Krsnaa Diagnostics (NSE:KRSNAA) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Q2 and FH1 FY 'twenty seven Earnings Conference Call of Krsnaa Diagnostics. As a reminder, all participants will be in the listen only mode, and there will be an opportunity for you to ask question after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Ms. Shruti from Stella Investor Relations. Thank you, and over to you, Ms. Shruti. Thank you. Good afternoon, everyone, and thank you for joining us today for the q two and h one FY twenty seven earnings call. We have with us the senior management team of Krsnaa Diagnostics Limited, represented by mister Rajendra Mota, chairman and board time director mister Yash Mota, managing director mister Mitesh Dhavi, group chief executive officer mister Chandra Prakash, interim chief financial officer, and mister, head secretarial, legal, and compliance.

1:06 The management will be sharing the key operating and financial highlights for the quarter and half year ended 09/30/2026, followed by a question and answer session. Before we proceed with this call, I would like to mention that some of the statements made in today's call may be forward looking in nature and may involve risks and uncertainties. The company also undertakes no obligation to update any forward looking statements to reflect developments that occur after the statement is made. Documents relating to the company's financial performance, including the investor presentation, have been uploaded on the stock exchanges and the company's website. Trust you have been able to go through the same. With this, I now hand over the call to Mr. Yash. Thank you, and over to you, sir. Thank you, Krsnaa.

1:54 Good afternoon, everyone, and thank you for joining us today. I would like to begin with an important milestone in Krsnaa's journey. For the first time, Krsnaa Diagnostics has crossed INR 500 crores in revenue in the last six months, achieving INR $50.07 crores in H1 FY 'twenty seven. Despite the natural completion of certain contracts, Krsnaa has delivered an impressive 27 year on year growth. Had some of these contracts continued, our real growth would have been around 37%. This demonstrates the strength of our execution and more importantly, our ability to consistently create new growth opportunities that more than compensate for contracts completing their tenure. For me, this milestone is not simply about crossing a financial number.

2:47 It reflects the journey we have undertaken, the business we have built and the conviction with which we continue to move forward. Since our listing in 2021, in the last five years, Krsnaa has grown continuously, expanded its presence and strengthened its position in India's diagnostic sector. And we have achieved this despite the natural life cycle of our business, wherein certain government contracts complete their tenure, projects transition and new opportunities emerge. We have always believed that individual tenders do not define Krsnaa's growth. What defines us is our ability to continue to grow beyond the life cycle of any single contract. Contracts will commence, mature and eventually conclude and new opportunities will emerge.

3:37 That is the nature of our PPP business. But the infrastructure that we have built, the experience we have gained, the technology we have developed and the trust we have earned do not disappear with the completion of a particular contract. They became the foundation for our next opportunity, and I believe our performance over the years is a reflection of precisely that. We have been among the pioneers in successfully scaling diagnostic services through the public private partnership model in India. We've established statewide diagnostic networks within government hospitals, including in some of the remotest part of the country, where operating health care infrastructure is challenging and access to specialized diagnostics has traditionally been limited. And we have done this while offering services at substantially affordable prices, which are significantly lower than the prevailing market rates.

4:27 Think about this, what it means. We are making advanced diagnostic services available to the patients who might otherwise have to travel long distances, incur significantly lower than prevailing market rates sorry, incur significantly out of pocket expenses or delay essential investigations. We are bringing together three things that are often difficult to achieve simultaneously: accessibility, affordability and internationally benchmarked quality. I believe very few companies in India have built such an integrated platform at our scale. That is our differentiation, and that is what gives me confidence in Krsnaa's long term prospects. Moving on, as I mentioned in our previous earnings call, the implementation of large projects, particularly Rajasthan, could lead to some moderation in our EBITDA margins.

5:21 However, I'm pleased to mention that while we have seen this moderation, encouraged by the operating efficiencies that our teams have achieved, we have helped contain the impact even as our revenue base has expanded significantly. During the first half alone, we have generated livelihood opportunities for approximately 5,000 local people to support our expanding operations, particularly in Rajasthan. This naturally had an impact on our operating cost and our margins as the newly established networks continue to ramp up. What is encouraging is that despite this significant expansion in manpower and operations, we have been able to maintain healthy EBITDA margins through better resource utilization, cost discipline and operational efficiencies across our existing business. As the patient volume increases and newer projects mature, we expect to derive greater operating leverage from this expanded network.

6:13 Our focus remains on improving utilization, controlling cost and generating better returns for the infrastructure we have already established. Mitesh, our Group CEO, will elaborate on our operating performance and retail businesses, while Chandrar Pratash, our Interim CFO, will take you through the financial results in greater detail. I would also like to address an important area that has been a subject of discussion with our investors, our receivables. Our receivables have increased to approximately INR $4.72 crores as of September 30, primarily reflecting the expansion in our business as well as attributable to certain delays in fund allocation and payment disbursements from certain government authorities. We recognize that the collection cycle has extended and improving it remains one of our highest management priorities.

7:01 However, I would also like to share an important development. Based on our ongoing discussions and communications with respective authorities with various state governments, we currently have visibility on potential collections of around INR 200 crores during Q3. Our senior management teams continue to engage directly with the relevant authorities, and we are closely monitoring collections across all major projects. There is also an important shift in the business mix that I would like investors and the community to appreciate. Our strategic focus on increasing cash based revenues is already delivering encouraging results with a steadily rising cash contribution to our overall business. This reflects a deliberate management strategy driven by expansion of our retail operations as well as increasing focus on our cash based PPP projects.

7:48 By the end of FY 'twenty seven, we expect our cash based revenues to contribute almost 40% to 45% of the overall revenue mix aggregating to approximately INR 400 crores for a year, further strengthening cash flows and working capital efficiency. Continuing this strategy, we are actively pursuing additional cash PPP opportunities with some tenders currently in pipeline. We look forward to sharing further developments as these tender processes conclude and awards are finalized. We are, therefore, not only growing our business but progressively strengthening the cash generating characteristics of that group. There is an additional development that I would like to highlight. As promoters, we've always approached Krsnaa with a long term perspective. We understand the uponfits ahead, the investments required and the responsibilities that come with building a healthcare platform of this scale.

8:38 And when we look at our existing business, the projects under implementation, our pipeline of opportunities and the direction in which the diagnostic industry is evolving, our conviction in Krsnaa's long term potential remains strong. It is with this conviction that is reflected in the recent allotment of convertible warrants to our promoter group, representing a potential investment of approximately INR 92 crores. Of this, this INR 23 crores has already been contributed with the balance payable upon conversion of the warrants. I consider this as an important expression of our confidence in the business we have built and the opportunity that we see ahead. As promoters, we continue to back our long term vision with our own capital. Beyond diagnostics, we also see meaningful opportunities in the broader health care ecosystem through a strategic association with Apulke Healthcare.

9:24 I'm pleased to share that Apulke has commenced operations in its hospital in Pune, marking an important milestone in its journey as well as progress its hospital PPP initiatives across Boribli, PCMC, KDMC and the Chembore Govandi region of Mumbai. Together, these projects represent a hospital platform of approximately 2,000 beds. For Krsnaa, our core focus remains diagnostics, but at the same time, we believe our association with health care infrastructure platforms like ApulKey can create opportunities for greater integration, patient access and long term value creation. Looking ahead, as I look at Krsnaa today, I see a company entering an exciting new phase of growth. Our established network continues to grow. Newer projects are gaining momentum and opportunities in advanced diagnostics, specialized diagnostics, cash based PPPs, retail and our association with Aputi are opening new avenues for the future.

10:20 What gives me confidence is that not any single project, but the strength of the platform we have built and our ability to grow beyond individual contracts and the changing market conditions. For our shareholders, our focus is clear to translate our growing scale into stronger cash flows, improved returns on capital and sustainable long term value creation. With that, I now hand over to Mitesh to take you through the business developments. Over to you, Mitesh. Thank you, Mr. Yash. A very warm good afternoon to everyone. I would like to take you all through the key operational developments and our priorities for the coming quarters. Starting with our PPP and institutional business, Krsnaa has built an integrated diagnostic network across 19 states and union territories.

11:08 As of quarter two FY twenty twenty seven, our network comprised two fifty nine pathology laboratories, 196 CT and MRI centers and over 8,400 plus patient touch points. Our network now spans over three thirty four to six across the country with approximately 75% of our centers covering rural areas of India. This reflects the important role we play in extending access to quality diagnostics beyond major urban centers, particularly in underserved and remote geographies. With a strong infrastructure base in place, our focus is now shifting towards improving utilization, increasing patient volumes and strengthening operational efficiencies across the network.

11:58 Over the coming quarters, we will focus on stabilizing newly operationalized projects, improving the productivity of existing centers and ensuring consistent service quality as volumes get up. Moving to radiology. As of quarter two FY 'twenty seven, our 196 CT and MRI centers were supported by a network of over three fifty radiologists and NavH accredited teleradiology capabilities for X-ray, CT, MRI. We will continue to focus on improving central utilization, reporting quality and turnaround times. Quality remains central to our operations. As of quarter two FY twenty twenty seven, we had 57 NABL accredited pathology labs and 75 NABH accredited radiology centers.

12:49 We remain committed to maintaining consistent quality standards across our network. Talking about retail, I'm pleased to share that momentum of building network, revenue generation from network and integrated diagnostic services through the unique initiatives has helped RPL to register quarter on quarter strong and robust growth momentum. The unique advantage and key operating leverage is that we can utilize our existing laboratories, pathologists, radiologists, logistics and technology to expand our reach directly to the consumer without having to build the entire infrastructure from the scratch. During quarter two FY 'twenty seven, our net revenue of around INR 23.5 crores, registering year on year growth of approximately 35%.

13:41 Patient volume has increased by 45%, while test volumes grew by 48%. Retail last year was approximately 9% of overall group revenue. During the quarter, we continued strengthening our consumer engagement through the wellness camps, digital marketing and improved center branding activities and further engaged 10,000 through conferences, webinars, meetings during quarter two FY twenty twenty seven and which is helping us in stellar and consistent growth quarter on quarter. We are also expanding our preventive healthcare and specialized test offering across areas such as cardiac care, oncology, metabolic health and obesity. Going forward, our focus will be on widening our partner network, improving patient experience, building stronger doctor relationships and increasing awareness of our retail services, while increasing retail's contribution to our overall business.

14:42 Beyond our existing portfolio, our entry into specialized PET CT diagnostics through the PPP route is an important milestone and step towards expanding our capabilities in specialized diagnostics. We are also leveraging digital platforms, data analytics and automation to improve operational coordination and enhance the overall patient experience. To summarize, our priorities for the coming quarters are to improve utilization across our PPP network, stabilize and scale new projects, send an and expand our specialized diagnostic capabilities, while maintaining high standards of quality and operational efficiency. With that, I would now request our Interim CFO, Mr. Chandravakash to take you through the financial performance of quarter two and H1 FY twenty twenty seven. Over to you, Mr. Krsnaa.

15:42 Thank you, Mr. Mitesh, and good afternoon, everyone. I will now take you through the financial performance of the company for Q2 and H1 FY twenty twenty seven respectively. Starting with our consolidated Q2 FY twenty twenty seven performance, revenue from operations stood at INR271 crore compared with INR206 crore in Q2 FY twenty twenty six, registering a year on year growth of 32%. This is our highest ever quarterly revenue, which reflects the contribution from newly operationalized projects, continued growth in our existing business and expanding retail network. EBITDA before CSR and ESOP expenses stood at INR72 crore compared with INR60 crore last year, registering growth of approximately 20%.

16:37 EBITDA margin stood at 27% compared with 29% in Q2 FY twenty twenty six. After CSR and ESOP expenses, EBITDA stood at INR 71 crore with a margin of approximately 26%. Profit after tax stood at INR 25 crore compared with INR 24 crore in corresponding quarter, registering a growth of approximately 3%. The PAT margin stood at 9%. While revenue and EBITDA have grown, profitability is impacted temporarily due to upfront operating costs associated with recently implemented projects. Along with higher depreciation and finance costs. As these projects mature and utilization improves, we expect to derive better operating leverage from the infrastructure created.

17:31 Now coming to H1 FY twenty twenty seven, revenue from operations stood at INR507 crores compared with INR399 crores in H1 FY twenty twenty six, reflecting a growth of approximately 27%. Our growth is increasingly being driven by multiple business segments, reducing our dependence on any single project and providing a more diversified and sustainable growth base. EBITDA before CSR and ESO of expenses stood at INR 131 crore compared with INR 113 crore last year, registering a growth of approximately 16%. The EBITDA margin for H1 twenty six, twenty seven stood at 26% compared with 28% of last year.

18:23 PAT for the first half stood at INR41 crore compared with INR45 crore in corresponding period last year with a PAT margin of approximately 8%. The moderation in profitability was primarily due to upfront operating cost, higher depreciation and finance cost associated with our expanded network. To conclude, H1 FY twenty twenty seven reflects healthy revenue growth and an expansion in our operating scale. Our focus going forward will be on improving asset utilization, maintaining financial discipline, managing working capital and translating our infrastructure investment into stronger profitability and cash generation. We thank our investors and analysts for their continued confidence and support.

19:11 With that, I will hand over to the moderator to open the floor for question and answer. Thank you. Thank you. We will now begin the question and answer session. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all the participants, please restrict yourself to two questions. So the first question comes from the line of from Capital.

19:56 Please go ahead. Hi. Good afternoon, everyone. So my first question is, you know, if you can call out the Rajasthan revenue for the quarter. And, also, in terms of operating cost and depreciation, have you kind of taken the entire thing now, you know, it's passing through PNN or if there's more to come going forward? And are we on course to do $2.50 crore at least on a run rate basis from Rajasthan by Q4? Sorry, there were three questions, if I understood. First question was with regards to Rajasthan revenues. So Rajasthan is in the ramp up phase. In terms of the specific project revenues, we'll share those details offline.

20:46 What was the second question on depreciation and amortization, please? If you can repeat that. So if the I think these are kind of going through a cost based setup for Rajasthan entire operation. So is that already kind of passing through P and L? Or is there any additional operating cost which is likely to come? And if also complete depreciation kind of part of the P and L today? Yes. So I think on the cost base, majority cost has already come from the P and L. What will be there is only to an extent the incremental cost for certain manpower and consumables as the revenue ramp up happens. As regards to depreciation, I think majority of the depreciation has already come into the books.

21:32 There's some since some of the sites are yet to be completed in terms of the lab deployments and the collection centers, there's been additional depreciation. But again, as I said, and I've been maintaining previously as well, we're trying to time both the revenue ramp up and the expenses to go in hand in hand. So there's no kind of a major dent on the P and L or the margins in the coming quarters as well. So this 27% margin that we did, the 2% that we saw, is it safe to assume that from here on, there will be uptick in margins since the revenue will ramp up and cost will not proportionately ramp up? Is that a fair way to look at it? Yes. Yes. We are also look... You know, looking forward to have an uptick in the margins going forward as well, and we'll try to, you know, maintain that position.

22:20 K. And $2.50 crores, Ragged, another question that Are we in close to what number? So are we are we expecting around... Yeah. Yeah. So we were expecting around $2.50 or crores from Rajasthan or... And then maybe higher also if everything played out according to plan. So on Rajasthan an annualized has a potential to deliver those numbers, and we are working towards it. Will it likely to happen next year? Or by Q4 of this year, we'll let that INR 60 crore kind of a run rate? Any sense on that? Correct. So if you see, we have started the incrementing of Rajasthan in this year. Most of the revenue started coming from Q1.

23:08 So we see that number coming in the next year, but we'll try to achieve as much as possible during this year as well. On an annualized basis, majority, the number that we said will come in the full financial year for the next year. Okay. And on the receivables, I think talked about that there is already INR 200 crores kind of a visibility, and I think we are at $4.70 odd crores at September. So... And we have been kind of trying to reduce the receivable date for a long period of time. For some reason or the other, I think, you know, that number remains elevated. So what's the confidence level in this 200 odd crores? Because our balance sheet really looks stressed. It's not for the payable date, which has increased. So, you know, if you can give some more color to, you know Sure. The profitability.

23:59 Puneet, in terms of the receivables since we in the PPP business, as I said, if you take our receivables and reduce, first of all, the impact of Rajasthan because Rajasthan has started news of the billing process, which is a very standard feature of any PPP model. The invoicing and the payment process takes some time. If you take up with the Rajasthan, then the balance residual receivables are primarily which are overdue for a couple of states, not the entire model. All other states, including Assam, Odisha, for example, are paying on time. There are certain states like Maharashtra, Karnataka and Himachal Pradesh, which we mentioned, there are certain delays. Now the amount that I spoke about in terms of confidence because these are some of the confirmations we've seen on ground, coming from the government quarters directly, where some of the payments were supposed to hit our accounts even in the last couple of weeks due to some delays.

24:50 We are working. And as I said, the management's full priority is on recovering our deals. And we see this money to be collected in the Q3 with a very strong conviction and confidence based on certain confirmations and assurances that we received from various authorities. I think in this last I think whilst these collections in Q2 historically have been if you see even the trend, they are a bit on a higher side, but we are pushing the governments to see that our money gets collected by Q3. I have more questions, but I'll come back in queue. You. Thank you. The next question comes from the line of Surya Narayan Patra from Philip Capital India Private Limited.

25:43 My first question is on the test volume itself. We are seeing, obviously, on a Y o Y basis, there is a kind of strong growth. Similarly, on a sequential basis also, there is almost near doubling growth that we are seeing. And as a result of which, the revenue per test is also dropping like anything. More than 30% kind of a sequential drop. See, what is driving this volume number and as a result of which the revenue per test is also kind of getting dragged. Hi, Surya. Good morning. Mehta is your side. So revenue per test, as such, you can see the the way volumes are going, and it's mainly or it's one of the main reason is toward rather some projects getting operationalized, right? And certain radiology projects, which are in the pipeline and are in the ramping up phase. So it's a momentary relief. There's nothing much to do around. As in when the radiology projects will start getting into their stabilized state and Rajasthan projects getting into the little majority phase, the revenue per test will start increasing furthermore.

26:54 Okay. But okay, still I'm not able to kind of comprehend, sir. In fact, with the kind of volume growth that we seen in Rajasthan is yet to kind of foresee a full ramp up. So, hence, the volume impact would not have possibly come in. So then then sequential near doubling growth, whether it is coming from some ramp up in some other PPP contract or what is it? And my second point relating to this is that even for the revenue protest, if we consider the whether the Rajasthan project revenue per test is significantly low, and hence, our blended revenue per test is getting dragged.

27:45 Is that the reason? Yes. So Sujay, yes, this is right. Sujay, if I the question regarding there's an uptick in the volumes. The uptick in volumes is a combination of various factors. Like Mitesh also mentioned, it's a combination of both on the retail side as well as on the PPP side on the Rajasthan. And in terms of the price per test coming down, of course, since it's a blended combination blended price coming from PPP as well as the retail side, this is where you see the price per test coming down. Having said that, on the retail side, if you see both the volumes have increased because of various activations done by the retail team, whether it is ground level activations as well as increasing our channel network. And there also, we are seeing an uptick in both in volumes as well as on the price front as well. But on because the larger share of volumes comes overall from PP projects, you will see some repetition in the price point. But that's not Sorry, sir. Sorry, Your voice is breaking.

28:43 So it is... Whether it is 2,000,000 or it is for everybody, I don't know, but it is... The voice is breaking. Is it audible now? Am I clear? Yeah. Yeah. Yeah. It is clear now. Okay. So I was saying that if you see the volume have increased because it's a combination of both our PPP as well as the retail. There have been various activations on the retail front, which is also helping us on the volume front. On the PPP side, Rajasthan is also one of the key volume drivers. And the price that you saw that the price has lowered is also it's a blended price coming from a combination of PPP and retail. So on retail in some aspect, the price has increased. But on the PPP side, because it's a large project there because of the PPP prices that we offer in Rajasthan, so on a blended basis, you see price coming down.

29:32 But overall, directionally, both the volumes and business is growing. If you see, importantly, we have delivered almost 35% year on year growth, and that's how I would see a reflection of our business. Furthermore, to add, as I was mentioning, the way video projects are also ramping up, especially in Maharashtra and MRI projects and all. So as I said, it is more of a momentarily as in quarterly. In the coming quarters, you will see revenue per test will start again going up and rather it will surpass what we are currently at. Okay. But this test volume is the kind of now new normalized quarterly run rate? Yes. And this will continue to grow from here on. Okay. And my second question is on the cost side. See, whether any cost allocation changes that we have seen in the recent quarters? Because in the recent quarters, what we are seeing that there is a drop in the other expenses, whereas the fees to the hospital and the channel partners that is rising.

30:39 So what is the kind of a swing that we are seeing? Or what is driving this swing between the cost cost elements? Yes. So yes, so you rightly picked it up. What we've done is, as I said, in terms of various cost optimization measures, we have done across our consumable cost, reagents cost as well as on the employee cost. The fees to hospital and channel partners is a direct link to our Rajasthan revenues because there, as we mentioned earlier, in large PP projects, we work with our channel partners. So as and when these revenues ramp up happens, you also see corresponding increase in those line of expenses. But overall, if you see the EBITDA level and from a profit margin perspective, we've kept that intact through a combination of these levers. So it's not aberration or it is not something which is unusual.

31:28 It is only that because Rajasthan project most of these expenses are managed through our partners or the operations fully partners. And this is where you see the expenses increasing. And the trend will be more or less similar in these lines. Okay. Just one bookkeeping question, sir. Can you share the split between the radiology and pathology? And also the number of center that we would have achieved in RPL currently. Sure. We'll send the details offline to you. Sure. Okay. Thank you. The next question comes from the line of Ruchab from RBC Investment Manager LLP. Please go ahead.

32:15 Hi, sir. So if I heard it correctly, you mentioned that you want to increase the B2C project cash base VPPs to 40% of revenues by FY twenty seven. And so what is the current blended share of this as on date? So currently, the share is around 35% to 38. We will continue to maintain that. In fact, some of the recent PPP projects that we have added on, which are on cash as well, we expect that to increase. And overall, if you see by the year end, with the overall business also increasing, we'll try to have around 40% to 45% of cash based PPP projects contributing to overall mix. So this a new norm from the government? Or is it like selective we are pursuing such projects where the cash based PPP is a preferred way of of doing business for us?

33:03 So is there any change from our end or from the government tender side? Or No. No. It's a combination of both. Consciously, we are also kind of being selective about choosing certain cash based PPP projects, And there are certain governments which prefer the cash base because when they don't have certain government allocations, they are preferring the cash. So it's kind of working both ways. Incrementally, if the share of these projects go up, how do you see the impact of working capital and receivable and this sort of how is it different from the current earlier projects, which are not cash based from a one year perspective? Correct. So I think from a one year perspective, this is certainly a very positive development because with more cash coming in, the working capital requirements will also reduce. There'll be more cash to again use it for further investments and further requirements.

33:48 And this is also where we are trying to focus our efforts in terms of ramping up our cash with PPP projects. So from a GA perspective, can we take it to more than 60%? Is there a possibility? Or Yes. We are looking towards it. Our initial like you mentioned, initially, the aspiration was 50%, but we are also working furiously to improve it further. In fact, there will be certain announcements on certain PPP tenders, which are in pipeline, which are again cash based. And hopefully, we'll be announcing them very soon. Okay. And so you mentioned that we want to improve the ROCE targets. So primarily, apart from the including the B2C and the PPP cashless PPP, what other levers do we have? And what is the internal target for improving the ROCE? And how much can we the next two, three years, how much do we want to improve it to?

34:37 Yes. Again, that's a good question. As management, we are focused on improving our ROCEs. We have taken certain strategic decisions around that as well. If you see, we recently informed that we are looking at a sale leaseback model as well as the cash focusing on cash businesses will also help us improve the ROCE. And at the same time, from a margin perspective, we are trying to do a lot of cost optimization, which will further improve the bottom ends and therefore the ROCE. So there are multiple levers that we are working towards in terms of improving the ROCE. Of course, aspirations are to have it in double digit on the higher teens, and we're working towards it. Furthermore, what Mr. Yash has mentioned, we have already announced the getting the tender for HP City, 34 City machines for HP and the Pet City project for Punjab.

35:25 And both these projects are cash led. So having said that, that is the one strong lever apart from what Yasir has mentioned that we'll continue to drive it through for building on to the ROC part to it. Okay. In terms of margins in cash based and non cash based, margins are similar or is it higher in cash based? No. Margins are similar at a project level. However, when you look at it from a company level, of course, it adds to the margin because then the financing cost element kind of goes down. Okay. Okay, sir. Okay. Thank you. Thank you. The next question comes from the line of Deepak Ajmera from Elpro International Limited. Please go ahead. Hello, am I audible?

36:14 Yes, you're audible. Congrats on the good set of the numbers, sir. So my first question is for the next leg of growth, currently, we are doing great numbers from Rajasthan and other reasons. For the next leg of growth from FY 'twenty nine, what are the key levers will play a role in terms of growth? Yes. Thanks, Deepak. So Deepak, as I mentioned, currently, has a couple of levers that are in works. The first one is our new PPP projects. We recently won the PPP project for PET CT in Punjab, is which again a cash based project. Then there is the Himachal Pradesh 34 CT scans, which we announced.

37:01 These are, again, fifteen years plus tenders with a long term visibility of revenue. Then there are retail operations, which we are scaling up with a lot of activations happening on ground. The fourth lever is Apulki, where we have a strategic tie up. And as these hospitals are gearing up, they will also contribute to additional revenues to Krsnaa's Kiti. So we have multiple fronts through which we are looking forward to have growth coming in and predominantly majority of the growth coming from cash portion of this new business. Okay. And currently, if you can just by how the incremental revenue would come from the other reasons and these new projects versus the existing ones, if you can just highlight on this part. And also on the retail, how do you see the retail will grow in three, four years as we are seeing a good traction over there?

37:54 Yes. So with regards to the incremental business, since we've just kind of got these two tenders, and there are a couple of more tenders in the pipeline, the overall impact on the incremental business, we'll probably share in the coming quarters. As regards to retail, our aspirations are to grow retail into sizable. Like we mentioned, we want retail to be double digit in terms of the overall contribution to total revenues, and that is where we are working towards. And we are hoping and we're going to end the FY 2027 by the double digit contribution of the retail. And in coming two to three years' time, we are looking for around somewhere near to higher teens going towards 20 plus kind of a guidance in next two to three years' time with the multiple initiatives and the overall strategies that we have built on.

38:49 And on working capitals, there is what can be the sustainable working capitals we can see in these two, three years as we are we will grow with 20% of growth. And so how we're going to be managing this? Yes. So as I said, a combination of, first of all, collecting our dues as well as then with this cash PPPs, we are trying to bring back our working capital to the historical around ninety to one hundred days kind of limits. The next question comes from the line of Aditya Chhida from Incred Asset Management. So cables went from INR 63 crores to INR $2.30 crores.

39:38 This money owed to Rajasthan partners or equipment suppliers or regular suppliers? And second, on the test one growth, can you break that down into gross business growth growth from Rajasthan and if you are including retail within that also? Aditi, could you just repeat the second question, please? On the test volume growth, can you break that 85% growth? What how much came from the base business? How much from the Rajasthan? And if if you are including retail volumes also within that, it'd be helpful to understand the volume growth better. So Aditi, on the first part of the question, on the payable side, it's a combination of various both our trade creditors as well as some of our creditors towards the project enhancement and capital nature of these tables.

40:38 On the volume mix, those details we'll share with you offline. The next question comes from the line of Anil Gupta, who is an individual investor. Hello. Thank you for the opportunity. My question is regarding the Rajasthan tender. How much of that tender has been executed, say 75% or eighty percent and forty percent is yet to be executed kind of thing? If you can give a color to that? So on in terms of the implementation from the project perspective, the lab perspective, as per the tender conditions, almost majority of the labs have been implemented. There are some additional labs which the government have asked us to implement, and that implementation is currently going on.

41:39 Okay. But can you give a broad percentage in terms of how much percentage of the labs have been executed overall? 75% to 80% have been implemented. Okay. So my second question is regarding the retail business. Have we come to EBITDA positive in the retail business this quarter? Or we'll achieve it in the next quarter or by the end of the financial year? Can you give a color to that? Yes. With the way overall traction and the positive encouragement coming out from the market, We are operationally breakeven in the month of September, more or less. But however, it needs lots of brand and the marketing interventions for which it is required to create awareness, which we are doing and we'll continue doing that. At an overall level, we are hoping to be absolute breakeven with the marketing and the operational front both put together by quarter three and or early quarter four.

42:36 And we are exiting FY twenty twenty seven with the share positive EBITDA numbers for the retail front. Okay. Okay. Thank you. Thank you. Thank you. Ladies and gentlemen, that was the last question today. We have reached the end of question and answer session. I now hand the conference over to management for closing comments. Thanks, Siddharth. I hope you've answered all the questions. If there are any questions which remain unanswered, please reach out to our Investor Relationship teams. Thank you, Kurus, and wishing everyone a very happy Diwali. Thank you. Thank you.

43:23 On behalf of Krsnaa Diagnostics Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.