Alicon Castalloy (NSE:ALICON) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Alicon Castalloy Limited Q1 FY 'twenty seven Earnings Conference Call. As a reminder, all participant lines will remain in a listen only mode, and there will be an opportunity for you to ask questions after the management's opening remarks. Please note that this conference is being recorded. I will now hand the conference over to Mr. Mayank Vaswani from CDL India. Thank you, and over to you. Thank you, Ryan. Good morning, everyone, and thank you for joining us on Alicon Castalloy Limited's Q1 FY 'twenty seven Earnings Conference Call.

0:46 We have with us on the call today Mr. Sumit Bhatnagar, Group CEO and Mr. Vimal Gupta, Group CFO. Mr. Sumit Bhatnagar will begin by sharing his perspectives on the industry environment and overall business performance. Mr. Vimal Gupta will then take you through the financial and operational performance for the quarter. Before we begin, I would like to remind you that today's discussion may contain forward looking statements that are subject to risks and uncertainties. The relevant disclaimer is included in the earnings materials that have been circulated earlier. I would now like to hand over the floor to Mr. Sumit Padnadar. Sumit, over to you. Thank you, Mike, and good morning, everyone.

1:32 Let me begin by thanking all our investors, analysts, shareholders for joining us today. This is my first investor interaction with you after taking charge as a CEO of Alicon effective 04/01/2026. So before I speak about the quarter, I would like to take a moment to share with you how I see Alicon, where are we today, and more importantly, where are we going. When I took charge of... I articulated three words to the organization, which is reset, refocus, and rebuild. And I clearly remember that I did share this with you during my last call... In the last quarter. These three words are not about changing the fundamentals of Alicon, even in fact, it is quite the opposite. We believe Alicon has a strong foundation over the years, strong customer relationship, deep costing and manufacturing capabilities, a credible technology platform, global exposure, and most importantly, a talented and a committed organization.

2:32 Our objective is to take these strengths and sharpen them. We want to make Alicon more agile, more efficient, more customer focused, and more scalable. And therefore, a reset, refocus, and rebuild is not a short term program. As the operating philosophy with which we intended to build the next phase of Alicon, let me start with the market environment. The Indian automotive industry, it continues to remain structurally very strong. The underlying demand environment has been positive, and we have seen healthy growth across the major automotive segments. More importantly, the latest industry data continues to support this positive trend in Q1 FY 'twenty seven. The passenger vehicles recorded their highest ever first quarter sales at approximately 1,570,000 units, growing to around 11.3.

3:24 Tour will have grew 21% and commercial vehicles grew 19.5%. So the overall environment is quite supportive. But what is particularly encouraging for us is that Alicon has grown significantly faster than the underlying market. During the quarter, Alicon registered year on year growth of approximately 37.7% on a consolidated basis and 43.6% on a stand alone basis. If we adjust the impact of material inflation, our underlying volume or growth is approximately 17 and a half percent on consolidated basis and 22% on stand alone basis. For me, this is an important number because it demonstrates that our growth is not simply a function of higher commodity prices being passed through to the customers.

4:16 There is real underlying growth happening within the business. Our commercial vehicle business is particularly a good example. We have registered approximately 26% growth in commercial vehicle segment supported by the conversion of some of the businesses we acquired recently into mass production. This is precisely the kind of growth we want to build, growth that comes from new customers, new programs, increased pallet share, and successful industrializations. At the same time, q one was definitely not an easy quarter on a a profitability perspective. The quarter witnessed a significant volatility in the input cost, particularly because of the geopolitical developments in The Middle East, metal prices, gas prices, cooling costs, and several other input costs moved sharply.

5:03 This created pressure across the entire automotive supply chain, and Alicon was definitely not an exception. Therefore, while the top line performance was strong, the inflationary environment created a huge pressure on the margins and profitability. This is something we are addressing very aggressively through our operational efficiency initiatives, which I will come to you shortly. Now if I look at the automotive technology transition, it's very clear that there are most important structural changes which are taking place in the industry, the transition towards the new powertrain technologies. We believe the future automotive landscape will not be defined by a single technology. It will be a combination of five vehicles, hybrid and electric, and other emerging technologies depending on the application, geography, infrastructure, and the customer requirements.

5:53 We see particularly a strong potential in hybrid vehicles. Our current assessment is that the hybrid segment could grow an approximate 25% to 30% CAGR over the next several years, while EVs could grow at approximately 20% to 22% CAGR over four to five years of time. This is strategically important for Alicon because we are already well positioned. We have a strong presence in hybrid vehicles, including supplying the largest hybrid vehicle manufacturing company in India as a single source supplier. This is a significant strategic advantage. At the same time, our EV portfolio is also expanding. We are supplying products such as electric motor housings, EXL housings, battery housings, inverter housings to the leading Indian and global companies in the EV ecosystem.

6:42 So we are not betting on one technology, and we are positioning Alicon to participate in the entire evolution of vehicle architecture. And this is where our technology and engineering capabilities become extremely important. Now the three words, reset, refocus, and rebuild. Let me first talk about what we are trying to reset. This is the first pillar. When I say reset, I do not mean starting from zero. We are not changing the basic fundamentals of the company. We are sharpening our strategic intent. The first objective under reset is to create what I call as an island of excellence. We want Alicon to become an organization where excellence is not dependent on an individual or a particular plant. It becomes a culture. It becomes a system, and it becomes the way we operate every day.

7:28 One of the most important areas for me personally is people. We are redefining our people policies with the objective of making Alicon one of the most desired workplace in the industry. Over the last past few months, we have significantly strengthened the organization. We have brought in experienced and highly quality quality talent across technology, quality, process engineering, human resource, maintenance, safety, and manufacturing and supply chain. We have hired some of the best talent from across the industry and the country, and I am particularly pleased with the quality and depth of leadership team that is now coming together. The organization has been rebuilt to prepare Alicon for multiple growth. Now talking about the refocus strategy business, second pillar. Refocus means being very clear about what we want to play, which customers we want to serve, what capabilities we want to build, and importantly, where can we create the highest value.

8:24 We are looking very closely at our customer portfolio. We are asking ourselves a very simple question. We are... Are we getting enough value from every relationship, every program, and every capability that we have built? And our objective is to increase value addition. During the quarter, which has just gone by, we registered an approximate 17.6% growth in our value addition. But we believe there is a considerable headroom ahead. We are therefore working extensively on improving our operational efficiency. Every factory, every process, and every function is being examined through the lens of productivity, cost, and quality. We are looking at our conversion cost. We are looking at energy consumptions, tooling, rejection, rework, health of the machines, logistics, inventory, and every single form of waste in the system. Because in an inflationary environment, we cannot simply rely on the price increases to protect the margins.

9:15 We have to become structurally most efficient. This is the philosophy behind refocus, and I believe this will become one of the most important drivers of margin expansion for Alicon over the medium term. Now talking about rebuild, which is the third pillar. Rebuild is fundamentally about building the future growth engine of Alicon. This includes rebuilding our customer base, strengthening our order book, adding capacities ahead of demand, and creating the manufacturing infrastructure required to support the next phase of growth. Recently, we announced an investment of approximately $1.25 crores over a period of next two years at our leased facility at Shikrapur. The facility is approximately 1.36 lakhs square feet. We deliberately chose to lease facility because we want to significantly reduce our time to market.

10:05 At this facility, we are investing in GDC, LPDC, and machining capabilities to support the recently acquired businesses. Based on our current programs, we expect this facility to generate approximately 500 crores of annual revenue over a period of four to five years of time. But I want to emphasize one thing. This is just the beginning. We are already evaluating additional opportunities to increase our capacity, and we expect to announce further investments as these opportunities mature. Our philosophy is now very clear. We will invest behind visible demand, but we will also build capacity ahead of the growth growth curve where we have strong customer visibility. Now let me quickly also talk about the recent order books. The other important part of rebuild strategies of our customer and order book strategy, and I'm happy to say that we had very successful quarter on this front. During the last quarter, we acquired businesses across both automotive and nonautomotive segments, which together have the potential to generate more than INR $4.50 crores of revenue over the past next five years.

11:11 This is strategically important because these are not just incremental orders, they expand our customer base, increase our addressable market, and create opportunities for additional programs. We're also working very closely with several Indian and global customers and expect to book additional high value orders during the current quarter. Another important milestone is that we have recently gained entry into two large Indian passenger vehicles and commercial vehicle OEMs. And together, we currently have visibility of approximately INR $8.50 crore of business over past next five years with these two customers, and these are the orders which are already booked with them. For Alicon, this is much more than a number. These customers' addition of a position in the Indian automotive ecosystem and create a platform for multiple future programs.

12:00 At the same time, our relationship with some of the largest global commercial vehicle OEMs continue to grow consistently. We are acquiring multiple programs from these customers on a regular basis. And what is particularly encouraging is that we are now receiving inquiries from global OEMs with whom Alicon has never worked worked before. That tells us our capabilities, quality standards, and technology are increasingly getting recognized globally. We will, of course, update you as these opportunities mature and become firm business wins for us in future. Now let me quickly also briefly talk about our Europe operations. Our European facility reported a lower sales during the quarter, primarily because the production ended for certain parts that had reached the end of production cycle, which is quite normal of an automotive business.

12:52 What is important that we have already acquired new businesses, and we expect the European operation to make a strong comeback as this program stands up. Our objective remains to build a sustainable and profitable European business with a healthy pipeline of new programs. Now let me also quickly touch upon our profitability while the numbers will be taken up by our CFO, Vimal Gupta. Coming to profitability, despite the challenging input cost environment, our performance was better both year on year and sequentially on the relevant consolidated and stand alone comparisons. I would like to put this in context. The quarter was characterized by strong revenue growth, but also by significant volatility in input costs.

13:38 Therefore, our immediate focus is on ensuring that the strong top line momentum increasingly translates into profitability. This is where the three pillars come together. Looking ahead, as I look at Alicon today, I see a company at an important inflection point. We have a strong market behind us. We have technology transitions creating new opportunities. We have a strong leadership team. We have new customers. We have new programs. We have capacity investments underway, and we have a growing pipeline of opportunities across India and global markets. But I also want to clarify that we are not going to chase growth at any cost. Our ambition is profitable, sustainable, and capital efficient growth. The quality of growth matters to us as much as the quantum of growth.

14:24 The... We want to improve our customer mix. We want to increase value additions. We want to improve asset utilization, reduce this, and also we want to strengthen our margins. And we want to generate superior returns of capital we deploy. Our ambition is therefore not simply to become a larger aluminum casting company. Our ambition is to become a technology led, globally relevant, high value partner to automotive and selected non automotive customers. And I believe that we have the right ingredients to achieve that. With that, I would like to hand over to our CFO, Mr. Vimal Gupta, who will take you through the financial performance for the quarter. Thank you. Thank you, Sumit, and good morning, everyone. We have commenced FY twenty seven with a strong performance and importantly crossed INR 500 crore of quarterly sales for the first time in Alicon history. During the quarter, total income stood at $5.79 crore growing by 37% year on year and 17% on sequential basis.

15:24 The EBITDA was INR 55 crore with the EBITDA margin of 9.5%. We are pleased to report strong growth in profitability with profit before tax of INR 18 crores, growing 45% year on year and profit after tax INR 12 crores, higher by 23% year on year basis. From a revenue perspective, the quarter was supported by higher volumes and program, ramp up across our domestic business, together with steady execution of existing customers programs. Our international business, however, had a relatively softer quarter. This was largely in line with our expectations as certain major programs in our European operations are nearing the end of their life cycle, while the next set of programs is yet to ramp up to meaningful production volumes.

16:13 As a result, we are currently in transition phase where the decline in legacy business has not yet been fully offset by new program launches. Given that our stand alone operations continue to deliver stronger profitability, this temporary gap in the international business has also had an impact on our consolidated margin profile. We remain confident that as these new programs move into production over the coming quarters, the performance of our international business will improve progressively. It is important to highlight that the growth during the quarter reflects a combination of volume growth, program ramp ups, new business execution and the impact of price movement in aluminum base and other alloys. On the margin side, profitability during the quarter continued to be affected by higher input costs, including aluminum and other alloys as well as increase in employees, energy, logistic and other operating costs.

17:10 There are three distinct factors to consider when we when looking at our margin trajectory. The first is raw material inflation, primarily aluminum and related alloys. These costs are contractually passed through in nature and are fully recoverable from customers, albeit with the timing lag. The second relates to manufacturing costs such as labor and other operating overheads. We are actively engaging with customers to recover a part of these costs increases through price divisions. We have already secured approvals from some customers while discussions with others are progressing well, and we expect further closure during the current quarter. The third and perhaps the most important from a long term perspective is improving the underlying cost structure of the business.

18:01 This is entirely within our control and includes initiatives around productivity, automation, process optimization, manpower efficiency and better absorption of fixed cost and as volume grows. At the same time, we are consciously improving our business mix by increasing the share of higher value products involving machining, engineering, and more complex manufacturing. Our objective is therefore not merely to recover inflationary costs. It is to improve the structural profitability of the business and build a more resilient margin profile over time. We are confident confident that these initiatives will become increasingly visible in the margin profile as the benefits accumulate and the newer capacities move towards higher utilization.

18:50 Now coming to the capital allocation. The new manufacturing facility announced during the quarter represents an investment of approximately INR 125 crores. It would be important to highlight that these we are facing the investment over two to three years rather than deploying the entire amount upfront. The project will be funded primarily through internal approvals supplemented by borrowings as required. The pace of investment will be aligned with the progress of customer programs and the requirements of the faculty. This is consistent with how we intend to approach capital allocation more broadly. Investment should be supported by customer demand, have a clear path towards utilization and generate appropriate return over time.

19:37 For quarter one FY twenty seven, capital expenditure was approximately 40 crores, and for the full year, it is planned approximately 150 crores. This includes around INR 70 crores out of INR 125 crores earmarked for the new manufacturing facility. So now coming to the outlook, including the recent order wins, the quarter Alicon's executable order book stands at approximately 8,450 crores as on June 30, which represents executable orders over a period of six years from 2526 to 3031. This doesn't include product that are currently ongoing and had already formed part of revenue prior to FY '26.

20:26 So FY '27, financial priorities. From the financial perspective, therefore, I would summarize our priorities for FY twenty seven in '4 areas. First, to support 8% to 10% underlying top line growth that we have guided for while maintaining the quality of the growth. Second, the progressively improved margins through a combination of customer recovery and internal productivity measures. Third, to deploy capital in line with customer demand and maintain discipline around leverage and cash flow. And fourth, to improve working capital efficiency and to ensure that a greater proportion of our operating performance converts into cash. We recognize that these improvements will not necessarily happen in straight line each quarter, but the focus is very clear and the initiatives are already underway.

21:14 With that, we would now be happy to take your questions. Thank you. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Questions. We take the first question from the line of Prahgunandan N. L. From Luwama Research. Congratulations, Sumit sir, for the strong first quarter with your leadership, wishing many more milestones ahead.

22:07 Thank you very much for sharing the order book execution time line in the presentation. This is very helpful. Two questions. On the domestic market, good to see strong growth and customer additions. Can you talk of the overseas business, considering maturity of some programs? There was some softness in Q1. How do you see the performance in remaining part of the year and also for next year? Also, if you can provide, how do you see the total revenue outlook for FY 'twenty seven? And over a two, three year basis, a three year outlook, how would you see the revenue expanding? Thank Thank you, Raghu, for your question. I think you have asked three questions. The first question you have asked is on the performance of our global operations. I think you're talking about the European operations.

23:05 Okay. So, yes, you're right,, and I've also said that we're... We we saw a little downfall in the business volumes at the European operations because some of the critical products reached their end of life. But the good news is we had acquired EXL business from one of the biggest... One of the largest automotive giant in the world, and this business is already under development. We have already invested in very latest technologies in this plant, which will which will be the starting point for this plant to be seen as a high technology plant by the European OEMs. So this is one. Secondly, there are some more businesses which are right now under development from some of the bigger, again, big automotive giants in Europe, which will come into SOP towards the later part of the year. So the the slow growth or I would say the reduced growth what we have seen in the European operations may continue for one or more quarters, which will not be significantly lower than what it has already been. But we see a reversal trend from the last quarter of this financial year, and next year, definitely, we want this plan to be coming back to the normal state.

24:18 So this is how it is happening there, but I can really tell you that we have already had, again, a lot of experts in this factory to bring new businesses, work on the technologies, and uproot the complete manufacturing part part of Europe. And those investments, when they happen, we'll definitely come back to you and tell when it is happening. But the new investments on the technology for the Newport Businesses Fund has already been committed in the last year, and it will show results from the third quarter of this financial year. So this is one. Secondly, your question is on how do we see this financial year FY '27. If you remember in the last quarter when we were actually meeting you for the first time, we were talking about a modest growth of 10%, and I clearly remember that investors also had asked me at that time that this looks to be very modest and does not have an aggression.

25:11 Would that we have a great start and we want to continue this journey? I can see growth of approximately 12 to 15% coming in this financial year, which is neutralized to the material effect. So this is not because of the inflations, but the true growth is approximately 12 to 15%, which I can see in this financial year, f I twenty seven. And I think your third question is that how do we see the coming two to three years of time? This is going to be a journey of growth for us. We will make some strategic decisions, which we will be letting you know when they are happening. But this financial year is the year of setting up the capacities. We have invested in one factory. We have plans, which we will only announce you soon, but we may soon come with more investments.

26:02 Very early, I would say, in a different part of the country, but before it happens, they will definitely announce our plans about it. But we are working on our strategies, and we will be announcing it soon. Organically, we see major investments coming in next two years of time. On inorganic growth, there are some plans which I cannot share with you in the... The investors right now, but I promise you that by the fourth quarter of this financial year, I will also show how inorganically Alicon grows. And the the growth rate what we are indicating for this financial year, definitely, we are looking for a similar growth rate for the next few years as well. I hope that answers, Pragu, the questions you have asked. Asked. Wonderful, sir. Thank you. Thank you so much for the detailed answer. And just a clarification.

26:52 So in Q1, the actual growth was around 17.5%. So that is the growth you are referring to when you are taking a one year and a three year outlook. Is that right, sir? Yes, that is right. That's the right assumption. The right Wonderful, sir. Thank you so much. Second question to Vinil, sir, on the margin side. Sir, good to see INR 18 crore PBT in Q1, which is a 20% growth Y o Y, a strong performance. On the margin side, how do you see the reset of that price increases from customers for the various cost inflation in coming quarters? How do you see the margin outlook for coming quarters? And taking a two year view, where do you want the margin to go back? If I talk FY 'twenty eight, FY 'twenty nine, how is the aspiration? Where do you want to take the margin levels back?

27:53 You. First, if you go for the margins for the last year, it was approximately 11.4%, I remember. And in this quarter also, we have reached up to that same level that we had in the last year, even after having the lot of impact of the cost increases that inflation we have seen. And against that, we got some corrections from the customers, but not full. So those are under discussion and maybe some part we will get in quarter two and maybe quarter three also because you know that OEM pay immediately, they don't give all corrections immediately. So they take time on all these things are happening.

28:41 So for this year, what... Like, on the growth that Smith has already explained, 12 to 15% growth we are expecting by neutralizing the impact of the aluminum. But on the other side, we are also expecting at least 1% improvement in the EBITDA margins. So this is the... Our expectation for this year. And hopefully, that maybe in the coming for what we are talking about the next two to three years. So for the... Previously, like, what we are investing on that basis and further, it will improve only, I can say. But it is difficult to give the guidance for the future for that. Because lot of initiatives we are taking on the cost side and the... Our business restructuring as well as giving the more focus on the high VA and the high margin parts.

29:38 So we can only tell, Rahul, that we will be progressively looking for improving the margins as well in the coming years, Rahul. Wonderful, sir. The direction is positive and outlook is right. Thank you. Thank you so much, sir. I'll come back in the queue for more questions. Thank you. We take the next question from the line of Avinash Nahata from Parami Financial Services. Please go ahead. Yes. Am I audible? Yes, you're audible. Yes. Please go ahead. Yes. So the first question is, when we are talking about 8,000 crores order book, Can you talk about how much is non automotive built into this, the six years visibility what we have provided?

30:34 I would like to understand how is nonautomotive shaping up in terms of order book and future revenue booking. Yes. Out of this order book of $8,004.50 crores, we see at this moment the non auto visibility is 2%. So this is roughly around 1,200 crores. So also also to add to this... To this this number of 2% is as per the order book, but this is definitely a pie, which we want to expand in the next few years sometime. Okay. So incrementally, so since we talked about refocus, so non automotive casting business, so is there a new set of teams team hired for this business? Can you just spend one minute on this?

31:25 So okay. So it's a very, very good question. So we are creating a completely different vertical for our nonautomotive sales. The sales and marketing team, which we have just created, is completely independent from the marketing team, which is handling the automotive business. And as we have to grow this business, we will also strategically put more resources to this team so that they they are taking complete account of this vertical separately. And... But the marketing people are already included separately. So when can we see based on whatever team we are building, so there's obviously a lead time when they go to market and position our facility, our capability. So when do you incrementally start seeing order booking?

32:13 Mean, which quarters we can hear three quarters from now, four quarters from now that inquiries and order bookings have started? All right. So just to tell you, it has already started. And just to tell you that we had recently won a business in non auto segment and... Which is for expect facility for for data servers. Now this is a business which is going to be starting from India, but it will be soon going globally to all parts of the world. We have not announced the potential of this business because there are some formalities which are still due with the customers to be signed up. But this has already started. That's number one. Number two, we are already doing some businesses in the defense segment, which is a nonautomotive segment.

33:06 And this business, RFQs, we are continuously handling and attending to. And very recently... And I think I should have included in my speech, very recently, we have also got into the sector segment. And we have got the first ever business in the sector segment for a cylinder head, which will be going to the largest structure manufacturer of the world. And there is a chief... Just to also maybe tell you, generally, in practice, this product is traditionally a cast iron product, but customers are now exploring the aluminum options, and we are the first one in the world to be able to give them this solution, and we've already won a business. This business currently looks small, but it has a huge potential because eventually, this is a future and it will be replacing cast iron cylinder heads and tractors in time to come.

33:58 So these are some of the things which I did not explain in the meet, but I can tell you that these will... These are add ons which will be adding up to the order books in time to come. So, yes, right now, it's 2%. This looks slow, but this number will begin to change by end of this year to be... To give a precise answer to you. Sorry. Just to clarify, the first thing you spoke about is HVAC, is it? No. See, what happens is in the in the global data centers, what happens nowadays, big companies like Amazon or Danfoss, they build huge global data centers where they use HVAC to completely cool the facilities. When HVACs are used to cool the facilities, then there are a lot of consumptions of compressors and the related housing systems from aluminum.

34:46 Now this is a segment which was never untapped or untouched, and this is where we have got a business from a global company to begin with for India. And then the same part will be used in various locations in North America as well as in Europe. So this is housing part of it? This is the... Actually, because we are basically the aluminum experts and technology in aluminum. So we will be doing the aluminum housings for this compressor, which are using... Going to be using fuel. This will be a nonautomotive segment for us, industrial. Okay. I have two small questions, Mohit. The second is, is it possible to share tonnage for domestic and European business, which we did last year and on this particular quarter? And third is for our European businesses, what are our fixed costs? Thank you.

35:38 See, I think if you're talking about tonnage, just allow me a few seconds. We had done approximately 9,000 tonnes in the last quarter. Let me just tell you precisely. This is stand alone? Yes. No, no. This is on the consolidated basis. Let me just have a look. 100 minus. 100 minus. So so the the tonnage in in our European facility is very less. So it is... If if I say we have done 9,124 tons, only 150 to 200 ton is what we do in Europe. So it is very miniscule at this point of time. Right. So that means everything is basically the stand alone basis.

36:25 And if you ask me how much tonnage we did last quarter or last year, I don't know. But if you talk about last quarter, so we have done close to 1% higher than this compared to the last quarter. While our sales growth, you can see, is much more than that, we have shifted to some high value addition parts and high revenue parts, which this is why even on a on a quite similar tonnage, our revenues are looking much better. Understood. And similarly, FY 'twenty six, what tonnage we did for stand alone? FY 'twenty six stand alone. See, that's what I'm saying. The tonnage was around 9,000 tonnes in the quarter one, which we have done nine thousand one twenty four ton in quarter one of this financial year. So this is a 124 tons higher as compared to the last year.

37:14 But last year, the tonnage was higher in the European operations. So I I have... So so... But 100 ton is only a differential which is coming because of the European operations. So tonnage by... It is a little ahead of the last financial year. Last quarter, sorry, not last financial, last quarter. Yeah. I understood that. I was asking about the entire FY '26. Okay. Just give me a moment. I'll just come back to you in a minute. My team is just looking at the last year data. Just allow me to tell you why I couldn't No problem. You can take next question. While you are answering other participants' questions, you can answer this. Sure, I'll do that for sure. Thanks a lot and all the very best. Thank you.

38:34 Thank you. We take the next question from the line of Bhavya Doshi from Fushil Finance. Please go ahead. Hi. Thank you for this opportunity. So my first question is, the first quarter had 17% volume growth. And your comments said you guided about 10% to 12 growth. So are we going to see volume growth slowdown in the further quarters? I'll just correct. I think I didn't say 10 to 12%. I said 12 to 15%. Okay. So... Yeah. 1717% is what we have achieved. And overall, 12 to 15%. So so thing is, right, still we are not out of the complete volatility.

39:20 We have to watch quarter by quarter. We will be very happy to do more, but this is something which I can tell is clearly visible to us at this point of time. But there's no clear reason why there should be a slowdown as of now. Okay. My next question is how is the standard standard order procedure shaping up for new projects? And what are the expected order wins for the rest of the year? So I think all the businesses which we have acquired, they are well on course on development. There is a complete process they follow till the time they reach the market. We are already aware that our new capacities are coming up, and we expect our SOP in those facilities to come back by March 2027, which would be within six months of acquiring the plant.

40:12 And most of the order books, which we have already booked with the customers, they're all going to be going from the new facility. So they're all on track. And if you talk about the the order book for the rest of the year, I think it is quite similar to the acquisitions which we have done in the previous quarter. I've already let you know how much did we acquire in the last quarter, and we see absolutely a similar growth pattern in the rest of the quarters as well. Okay. And so the margin for q one was 9%, while for FY twenty six was 11%. You said there'll be a margin improvement. So will it be compared to FY '26 or this quarter? No.

40:59 This quarter, we have the margin of 9.5% against 11.4% for the last year, but I will also explain that if we the adjusted margin is 11.4% for this quarter when we remove the impact of the aluminum. Okay. So the margin improvement will be in general, right? Yes. Like, it will be 12%. You said 1% improvement. Yes. In this year, we are expecting to improve by 1%. Okay. And my last question is, so you said new plant where you're doing INR 125 crores of CapEx will generate 500 crores annual revenue. Did I did I hear that right? Yeah. You got that right.

41:46 Okay. Four years five years of time. That's right. Okay. Thank you so much. All right. So before we go to the next question, just to answer to the question which was asked before this on the total tonnage of the last financial year, it was 34,000 kgs. Sorry. Sorry. Yeah. We take the next question from the line of Ridesh Ram Gandhi from Discover Capital. Just had a few questions. Firstly, was if you can update us on the latest JLREV expectations on when we see the orders hitting our revenues?

42:32 Alright. So I think it's an interesting question, and I can clearly understand why. I see the JLR EV dispatches and consumptions have already started. So this vehicle, I think, is already due to be launched very, very soon. And the the consumption, the productions have already started in JLR. And currently, we are expected to supply them at a rate of 600. 600 sets per per week. And we already have an indication from JLR that these numbers could further increase from January 2027, and I cannot reveal those numbers because of our confidentiality with the JLR. But I can only tell you that this consumption has started. And next financial... Next year onwards, these numbers are going to further increase.

43:22 Right. And, Aditi, this has started, it's already reflecting in the first quarter, or it will reflect from q two also? It is very marginally very marginally reflecting in the first quarter. They have not completely peaked, but we expect them to peak after by by quarter three of this calendar year. Got it. So the other question was, obviously, in our revenue growth, there is an element of aluminum price increases. So while the revenue is higher, obviously, margins would be lower, but absolute EBITDA, hopefully, would be higher. So if we adjust for effectively the aluminum price increases, what is actual growth in Q1 bids? So I think I did explain while I was talking. The actual growth neutralizing the impact of aluminum was around 17%.

44:14 And Start And if you really... And and on the stand alone business, if you see, then this growth was actually 22%, which is adjusting the aluminum impact. Got it. Sir, and then is there any lag impact of the price increases in terms of that we expect the increases to be passed on, the cost IT higher profitability as lag effect catches up or is that all or is it immediate pass on of pricing? See, actually, just to tell you, during the inflations and the the prices and they went up, some of the largest companies and OEMs of the country, they made it online.

45:04 So while there used to be a lag of a quarter, but they they made it to be back to back from April 1. So as as we are sitting end of the quarter, there is no... Nothing which is which is going to be impacting us in future as compared to what we have already shown. Aluminum. That's right. Got it. And and there's obviously been a increase in freight prices as well. You know? So is that also impacting us? Are we able to go pass that on as well? So so generally, are two models in which we operate. In some of the models where the freight prices are substantially high, some of the OEMs pick up the material from our place and then take it, so it doesn't affect us. But it does affect in rest of the cases, and these are the cases which are already in discussion with the customer as a part of all the increases.

46:03 And as we've already said, some increases are already accounted for, which we have already got a confirmation, but some are in discussion, which we should be able to conclude in this quarter. Got it. Got it. Sir... And, you know, you had indicated that this this product, quality data centers, we are in early stages of evaluating. How large could potentially this overall market be? Is it reasonably large in terms of size and can sort of have a material impact on the business or is it a sort of small industry? See, we started with India and they've already confirmed in the next two quarter, they're going to open up the Europe market and thereafter, the Mexico.

46:51 So this is just to start with one customer, but we have done our survey, and we see a great potential. I mean, there are near about seven to eight such aluminum parts which we can name, and also we've listed down various other customers which we can tap. So we have considered this as a special project, seeing the futuristic growth expansion, and that we are going to watch. It. Got it. And and in terms of capacity utilization, what levels are we at right now? So... Okay. See, currently, in this... The last quarter, we have reached close to a 100%. It's more than 90% for sure. And that's exactly the reason that we are now quickly setting up a new facility.

47:41 And maybe we have some more by end of this year, which we'll let you soon... Let you know soon. No. But just to understand, you know, if we are already close to full capacity utilization, you know, our revenue and profitability is not sort of reflecting an extremely attractive ROCE, you know. So is it that as this capacity gets full, we moved into higher end products. So how do you like look at that? Because if you're already full and yet our return ratios are not particularly attractive, I mean, then have we just sort of invested in the CapEx, which has not been particularly actually fruitful from a return perspective?

48:32 So I think it's a very, very fair question. See, if you would have already observed that in the last quarter, and even though our tonnages have not substantially increased over the previous time, our our value has substantially changed. There is clearly a change in the way we are acquiring the new businesses. Traditionally, for past many, many years, we have been mostly known as products only. But we were not not into a high value game. But I think this is very clear that all the acquisitions which we are doing since at least last one year are only into high value propositions only, and that is why it is changing very fast. I've already said that we are relooking at all of our customer portfolios. We are freeing the capacities. We will free up some more capacities in next two quarters, and we will allocate it to the higher value products. And all those things are in plan to really make sure that ROCE improves from there onwards.

49:28 Got it. So if if if I understand this because utilization levels were low, you took orders, which which may not have been particularly good. Now as utilization has increased, you're looking to reallocate your capacity to products, which will give us higher profitability and margin as well. See, this is not true. See, if you look at automotive industry, and if you really look at two wheeler CV and PV segments, any company, any automotive whose company who is operating in these three segments have different margins expectations on these segments. While two wheeler is a high volume market, which is mostly commoditized, you generally don't find very high margins in this product. As I've said that Alicon began with two wheeler. For many, many years, we we were there. But also to tell you that we have intentionally reduced our market share in two wheeler segment by one to 2%.

50:27 And this is basically because we want to allocate the capacities now for higher value products. Yes. We have some very, very critical and very valuable customers with us. We will stick with them forever. But definitely, this is not a segment where we are planning to grow. And this is not a segment we are really going aggressively to acquire new businesses. So so that's the reason I think we have to, again, relook... We are actually relooking at our... The existing capacities, freeing up the capacities, which really we want to get it off, and then finally adding higher value businesses. But it's a it's a it's a it's a business process. We we started with two wheeler, then we went to passenger cars, then we went to Blue Sports, and now we are also going to industrial and defense. Now this is completely the way Alicon has worked so far, and it will be completely changing the way of working in future as well.

51:19 Got it. So then... See, because, you know, if we, like, if we, like, look at it, right, in in in terms of even if we annualize Q1, your ROCs are still sort of in very, very low double digits, right? Or or so you would expect that to sort of inch towards... Let me just wanted to understand in terms of, like, CapEx, what is your internal threshold in terms of the payback period or or steady state ROC? How do you how do you look at it? See, there are few things. See, once I said that we are in the process of freeing up some capacities, I think we need to also understand that we don't tell a customer that we don't supply them tomorrow. There is always a process of of handover and changeover, and which takes which takes some time. It takes some six to eight months of time, but we have already initiated that at number one.

52:24 When you talk about the paybacks on the CapExes, generally, in our kind of setup, the paybacks are generally typically three to four years, which is quite quite impressive. And I can only tell you that ROC, which, yes, today does not look so impressive, but this definitely is on a increasing trend, and it will it will soon come into a very desirable number. Importantly, in the ROC, one one more issue, we have to understand that some businesses where we are bleeding, like when we are talking about the JLR. So we have put up the investments, and those are not being... We are not able to order us. So there is a delay in the SOP. So those areas where investments are there, but there is no return or even we are in the losses. So those are going to be turnaround in this year. That's what we are talking about. And I think I think if you only look at numbers, the last financial year, our ROC was as low as 10.7%, which already is looking at 15% by only minor tweaks which we are done in the business process.

53:31 So so this is definitely very rewarding, and I think it should fall in place soon. Soon. Got it, sir. Extremely promising. Thank you so much. Thank you. Thank you. We take the next question from the line of from Capital. Please go ahead. Hello. Thank you for the opportunity. My question was on the new plant, which you are building in Pune. Can you give some idea on the time line and the capacity of the new project that you are doing, 125 crores project? So the time lines, we are taking the position of the factory on September 1 this year. It's already a built up factory, which is a 135,000 square feet.

54:26 Location from our existing factory in Shikrapur, it is five kilometers away on the main road. So it's a very, very nicely located place. In terms of timelines, we are looking for going in SOP into this factory by March 2027 or just towards the end of the financial year. And in terms of capacity, as I've said, we are looking for generating a revenue of around 500 crores in this factory, but but this is this is something which can also go up little bit more. But the the investments what we are making today can generate revenue of 500 crores on this facility. Okay. So are you planning to ramp it?

55:11 Okay. Okay. Sure. Sure. Please go ahead. Yeah. Are you planning to ramp it up as as slowly as the orders come up here, or you already have the orders and you are planning to directly start it? So as of now as of now, every single business which we will do in this factory, we have already committed order. So so we are not we are not going to be looking for new orders to come into this factory. But but the question is for the future growth, we will be making further investments, which we will inform you soon. Okay. So as you said, your tonnage capacity... The tonnage for FY '26 was 34,000. So can you give a tonnage capacity similar for your new plant?

55:59 How how much tonnage? So, usually, whenever we put up a new factory, we make sure that we at least have a tonnage capacity of 3,000 tons. So Okay. And if you're talking about this factory in... Which we are in discussion, this could be having a much higher tonnage capacities. And we are we are looking for at least to gradually go up. But to begin with, we will start with the... With 3,000 and this will go 7,000 tons in time to go. Okay. 3,000 to 7,000 max. That's that's right. Yeah. Yes. And one more question. On your onetime expenses, which you occurred last last time, are you expecting any such onetime expenses going ahead?

56:48 At this moment, we don't see anything, but it can happen in the business. As of now, there's no such visibility of this kind of actions to be required. Okay, sir. Thank you. Thank you. We take the next question from the line of Ramesh from SJ Investments. Please go ahead. Hi, I'm audible. Thank you for the opportunity. Yeah. You're audible. Hello? Yes, sir. Yeah. You are. Yes, sir. It's impressive that what the company is going on realizing that some things might not working out. Could you explain... You mentioned that order book execution this time is a lot more concrete than last time because for the last few years also, you mentioned a concrete order book, which has not materialized.

57:36 Could you explain what exactly changing from then versus now? Because this order book discussion has been happening for many quarters, but it has not materialized meaningfully over the last few years either in margins or anything. Could you just tell what is exactly changing from then to now? Yes. If you... If I take you back maybe seven, eight years ago, because I think it was 1819, The second half of eighteen, nineteen when we noted the automotive numbers were declining. And that time, we noted that we need to aggressively work on the the numbers, and we came up with strategies to increase the penetration in other segments also. And even EV was a bus. So we have done extensively quite... I mean, we extensively added certain admin business in EV.

58:24 Unfortunately, EV, the way it was to be grown, it didn't happen. And that's the reason we got ahead. If you see projects like or few other customers also, the volumes have gone down or the SOP has extended. So there we got ahead. Also... So so... And also we try to look for critical complex parts just to give more value additions. So there we had a challenge, but now we have made a very clear strategy on which parts we can aim. For example, we are high with cylinder heads. Yeah. We are making cylinders since long over the years. We will approve the passenger commercial. Today, I supply 1,000,000 cylinders for the passenger vehicle, and and we also notice the ice or the hybrid engines, the volumes is going to increase. So with that focus, we're aiming such customers.

59:24 And that's the reason now we are quite confident. The realization what we are talking on such component because these regular ice components and even the validation period of such components is on a lesser time compared to the critical complex EV. Because if I talk about EV, for example, I'm supplying to a tier one company. They have a validation period. Then even the end customer has a validation period. So on such scenarios, I see a quick realization with the current order books. So, basically, so you mentioned that EV... Because EV bet has not worked out completely, you're going back to traditional, whereas ICE vehicles itself. Yeah. So... And the lead time for EV was much higher. See, it's not only the way... The the vehicle itself, but even as a component.

1:00:10 I think you... I think since you are already follow... Following us, you would know that EXL, which we have developed for a largest OEM in UK, It went through a development time itself for two to three years time, which is not generally a lead time for a product what we can initially do. So these are high new technology products, not only for us, also for the OEMs. And most of the high technology businesses which we have won in last two two to three years of time, they had much, much larger development period as compared to the traditional products. But what... The way we are should... Where we are showing the growth now, they are most of the traditional products and the customers there, we have not been there. They have contributed very quickly to our sales growth, which is a very positive thing, but we'll continue our work on EV and hybrid so that... Because this is future. So we want to be ready at the moment the demand picks up. And that's the reason maybe we are not able to show a lot of order commitments being fulfilled in the past as compared to what you are imagining of. You can witness it now.

1:01:11 Understood, sir. You mentioned the internal order book, sir. Could you give a bifurcation of between electric vehicles versus, let's say, ICE and hybrid? Like, how is the overall split? In the spy, the electric vehicle is around 16%, and hybrid is around 12%. And the remaining is ICE plus two wheelers. Is it, sir? Yes. Remaining is... And also we are aiming in segment cost structure. So this is the area which is common to BIs, EV, or hybrid engine. So that also is contributing to me about 10%. Understood, sir. Sir, I have one more thing. In... Just to understand the developmental cost process. So over the last few years, we spent hundreds of crores. Most of our internal accruals went into development. So could you explain what exactly went into development? Because our capacity hasn't increased meaningfully, but there has been a huge expense that has happened over the few years...

1:02:08 Last few years. Could you explain where did that money exactly go to just get an understanding of... Because last few years, we've spent meaningfully. Just trying to understand where has that went? So we're going to spend we bring the new parts. So for that, till the... When we go for the feedback, we have to spend a lot of testings and kind of Also, new parts, whatever we are adding, now this is highly critical, fully full machine solution part which we're aiming, which calls for a specific investment come with respect to the product of that part. Unlike previously, if you see, we are more into two wheelers where the the opportunity or the scope for us was only for our cost or a very limited machining.

1:02:57 But here, we are talking about going to end to end solution where customers can use such parts in their assembly directly. Those are the critical parts where we have to allocate our capacities as well as that and spend a lot of money on that. Additionally, these are bigger parts, bigger in weight, bigger in sizes, which calls for a specific bigger size of machines. Because, yes, we were doing doing traditionally, we say, components near about, say... I mean, the maximum what we are covering, taking care initially was, say, 12 to 15 kg, which we have now increased to even 28 to 30 kg. So this is high or the weight or the bed size of such pass. It's calls for the new investments. So that's the reason such development cost has increased.

1:03:44 So so basically, all the money that has spent last year is we had to change overall all the machines. Even though the capacity hasn't changed because the size of each part you're changing, you had to change... Almost change all the machinery, is it? Yes. Yeah. We have to allocate this capacity as well as the complete dedicated team is working there. So all these costs, we have to incur. Sir, sir, during these development costs, how much is, let's say, tangible versus intangible assets that we'll be spending? And when I refer to intangible, is it the employee cost plus testing versus, let's say, the missionary? In the intangible, that, I think, maybe in the last year. I don't know the exact figure. Maybe it's 20 crores or like that. So quarterly, $34.02...

1:04:29 3 to 5 crores we are spending on this because all new critical parts and dedicated team is there. So, like, special alloys, and then those alloys, generally, we are not able to reuse. So such type of expenses are there. Got it, sir. So as of now on, we have mentioned that the clear trajectory towards going towards passenger vehicles, but we had a lot of plans in non auto also. And I understand the data center plan is coming processed, but it won't con... In a roll or pie. It won't contribute meaningfully. So are we actively digressing from non auto diversification, or how is it right now? How are we looking at it? So we so we have just started this process only seven to eight months back. I already... I think that we have a headway in this direction. We have an OT.

1:05:16 This is begin to show some positive results by end of this this financial year. And, definitely, this will grow from next year onwards. So I won't say that we want to dig this from automotive, but I would say that we want to increase automotive to change the pie. Because automotive is something which is which is still a very, very dominant and prominent part of Alicon growth and should always be in the same. But but, yes, we want to increase our industrial presence so that pie changes. The only reason I asked is because in the past, we had, like, as high as a quarter of the revenue expected to come from non auto. But now as it's low single digits, so do we expect it to be in this range for the next few years, or do we wanted to get to back our old guidance of getting it to that high percentages of contribution?

1:06:04 So that's clearly still an aspiration. There is no change to that. But, yes, I think as of now, I am not saying that we are reaching our aspiration in immediate one year of time or one and a years of time. But I can at least tell you that, yes, next... By end of next financial year, definitely, this pie will positively change towards the aspiration numbers, but not actually reaching there completely. Got it, sir. So I'm just trying to understand the competitive intensity because at least that aluminum die casting capacity has increased substantially in the country. And I understand Alicon has special expertise that other people don't have. But are we placing any competitive pressure because automotive industry is notorious for beating down on prices, especially with its suppliers? So how was that in two wheeler versus four wheeler right now?

1:06:52 And So or how do we expect to change? So I think this situation has been there for last twenty, thirty years. It has not changed. I can only tell you without naming any of the of the of the customers or the suppliers that a lot of new acquisitions which we have recently done in some of the Indian OEMs were mainly not completely new development, but they were immediate transfer of rulings from them to us because of our special ability to do these products who nobody else can do. So so once once you have some differentiation on for your technology or know how, generally, you don't fight into the same league as anybody else. As of now, I can only tell you that that in Alicon, we are not price... Fighting on the prices. And even the customers know that this technology is so critical that you you may you may own similar machines, but not everybody will do the products the same way.

1:07:47 So... But, yeah, and this pressure has been there always. It is not now. It has been there. Yes. Their competition is increasing. We cannot sit idle. We cannot be consistent 100%. But at the same time, we are continuously working to also upgrade our process technology, our r and d, our tool tool know how so that we continue to stay above the competition when it comes to the technology. So... And this is how it's going to be. Understood, sir. So I think in the past, specific customer also. That's not it. That's... Okay. I'll be. Just trying to understand, okay, in terms of margins, we had... In the prior to 2020, we had margins 11 to 12%. But since we are doing these critical components and moving to four wheeler vehicles and passenger vehicles, do we expect it to go to that 14%, 15% mark, sir, or... Because... Especially because we're doing machining and remaining tooling also. Do we think that's a possibility?

1:08:42 See, there is no reason I would say that there is no such possibility. Yes. There is a possibility. And I can all... I can only tell you that these are some of the expiration numbers the team is working hard towards. That's a... Is it going to be in the next few years, or would it take longer than that? See see, it's difficult to answer this question immediately to you, but I can tell you that we are working exclusively in that direction, and we would love to do newer things to make sure that this number does not only remain in our aspirations. Understood, sir. Sir, could you just give a pause? Just trying to understand how different is the two wheeler versus non two passenger vehicles thing. So in terms of margins, how will it be very compared compared... Different compared to the two wheelers versus four The the products in four wheeler are much higher in weight. They are more critical to produce, and they are they are... The circuits go higher rejections if you don't have the right process.

1:09:42 These are bigger machines. So as the machine sizes go up, the criticality of the product goes up. And if the criticality of product goes up, the value additions also go up. And that's the main difference between the two wheeler and the four wheeler parts. So even though we mistake that we make a cylinder head for a two wheeler bike or we make a cylinder head for a for a car, there is no comparison. Neither on the size of the machine nor on the kind of the process nor on the metallurgy of the material. Everything is different. And that is how the value additions on PV side is always much higher. You can imagine a two kg product versus a 14 kg product going on a machine, and if you don't do it right, then it is all rejected and goes back to melting. And that is how the value additions are higher on PV side. Got it, sir. And rejections is our responsibility, sir? Or once the dispatch happens, it's the OEM's responsibility. How does it work? See, usually, there are all types of charges.

1:10:37 See, most of the cases... And that's an industry norm. I'm not only talking about Alicon. If you're if you're sending a CV finished product and the defects are found during the finishing of the product, which is related to the costing, it's the responsibility of the supplier. But if there is a defect which is generated by the person who is doing the finishing, it is their responsibility, and this is how it happens. But that's pretty common for any automotive component. There's nothing different for for our products. Of course. I understood. Sir, just trying to understand machining wise, in the passenger vehicles, what percentage of our tonnage that we supply to the customer? How much of it's machine versus nonmachined?. At this moment, this is in tune to 65 to 70%.

1:11:31 Okay, sir. And this ratio will remain more or less the same, sir, as as we scale? Or it'll be more... We can go towards. No. This threshold is gonna change, definitely. This number is going to increase. And now these are some of the plans that we will also share with you in the upcoming meeting. We are going to be also investing on in house machining as time comes... As time goes.. Got it, sir. Sir, you mentioned regarding the team. Right? So you mentioned that you made a lot of strategically hires and some things. So I was just trying to understand what was it different before? Was it the fact that you were understaffed in marketing or something like that, or it was just that the drive was not there with the previous staff?

1:12:18 Yeah. It is not it is not fair for me to talk about something which was there in the past. I can only tell you that the way I'm trying to structure it is basically to make sure that we are quite ready for much, much higher growth and returns in future. So maybe this this was not the way it was handled in the past, but I don't want to comment on that because that is past. But I can only tell you that the way organization is structured now, this team is really ready to take much, much more higher challenges and growth rates in future. That's what I can tell you. Got it, sir. And sorry. Just one more script, sir, regarding the 8,000 crores. How much of it exports, let's say, non India revenue going to be versus India revenue? New business? Yeah. On the new business, exports is near about 40%.

1:13:13 Got it, sir. And how much of that 40 value would be with our international company versus domestically? I think this would be around 30% for the team exports. That is the the domestic one. Of of the total five year. Okay. Yeah. Got it. So do we have any plans of expanding our international plan? Because you mentioned that it's not that high capacity. Is it worth expanding, or is it worth changing? Like, how is it or is it worth completely because the gas price and everything changed economics forecasting there. Right? Just trying to understand if it would be a prudent to just remove the command fraction capacity there. See, if you if you look at our location, we are we are in Europe. Strategically, are at the best place in Europe.

1:14:02 So if you look at the the foundry situation in the entire Europe, the industry is not doing very well because of rampant change in the manpower prices and the power power power cost. But still strategically, where we are located in, which is in Slovakia, is still one of the best places for anybody to go and make investments. So I... I've already said that our target is to grow this company. We have put... Again, we have already enabled a lot of believers which will make sure that this plant grows. As the growth happens, we will definitely not shy away from making investments in Europe. But we are not looking at a second geographical location as of now. But is there potential that we can add add more capacity in existing locations, sir? Because 100100%.

1:14:51 Yes. There is still a place. We can do automations. We can also add more machines. There's completely... That's not a challenge for us. Got it, sir. And with regards to your NAND capacity, sir, you mentioned that we'll be spending to get a capacity of 10,000 tons more. That's, I think, around twenty twenty... Like, 20% of our extra capacity. But with the revenue trajectory we have planned, we'll need a lot more capacity. Right? So will it will it be, like, we'll more... Adding more automation, or will be further putting more and more plans? See, the automation is something which any any which phase we are doing. See, this plan for which you are bringing in will be quite different to the conventional plans of Alicon, where you will see more number of robots as you see in any of the other Alicon plants. And that... The flow of material is going to be completely streamlined. We will do most of the job in house.

1:15:42 So, yes, we don't want to really keep adding up plants unless rental is really justifiable. But this plant, which we are planning, is going to be a state of art facility where we will see the most modern way of manufacturing in terms whether it is costing or machining. But we'll be very mindful before making new investment for the new factory, and we are also planning automations in our existing locations to to increase the current capacities. So the new plant will be only an option once we are thoroughly convinced that we are absolutely exhausted. Understood, sir. So you mentioned in your presentation that the anticipated production schedule, you mentioned something in the crores... 1,600 crores by 2030 that you have planned.

1:16:29 So it wouldn't be on top of the existing revenues? See. Okay. Now I think that the number which is shared by, think it is already included in that, which is around $8,004.50 crores. It's already included in that. What I only mentioned is these are the very recent developments, which are either in the last quarter or slightly before that. So, sir, in terms of revenue, I will go. So what is the plan exactly? Because as far as I understand in the presentation, mentioned 600 gross, I'm assuming it's all new orders on top of the existing orders. Is that a right right assumption? So you're talking about my my speech when I spoke? No, sir. No. Sorry. I'm talking about the investor presentation. It it includes the recent past additions also, including last two... Last three to four years businesses of what we have added. It includes those also.

1:17:19 Okay. So in fact, by end of twenty. Yep. Got it, sir. So by 2030, we expect to almost double double our revenues. Correct, sir? Yep. Yep. That's the plan. Yep. That's right. Yeah. Got it. So doubling our revenues, but the capacity, you only have 20% in line. So just trying to understand, are there gonna be further lot more investments going in because potentially you're mentioning around Yes. I've already said that. I think you will listen more from us very soon. Yes. There are more investments that will happen for sure. Got it, sir. Understood. Thank you so much for your time, sir. It's been great talking to Thank you. Ladies and gentlemen, with that, we conclude the question and answer session.

1:18:07 I now hand the conference over to the management for their closing comments. All right. Thank you, everyone, for your questions and taking your time to join us today. We value your your dialogue and appreciate your continued interest in Alicon. And as we have discussed today, we see good opportunities ahead of us, but we also recognize that there's a lot of work to do. Our priority is to build on the progress we have made this quarter, strengthening our relationship with customers, improving our operations, and continuing to invest where we see clear opportunities for growth. Some of these initiatives will take time to translate fully into financial results, but we will remain focused on executing them well on time. We will also remain disciplined in how we deploy capital and most importantly, focused on improving the quality and profitability of our business.

1:18:57 We are encouraged by the progress we are seeing, and we remain confident in the opportunities ahead. We look forward to updating you on our progress in the coming coming quarters. And best wishes, and, happy independence to all of you in advance. Thank you. Thank you, sir. On behalf of Alicon Castalloy Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.