Transrail Lighting (NSE:TRANSRAILL) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Transrail Lighting Limited q one FY twenty seven earnings call. As a reminder, all participant lines will be in 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. This conference call may contain forward looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr.

0:46 Vikram Suriavanshi. Thank you, and over to you, sir. Thank you, Asaro. Good afternoon, and very warm welcome to everyone. On behalf of Capital, I am pleased to welcome you all on learning all of Transrail Lighting Limited. The management with us here today for question and session with the. The management is managing the and. To Begin with opening comments from the manager. Sorry to interrupt, Vikram, sir. Your voice is not clear. Sorry.

1:35 No, sir. Not clear yet. Sorry. I don't know. I think there might be some net issue. Is it clear now? Yes. You may go ahead. Oh, sorry. Thank you for joining us today for the Q1 for the year twenty seven earnings conference call.

2:25 I'm pleased to begin the year '27 with another quarter of resilient operational and financial performance, delivering year on year growth both in revenue and profitability. Despite continued geopolitical and economic uncertainties along with supply chain disruptions across certain markets, Our disciplined execution, operational excellence, prudent financial management and strong governance enabled us to deliver steady growth while maintaining healthy profitability. During the quarter, our revenue from operations grew by 5% year on year to INR $17.36 crores, while EBITDA stood at $20.03 crores, resulting in a healthy EBITDA margin of 11.7%, which is more than the guidance of 11% during the start of the year.

3:12 Profit after tax increased three percent year on year to 108 crores, reflecting continued focus on bottom line. While the operating environment continues to witness certain challenges, as we already know, fuel, gas, logistics, labor disruption in certain markets, our diversified business model and execution skills and strong focus on operational efficiencies provide us with confidence to navigate these headwinds effectively. Accordingly, we remain committed to deliver healthy and sustainable profitability and maintain our EBITDA guidance of around 11% plus. Beyond the financial performance, the quarter marked several important strategic milestones for further strengthening our long term growth platform.

4:06 The milestones reflect our continued focus on strengthening execution capabilities, expanding our global footprint and building a more diversified infrastructure platform. During the quarter, we commenced the commercial production of our eco friendly tower manufacturing facility at Bootyburi, Nagpur. Together with our ongoing expansion across the tower and conductor plant, This significantly strengthens our manufacturing capabilities as well as to execute our robust order book and capitalize on future growth opportunities. This quarter also strengthened our position in the MENA region. Additionally, we entered Australian market for the first supplier of monopoles. With this, our global footprint has now reached six continents.

4:51 Further, we received a 500 kV HVDC order from a reputed developer in India. We've also strengthened our diversified EPC platform through acquisition of Gactyl Turnkey Project, enhancing our capability on pooling tower EPC business. We see significant growth potential by rising investments in new nuclear and thermal power generation, along with rapid expansion of data centers. With this acquisition, we expanded our offering in NDCT towers to include IDCT tower solutions, enabling us to serve a wider range of customer requirements. As of 06/30/2026, our unassured order book was INR 16,035 crores, including our L1 orders of INR 400 crores.

5:42 So principally, we have INR 15,635 crores of orders in hand. It provides strong revenue visibility and reinforces confidence in our long term growth trajectory. It is also noteworthy to note that we have quoted tenders worth more than INR 20,000 crores, which will be declared in the coming quarter, that is quarter two and maybe part of quarter three. This expected tender guidance pipeline gives us believe it surpass the order intake plan as given in our guidance. In line with our commitment of delivering consistent value for our shareholders, the Board has declared an interim dividend of 3 per equity share for the year 2027. This reflects our confidence in the company's financial strength, healthy cash generation and long term growth prospects.

6:29 Subsequently, through the quarter, the Board had also approved a grant of 189,000 stock options under Transrail Lighting Employee Stock Auction Plan 2023, reaffirming our commitment to attracting and retaining and rewarding our personnel and talent. Another significant milestone during the quarter was an upgrade of our long term credit facility, India rating AA minus stable from India rating. With this upgrade, now the company has long term credit facility of AA minus both for CECL and their rating covering limit approximately INR 7,500 crores. This reflects the strengthening of our business fundamentally margin led growth and cash conversion and improving our balance sheet.

7:16 Also, I must complement the team. We were honored by ETH Best Organization to Work for 2026 award in recognition of a growth rate, training and development, industry workplace culture and business ethics. In addition, we received the ROSP Silver Award for transmission line projects in Africa, informing our commitment to high standards of health, safety and operational excellence. We firmly believe that our people and our safety culture remain the foundation of executional excellence and long term success. Looking ahead, the outlook for power transmission infrastructure sector remains highly encouraging, both in India and globally. Global electricity demand is nearly doubled by 2,050, driving driven electrification, renewable energy adoption, AI, data centers and rising energy consumption.

8:09 In India, the National Electricity Plan envisages the addition of 191,000 circuit kilometers of transmission line by 2032, with the country's renewable energy ambitions of 500 gigawatt by 2030 and nine hundred gigawatt by 2036 requires significant investments in field expansion and evacuation infrastructure, which directly impacts the potential opportunity for us. The structural growth drivers, coupled with rising capital expenditure by public and private developers, provide EPC companies like us with robust pipeline of opportunities to grow sustainably and profitably. With a robust order book, expanded manufacturing capacities, execution expertise and healthy bidding pipeline, we remain confident of sustainable profitable growth by creating long term value for our shareholders.

9:00 Now I would request Mr. Deepak Kandivai, our CFO, to take you through the financial highlights. Thank you very much, sir. Good afternoon, everyone. I am happy to take you through our financial performance for Q1 FY twenty twenty seven. Let me begin with the key financial highlights. Revenue from operations in Q1 FY twenty twenty seven was INR $17.36 crore, an increase of 5% year on year. EBITDA was $2.30 crore with an EBITDA margin of 11.7%. The margin reflects project mix, operating efficiencies and cost discipline. Profit before tax was INR 144 crore and profit after tax was INR 108 crore, an increase of 3% year on year.

9:51 The Board of Directors has declared an interim dividend of 150% amount to INR 3 per equity share for the financial year 'twenty six-'twenty seven. Further, subsequent to the quarter, Board has approved a proposal to raise up INR 600 crore through a qualified institution placement, QIP, or other eligible securities subject to the necessary shareholders and regulatory approvals. Looking ahead, we remain focused on improving cash conversion, maintaining disciplined working capital management and preserving a prudent capital structure while supporting the company's growth initiatives. With a robust order book, strong execution pipeline and healthy bidding activity, we remain well positioned to deliver profitable growth, healthy cash flow and sustained value creation while maintaining disciplined capital allocation.

10:39 With that, we can open the floor for questions. Thank you. Thank you very much. We will now begin with question and answer session. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, you are requested to restrict your questions to two question per participant. The first question comes from the line of Bala Muruli Krishna from Oman Investment Advisors.

11:27 Please go ahead. Good afternoon. First of all, the order book, I think the coming order is 1,004. So as expect as per the... That doesn't... What I expect is that it is current plans. Yeah. Sorry to interrupt, sir. May I request you to please use a handset as your voice is not clear? Yeah. Mister Balaj, the voice is breaking. Can you please repeat the question? Yeah. Yeah. I think it is okay now. Right? Yes, better. Yes, yes. On the order book front, so I think we have target of INR 10,000 crores in the current financial year. So the quarter one seems to be slightly slower.

12:16 So how do you what is the industry trends that any slowdown in the tender outcomes or slower in the tender pipeline or our winning rate is little bit decreased? What would be the reason for this INR 1,000 crores in order intake in this quarter? So if you are aware of the EPC industry, there is a lag between the bidding and the order award. It can go as long as three to five months. So we have built orders in Q1 worth INR 20,000 crores for domestic and international, and we believe that we will have a good win rate of 10% to 15%, which will fortify in Q2 and Q3.

13:02 And our overall order intake guidance remains the same. We will look at INR 10,000 plus crores of new orders this year. Okay. Okay. I think on the execution front also, slightly lower than expectations in this quarter. So do you think that from Q2 amortizes will improve? Of course. Of course, we maintain a guidance of 20% revenue growth for this year. And as you know, the Q1 and H1 is slow for EPC industry. In fact, our INR 1,700 crores of order revenue is one of the best we have done on the first quarter. In fact, in the year twenty twenty five first quarter, we grew by 5%. On the annualized basis, we grew by 29.5%.

13:54 So this is a trend which we will catch up. Of course, there have been some disruptions in supply chain and which has impacted our manufacturing and therefore the revenue and which we will catch up in Q2 for sure. And lastly, on this QAT part, so I missed the initial remark, maybe you would have told. So what is the what are the plans to do this QT fundraising? So the fundraising is predominantly an enabling resolution right now. We have a subcommittee evaluating various market conditions and opportunities. And this will also help us in our cash flow management. So this is right now a work in progress. And in the next call, we can definitely tell you the plan going forward.

14:53 The next question comes from the line of Kartik Agarwal from Equity Capital. Please go ahead. Hello, sir. Congratulations on the extremely good results. Thank you. So I wanted to know, can you elaborate a bit on why the quarter didn't see the top line growth as we have been guiding on? Yes. So top line growth, as I just mentioned in the discussion in the previous speaker, growth happens based on the order execution plan, the engineering readiness and the start up. So normally, we have grown by 5%, and this is the best first quarter we've had all in the history of TRANSRAIL.

15:43 There were supply chain disruptions in our factory. As you know, diesel, LDO and a certain amount of delays have happened for procurement. And with the global disruption, which happened in the first quarter, we still have maintained and grown, which is very commendable. We feel that Q2 and Q3 will be much better in terms of our guidance, which we are still maintaining at 20% plus. Year on year, right? Year on year. Yes. 20% year on year is the guidance we maintain. Okay. Sir, also, there are any pending loans to be collected in the books, which have not been collected for some time now? And can you please detail it out if possible? What is it? Please repeat pending what?

16:30 Pending loans to be collected on the books. Notes? Loans. Loans books. Loans. Yes. Pending loans on the books. No, all are recoverable. And as per the agreement, we are going to collect whatever loans we have given. These are especially to Marbury, which is the related party. So there is no issue. Okay, sir. Thank you. Okay. Thank you, Kartik. You. The next question comes from the line of Biraj Mahadevia from MoneyGrow India. Please go ahead. Thank you, sir, for the results and stable results and the well managed working capital and. Given that the business is on track for performance and order wins and the business is not leveraged, has the promoter group considered, you know, the company doing a buyback to take advantage of the undervaluation in the share price and underperformance in ITO?

17:33 So I think the question is a little complicated. We have no such intentions as of now. Right. Okay. Thank you. Thank you. Thank you. The next question comes from the line of Nehal Shah from Prudent Corporate Advisory. Please go ahead. Yes, sir. Thank you for the opportunity. So as we have good operating cash flows and the balance sheet as well looks pretty stable right now, so why are we planning to raise capital? The QIP, basically, we are raising for long term working capital requirements and other things.

18:24 So that is quite possible. And just to take the market, it isn't just enabling provisions. So let the approvals come and then we will plan further. Okay. So the question really was that are we planning any greenfield expansion moving ahead as well? Because I guess a new factory has come on. Stream has started manufacturing, I guess, only two or three months back. We have some room there as well for expanding. So are we looking two, three years ahead of plan and trying to acquire some assets right now only? No. We are not planning to look at any greenfield acquisition as of now. This is, as we said, it is for our working capital and also for seeing as an enabling provision, what kind of opportunity is available in the market and globally.

19:17 So therefore, this is predominantly planning as a strategic plan for the future. Future horizon can be one year, two years to be utilized. The next question comes from the line of Vishal Jain from Mars Ventures. Hello, mister Vishal? Can you hear me? Vishal, we can't hear you. Can you hear us?

20:08 As there's no response, we'll move on to the next participant. The next question comes from the line of from Credit Equity. Please go ahead. Yeah. Can you hear Am I audible? Yes. Please go ahead. Yeah. So thank you for the opportunity, sir. I wanted to know the margin guidance for this year, FY 'twenty seven. Margin guidance. Margin? 11% guidance. Okay. Margin guidance. Okay. So we have said that we will look at 11% plus guidance, and we have reached the first quarter is 11.7%. So we maintain our 11% guidance for the year, which is one of the best in the industry.

20:55 Okay, sir. And I've noticed that our tax rate has been on the higher side historically. So can we expect 25% tax rate or it will be the same? This quarter, we have been at 25% tax rate. And so it is normalized rate. Okay. Okay. Thank you. Thank you. The next question comes from the line of Vishal Jain from Mars Ventures. Please go ahead. Hello. Am I audible now? Yeah, Vishal. You are. Yeah. That time, I think there was some hiccup. Sorry. Just wanted to understand, there was some notification on Exchange that there is some changes in the MOA that you have put in, and you want to get into some newer areas like drones and defense, ESS, etcetera. So can you throw light on that?

21:51 So this is predominantly, as we said, we're looking at strategic opportunities going forward. And there is a huge potential of these products we have mentioned. Now just for us to pick and choose and see what is the right fit for us in terms of business. And therefore, this is a evaluation process, which we are currently looking at. BEST and data centers, we are keen to go ahead. If you see our investors presentation, it is already mentioned that it is something we are looking at in terms of seed marketing in the next few months. So therefore, as a company, not only are we looking at our current portfolio, but we're looking at expansion and growth for new products also. So I just wanted to touch upon, have you made any tie ups or in discussion with anyone regarding any of the areas that we think to go on?

22:46 Or is it is it too early for that? No. For data centers, are... As I said, seed marketing means we are meeting customers and understanding the market. And discussions are happening on various products. So this is very infancy stage, but we need to have a provision to approach these products and services, which we are doing. Okay. And lastly, the fund that we are raising, are we planning to put some of the fund for these newer areas whenever it comes to? So it depends on the situation, the opportunity and the margin profile. And obviously, we are looking at products, as I said, the EPC for data centers and best EPC. So we will take it as we go along. And obviously, it is helping our cash flow and growth plus new products as and when we are ready for Okay.

23:38 Thank you. All the best. Thank you. Thank you. Before we take the next question, a reminder to all the participants to ask a question, please press star The next question comes from the line of K Rajesh, an individual investor. Please go ahead. Yeah. Thanks for taking my question. Actually, my question was also on the same lines related to the notification... Recent notification of announcing... Looking at opportunities in the BSS and defense. So I just wanted to understand, are we forming a group or bringing people to enhance the capabilities on this?

24:30 Yes. We have a strategic management division, which has people who look at opportunities. And as we progress on a specific vertical, we will be subject matter experts in that vertical. For example, EPC for data center or base and work of is happening in that direction. You. The next question comes from the line of Parv Bansal from Blink Investment. Please go ahead. Hello. Am I audible? Yes, very much. Congratulations to the management for posting such good margins instead of 11%, 11.5%, you posted 11.7 That's amazing.

25:24 So my question is on the CapEx plan. So I... As far as I remember in the last PPT, you said that the conduct... Conducted ground fee was gonna be completed by quarter one FY twenty seven. So what happened there? Why is taking more time? So I understand the existing part on the supply chain and everything I understand. But is very much in the domestic market. So what happened there? Yes. So we are actually the difference between Q1 and Q2 is only a month or two. So what we have done is that the factory Phase one is ready, and we have calibrated all the equipment. There are certain approvals required from the various approving authorities, and we are confident in Q2, we will start this.

26:19 Okay. Perfect. And same goes for the greenfield as well? Greenfield already started the tower factory in Bhutuguri, Nagpur, as I read out in my opening statement, has already started on April 24. Okay. Okay. Cool. So my second question is... So I have one more question. Yeah. Please, please. My second question is on, you know, the... So it's on page five of the PPT. Oh, sorry. Page four of the PPT. So it says that, you know, kilometers of conductor supply. So it says two lakh 31,000. So as far as I remember, so so all the PPTs that you upload every quarter, so according to that, according to... You know, there could be some amount added to this. This is... I believe this is cumulative to the four decade history of the company.

27:14 So I believe 5,000, 6,000 kilometers of conductor supplies is added in this PPT. So is the added number from the previous presentation. We have added that and cumulatively shown you the number. Yes. Yes. Cumulatively, sir. Perfect. Yes. So cumulatively, you add it quarter, we will add it. But if you compare that with the PPT provided in February, so February to June, we got around 20,000 or 21,000, if I'm not wrong, 21,000 conductor supply. That is not possible. That in three months, we were able to supply 21,000 kilometers of conductor. I will have to check the data.

28:01 Normally, we supply around 10 odd thousand kilometers in a quarter. So let me just check it out, and we'll come back to you. Our Investor Relations will give you the data. Also, I want one more clarification. What is the difference between the kilometers of conductor supply and the circuit kilometer transmission line constructed? So suppose you're, you know, supplying 6,000 kilometers, but you're... You know, the circuit kilometer is only incremental. The difference is, like, 900 or 1,000. Could you explain me what's the difference between the two? Circuit kilometer means one circuit covers three phases, R, Y, B. So that all three phases once completed are called circuit kilometer, whereas conductor supply is in running kilometer.

28:53 So one running kilometer will be conductor supplied for running kilometer. So basically one circuit kilometer is equivalent to three kilometers of conductor supply. It also depends because design of the tower, if it is a hexa, then it is six into three. If it is quad, then it is four into three. It is twin, then two into three. So it equally depends upon the design of the line. So circuit kilometers are why we see depending upon the type number of conductors in part of phase. Okay. Thank you so much. Thank you. Thank you. The next question comes from the line of, an individual investor. Please go ahead.

29:39 Thanks for taking my questions. Am I audible? Yes, very much. Thank you. Okay. My question is on contract assets. So it is quite a large part of our balance sheet. Could you help us understand what this mainly consists of? And is there any meaningful amount that's been outstanding for a long time or related to disputed claims? Or do you expect any credit losses? And historically, have you experienced any material collection delays, write offs on these assets? The contract asset doesn't mean anything which is disputed or delayed. It includes the dependency retention, TOC retention and unbilled revenue. Unbilled revenue derived from the in the AS circulation of the POS EM and retention is very much recoverable once the lines are getting updated and contractual terms are getting over.

30:32 So in contract assets, if anything is doubtful, we are providing for the credit impairment for the same. Similarly, as we have been providing in the receivable. So all the contract assets which are the bacteria are available. So there have been a delay in some collections. Otherwise, we are actually very good in terms of our focus and collection process. Okay. And also, could you please help us understand the broad profile of counterparties behind these contracts? And as exit integration picks up, do you expect these assets to stay around the current levels as a percentage of revenue? Or should we see some improvement? It is going to increase because retention is increasing due to higher revenue per quarter.

31:21 And so there is going to be slightly increase as we have been increasing in the revenue. Okay. And the counterparties behind this are the government utilities and multilateral funded projects entirely? Yes. Yes. All multilateral and private and government parties. Okay. Thank you. Thank you. Thank you. The next question comes from the line of Palash, an individual investor. Please go ahead. Hey. Hi, sir. Firstly, congratulations. The margins were only super this quarter. But on the revenue side, you said during the call that you tend to actually get 20% revenue as you quoted during your previous call.

32:13 With that, sir, the main thing that's really troubling the investor here is the share underperformance because the share price is actually down almost 100%. And is there some way you're planning to get more investors, you know, big institutions onboard or planning to flag up the company to mutual funds, something that can really figure out and help the share price there? So that's a good question. Our performance on revenue will definitely improve on quarter on quarter. You know that the market sentiments today with the geopolitical situation is soft in India. And we truly believe that as we progress and we deliver better margin and results, we will see an improvement all around.

33:01 So we are pretty confident that things will improve from where we are as a company and create more value for our stakeholders. Okay. So that do answers my question to an extent. But at the same point in time, as we all know, so that the share price is correlated to the investors that are there onboard with the company is the FII, the mutual funds, the other big ticket investors. Are we actually planning to get those and tell them that the revenue that we are quoting every time on big channels and everywhere on the media is something that you're achieving every time. Because, I guess, though you're there, you're everywhere, you're there on CNBC, you're there on ET, but the same point in time, I see less investors coming in the company.

33:49 That is sole reason, I guess, the share price is just not behaving the way it should irrespective of good results. Raj, that's a very intelligent observation. I respect that. So as you know, we are looking at a QIP, and that's basically institutional investors. So you will see the profile of the investors definitely. We are hoping should move in the right direction. Thank you for pointing it out. Yeah. Thank you. Before we take the next question, ladies and gentlemen, you are requested to restrict your questions to two questions per participant. I repeat, you are requested to restrict your questions to two questions per participant.

34:36 The next question comes from the line of from Alpha Plus Capital. Please go ahead. For taking my question. So my question pertains to our geographic mix. Like, as I see, you know, our overseas revenues has come down from 1,000 crores last year to INR 600 crores this quarter. So just want to, first of all, understand like what countries of contracts has stopped that has led to this? That's first part of the question. So are you talking about order intake or are talking about revenue? In terms of the revenue. Okay. So our revenue mix is principally domestic is around 6535% is international.

35:23 And that's the way we look at the growth plan, normally sixty-forty. International will pick up in the next few months. There have been some projects which have got delayed because of the economic disruptions globally, particularly in The U. S. Diesel and various input availability in different countries. So we are pretty confident that our 20% guidance will happen on revenue. And both domestic and internationally, we deliver the numbers. Okay. And second part on the same front, can you tell us how much of the INR 6,200 crores of international backlog is currently not built, like either because of the mobilization or the clients not being?

36:10 Can you repeat the question? INR 600 crores of? No. What I'm asking is how much of the INR 6,400 crores of international backlog is not being built at this point in time? No, no, no, These are projects which have a time line of twenty four months to thirty months. And everything in EPC is planned based on the execution commitment and the contract requirements of the client. So this will take at least eighteen months to twenty four months to consume in terms of our contractual obligations. So we are very much on track on execution of this order book. The next question comes from the line of Sunil Bhujwani from VIEI Investments.

37:05 Am I audible? Yes, very well, Sunil. Sir, I'd like to confirm that with your 20% guidance, our FY 'twenty seven turnover comes around INR 8,300 crores. We have executed about INR 1,700 crores, which brings us to the run rate of about 2,200 to 2,300 crores per quarter. So do you think we can execute at that rate and get to that run rate? Yes. Very much because our h H2 normally is much higher. And Q2 also, we are very buoyant that the numbers you mentioned for the quarter will be achieved. And obviously, every project, every execution planning and the delivery is under various clusters and leaders.

37:52 And we are confident that we will look at these numbers going forward. Our tower capacity has gone up. So our supply chain for our projects will be improved in this quarter and next quarter. So the capacity to produce and deliver to execute is very much in place, and we are confident to achieve these numbers. Okay. And secondly, sir, keeping the geopolitical issues in mind, things are quite as much settled now. And I do think the margins have a little bit of upside bias, which you had mentioned in your last call that we will maintain 11%. And if things settle, there is an upward bias. Do you see that happening? So as I said, we did achieve 11.7% in Q1.

38:41 And 11% plus is what we're looking at. Now how we end the year is something I can't predict. But definitely, 11% plus is what we're looking at. Okay. And lastly, very quickly, sir, the order book right now is about INR 16,000 crores. We'll execute about INR 8,002 crores, 300 crores in this year, and we are looking at an intake of INR 10,000 crores. So our closing should be close to INR 17,018 thousand crores closing order book. Is that Yes. Correct Very much. In fact, I have stated that in my discussion with various TV channels. So very much you are absolutely right. Okay. Okay. Okay. Thank you, sir. Thank you. All the best for the execution. Please execute as per your commitment.

39:27 Yes, yes, yes. And by the way, we have maintained our commitment last year of 30% growth. The previous year to that. So as a team, Transrail, we are committed to this growth. Great, sir. Great. So the cash flows also were extremely good last year, and we hope to see it again. Yes. Thank you for your confidence. Thank you, sir. Thank you. Before we take the next question, a reminder to all the participants to ask a question, please press star and one. The next question comes from the line of Bala Murundi Krishna from Oman Investment Advisors. Please go ahead. Bala, welcome back. Yes.

40:14 Thank you, sir. Thanks for the opportunity again. On the for this Australia monopole project, would be the opportunity of the industry? So we are doing seed marketing, and we are looking at Australia selectively for monopoles and towers. This is an initial initiation. We will see how to further grow this business in Australia. We're looking at long term, almost 10,000 cubic kilometers is required in that country. So how do we capitalize on this opportunity? We are working on that. Okay. So on the last part, so I'd like to congratulate you on the commitments you are providing in the call and the commitment to those commitments.

41:05 Even though people are interesting you to give better EBITDA and margin guidance, you know the business how it will perform based on your tender. So you are sticking to your guidance and you are executing well within the guidance. So I would like to congratulate on this one. Keep continuing on this. Yes, Balaj, for our audience and stakeholders, we have to be fair and realistic. And we are still one of the better margin providers in the industry. And hopefully, we should do better than 11% plus. Yes. Thank you, sir. Thank you, sir. Thank you. The next question comes from the line of, an individual investor. Please go ahead. Can you hear me?

41:52 Yes. Please go ahead. Yeah. Yes. Actually, you already said on the call before, but if you could just reiterate on the net debt and EBITDA because the net debt to EBITDA margin has almost doubled this quarter? Yes. So actually, net debt has increased on account of some delayed collections and working capital has been deployed more in the business, which is going to be normalized in Q2, and we are expecting all those to be realized in Q2. So it will be normalized. And it even quarter to quarter, so but it will adjust overall in March for sure.

42:38 So it should be back at 0.33 by year end? Yes, yes, yes. That's our stated direction. Okay. And any guidance on what would be the working capital day? So working capital days, we were 81 last year. As our CFO just mentioned, there have been some delays in collections, obviously, because of the disruptions globally and locally. So we feel that we will be the same level or improve from 81 and we will sub 81 below. So we are very much focused on this. This is one of our strengths, and we will continue to focus on this. Sushri, did I answer your questions?

43:29 As there's no response, we'll move on to the next participant. The next question comes from the line of Utsav Shah from Value Investment Advisory Private Limited. Please go ahead. Hi, sir. Am I audible? Yes. Very much, sir. Yes. Thank you for the opportunity. So my question was around the MOA that you expanded. So in the Drone segment, what exactly are we targeting? Are we planning to become a subsystem supplier or a platform assembly company? Can you throw light on that specific segment? So basically, this opportunity is for mapping and survey. This is not looking at the heavy load bearing drones.

44:21 So it is in the infancy stage right now. As I said, these are opportunities we are exploring and within the business group and us and therefore how to utilize these opportunities, we will further inform as we go along. So more towards commercial applications rather than defense, right? Yes. Yes. Absolutely right. Okay. Okay. Thank you. Thank you. The next question comes from Vinay of Kartik Agarwal from Equity Capital. Please go ahead. Hello, sir. Yeah. Welcome back, Kartik. Yeah.

45:06 Hi, sir. Hi. So I wanted a bit more detail on the loan on the books to the company you mentioned. The amount and the time we are expecting it would be repaid in? It is 80 crore rupees long, and it will be repaid before September 2026. That is the agreement. Right? So it is three more months right now, and that's the plan we are working on. Okay. So how long has it been on the books, sir? For three years by this time. Okay. It's how much of the money has been repaid, if any estimate, I can We have already received INR 30 crore during the last year, and we are charging the interest as well. So both interest and loan will be repaid by September 30.

45:57 Okay. Thank you, sir. Thank you. Thank you. Thank you. The next question comes from the line of Hemal, an individual investor. Please go ahead. Thank you, sir, for the opportunity. I just have one question. Maybe you already addressed it. How much of the Bangladesh book is still in your order book, or is it completed? So our Bangladesh book is almost complete out of INR 4,500 crores, only INR 300 crores is left, which we will complete in the next three months. And are you receiving money as per your timelines? Yes. Yes. Very much. This project is a national interest, and we have been given the privilege to focus and deliver this project on time, and therefore, the cash flows are good.

46:50 Okay. So that's it. That's it for me. Thank you. Thank The next question comes from the line of Gutsul Shah from Valkyrie Investment Advisory Private Limited. Please go ahead. Hi, sir. I just wanted a clarification. So the company announced the $20.03 crore CapEx plan in May. So could you just guide on as to how much will be invested in the current year in FY 'twenty seven and how much in FY 'twenty eight? So this INR 200 crores is predominantly for tools and plans to execute our projects, both in domestic and international. And it is going to be used in a staggered manner quarter on quarter. So I would say 70 odd percent would be utilized this year and the balance will go to next year.

47:40 That was our last question. And I would now like to hand the conference over to the management for closing comments. Thank you, and over to you, sir. So thank you, the participants on this conference. It has been something which we are proud of in terms of the manner in which we are looking at the growth in the year '27. And as we mentioned, quarter one being in a marketplace where the global disruptions are something which are impacting the whole industry.

48:26 And this has been the highest ever quarter growth in the history of Transrail, and we're able to better this quarter on quarter. So to all our stakeholders, we believe that our guidance is strong, and we'll deliver the same. So thank you for your time attending our call. Thank you very much. Thank you. On behalf of Philip Capital, that concludes this conference. Thank you for joining us, and you may now disconnect your line. Thank you.