Mr. Gautam and Pangti, our RD MUFC team. Thank you. Thank you so much. Thank you, everyone. On behalf of Refex Industries Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.