Kusumgar (NSE:KUSUMGAR) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Kusumgar Q1 FY 'twenty seven Conference Call hosted by MK Global Financial Services. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Harsh Mittal from MK Global Financial Services. Thank you, and over to you, sir. Thank you, Rajiv. Good morning, everyone. On behalf of Kusumgar, I would like to welcome all to Kusumgar's Q1 FY 'twenty seven earnings call.

0:47 Today on the call, we have with us the senior management team of Kusumgar, Mr. Ankur Kothari, the CEO Mr. Narendra Jain, the CPO and Mr. Ratan Jha, the CFO. Now without further ado, let me hand over the call to Mr. Ankur Kothari for his opening comments. Over to you, sir. Good morning, everyone. Thank you for joining us. On behalf of the Board of Directors and the entire Kusumgar family, I'd like to welcome all our shareholders, analysts and members of the investment community to our earnings call for the first quarter of financial year twenty twenty seven. This also happens to be our first call first investor call after becoming a publicly listed company. So we thank the investors for their trust and confidence that they have placed in us. I would also like to thank Harsh and MK Global for hosting today's call.

1:40 This is a proud moment for us. Kusumgar's listing on the exchanges is an important milestone in a journey that began several decades ago, but we see this listing not as a destination. It's the beginning of a much larger journey with a much larger ambition, and we are grateful for the trust and confidence the investment community has placed in us as we take this next step together. Since this is one of our first interactions with many of you in this format, I would like to take a few minutes to introduce Kusumgar and share what makes us a differentiated business. Kusumgar's work in engineered fabrics began in 1970, and the company as it exists today was formally incorporated in 1990. Around two thousand and nine, 'ten, we made a decisive shift into manufacturing at scale, marking a pivotal phase in our transformation into an engineered textiles company.

2:29 For a number of years, through FY 'seventeen to 'twenty, our revenue held steady. But over the last five to six years, we have grown approximately 7x to 8x, transforming from being a fabric supplier into a specialized engineering fabrics and aerospace and defense solutions company. Looking back over fiscal twenty twenty through fiscal twenty twenty six, our revenue grew at a compounded annual rate of approximately 35% and profit after tax grew significantly faster at above 70% over the same period, a reflection of both scale and improving profitability as our business mix shifted towards higher value military and aerospace work. We listed on the NSE and BSE on July fifteen this year, an important milestone as we begin this next charter as a public company.

3:17 Over the years, we have evolved from a trading company into an engineering textile manufacturer and today into a company with growing capabilities across military and aerospace fabrics and solutions. We see ourselves as a technology led company with deep roots in fabric science and material science chemistry. What do we do? Today, we operate across four reported market segments. First, aerospace and defense fabrics. These are performance fabrics engineered for the most demanding applications, including parachute canopies, technical clothing, specialty gear and other such applications where our core strength lies in polyamide and polyester film in technology and polyurethane chemistry, which the combination of these materials is critical for durability, strength to weight ratio, waterproofing, abrasion resistance, etcetera.

4:09 Second, aerospace and defense solutions. This is where we forward integrated from just being a fabric supplier into manufacturing and supplying complete integrated systems, including parachute systems, protective and camouflage solutions, rapid deployment solutions, etcetera. This has led to a shift up from our value chain from just being a material supplier to a solutions provider and has driven a large portion of our growth over the last several years. Third, industrial and automotive fabrics. This segment serves steady diversified demand across automotive and general industrial applications. It has been a part of our business for several decades, and it continues to remain an important part of our overall portfolio today, and we hope that this continues to grow steady as it has over the last several years.

4:58 Fourth, our outdoor and lifestyle fabrics, also sometimes called our activewear business. Here, we supply performance fabrics to global outdoor and activewear brands, an area where we work closely with international partners entering or expanding in the Indian market. This is a business that we started a few years ago and we have rapidly scaled up. There is a large underlying demand that this business can serve and which we are very excited about for the future. We are focused on driving growth across all four of these segments rather than concentrating our efforts on any single one. We have several organic opportunities to grow. We always remain open for partnerships, for collaborations, for tie ups, and that has also been a major part of how we have been able to grow so well over the last several years.

5:45 We have we work with a broad and long standing customer base across these segments built over several years. Let me also give you a sense of the operational scale behind these numbers. We operate seven manufacturing facilities, six in Gujarat and one in UP, spanning the full value chain from preparatory and weaving through dyeing, printing, finishing, coating, lamination and fabrication of certain specialized products. This vertically integrated setup gives us direct control over quality and delivery. Over decades of process knowledge and product development, we have built a portfolio of more than 1,000 unique fabric SKUs, each engineered for a specific application. As of March 26, we employed just over 2,000 people across manufacturing, engineering, product development, quality assurance and business operations, supported by a dedicated R and D team focused on pushing the technical frontiers in fiber science and chemistry.

6:38 Exports have become an increasingly important part of our stories, and we continue to see growth in our international markets as we deepen our global partnerships. But an important question that comes up in all investor communication and conversation is what is our moat, and why is our business hard to replicate? I think the most important part of is this is decades of technical know how built by our team, starting from our founders themselves. We have over four four and a half decades of accumulated expertise in engineer fabrics. These capabilities are they take a lot of time, involvement, R and D and material science expertise to build. For example, manufacturing zero porosity fabric for parachute applications where we are only one of two suppliers globally or fabrics rated for minus 50 degree climates where are very proud supplier to the Indian military.

7:37 We are also the only Indian manufacturer of Kevlar filament fabrics and one of the very few companies globally that can consistently manufacture fine denier fabrics from 25 GSMs and above. Second qualification barriers. Pretty much everything that we do requires extensive testing, validation and approval cycles, often taking years. Once we clear that bar with the customer, we become deeply embedded and switching costs for the customers becomes very high. This has been a cornerstone of our success and a philosophy of doing business that we continue to cherish and we'll keep building upon. Third, partnerships and know how that are difficult to replicate. We hold exclusive partnerships with several organizations, global leaders in their respective fields that give us access to IP, to know how, to relationships, licenses, etcetera.

8:30 And over a period of time, as we build long standing relationships with these global technology partners, our own foundation of knowledge keeps expanding, which keeps on feeding on itself. And fourth, co development in patients. Many of our products take over a decade to materialize, but once they do, they translate into long term sticky recurring business. This is not a business built for quick wins. It's built for durable, defensible partnerships. Now I'll hand over for a few minutes to Mr. Ratanja, our CFO, who will take you through our Q1 financial performance. So let me now walk you through our performance for the quarter. On a consolidated basis, revenue from operations stood at 247.2 crores compared to INR 122.5 crores in the same quarter last year. It was approximately 102% over a year.

9:24 This growth was primarily driven by execution of our Headed Brands Group contracts, which has scaled meaningfully during the quarter. On a sequential basis, revenue declined from INR 312.8 crores in Q4 FY 'twenty six to INR 247.2 crores in this quarter, a decline of roughly about 21. This is not a demand issue. Q4 'twenty six includes a concentrated push of export shipments that was expedited following the regulation of tariff related uncertainty into The U. S. Markets. Going forward, volume that would otherwise have occurred more evenly across the quarters. We view Q4 as the anomaly, not Q1, and expect revenue to normalize progressively throughout the year as our order books have decreased on a more even cadence.

10:12 EBITDA for the quarter was INR 75.9 crores as a margin of approximately 31% year on year basis. This represents a margin expansion of roughly 900 basis points from the 22% in Q1 FY 'twenty six, driven by a richer, higher margin product mix, including the ready parachute contacts. Sequentially, margin moderated from 41% in Q4 FY 'twenty six, largely reflecting lower operating leverage as revenue normalized of the elevated Q4 basis rather than any deterioration in underlying profitability. Profit after tax for the quarter was crores as a margin of approximately 17% compared to INR6.6 crores and 5% margin in Q1 FY 'twenty six. Our new product development pipeline continued to strengthen, and we are actively broadening our funnel across products, segments and geographies.

11:09 Thank you,. This is Ankur back here. Moving forward, I would like to sort of address something that is very directly with the investor community. As management, we would ideally prefer not to give you very detailed guidance on revenue or profitability for the future. This is primarily because there are a few structural uncertainties in our business that we genuinely do not have control over. Firstly, 90% of what we do is linked to long standing product approvals. When these approvals will come, when they will get commercialized is inherently uncertain. So beyond building for a few months, we really do not have great clarity of what the future holds at any point in time. Secondly, a meaningful portion of our business flows from government tenders, largely from the Indian military, but also from certain foreign military. These tenders and the business linked to them tend to have an inherent sense of unpredictability.

12:08 Over a longer time period, we have a reasonably very good sense of how we'll perform. Right? So over a few years, I have a very strong feeling around how much business would materialize from there. But when it does and what which quarter it would come is uncertain. So and thirdly, as a business, we have a global spread, both in terms of raw material sourcing and end customers. Impact of things like the last year's U. S. Tariffs and given the volatility around the world over the last few years, this is on while on an overall on balance, this has had a beneficial impact for our business. It does affect our numbers and it makes them unpredictable both from positive or a negative side.

12:56 I think lastly, we very are new company on the public markets. As a company as a philosophy, we would rather play it safe and not make promises that we may not be able to keep. Over time, as we gain more experience navigating these markets and we have done several quarters and we have developed a much better sense, and we have educated the investment community about how our business cycle moves. We expect the portion of our business also to become more predictable, and we hope to be able to guide you better as and when that happens. Of course, we remain committed to informing our investors and the broader community in general whenever there is anything materially significant that is happening in our business, which we shall be doing.

13:45 But in the larger present state of our business, we intend to stick to a policy of not providing formal forward looking guidance. With that, I would like to thank you all once again for your time and your trust in Kusumgar. We are happy to now take your questions. And I'll pass on the mic to our moderator. Thank you all for listening to us. Thank you. We will now begin with the question and answer session. The The first question comes from the line of with Spark Capital.

14:42 Please go ahead. Thank you so much for the opportunity, and congratulations for the management for a great listing and a very great set of numbers in the first quarter. I had a couple of questions. Firstly, just a data keeping part that if you can share our segmental revenue breakup between the four segments that we classify. So we are working on single segments, so that's why the segmental reports is not applicable to us. Okay. Okay. Yeah. Okay. So secondly, on the... In the, like, in the q four, we had received our order in the end solution segment, which was, you know, pending and was... Just below what happened in the 05/27. So q one, if you can share that how much of a Q1 revenue was driven by that particular order and how much of it was from new orders or if you can just, you know, give some breakup or clarity on our Q1 FY... Q1 revenues.

15:49 Yes. I think reasonably, I think a significant portion of our revenue in Q1 did come from those parachute contracts overflowing. But you have to understand that from an annualized basis, it wasn't too much off the mark. And the rest of the business was sort of as per usual, all the other things going on. If you actually look at it for a couple of our segments, the Q1 tends to be sort of the weakest quarter. And, you know, so I think I would say that this quarter in terms of its revenue would be broadly reflective of what you would expect. You know? Though q four in general tends to be... On a secular basis, it should be the best quarter, but it depends on, you know, where is the aerospace and defense solutions business falling in in which quarter.

16:40 Okay. I think I did miss when the CFO was talking about the q four revenue. So just if you can elaborate more, like, around 40, 55% of revenue did of last year. I think I did this. And, you know, just elaborate something more on that. I think that's... Yeah. Sure. So... Yeah. So I think two parts to that. One is that of the, you know, one of the parachute contracts that we got, we were able to ship out a portion of that in q four. So that led to a little bit of a rise in revenue there. And as I think we mentioned in the commentary also, around I mean, between 10% to 15% of our revenue tends to come from The United States. And a lot of that for the year had been kept locked up, which once the tariffs got lifted in, you know, in q four of last year, that got shipped out.

17:40 So that's what led to a larger q four than usual. And that's why I think this as I think we said, I think this Q1 is better reflective of what an average quarter would look like, though structurally will continue to be a little bit of an up and down in our business for reasons that I mentioned before. Okay. And on the same lines, on the margin profile also, like, the last year, our margin, EBITDA margin came at around 19%. Then in q four, it went up to 37. Now we are at 31, and FY twenty six landed was around 27%. So, you know, if you can even share something that how we should look at our margins considering the volatile nature and so just some kind of light on it would be really helpful.

18:34 I think if we expect for... Again, right, and that's why I'm always uncomfortable guiding too much forward because whatever reasons, but under Forward guidance, historically, only, like, if you can, you know, just explain Start a reasonable Sure. So if you look at '25 and '26, I think there will be reasonable guides for... I mean, we should expect very similar numbers in '27 for EBITDA as a percentage. Okay. Okay. But I think, hopefully, the kind of volatility that we have seen can focus also, like, million and it's possible. I think that was a very dramatic thing because both affected by aerospace and defense solutions business going out and then the tariffs coming in. So I think that was a more dramatic shift. I think you would see less dramatic shifts.

19:27 But again, the world has continued to surprise us. Never say never, but under normal circumstances, we should expect it to move a few percentage points and not as dramatic as you saw between, let's say, Q4 of last year and the Q1 of last year. Okay. Okay. And just last two questions. One, firstly, if you can share something on the outdoor and lifestyle segment, I think that has a much more visibility as compared to other segments. So if you can share something like the capacity that we already put I think it's still... Yeah. Think the outdoor and lifestyle business, I mean, capacity at this point of time is is not really a constraint for us. It's progressive product approvals brand by brand, customer by customer.

20:15 We continue to get approvals as these approvals come in. The volumes also, once you ship in one season, the next season, the volume typically tends to increase. So we are on track there. No complaints. Yeah. But do we have some kind of, like, at least six, eight months kind of visibility on revenue from that segment or even that being available? So so I I think the way I would put it is that while we do have what we like to call projections from brands, what we have seen in the last couple of years is that even after that, they end up having fairly material changes. So that's why we become uncomfortable in sort of giving you more exact numbers. But we if I were to say that right now, the projections that we have in place with these brands pretty strong and should drive reasonable growth within that segment itself.

21:11 Okay. And just last question in this geopolitical situation, like the tariffs thing is not actually, you know, going away. It's coming up and down and the Middle East thing moving on. Is it affecting our business a lot? And how are we, you know, working around the entire situation? Yeah. So two three things. Right? I I think the... When we had the tariff situation last time around, we did work out a few arrangements with our end customers to ameliorate the situation if it were to happen again. So, you know, God... You know, if it happens, would it affect our business? Absolutely. And I think it's it's gonna affect everyone, but but not so bad as it last time because of some things that we have put in place. In general, I think we believe and we hope that the that's going on in The Middle East should lead to increased defense spending.

22:06 And that from a longer term perspective should be a tailwind for us. So we... Fingers crossed. So we do supply, to Middle East, like, have customers in that market also? So we are both a raw material and a finished product supplier. Right? In terms of raw materials, we do end up selling goods to people and eventually end up all over the world. But at this point in time, terms of finished products, Middle East is not a meaningful portion of our business. The next question comes from the line of Rajat Sadeva with Kusumgar Limited.

22:59 Go ahead. Hi, Angesa. Thanks for the opportunity and congratulation on a good start up number. My question is on the partnership you have made. So the product sales basically on the on the carbon free side. So can you throw some light on the technology and the partnership agreement which you have made with the Russian company and you said made with the Japanese company? And what's the opportunity of that product? So our arrangements with our various foreign partners come under fairly strict confidentiality agreements, Rajat. So I would not be able to answer very, you know, detailed responses on these. All I can say is that in both the area of stealth and camouflaging as well as lightweight materials that include carbon and its sort of forward goods, We are working on those and we hope that we continue to that these that the products that we developed become growth drivers in the future. At this point in time, it would be too early and premature for me to say more than that.

24:18 Okay. And second question on the demand front. So can you explain that dynamics of the technical textiles, particularly in different fabric, aerospace fabric and packaging application? Like, what are the key technical specifications required in this product? And how do the industry dynamics differ across India versus the global market like China, Japan, etcetera? So a few different questions, Rajat. So let me sort of take one by one. So I think there is a fixed and then there is a sort of a surge demand in some of these things. Right? By definition, everything that happens in a textile product is a consumable. Right? So let's say you have an armed forces of, let's say, a million soldiers.

25:04 Now every year, they'll need uniforms, they'll need winter clothing, they'll need, let's say, the camouflage products that you do or even the parachutes that you make, they go out of service and then they have to be replaced. Right? So there is a sort of a fixed demand. Now what is the surge demand? Let's say there is an event that is happening, there is war is brewing and then people would like to not only replenish their inventory, but also keep a larger stock as to when if and when they would need these goods. Right? So the way you have to look at this market, whether it's uniforms, whether it's technical clothing, roughshacks, sleeping bags, bulletproof jackets, parachutes, camouflage, is that at any point in time, you're gonna have some steady demand, and then you're gonna have surges when events happen. So that's one. Now everything that goes into the military goes through a fairly rigorous, you know, technical approval process. Right? It's not so easy to get a qualified, and it always tends to be, you know, a few people who are qualified and within them, the business basically gets distributed.

26:07 So I think for Kusumgar, you know, in... As as far as India is concerned, we are an incumbent supplier for a large set of products, and we hope to be able to maintain our incumbent advantage. As far as sort of the global market is concerned, we are a challenger. We have been able to sort of make inroads, get our products qualified, and we are hopeful that that is something that we are able to do continuously and that portion of our becomes our business keeps growing. Now I don't know if I answered your full question, but from what I could gather. Yes. Yes. Understood. And just one last question on the competition burn, like how does that Kusumgar is being placed versus the company like Kusumgar India versus the company like Kusumgar So I think all companies have their own, you know, strengths and advantages and disadvantages.

27:00 I think if I were to talk about... And and we have a lot of respect for Gliders India Limited. They have been a large supplier to the Indian military Yes. For several decades. Right? There are a set of products that they manufacture, which are mandated by the government of India to be supplied by them. In fact, if I would rather, you know you know, if I were to talk of Kusumgar, our strength comes from a couple of different sources. One is the raw materials, right? We do the raw material, which and cost is one part of it, which is an advantage. But more importantly, it gives us faster turnaround. It gives us more ability to develop fairly technical and high performance parachute solutions, which others would find difficult to. And the second advantage is that we have certain partnerships which gives us access to design, know how and products and which helps us bring world class products to the to the Indian military.

27:59 So that's our advantage. And I think every company has their own advantage. In some cases, it's legacy. In some cases, it's agility. In some cases, it's materials. So everybody finds their own space to win wherever they are strongest. Yeah. And, sir, that's the SMPP Private Limited, an Indianized Indian defense manufacturing company. I would not like to comment upon specific customers of ours, but we do supply fabrics that are used for bulletproof jacket applications to manufacturers in the country. Yes. Okay. Okay. Great, sir. Thank you very much, sir. And best wish for the. Thank you so much, Ajith.

28:46 The next question comes from the line of Nishita Jain with Safia Capital. Please go ahead. Yes. Am I audible? Hi, Nishita. You are? Yeah. Hi. So I just wanted to understand. You mentioned that we do finished product and raw material both. So can you give the revenue bifurcation between how much revenue does the does raw material contribute and how much of it... How much does the finished product contribute? And do we also use the raw material in captive consumption? So I think I think our revenues stemming from our fabrics business continues to be the majority of the business.

29:32 Do one... You know, Nishita, I mean, the the entire solutions piece of our business is more recent. So, you know, that's something that will take time, but it has grown pretty fast. So that... That's one thing I would be happy to say. I would not... If you were to ask me what percentage of my business stems of of my business comes from sort of... Sorry. What was the second question you asked, Krishna? If can repeat it. I got a little confused. If if we use the raw material for our own... For captive consumption. So I think that... In any case, I I actually... To be honest, I do not have ready numbers for that, Nishita. I would be happy to take it offline and, you know, have somebody from my team, you know, get back to you with that information. Okay. Okay. Sure. No no problem. My next question is on what is our total capacity, if you could say, and what is the current utilization level?

30:33 Yeah. So I think in terms of capacity, again, right, it becomes... Because there are certain products that, you know, are sort of take multiple... Go at five meters per minute, and then there are others that go at thirty minutes per minute. So it becomes difficult to give an estimate of total capacity. So it depends on product mix. However, on utilization, I would be... We are currently between, I would say, 5% to 60% utilization within a very large CapEx that sort of came fully online last year. And so we are hopeful that that's something that gets...

31:18 I would ideally want it to be fully utilized next quarter, but our business just takes time with approvals and business growth to come in. Right. Understood. So like so because we did a large CapEx last year, I'm assuming that this year, don't have any big CapEx plans. Is that right? I'm so sorry. Can you just repeat? I lost you for a few seconds. Yeah. Like, I just wanted to understand if we have any big CapEx plans in FY '27, FY '28. So So at any point in time, we are exploring so there is a standard business that we have, right, where we are doing engineered fabrics and sort of the solutions piece. Within that field, we will largely be doing maintenance CapEx, and there isn't any large CapEx plan.

32:07 But we are exploring certain new areas of business to get into. These are still taking shape. And they so what I would say is for new technologies and new areas that we're looking into, there could be some CapEx that could be coming up, which, you know, at this point in time are not fully materialized. So I cannot really talk too much about them. But in terms of our regular business, there isn't... We do not really need any... I mean, we need some maintenance CapEx, but not nothing significant. For maintenance. And if we have some sort of idea on what CapEx we can need for, like, the areas you're mentioning to? So I think as... Because, you know, those... As far as those areas are concerned, because they are emerging, it's difficult to pin down numbers.

32:57 But for maintenance, know, I I think at any point in time, it'll be a, you know, few percentage points, right, that this is required. So one one can say that between five to 10% of your gross block at any point in time, can assume is a maintenance CapEx that you have to keep doing. There's always also a little bit of debottlenecking that happens once in a while. Nothing planned as such, but hopefully, there is some large business that comes in. And then we put in some maintenance CapEx to sorry, so from debottlenecking CapEx to bring it online. Thank you. The next question comes from the line of Pree Srinivasarati with Srinivasan Market. Please go ahead. Hello, sir. Am I audible?

33:44 Yes, sir. Yes, sir. Thank you very much. Congratulations on the quarter, sir. Sir, could you please help us with executable order book as of June 30, sir? No, sir. We do not comment on our order book, sir. I think... And I just... Let me explain to you, sir, why I'm not giving it out to you, sir. At any point in time, sir, we have orders that are in various stages. One is where we have received formal POs, then then the second is where we have LOIs, and then the third is where we have projections. It becomes difficult for us to sort of parse these numbers and be able to exactly tell you which of these will get shipped out. So to be honest, sir, allow us to work on it.

34:30 Maybe in a couple of quarters, we'll be in a better position to analyze and to give you better sort of visibility on what these numbers look like at a present point in time. All I can say, sir, is that this year in general looks to be a steady good year of growth. And with sort of, I would say, reasonably with not too much volatility. But again, the world is sometimes very interesting and they throw up some surprises. But right now, it seems to be a good year of growth. Okay, sir. On receivables and cash, the current days have moved from roughly INR 59 crores to INR 117 crores. Could you walk us through the receivables position at the end of June? Like what collection of cycle we should model for FY 2027?

35:19 And whether you expect operating cash flow to turn positive this year? Sir, we have not circulated the debtors position in this quarter. I think it would be safe for me to say that so I think let me sort of the Q4 was an anomaly in general because we had a very large quarter and those receivables sort of obviously looked artificially higher in... At the end of March. And I would say, sir, that business has normalized at this point in time, and it's sort of a more regular level of debtors that if you look at our sort of last couple of years of history, that will give you a good indication of where we would stand, sir. Okay, sir. What about the, like, you know, cash flow to turn positive this year, sir?

36:05 Whether it is done? Hello? I think it will be positive, sir. It is positive only, sir. Yes, sir. Okay, sir. And one final question, sir. Sir, you know, on the finished of parachute systems being executed now, are these under your own design and IP are under a licensing arrangement as with the FY '25 program? Does that mean... It is so it's an under licensing agreement. That's right. It was one of our technology partners, sir. Thank you. The next question comes from the line of Prakhar Tibriwal with Choice Institutional Equities. Please go ahead. Yeah. Hello, Ankur, sir. So I wanted to understand how does our defense fabric business work.

36:54 So do we just sell the fabric to our customer and date, then make their, you know, end product? Or... And what kind of use cases are for these kind of fabrics? Great question. So I think there are two, three different models that we follow. One is, as you rightly said, that we basically supply fabrics to our end customer... Sorry, to our customers and who then are supplying further to, let's say, an Indian military or, let's say, a foreign military. Right? So that's that's a standard model. Actually, let me start with the applications first. So I think the applications are winter clothing, super high altitude clothing, rainwear, rucksacks, sleeping bags, bulletproof jackets.

37:42 I I think I've covered most of it, but I may have missed out a few things. Tents, maybe sometimes. Yeah. So that's that's one. The second model is sometimes, you know, especially internationally, we we supply through agents who then, you know, are sort of what I would call registered agents for those military through whom we work. And the third, which is very interesting is where sometimes a lot of governments... I mean, in the case of Indian government through the... Through entities like gliders in the limited or through troop comfort limited or through other PSUs, they buy directly from us and then they make finished goods out of it. So a few different models, but prima facie, what you said, which is that we make...

38:31 You know, we we supply fabric. Somebody makes finished goods out of them and supplies to the military largely stands correct. Except, obviously, for things like parachutes and camouflage systems, etcetera, where we we we manufacture the end product itself. Got it. Got it. That's great, sir. So you mentioned there are two players in the parachute systems market globally, including yourself. I heard that there were two players in some parachute system. Okay. Nice, sir. There are lots of people, sir. Lots of companies all around the world we work with, sir. Okay. So can you just give an example of of how many competitors do we compete with in the domestic aerospace and defense market in whole?

39:18 Sir, there is no clear answer for product to product, category to category. You know, for example, if you take something like the parachute system, you know, one of the other questions asked, you know, somebody mentioned Gliders India Limited. Right? I would... You know, and I would not call competitors. I would call them peers. Right? We all have our own strength and our own area that we're doing. So there, the competition is lower. But if you were to take, let's say, a simple fabric, let's say, something that is used for rainwear, I think the number of people increases. I think Kusumgar stands out within them for its quality, its consistency, its adherence to specifications. So I think category to category varies, sir. Thank you. The next question comes from the line of Harish Mittal with MK Global Financial Services.

40:08 Please go ahead. Yeah. Thank you, Ajith. So my question is to Kusumgar. Sir, we have seen a fabulous journey in the past decade for Kusumgar. And we have, the last month, had a successful listing. My question is, sir, what catalyst do you see going ahead, which will keep on this growth driver being robust and keep our revenues going? This is my only question. I think let me give you some time to think through it. I think there are few mega trends that are driving, you know, that that we have seen actually drive our growth over the last few years and that we believe will continue to be prevalent over at least the next several years to come. Right?

40:56 One is the entire focus on aerospace and defense in India and indigenization therein. If we believe that the aerospace and defense industry, you know, will develop supply chains in India, I think that is something that Kusumgar will continue to try. The second is global situation in terms of defense spending. That is also something that we believe is secular and that will keep you know, driving us. And the third is, you know, the standard focus on, you know, China plus one, global supply chains moving. All of these are throwing a lot of opportunities to us. It's our ability to take advantage of them, which we hope we are able to do well that should drive our growth.

41:47 Thank you so much, Kusumgar. Thank you. So I pass on to Ank again to you the floor for any closing remarks. Thank you, Harsh. Thank you, everyone, for being kind to us on the first call, listening to our answers. And we hope to be able to continue speaking with the investment community, answering their questions within the constraints of what we can. Thank you for your time and for your attention. Thank you. So on behalf of MK Global, I thank you, the management team, for giving us the opportunity to host the call, and I request Alrik to please conclude the call. Thank you. Thank you, sir. On behalf of MK Global Financial Services, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.