Mold-Tek Technologies (NSE:MOLDTECH) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good evening. I'm Akash, moderator for the conference call. Welcome to MOLDTECH Technologies Limited Q2 and H1 FY twenty twenty seven Earnings Conference Call. We are pleased to have with us Mr. Lakshmana Rao, sir, who is the Chairman and Managing Director of MOLDTECH Technologies Limited. As a reminder, all participants' line will be in listen only mode. And there'll be an opportunity for you to ask questions after the management's opening remarks. Please note that this conference is being recorded. Before we begin, I would like to point out that this conference call may contain forward looking statements about the company, which are based on the beliefs, opinions, and expectations of the management as on date of this call.

0:48 These statements do not guarantee the future performance of the company and may involve risks and uncertainties that are difficult to predict. I would now like to hand over the floor to Mr. Laxman Rausar, Chairman and Managing Director. Thank you and over to you sir. Good afternoon, gentlemen and thank you very much, Akash. I am very glad to inform you that fabulous results have been announced by MOLDTECH Technologies for the Q2. The six months stand alone profit has doubled that of the last full year PAT by 21 crores compared to 10... Is this full year? Yes.

1:33 So the PAT for the standalone performance is at 20 crores for the six months period. And for the quarter ending September, company standalone turnover has gone up by 39% to INR92 crores and PAT has more than grown four times to be precise, 4.4 times to INR20.19 crores that is for the H1. And coming to the Q2, the turnover has been INR46.64 crores, up by 25% compared to last Q2 and profits have more than tripled from INR3.15 crores to INR10.16 crores. Similarly, EBITDA also grown by 32.5%, recording one of the best quarters ever in the history of the company.

2:26 Last year, full year profitability was after tax as INR10 crores, whereas in this first six months itself, company has achieved a INR20 crores stand alone profit. However, after adding the consolidating the bills numbers, the PAT has come down to INR18.62 crores compared to INR10 crores last year for the full year. Current year, H1 itself, company consolidated profits have shot up to INR18.62 crores. And compared to the last year H1, the jump is by almost 375%, that is 4.7 times improved in the profitability. So these are all possible due to the improved product mix of the company, improved diversification and operational excellence especially and also entering into high value add engineering services in Pulsantabas and also in structural steel detailing.

3:29 And adding back our structural steel design also started contributing reasonable numbers and improved operational efficiency resulted in this kind of stellar performance. So we can have more details discussed in question and answers. Will hand back to Akash. Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. The first question comes from the line of Mr. Kosta Boubna from BMSBL Capital. Please go ahead, sir.

4:19 Yes. Hi. Thanks for taking my question. So similar to last quarter's call, I have the same question on how sustainable is this margin EBITDA margin and profitability performance that we've had in the first half? Can we maintain the same type of margins and profitability going into the second half? Will it be even better? And then is there any sort of quantitative and qualitative guidance you can give us into FY '28? You know, the reason I asked this is because even in the in The US, there's a lot of, you know, volatility in many different aspects politically, etcetera. So, you know, what's management's view on every... On this?

5:15 Okay. See, I I can understand, Ghostav, because of the erratic performance in the past few years, ups and downs. But now I can assure you that the company is on a very solid ground. We have taken steps to eliminate the loss making BAW segment. We have downsized it considerably from 150 resources to just 40, 45 resources. And we have been trying for electrical vehicle related automobile services for the last three years without much success. And those numbers used to vary a lot. One quarter it used to be zero five million dollars and then down to $100,000 in the next quarter. So that kind of uncertainty is now completely eliminated from the company's performance.

6:03 And that's why you are seeing quarter on quarter consistent and rather improved performance. And I am also glad that the company what we acquired, Beryl, has received some major orders in the last month, couple of months ago and they are now becoming operable from October onwards. So hopefully in Q3, Beryl might be in the positive, which continued to be in the negative in the last two, three quarters. So that is another favorable development. And in the poles and towers and power distribution services which come under MAS, we have several new contracts signed and several new fixed teams are being created for very well known utility services companies in USA.

6:52 So we are scampering to add people in that domain and training the managers or retraining some of our engineers into that domain and finding that growth also will be added from Q3 or if not Q3, Q4 onwards. And as I mentioned in my press report, we also added adding a new domain altogether in the civil and land development, which will be a completely new domain for MOLDTECH and that has very good prospects. And we are starting with one of the leading companies in The U. S. Can take us off in that new field in the coming year. It might take couple of more months to build up the expertise, but from Jan Feb onwards, those numbers can also be sizable.

7:43 So I can assure you, I think at least for the next one, one point five years or two years going ahead, company's performance will be on the positive track. If Beryll also starts making contributions, which we are taking steps to revamp the management and focusing them on designing and other areas of high value, we are confident that very low also will start contributing from next year. So overall put together, disturbances or ups and downs caused by electrical vehicle and our automobile team will be removed from the future for the future and with these solid gains in other domains, the company's track is now well laid.

8:36 Great. And what's the opportunity on the semiconductor front? I saw in your press release, there's a semiconductor opportunity. So is that new business for us, or is that something that the company has already been participating in? What's the opportunity there? Semiconductors, I think you are getting mixed up. This is regarding our other company, MOLDTECH Packaging Limited, which is this is MOLDTECH Technologies. I'm talking about engineering services company. Yeah. Yeah. Is it a wrong version semiconductors in the note? I don't think so. It is about data centers, maybe. Are developing data centers, designing and adapting for it. There was a mention on semiconductors also, but... The manufacturing projects, which data centers, we are we are providing designing and detailing services to data centers.

9:31 Correct. It's in your advanced advanced, opportunities in data centers, semiconductor manufacturing, and convention center projects. Semiconductor manufacturing projects, maybe. The project buildings. Okay. Okay. Okay. Yeah. Yeah. Okay. Okay. Thank you. Thank you, sir. The next question comes from the line of Mr. Mahesh Talani from Go Quarter. Please go ahead, sir. Mr. Mahesh Talani, please go ahead with your question, sir. I don't find any response. We are going for the next question. The next participant is mister Ramesh Tatia from Long Equity Partners. Please go ahead, sir.

10:20 Yeah. Thank you. Thank you for the opportunity, and congratulations on fantastic set of results, sir. I have several questions. So first is, I think the work on hand has come down quarter on quarter. So any any qualitative comments around that? Why why that happened and how it will progress through the year? See, the work on hand has dipped a bit from about Four point. 4,500,000 last quarter to around 4,200,000 now. But in the month of October, we have record bookings again, and the number is now better than what it was at the end of June. Okay. Okay. That is good to know. The the the second question is, in the stand alone business, can you give rough rough idea about how much is, you know, steel detailing segment, how much is utility segment, how much is BIW segment, some rough idea.

11:20 H one... On h one basis is fine. Yeah. Break up of division. Yeah. I can tell you roughly 75 to 80% of the revenue is coming from structural steel detailing and those areas. And overall... In the overall 5,400,000, I think 5,300,000, 4,400,000 has come from civil structural work that's almost 80%, 80, 82%. And the rest is from fixed teams of MES and also from MES alone. Is MES means automobile services. That's now come down to hardly $100,000 in the quarter, whereas the fixed teams are growing. That's where we do the, utility services.

12:12 Is the electrical towers and distribution services. Okay. Okay. And and this utilities piece is expected to grow faster. Right? That is the correct understanding. We are ramping up very rapidly from a team of 30, 40 people last year. We are already 70, 75 and planning to ramp it up to a 120 people by March next year because it's very difficult to build up these skill sets. So apart from recruiting from outside, we are developing the training and turning the modules to. Yeah. Yeah. Okay. Okay. And and in the steel detailing, sir, we we we are, you know, trying to climb the value ladder in in terms of going into design, going into, what do you say, connector design. So can you just give some update on update on that also? How how is that going?

13:03 The connection design is still improving. We are in line with our expectation of reaching about a million dollars in this year. And we are also looking at opportunities for acquisition in the design field, structural designing. Still yet to find a correct fit. But once that happens, that segment also will take off. Okay. Okay. And and and then on the... On coming to Beryl, how how will... I mean, I think there's this hurricane happened recently. Fires, I think it... The the the damage was in Georgia, Florida, Alabama, and I think we have license to practice in Florida and Georgia. So does that providing you any meaningful opportunities for next, I don't know, six months, twelve months? Yes. Yes. It will certainly improve it.

13:51 I wouldn't say it will be a huge opportunity, but certainly the number of inspection cases and then our expert witness and design and repair services division will certainly get more traction due to this recent cyclone. But apart from that, we are now looking at much stronger stability for the company Beryl and we are looking at other domains like civil and architectural, which can also Beryl also can play a role in it. So that's a new opportunity we got wherein Beryll will play a a part role, and, it will help all of us to, ramp up the numbers in that new domain.

14:37 More details, I'll be in a position to discuss, probably next quarter. Okay. Okay. Look forward to that. And and and this land development segment, I think, maybe some color around that, what kind of order booking we can see in near term. That is the area we we, along with are tying up... Already tied up an MOU with the client, and the work has to really take off from November end. So, hopefully, when we meet next time in February, March, I'll be able to share more details. Okay. Okay. And and just final question, there is EBITDA EBITDA breakeven in Q3. Is that a good probability just a little below the breakeven. They had a small loss of about $25,000, which has come down compared to the previous quarter, which was $7,075,000 dollars.

15:33 So it's now $25,000 loss in q two. And, in q three, we look forward to it crossing the breakeven. Okay. Okay. And and you said, sir, next twelve to eighteen months, we we expect good growth. So 20% is is, like, a good number to to model? Top line growth, what we achieved is around... In the stand alone, it is 23 in... Including the dollar gains. And for the consolidated, it was 25%, I think. 24% in h one. So we continue to see at least 18 to 20% top line growth in the consolidated and maybe around similar 20, 25% in the stand alone subject to dollar fluctuations.

16:29 The next year, right, the next twelve to eighteen months? Next twelve months. Yeah. Yeah. Okay. Okay. Thank you. Thanks for answering all my questions, sir. All the best. Thank you, sir. The next question comes from the line of Mr. Manish, an individual investor. Please go ahead, sir. Hello, sir. Thank you for the opportunity, and congratulations on the good set of numbers. I have a couple of questions. One, did we have any ForEx gain or loss during the quarter? And if yes, what was the amount? Yes. In fact, ForEx gain ForEx loss is around 70 lakhs in this quarter compared to 1.5 crores gain in the last quarter. That means if you effectively take away the ForEx element, the profit growth compared to Q1 is much better. What it is showing is 6%, but it in fact would be more than 14%, 15% at the operating level without concern. And going forward, I mean, do we expect similar, what you said, profits or losses on a limited scale given that rupee has stabilized around that $96.97 level?

17:36 Yeah. Yeah. Now the rupee is stabilizing around 95. We'll be having some forex gains, and if it stays somewhere at that level. Otherwise, it will be neutral. So in the q three, we'll have some benefit if the dollar remains around 95 levels. We'll have some gain rather than the loss which you suffered in q two. Sure. My second question was on balance. So on our previous calls, we talked about outsourcing balance once you work to India slowly but steadily. I think the target for that was q four of FY twenty seven. So where are we on that? Yeah. Now they're currently... One person who is under l one processing is now currently positioned in Tampa.

18:26 He's a professional engineer himself, Indian, but qualified in The USA. And he is now currently taking charge of the design and representing MOLDTECH at Beryl as a design head. And he has a team of five people already built up here in Adabad who will be supporting him in his future growth. This $1,000,000 Hillsborough County order what we received two months ago is predominantly designed. So it is now timing is good that work can be handled through our design team, which is centered with our six engineers. So we look forward to better performance coming from Beryl. If not, Q4 is, you know, will be impacted by several holidays in USA, but at least from Q1 of... Their Q1 or our Q4, it should be contributing handsomely.

19:18 Sure, sir. So when do we see the full benefits of the better acquisition kind of playing out in terms of... I believe it will happen in the year 2728 for us because it takes at least ten years to understand the business, set up the correct KRA and people in place, and also get the outsourcing moved to India. So it's hardly nine, ten months we acquired Beryl, and now we got a full grip on the subject and people have been placed there. And our CEO CEO is also frequently traveling and spending time redesigning the team over there in Beryl, so that, you know, it will be more design oriented rather than just inspections, which is their predominant forte as of today. But their design team is to be really stagnant, which we have done now. And I think with this going into the market, we'll be in a position to improve the barrel performance.

20:21 Got it, sir. And one final question, if I can give you that. We were also on the lookout of few other acquisitions and I guess you're planning a trip to U. S. To finalize that. So any update on that? Yeah. We had a good conversation with the prospect to seller. We're also studying into their line of business and their ability to ramp up. So we have a few concerns which we have expressed to them, and we are waiting for their reply. I I don't say that we have made any confirmed decision on that. It is still liquid, but we are still looking at other options also where we are very clear this time that not only the business should be relevant, but also the person should be capable of ramping it up and scale it up. So on that count, we are still not satisfied.

21:14 So we are still looking at other options. Got it. Thank you. Thank you so much, sir. Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and one on a telephone keypad. The next question comes from the line of Riyasha from Aarti Securities. Please go ahead. Hello? Hi. Yes. So my question was regarding that the company has secured multiple data centers related projects. So, like, are these initial engagements with new clients or, like, the offer potential for repeat business? Like, how could we, like, see this multiple vertical become over next two to three years? If you can throw some light on that. Yeah.

22:09 Yeah. Data center designing, I mean, many drafting... Detailing what we are doing is something unique. And now it's not our first job. Almost five, six data centers we have done in the last one, two years. But now we are getting more and more traction. I think we have two or three data center work on hand and further are also expected. Once we have that expertise, obviously, our name will be in the market and any new data centers that are coming up across U. S. Will be definitely considered the preferred detailer. So that will be a good addition to have, and that will improve our workflow. Okay. Okay. And also regarding the three year agreement with the leading plant engineering company, so does the MSA include committed business volumes or will the revenue depend on individual project allocations?

23:06 No. It is a fix a team arrangement. And in fact, the team is still under buildup. We have... Again, it's 25 people they wanted. We have only 10 to 15 people currently being offered, and we are in the process of ramping up. These numbers will be adding from end of November or end of December at the most. So as I said, in power distribution, poles and towers, there's a very big depth of talent, and we are one of the very few companies outside The US having that kind of skill set. So we are now going to double the manpower through training and and and training... I mean, interactions with the clients. Okay. Okay. And one last question is that the company currently has sufficient energy engineering manpower and execution capacity to support the growth. So will, in the future, will it require significant recruitment or in... Infrastructure investments?

24:12 See, we are looking at two angles. One is internal development improvement of the efficiency. Our... One of the major reasons for improved performance is operational efficiencies have gone up. Per person capital... Per person revenues have gone up by almost 15% compared to last financial year for the first half of the year. And we have an incentive system and retraining multi scaling progress training that's going on for last one year is yielding very good results. So both these incentive system and productivity improvement and training is creating much better utilization of manpower. And the manpower per capita contribution has gone up from last year Q2 at 4,500 is now at 5,220.

25:06 So there is a significant improvement in the productivity, more than 15%, 16%, which is in turn resulting into the bottom line improvement. And we are also bringing in automation and some of the tools to improve the output and also quality without sacrificing the quality. On that ground, your company has started working and I am sure this will also progressively result in better improvement in the output. So there is no need for huge recruitments going forward. That will be client driven or project to project driven. We don't want to now create a situation like in BAW where we entered three years ago, built up a huge team and could not find the proper work for them for the last two years, which has impacted our performance.

25:55 So now the ground rules have changed to efficiency drive, training in house and looking at solid segments of growth. And as I said, the recent civil and land developmental work is also related to structural side and that makes our complete domain of civil and structural detailing or designing to almost to a conclusion. What we now require is a full member design team that is still we are looking for that can only be created with a proper acquisition. Once that is done, we'll be head of civil engineering services for US, right, from a to z. Okay, sir. Okay. Thank you. That is all from my side. Thank you.

26:45 Thank you, sir. The next question comes from the line of Mr. Madhur Rathi from Counter Cyclical Investments. Please go ahead. Sir, thank you for the opportunity. Sir, firstly, if you can help me understand what would be the employee utilization levels considering the efficiency as well as the scope of work has improved? Yeah. Efficiency of the employees has improved by 15, but still I see a prospect of growing another 15% further from here. That means without increasing much of headcount, our revenues can shoot up another 15%, and accordingly, the bottom line can also improve.

27:35 But it requires a lot of training and then systems and methods of automation, which we are now initiated a few months ago and that is showing good results. And I hope that the numbers and efficiency numbers especially can improve with all the automation and the new method of incentivization we have created, so that the merit gets rewarded and motivated and the output and quality both are being measured in a systematic manner and a open system so that the employees are more motivated to do better job. So that process has started about seven, eight months ago and yielding very good result, and we continue to improve upon it, so that it will become, regular standard for the company.

28:36 Got it. And, sir, if I look at Verint since we have acquired, and you mentioned that we will receive some record orders in October. So, sir, if you can help us understand how is the scope of work changed? And earlier, we used to do closer to $1,520,000, or or or right now, maybe closer to 20 to 23,000 per employee on an annual basis. So can this move to $3,040,000 dollar that we can extract from from our customer? Or can we charge those kind of revenue to our customer? If you can help us understand on that. Yeah. Yeah. I was just saying the other way. Like, say, from twenty three thousand, if you have 15% improvement efficiency, it will go to 36, 37,000. Another 15% can take it to even 35,000 per person per month. So that is possible given the efficiency drive and the incentivization and also the automation we are bringing in.

29:35 It is still quite possible. Got it. And sir, on the orders that you received in October, if you can help us understand what are what are these? Are they of higher value in nature? Just a color on these would be very helpful. No. You're talking about the orders of MOLDTECH or BERIL? BERIL. So BERIL that you mentioned that we received in October. Yeah. Yeah. That Berrill order is mainly design based order from the county of Hillsborough, and the work will be starting anytime. I think it started in October initially. This, like, the municipality will be selecting few engineers who are eligible for executing the work for residents.

30:21 And Merrill won about $1,000,000 work, which has to be executed in next maybe six to twelve months in the... As per the residents coming in. So we also initiated a marketing effort from India showcasing Beryl's background and trying to put our Beryl name coming up in the search more easily. And that kind of marketing initiative also will help more residents to reach for Beryl's service, and Beryl will be in a position to invoice the government. So this process of combined marketing effort with the design orientation is going to improve the performance of Beryl in the coming quarters. Got it. And then just one final question from MOLDTECHER, how do we see order booking increasing per Three years is a long period in this kind of business, but I can say that if we make an acquisition of a company that suits our line of activity with the civil and land development lines, we are now opening up, we will be a one, you know, one shop solution provider for entire gamut of civil projects, and then we can definitely command better aspect and even pricing from the general contractors and the builders.

31:58 Next question comes from the line of Anshul Sharma from Vertex Capital. Please go ahead, sir. Hello. Am I audible? Yeah, miss Sharma. Yeah. Hi, sir. Thank you for the opportunity, and congratulations on a good set of results. I have a question regarding Beryl only. So Beryl has expanded into residential engineering, permit engineering, plan review, and building inception. So are these new services generating revenue rate, and what contribution can they make to the combined performance? Yeah. Right through the conference, I'm talking about Beryl. So, yes, Beryl is in the field of permits and inspection and designing also, but their designing has been far neglected area because they have... Don't have proper engineers, and they could not really grab the opportunity of designing.

32:55 So our idea of acquiring Bareil is that with their contacts in inspection, depositions, and expert witness services and do something in design, we will be in a position to grab more and more design work. That is where our strength and our focus is also. So acquiring Beryl is not for immediate profitability, but to create a set of new set of customers, that is residents, counties and municipalities of USA rather than working only for high rise buildings. High rise buildings constitute hardly 2% of the overall construction in USA, and we have been living with them with only that domain for last twenty, twenty five years. So compared to that, residential and land and sector... Sorry, civil, structural, architectural, all these services and design, they contribute 40 to 50 times more than structural steel detailing. So by entering through Beryl, we are reaching that part of the business. Now this civil and land development, which we have got an opportunity from a US based client, Beryl's background is helping us.

34:12 Though there are only couple of people in Beryl who have that knowledge, that will be good enough to showcase to the client that we have team leaders who can train our Indian team. So like this, the benefits of Beryl acquisition cannot be counted only at what Beryl is contributing, but what Beryl can bring take MOLDTECH into other lines of business. So that is where we are looking at the bigger picture. And as Beryl alone also will be positive, will run into black at least from next financial year for sure. Okay. Okay. Got it. And, sir, regarding the body and white fixture segment, how much progress has the company made in reducing this, dependence on this traditional segment? So... And, apart from that, also regarding the new verticals such as plant engineering and transmission distribution, have they started generating meaningful revenue?

35:09 Yes. The BAW has been brought down from a 155,160 people to hardly 50 people now. And that team is having moderate work, so we are also really looking into whether any further reduction is required. Maybe another five, resources if they're found to be redundant. We want to retrain them in poles and towers and replace them. Already training is going on for set of 20, 25 people whom we want to observe in other domains. And second question fuels that poles and towers distribution engineering services. We are very rapidly progressing. The numbers are going to add further by December because it's in fact clients want more, but we are not in a position to deliver because those engineers are not readily available here and we have to develop through training. Fortunately, we have been in this line for last four, five years with the emergence of data centers across USA.

36:10 The power distribution demand across the country has improved, gone up by several times, demanding more and more engineering work requiring that domain. So from a small team of 30, 40 people last year, today, we are around 70, 80, and we have demand for beyond 120 people. So... And that too on a fixed committed basis. So those numbers will start adding from December onwards because though the demand is for a 120, a 110 people, we could currently have only 70, 75 people working, and the remaining forty forty five people are under various tiers of training. So starting from January, I hope things will be much better in that domain.

36:58 And the plant engineering, we are just doing with a small team and SPM. These are, again, multi skilled teams are being used there. So there's no buildup of a team with... Unless we see work coming in that channel. So whatever we learn from BAW experience, we want to be careful in ramping up our teams where there could be seasonality or, you know, big swings in the demand. Okay. Okay. Great. And so last question regarding the future plans. So looking ahead, which business segments are expected to be the highest growth drivers for MOLDTECH over, let's say, two to three years? And what are the key milestones we investors can track for the same?

37:47 See, the key investors' benchmarks are always the work on hand on one side and other side... I mean, some of... Like, you already asked the questions regarding BAW, the lines which are unpredictable and wavering in nature in all twenty five years of our service for existence, BAW is the only line where we used to have 200 workload to 20% workload. And nowadays, it's becoming more often they are having less work. That is why we are taking a call to, remove or reduce the team size. And, going forward also, we don't see much light at the end of the tunnel for BAW. So that will be slowly reduced to a nominal size just to keep in case it takes off, the senior people can handle some work and outsourcing the rest of the work to some of the small players is action plan.

38:48 So another area where you can see for growth is this pools and towers where at least for next five to ten years, some of the contractors and utility managers are telling me in my trip to US recently that they are expecting their growth in the next five to ten years to continue because of the several data centers that are coming up across USA and substations and power lines have to be drawn and they have to be created in the next five to ten years. So I see that is one area where we can grow. And this new area for civil and land development is a completely new domain where burial also can contribute marginally at least in introductory and take off stage they can be of help. And together, I see that area can be a big winner in the next financial year.

39:44 Okay. Got it. Got it. Alright, sir. That's it from my side. Thank you so much, and wishing the best for holding of Mold-Tek Technologies. Thank you. Thank you very much. Thank you, sir. We have a follow-up question from Mr. Kaustubh Bugna from BMSPL Capital. Please go ahead, sir. Yes. I was just wondering, when you mentioned you want to do an acquisition to improve your damage of operating, Are you planning on also adding... Becoming an EPC player, or you'll only focus on design and detailing? Sorry. What did you say last question? Sentence?

40:32 Are you intending to eventually become a EPC player, or you will only focus on design and detailing? See, we definitely want to stay at the designing and detailing. We don't want to become a EPC and take up the construction and monitoring because that will be too much of responsibility and importance of presence in US is much more required. So a designing and detailing player himself, including architecture services, can be right hand to a... The GC. That's a general contractor or a builder in USA. So that is the role we are aspiring in the next two of At this acquisition, would you focus on, like, what are you willing to pay a high valuation?

41:20 Are you looking at a distressed deal? I mean, how do you look at the acquisition when it comes to not affecting the numbers, which are currently going well for the company and you project it to go well for the next two, three quarters at least. How do you not let the acquisition temporarily affect the numbers? See, going forward, we don't need any other company other than structural designing company. And in structural designing, the numbers are always better than what we are even today because a structural designer commands much higher pricing, hourly rates, and also respect in terms of any project execution from the general contractor and the builder. So our acquisition in future will be certainly only in that direction as structural designing company, which has ability to expand, ability to ramp up with the addition of Indian team.

42:19 So that is what the criteria, and that's it. We are looking forward in an acquisition. Okay. I think the numbers will be much better. Even... No. Beryl, no. Not even Mold-Tek can beat their numbers because of the high fees they command. Okay. And if AI spends were to slow down in The United States, right, and if AI infrastructure spends then were to slow down because of this, then would would that impact our pools business and data center business? Or is there enough demand in the existing infrastructure for us to cater to when you talk about the next two years guidance? Yeah. When I mentioned that one of the questions, data centers, we have done four or five in the past two years, and we are doing one or two now. And each is about 300 to 500.

43:17 So a drop in a... And data centers in future also is not going to really impact us drastically in the the structural steel detailing. We do anything. Any high rise building, any plant, any stadium, any airport expansion, any... You know, anything you talk about big structures, we are there. So a data center happened to be a big building, like a huge warehouse, which we also do simultaneously for several other contractors. So what I'm saying is data centers is good. It is a good addition to us to have. But if AI and data centers business stop growing in future, we'll find something else. There will be a lot of manufacturing activities, lot of commercial activities.

44:03 That is why one of the accusations of Beryl makes sense in the long run because Beryl is residential service provider. So we are never in residential. We have been always in high rise buildings, which are commercial and big buildings like stadiums and airports and commercial buildings or even plants and plants and materials. So by getting into Beryl acquisition, we are expanding our footage into essential designing and essential detailing and permit drawings. So that is the idea of when we acquired Beryl. And I'm sure, if not now, in a year's time, next year, it should be a positive decision. I was talking more on the tools business, the opportunity and the power opportunity in The US. I was talking on that front for that. The power utilities, yes, if the sudden drop in AI comes in and data centers stop happening, probably our utilities growth might taper down from what we are anticipating 70 to a 100, a 125 will certainly happen. But whether that 125 will become 200,300 people might give you a question. But as of today, our contribution or our performance is based on hardly 70 engineers who are working in that

45:33 domain. But if the domain improves, we'll have much further growth. But if the domain stagnates, I don't think there'll be impact as of today, at least from the current level of performance. Okay. Okay. Thank you so much. Thanks. Thank you, sir. We have a question from Mr. Raghur Shibatshawa, an Indian investor. Please go with your question, sir. Hello, sir. Am I audible, sir? Yeah. Yeah. You're audible, sir. Yeah. So I See, one of the main things that could happen in growth is change in demand patterns in USA.

46:34 If suddenly US stops growing or they don't go into manufacturing or the civil industry construction industry gets into a non negative trajectory. That could probably be only thing which can impact our performance. The two marginally, because when such a thing happens also, US will continue to grow at least at 2%, 3%. And we are hardly serving, as I said in my previous answer, to a domain which is hardly 2% of the overall US construction industry, that is high rise buildings. Now with the residential buildings entry through Beryl and the new client we acquired recently, our domain is going to be much bigger.

47:23 So even if something shakes in the high rise building domain, let's say, in a couple of years, our entry into residential line, which is 10 to 20 times bigger than the domain where we are operating, can definitely give a good support and growth. So I don't see anything that is drastically going to impact our operations in the near future. And coming on the automation front, which can impact manpower or better utilization or better quality, we are also in the forefront of that. And we already initiated steps to benefit from AIR automation in a very small way. And whatever benefits we gain, that can also further improve the overall performance, I guess.

48:16 Okay. Okay. I get it. I have one more question. So how do we assess the current demand environment from U. S.-based clients? So are clients increasing outsourcing to India? Or are they adopting a more cautious approach towards new project awards? No. No. No. Everybody now in USA has no choice but to outsource, especially in core engineering like civil. There's no civil engineers coming out in US in numbers they require. Core engineering of mechanical, core engineering of civil, come even a or anything, there will be increasing demand only. And the manpower availability within US for such engineers is rapidly diminishing. So they're really looking forward outsourcing.

49:04 That, I don't think will come down. What may happen to individual companies may differ. But overall, outsourcing as as such has to grow in U. S. There's no other choice. Okay. So one last question I had. What is the strategy to improve the contribution from higher margin projects and reduce dependence on relatively commoditized engineering assignments. Can you throw some light on it? See, one of the ways to improve is improving your productivity and using automation to get more output is a way to gain even in a traditional market, like detailing what we are doing. And entering into structural designing, essential designing, architectural services is other way of growing into high value add services.

49:59 So I think Mold-Tek is doing both the things simultaneously while we are concentrating on efficiency improvement and automation to improve our traditional lines. We are entering into residential, we are entering into civil architectural land development areas, which are high end demand and also utility and power distribution, are in a real take off stage. So we are, I think, in the correct sweet spot as of now. Got it. Yeah. Thank you, sir. That's all from my side. Thank you, sir. All the best, happy Diwali, sir. Oh, thank you, and happy Diwali to you. Thank you, sir. There are no further questions. Now I hand over the floor to Leshma Rao, sir, for closing comments.

50:47 Yeah. Thank you, Akash. So I thank all the investors and analysts who have been attending this conference call of MOLDTECHONGLES Q2. And I also take this opportunity to wish you all a very happy and prosperous Diwali and New Year. And I hope we will have more opportunities to discuss about the company's future in the coming quarters. Have a nice day, and thank you very much. Thanks, Shekhar, for arranging this conference. Thank you, sir. Ladies and gentlemen, this concludes your conference for today. On behalf of Mold-Tek Technologies Limited, we thank you for your participation and for using Dursabha's conference call service. You may disconnect your lines now. Thank you, and have a pleasant evening.