Standard Engineering Technology Limited (SETL) Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Standard Engineering Technology Limited Q1 FY '27 Earnings Conference Call. [Operator Instructions] Please note that, this conference is being recorded. I now hand over the conference call to Mr. Ashish Poddar from Motilal Oswal. Thank you, and over to you, Ashish.

Yes. Thank you, Abhish. Good evening, everyone, and welcome to Q1 FY '27 Earnings Conference Call of Standard Engineering Technology Limited. We have on the call Mr. Nageswara Kandula, the Managing Director, and he is joined by his esteemed senior management team. We must remind you that, the discussion on today's call may include certain forward-looking statements and must be, therefore, viewed in the conjunction with the risks that the company faces. I will now request MD sir to please take us through the financials and the business update, subsequent to which we will open the floor for the question and answer. Thank you, and over to you, sir.

Thank you, Ashish. Good evening, everyone. Thank you for joining us today. A warm welcome to all our shareholders, investors, analysts, banking partners, customers and every member of the Standard Engineering Technology family. This has been another record quarter for us. And I want to say this clearly, this is not a one-time achievement. Every quarter, we are setting a new number. That is the standard we have set ourselves and that is the standard we intend to keep. This quarter, we took 2 big steps that will shape our future for many years. First, we become India's high precision engineering powerhouse. Our core business, pharma and chemical engineering grew strongly this quarter, but we did not stop there. We also entered a completely new market, AI data centers infrastructure. We are acquiring up to 51% stake in GScale Energy. Every AI data center needs power systems, cooling and strong engineering and that is exactly what we are good at. We are building this infrastructure very fast. Our teams are already onboarded, machines ordered, designs are ready and our large manufacturing facility is coming up in schedule. This response from data center clients has been very encouraging. Clients are showing strong interest and this gives confidence on this business. Second, we depend on our partnership with GL Hakko, Japan. We have worked with GL Hakko for almost 10 years. Now we have invested approximately INR 71 crores for the approximately 19% stake, with the right to grow this up to 51% in the next 2 years to 3 years. This gives us access to 70 years of Japanese glass-lining technology and new products including conductivity glass technology and semiconductor grade equipment. This will strengthen our products and open new global markets. Our growth story is 2 engines. Now let me explain our simple growth story. We run on 2 engines. Our first engine is our core engineering business. This is already strong and proven. It is expected to grow 40%, 50% this year, reaching around INR 1,200 crores revenue. Our second engine, GScale is our new AI data center business. This is expected to bring in around INR 250 crores in this year. Two engines, one company running at double speed, this is SETL today. Our numbers this quarter, total income INR 250 crore, 41% year-on-year growth, EBITDA is INR 44 crores, 27% year-on-year growth. Profit before tax INR 36 crore, 26% year-on-year growth and profit after tax, INR 26 crores, up to 26% year-on-year growth. EBITDA margin 17.5%. We achieved this growth while also investing on our new business for the future. That shows the strength of our core operations. Our priorities going forward: one, keep leading in our core engineering business with better technology and stronger customer relationships; two, build GScale into a world-class AI data center manufacturing platform as fast as we can. Three, grow with GL Hakko partnership, bring new technology in India and expand into global markets. Our goal is simple and clear, to become India's leading high-precision engineering company with 2 strong engines driving us to forward quarter after quarter, record after record. Before I close, I want to thank you, our customers, employees, shareholders, banking partners and technology partners for their continued trust. This quarter's results are the results of the hard work of our entire team and the confidence of -- confidence all of you on us. We remain committed to working with discipline, investing wisely and creating long-term value for every shareholder. Thank you for your continued trust and support. With that, I'm happy to take your questions. Thank you.

[Operator Instructions] The first question is from Mr. Raman Kerti.

Yes. I have some questions. One, starting with the GScale business, can you elaborate what kind of business we will be doing in terms of like data center wise, what are we planning to do under this segment? And what kind of margins can we expect? And also, a bit further on to this question is with respect to the -- have you -- has there been any order inquiry? And do we have -- and when can we expect this to be converted into revenue?

Along with me Mr. Brahma Reddy is there, GScale Energy Managing Director. He is the right person to answer this question.

Yes, see. GScale is all about gigawatt scale. Today, the overall data center market is seeing a surge in capacity. Now the -- by 2030, India data center market seen almost a 6x growth from today's 1.8 gigawatt, which is expected to grow up to 10.5 gigawatt. So, part of that we have seen significant challenge in the supply chain of the product manufacturing and supply chain, including data center expertise to deliver. These are the major 2 categories in the data center market has triggered us to enable these products. So that's where the market potential for data center products that include power products, cooling products and modular systems and the design and turnkey design and build solutions. That's where the larger potential, the market size is multifold. That's where the company's position. As far as the market access and the customers in the market, so we have very active inquiries. We are working very close with the 5 data center customers, 3 of them global MNCs, and 2 of them India-based data center companies, and we got inquiries and few of them in very advanced stage of LOI and few of them is about to convert them into an order. So, as Mr. Nageswara referred, so by end of this year we are aiming to get INR 250 crores worth of revenue booking.

So just a clarification, you are saying we will get INR 250 crores of revenue or revenue booking like order book?

Revenue.

Revenue.

Understood, sir. And my second question is with respect to the recent acquisition of GL Hakko. Can you be specific with respect to what kind of product we will be delivering under this business? And what's -- how is that product different from what we are doing it in the standard glass engineering?

At GL Hakko, last 10 years working with GL Hakko with partially and last 3 years we are majorly working with GL Hakko, particularly conductivity glass and we launched it in India, and semiconductor-related glass-lining reactors we are going to manufacture, which already we got one big order, not inquiry, big order from one of top clients in India. And also, they have unique order and many times many platform I explained about the glass lined heat exchangers, that is we have already license, we have 20 years license with GL Hakko. And same time, GL Hakko is the handling the pilot plant to plant product. And AGI Group is a -- only they are operating labs and R&D. That's the reason GL Hakko we acquired that is going to fit into SETL basket and shell and tube, glass and heat exchangers, already we started manufacturing -- majority future up to 80% product we are going to manufacture in Japan and we are bringing to India. After 20% we'll manufacture, we have started selling. Almost, every client is accepted. Many, many top pharma companies looking for this product because of due to graphite heat exchanger particle issues. This is one of the excitement product and market TAM also, India have INR 2,000 crores, globally $2 billion, and maybe export '28 financial we are going to start export in shell and tube glass lined heat exchanger. At the same time, conductivity glass also, Europe and U.S. markets we are going to launch. We have big wave plans. That's reason GL Hakko we acquired. First phase, 19% stake, and coming 2 to 3 years, we are going to acquire another 32%. Our target is currently GL Hakko revenue INR 200 crores revenue is there. Our target next coming 2 to 3 years, we are going to support them our product basket and fabrication facility is going to support Japanese reactor sales. And then, our target is INR 200 crores become a INR 400 crores revenue GL Hakko we are targeting. Once that revenue they reach, we are going to acquire another 32%. Along with me, Mr. Yasuyuki Ikeda with me, and he is our Executive Director, Global Operations. Yasu, you do you want to add anything further?

Thank you, Nages. Yes, so now in India, the semiconductor market is growing in India, and in semiconductor industry, the customers require high-purity chemicals, electronic grade chemicals. And using a normal glass-lining glass, because of the leaching level, we won't be able to meet the customers' required high purity chemicals, the impurity level. So GL Hakko owns low-leaching, high-corrosion resistant glass. So the plan is GL Hakko provides a glass from Japan to Standard Engineering, and Standard Engineering does assembly, assembling in India so that the Indian customer can get the Japanese quality at affordable price. So I'm very excited about this area, too, not only about conductive glass. Conductive glass, as Nages said, this increases safety of the customer, and it's very commonly used in Japan, especially in pharma industry. So I'm very excited to introduce this. Now slowly, we have started installing conductive glass glass-lined reactor for SETL. Thank you.

And just to follow-up on this, what kind of margins can we expect from the semiconductor grade glass line? Is it like -- will it be -- stand like at a consolidated margin of 16% or will it be in excess of that?

Slowly, our margins are going to increase. Even data center area and this unique product, semiconductor, glass-lined reactors and shell and tube glass-lined, one more growth engine we are adding, already added, and partially we are now we are selling. Maybe September onwards, we are going to full-fledged we are going to sell in the shell and tube heat exchangers. Our margins going to slightly going to increase.

Sir, can you just give a ballpark figure, like how much margin expansion are you expecting from one, this semi --

We are working on that, we are going -- future we are going to indicate margins.

Okay sir. So -- and my last question is with respect to exports, can you quantify how much revenue was from exports during the quarter and was there any impact on the exports growth because I have heard that the shipping costs have increased by almost 4x?

This quarter I think 2% to 3% only export is happened due to uncertainty of the things in the global markets. See, this quarter is very -- export point of view, very less, 2% to 3%, maybe second quarter, yes, we are going to -- another 5%, 6% going to happen in the second quarter.

Our next question is from Mr. Viraj Mahadevia.

It's Viraj. Mr. Nageswara, congratulations. Couple of questions. One is you mentioned, Mr. Ikeda as well, that you know with GL we get this glass-line technology that we're bringing through the partnership or acquisition from Japan to India. Is there any technology barrier in making these other players' global products? Is anyone else in India making these products? Is there low-cost competition in these products in the global market? If you can give us a flavor for you know what stands out in terms of the uniqueness? Clearly, there's Japanese technology and Indian cost of manufacturing coming together and that's a big advantage but how does that fare versus other alternatives out there in the market?

Coming to -- I can quantify 3 type of parts. One is shell and tube heat exchangers. We'll manufacture in India and Europe or U.S. markets. This is launched I think 15 years back GL Hakko in Japan, and they are not patented. They don't want technology copy someone. And now shell and tube heat exchanger, we are going to manufacturing, but we are moving to manufacturing only 20% because of we don't want to lose our technology, our intellectual to others. So 80% shell and tube glass-lined heat exchanger going to manufacture in Japan, and bringing here, balance components we are going to finishing and selling one product. That is one of unique product. Earlier, suppose I am -- this is going to actually, this -- we are doing B2B business. Whatever way we are doing, this is going to client going to get benefit, our business going to very strong. Earlier, suppose one heat exchanger cost is INR 30 lakhs, now that heat exchanger we are going to sell in India almost INR 15 lakhs -- INR 12 lakhs to INR 14 lakhs, INR 15 lakhs. Almost of more than we are reducing price more than 50%. And that is going to a client advantage, and also company going to grow glass lining area, and also our margins also going to improve because of we are we are changing the we are manufacturing cost and everything. That one is. Second thing is conductivity glass. This glass others conductivity glass manufacturing, but that conductivity glass can't do spark test, glass is intact or not, the people don't know. But whatever GL Hakko manufacturing conductivity glass, that glass can be do spark test and corrosion resistance, all aspects that type of glass no one manufacturing in. India or globe, this is also not patented due to technology should not be after 20 years, should not be lose, that is -- that is one of unique product. And Europe we are our glass is someone company purchasing and selling reactors, not exclusively they sells, and we are going to launch through our dealer conductivity glass lining reactors. Recent we had a lot of discussion with U.S. clients and Europe clients, they are very exciting. Every reactor GL Hakko technology inside we are going to announce in Europe and U.S. markets, and Japanese technology, Indian manufacturing, and price and deliveries, and we are going to launch in these products in Europe and U.S. markets. And third one is the low leaching, high corrosive glass. Some companies are manufacturing in Europe and U.S. glass lining companies. We but whatever way PPT level, parts per trillion leaching level glass, others manufacturing I'm not aware of that. But recently, we got one big order from one client in India. They are going to produce LED chemicals and electronic chemicals. That is pilot plant, we got big order. Maybe once that pilot plant product range success, then they are going to arrange main manufacturing plant. These all three parts are unique technologies GL Hakko have. That technologies we are bringing to glasses we are bringing to India, and this is going to advantage to Indian clients and same time global clients.

Understood. So, there are no global manufacturers or competitors for this kind of lined glass exchanges?

No sir. No. No. Till date, no.

Interesting. And secondly, regarding the GScale acquisition, how are we building this capability to make these products? Like how did we get the technology, the IP, the experience to actually go ahead, and make these cooling solutions? How are the data center people reacting to the fact that, it's a first time for these products from India? Have you met their quality and all kinds of specification requirements? Or they rather import these from Europe et cetera?

Brahma can answer rightfully.

So, it's a nice question. So the today's Indian data center market major challenge is supply chain, again I'm reiterating. It is not the technology availability or innovation. Now, because India is growing at 6%, so 6x the present market capacity, so supply chain is the biggest problem. To address the supply chain of gigawatt scale, so we have taken a strategy of getting the partnerships with the global products, the products that are being used by global hyper-scale customers like Amazon, Microsoft, Google, Meta, or Oracle, or all hyper-scale customers whatever products they use in Europe, US, or anywhere in Southeast Asia and Middle East markets, same product we are partnering with the all global companies, like Schneider, ABB, or Eaton, those kind of people, yeah. All kind of global players and that's where the partnership comes into the picture and we are producing those products. So that means product validation, product approval is not a question here.

Understood. But why would -- just playing devil's advocate, why would Schneider or an ABB or these specialist European manufacturers part with their technology when they already have local manufacturing in India and they can make it themselves and park it to another Indian player? And are you then restricted to use this technology for the Indian market and nowhere else?

This is the model they are already practicing in India elsewhere as well, but the scale that they did not build so far and what Schneider or ABB or Eaton or any company for that matter which I am referring, those guys make the product of component level not as a system integrated solution. The products that we are going to deliver here is the way SETL are doing for decades of their expertise integrated so bring the all the products together integrated sellers as a integrated solution that's where we bring as GScale expertise. We bring all these components as part of the partnership and integrate in line with the hyperscalers and the AI factories' requirement and we deliver as a solution.

I understand. So, in that case you're not a manufacturer of these products, you're actually an assembler of a kit, source product, and then you do, at the at project site. Am I clear?

No. This is all parts are manufactured -- suppose if we are purchasing steel and making reactor, means we are manufacturing. Like that, SF1 is secondary fluid network, going to cooling skids and PDUs and a lot of skids we are going to skids manufacturing, integration, and a complete solution we are going to provide to data centers.

Exactly, yes.

This is component, any material, any manufacturer, they want raw material. Like that, raw material we are going to buy and we are not assembly, but this is a different concept. And also data center, what is the uniqueness, I mean, more I will elaborate, and why I impressed with Brahma concept and technology, and whenever the building start, data center construction, we can make it in our manufacturing sites everything in skid-mounted. That is unique technology they have. Once building is ready, we can install the all integration solutions, skids, every cooling skids, power, everything we can install very quick, fast way. That's reason data center construction time also going to reduce, and price also going to save. This is we are offering global clients recently we explained, they are very, very impressed. Anyhow, coming days, you will understand the GScale SETL capabilities on the data center.

Yes. So, as he rightly mentioned, it's not just the products that we source from the all the global OEMs, there are certain few components that we source from them, and we fabricate, and we manufacture the product like PDUs, or switchgear panels, or secondary fluid network, and all of them. So those are all designs that we develop, and product we are bringing from those OEMs, and integrating together and delivering. As he rightly mentioned, most of the products that we'll be delivering in the shape of skids, and in the shape of e-pods, in the shape of the DFMA, Design Manufacture for Assembly, those components we will be by the moment data center customers start constructing the building at footings level, let us say, the civil work starts at the plinth level. So wherein the relevant all the components start manufacturing at our factory, by the moment they reach to the relevant floor or the rooftop of the building, the most of their data center products are already made available. So we can bring them and assemble at the fix them at the data center location, and they can go to the market much earlier than the traditional working.

Right. I guess what I'm struggling with is given that this is such a new market and we've not seen this product, it would be helpful to, you know, maybe include in your deck the kinds of products you are importing, and then what your finished product after the value-add looks like, right? And I guess maybe you can if you can work that into, it'll give investors a greater flavor of your level of value-add in the manufacturing process.

Sure, sure.

All the best. But, yes. Exciting pivots, lots of growth with GL in Japan as well as the data center pivot with GScale. So, all the best.

Our next question is from the line of Mr. Shiva.

Nagesh. Sir, you mentioned that a glass lining technology that you are importing from Japan to make semiconductor grade chemicals, so is this product manufactured in house at SETL, Hyderabad, or is it manufactured in Japan, and you are just bringing the products and assembling here and selling to the customer, sir? Just I want to know that one.

Glass, glass manufacturing in Japan, and glass we bring India and we fabricate the reactors here, and we will spray the glass here, and we'll make the reactors, and assemble everything. And glass going to manufacturing in Japan.

Plans to manufacture that in house, sir? Is that technology possible to manufacture in future, sir?

Future, no. Currently, we don't have any agreement technology to transfer to India. We are also, we want to protect that technology in secrecy. So that's reason we are going to maintain in Japan, the technology.

Next question is from the line of Rahul.

Hi, sir. Can you hear me? Hello.

Yes, yes.

Yeah, sir, after this Q1 revenue, what is the current unexecuted order book that we have in our core business?

Core business, we have up to INR 1,400 crores today after some billing also happened second quarter also.

Okay, okay. And sir, regarding GScale, can you elaborate the infrastructure that we are building right now, the capacity after this plant when it start in November, what will be the total capacity of the plant and what are the products that we are going to manufacture?

Yes, Rahul. So at this moment, we acquired almost all 4 lakh square feet of factory space, out of them 2 lakh square feet already went in full-fledged execution, I mean including ordering of all the robotic equipment in the different countries of the world, and few of the equipment already in the shipping, and few of them delivered, few of them yet to dispatch. So all of them arriving by I think mid of September, and we are planning to go for operations by November. So the first phase of our -- the product lines in the factory, and the next phase is coming up, and we are also adding additional capacity factory 3 and 4 also coming up, for next few quarters, we'll be adding that capacity.

And sir, products that we are going to manufacture or we are going to supply to data center business?

Yeah, power products and cooling products and more of pre-fabricated and skid-mounted technology, which will significantly reduce project timelines of all the data centers and brings lot of energy efficiency today.

Sir, one more question. Somewhere I have read in presentation that as a company, you are going to propose complete solution to the data center companies. Does it mean that you are planning to take complete turn-key project from them and then commission the project for them? Complete data center, because the cost of each 1 gigawatt data center seems to be very high, so what percentage of that can be cater?

You're exactly right. So the overall business objective of GScale Energy Private Limited is the turnkey and design-and-build solutions. So that includes products what we manufacture, and we were talking about repeatedly integrated solution. So integrated solution goes through the design-and-build requirements for the data centers. That's where we are actually working with the 5 customers on design-and-build projects, where we design the complete data center, and we take up the complete contracting along with by supplying our products, and also our pre-fabricated skids and DFMA solutions. So that's where we are going to bring lot of value proposition to the customer.

Okay.

Our objective, actually whatever SETL is now today 80% equipment manufacturing for pharma and chemical, and we are executing also projects. Same way, GScale is going to a manufacturing 60%-70% equipment in house, and balance going to source, and going to take a turn-key projects. One is GScale, GScale model also same whatever way SETL doing business in pharma, chemical process industries, GScale going to handle data center business, independent equipment also they will supply to data centers, other client, competitors, everybody, and same time, if client wants solution, they are because of they are giving part and piece bit and pieces to suppliers, project is going to 3 years, 4 years. Now we are targeting 18 to 20 months, we are going to finish data center that we are going to timeline fixing, and customer also going to convert. Because how we are going to create that much strength, we are going to manufacture in-house equipment, everything we are under our control. So that we are going to offer, this is unique company offering in GScale.

This is the first of its kind in India, having product manufacturing in house, total integration capability in house, and designing the data center, and, you know, installing there, integrating all together with our own products and delivering. For the customer, it is become one-stop solution. So far, Indian data center customers are greatly struggling to get this kind of value proposition. That's where we see though we are still establishing factory, everything, the inquiries are coming every day after, and we are quite actively engaged with the customers, and they are very they are showing lot of eagerness to come to this.

So sir, your initial focus is Indian market, right? Or you are parallely exploring other markets?

Initial focus -- initial focus is definitely on India, and we already establishing teams to focus on Middle East and Southeast Asia. So soon after we establish rightly here, we start exporting to these regions.

And sir, for our core business, we historically have been growing 35%-40% year-on-year. Can we assume the similar growth for next couple of years also in our pharma, chemical space?

Yes, yes. Today, you see, this is also one of the excitement point. Today, TAM is any pharma company you can consider, their glass-line versus their revenue same. Any pharma company wants to grow, they must invest CapEx. So today, almost all INR 70,000 crores, INR 80,000 crores market CapEx is there, and we are doing only 1%. That is very room, sky is not a limit. In coming years, we have very bright visibility.

Okay. And sir, last question. For GScale, we are suggesting INR 250 crore revenue for 4 months. So for next year, can we extrapolate that into 3 for as a minimum revenue guidance for FY '28 or?

Minimum guidance, we'll guide soon. We'll guide soon.

Our next question is from Mr. Rahul Maheshwari. Please go ahead.

Hello? Am I audible?

Yes, yes, please.

So a couple of questions. First of all, thanks for the time and insights, and congratulations on good execution. First thing, as you mentioned that once you get the capabilities, you would be looking at the other vectors also, like heavy engineering, nuclear. Are that aspects on or it is a distant journey? Currently, many things are on the pallet, so you don't want to focus on that.

SETL name also why we changed name is engineering company. Wherever engineering opportunities are there, we are interested to enter. That is also good business and low competition area, we are looking for the opportunities. And not a heavy engineering, or not a semiconductor area, that is also we are not going to manufacturing, we are going to provide engineering services, engineering products we are going to offer, engineering solutions we are going to offer. That is our future plan also.

Okay. And on data center, can you just give us this highlight that suppose per megawatt $7 million is the data center capex cost, how much is our addressable market into that? And how big this business can become at least for next 2-3 years perspective?

Our capabilities is the almost 60%-70% equipment whatever data center required, we are manufacturing, we are going to manufacturing. Maybe coming March, we are going to full-fledged manufacturing setups is going to happen. And we can do turnkey also, means complete turn-key we are we can do, but not a we can't do everything because of very big turn-key, lot of suppliers are Mr. Brahma mentioned supply chain suppliers are very short and that much suppliers are not available in the India market today. Whatever growth is there, one supplier is ready to supply and other 10 suppliers are not fully booked. Today, that's reason we day one, we decided we are going to whatever we our client, we are going to provide complete solution. But total whatever data center required, we are 100% we are manufacturing.

Just to add, your question of the what is addressable market, given $7 million per megawatt is the investment typically happens in the data center market. In India, of course, operates anywhere between 5 million to 7 million per megawatt. So if you look at India total data center growth story, today we are at 1.8 gigawatt and is expected to grow up to 10.2 gigawatt next 5 years, which is almost a 6-plus 6x growth. So every 1 gigawatt, I think you can look at the kind of market available. I'm talking about the market whatever the cost that you referred 7 million per megawatt, almost a 65% of 7 million is that is the cost goes into the products, primarily, and also turnkey solutions. That itself is a very, very sizable market, and we are expecting almost a lakh crore in INR for 1 gigawatt capacity. So out of that, 65% goes to products itself alone, so that's where we entered into the GScale as a company, manufacturing products relevant to those areas. So the market TAM is very big.

Yeah. Just to add, your current existing business already has the extended working capital cycle of 220-240 days. Can you give us how much more stretch can happen once this data center business revenue starts flowing into or the working capital cycle will be much better in the data center business?

Working capital is SETL manufacturing variety products. That's the reason working capital days I think last year 230 days, 220 days, and this year there is going to coming down to below 200 days. And this year ending, we are expecting more because of this is set up our top line is very high growth is there, and stocks are same because lot of product heavy 180 variety of products, that's reason last year our working capital is very high. Now this year we are controlling, and same time, and this is GScale also, and that is that is also maybe below 2 below -- 150 days or maybe 100 days below only, because of lot of advances and project also very quick deliveries, data center products going.

Exactly. That is right idea.

But sir, what can be driving force or what can be driving the lower working capital days for this year and next year? I mean, whether your inventory will go down or your receivables will be going down? What is the driving factor for that?

Stock going to not going to increase, revenue going to increase. Same level stock we are maintaining, so, and also customer advances are increasing now, and receivables also we are collecting, so many areas. I think this September result we are going to we -- it will coming down to below 200 days working capital.

And this is for 200 days is for FY '27, you're saying?

FY '27, yes. September, 6 months also I'm talking about.

Right, right. And sir, you also mentioned the 3 years target of a INR 1,600 crore revenue. Any revision, sir, which was there? Just last meeting when we met, you mentioned about a 3 year to 3 to 4 year target of INR1,600 crore revenue at the top line.

This year we are already guided INR1,450 crores, about INR1,200 crores SETL business and INR 250 crores GScale and total consolidation it's going to happen INR 1,450 crores. That is earlier growth is different. Now we are we recently we changed our guide guiding figures.

Next question is from the line of Sandhya. Sandhya, you're not audible. Request you to please unmute yourself and go ahead.

Can you hear me right now?

Yes.

Yes. So first of all, congratulations, sir, for such a great numbers. So I had a couple of questions to ask. So my first question is on to achieve the guided revenue of approximately INR 250 crore from GScale in FY '27, so what capacity utilization has management assumed for the new 4 lakh square feet manufacturing facility? And additionally, what would be the utilization ramp-up trajectory over FY '28 and FY '29?

Yeah, so the out of 4 lakh square feet, 2 lakh square feet of factory will come in full action to support INR 250 crores revenue realization, and top of the product manufacturing, we have great trajectory for turnkey design-and-build solution, so that's where the major chunk also coming together. As turnkey design-and-build solution along with the products, is we have sufficient the capacity of the production and also the resources utilized to achieve INR 250 crores revenue. And the we are expecting to add additional 2 lakh square feet by December in terms of the factory, so it goes into the yeah, next, couple of quarters, we'll, the company guiding and advising on the next year numbers.