RIR Power Electronics (BSE:RIR) Q1 2026 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to RIR Power Electronics Limited Q1 FY 'twenty seven Earnings Conference Call hosted by Veritas Reputation. As a reminder, all participant lines will be in 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. And I'll hand the conference over to Mr. Vishesh Sawan from Veritarta Reputation. Thank you, and over to you, sir. Thank you, Nirav, and good morning, everyone.

0:46 On behalf of RIR Power Electronics, I extend a warm welcome to all participants joining us for the Q1 FY twenty twenty seven earnings conference call. We appreciate your time and interest in joining us today to discuss the company's performance for the quarter ended 06/30/2026. We truly value your continued interest and support. As you are aware, the financial results for Q1 FY twenty twenty seven have already been disclosed through the stock exchanges and are also available on our website. Accordingly, today's session is designed to provide deeper insights into our operational progress, industry outlook and the company's long term value creation.

1:37 Following the opening remarks by our management, we'll open the floor for a quick Q and A session. Kindly keep your questions concise and relevant to allow broader participation. Before we begin, I would like to remind you that some of the statements made in today's discussion may be forward looking in nature. These are based on the company's current expectations and subject to various risks and uncertainties that could cause actual results and outcomes to differ materially. Joining us on the call today are Doctor. Harshad Mehta, Non Executive Chairman Mr. N. Ramesh Kumar, Managing Director and Chief Executive Officer Mr. Ankit Shah, Chief Financial Officer.

2:26 With that, I would like to hand over the call to our Managing Director and Chief Executive Officer for the update on financial performance and overview. I would like to clarify that we are discussing the historical numbers. Please do note that anything said on this call that reflects the outlook towards the future would be constructed as a forward looking statement. Having said that, we would like to take you through the Q1 results. Over to you, sir. Good morning, everyone. Once again, I thank you all for joining us today for RIR Power's quarter one FY 'twenty seven earnings call. My name is Ramesh Kumar. I'm the Managing Director and Chief Executive Officer, and it is my pleasure to walk you through the company's performance for the quarter ended June thirty eight twenty twenty six, followed by the key operational updates and the outlook going forward.

3:25 We started quarter one FY twenty seven on a very strong note with revenue growing by 29.3% year on year to 27.16 crores, along with an 80.6% growth impact, reflecting the continued improvement in our operating performance and profitability. EBITDA for the quarter came in at 3.98 crores. Earnings per share for the quarter stood at 39 paisa per share. In terms of operations, we continue to make steady progress across our key initiatives. Update on our Odisha facility. With respect to our upcoming facility in Odisha project is in two phases.

4:13 Phase one con... Consists of epitaxy and packaging, and phase two is fabrication. The clean room construction is completed for epitaxy. Infrastructure for sourcing the power supply through 33 kV line has been completed. Further, the transform is also charged yesterday by the authorities, and we'll be able to draw the power in next one or two days. The plant and manufacturing installation is under progress and estimated to be completed by end of this month or mid September. We expect to commence epitaxy operations in the end of second quarter FY 'twenty seven. With respect to the revenue from Odisha plant, we'll be selling epi wafers to fabricators outside India and also getting SAC devices manufactured will be outsourced with the epi wafer for validation and revenue generation effort on December.

5:15 So other updates going forward, we continue to make steady progress across many other key initiatives. Some of them include the listing of RIR Power Electronics on NSE with the trading having commenced on 07/16/2026. This listing on NSE is expected to enhance our liquidity, broaden the investor base, improve price discovery, and strengthen the company's visibility in the capital markets. The company has strengthened its board with an appointment of mister Vivek Patel as an independent director. He brings ex... Expertise in areas such as institutional governance, policy oversight, budgeting, risk management, and long term strategic planning.

6:09 Mister Ankeisha, chartered accountant who has been associated with RIR Power for the past one and a half year as financial financial controller has been elevated and appointed as a chief financial officer. Also building on its recent momentum, RIR continues to strengthen its international footprint, following its first overseas order for 120 numbers of one twenty five five kV SCR thyristors, reinforcing the... Our competition in the semiconductor products. We have also manufactured high power semiconductor like five kV to eight kV, prospect SCR high voltage modules, and silicon carbide devices.

6:57 These components drive critical defense application, pulse power system, and high voltage direct current transmission infrastructure by managing immense surge in current and high voltage blocks. Also building on its recent momentum... Sorry. The company showcased its latest railway power electronics solution at Rail Transport twenty twenty six. The event further strengthened RIR's engagement with the India's rapidly evolving railway infrastructure ecosystem. Thank you. Over to Abhishek. Thank you, Mr. Ramesh Kumar, for sharing the summary of the quarterly results and updates on other operational and development matters.

7:48 I will now like to hand over the call to doctor for his comments on the results. Over to you, sir. Thank you, Abhishek, G and Ramesh. Morning, everyone. I am adding my personal welcome to all of you, and thank you for your support as well as time. The first quarter of FY 'twenty seven has been a defining period for RIR Power Electronics as we continue to strengthen our position in India's power semiconductor ecosystem. Our successful listing on NFE marks an important milestone in our growth journey, enhancing our visibility among investors while reinforcing our commitment to creating long term value for shareholders.

8:41 We remain focused on expanding our advanced semiconductor portfolio, driving innovation in silicon carbide as well as silicon technologies, and sensing our across strategic sector, such as electric mobility, renewable energy, industrial automation, railway, and power infrastructure. Talking about innovation of our technology team, we have proudly developed and delivered an Indian 25 k v, 120,000 amps capacitor discharge switch using 125 millimeter advanced FCR or or components for specialized defense technology and high energy pulse, thereby, partnering, thereby strengthening, making India as well as partner labor power initiatives.

9:41 Finally, as India semiconductor and clean energy ecosystem continue to evolve, we are well positioned to capitalize our emerging opportunities through technology led growth, office and excellence, as well as strategic partnerships. Once again, thank you for your time and support. We thank you for to you. Yes. Thank you, Harshaji. We will now be happy to answer your questions and hear your perspectives. Nirav, over to you, and I would request you to open the floor for any questions. Thank you very much. We'll now begin the question and answer session.

10:30 Anyone who wishes to ask a question may press star and 1 on the touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, First question is from the line of from Research. Please go ahead. Hi, greetings. Greetings to Ramesh and Mr. Mehta. Ramesh, my first question is, I hope I'm audible. My first question is your observations for the past six months. Probably, you have completed six months in the organization.

11:28 And in fact, that is visible in the results also. We have crossed INR27 crore as revenue quarterly. I just wanted to get your opinion, you know, on what is the best case quarterly revenue run rate you are projecting, you know, in your assessment for our for our business, keeping Odisha plant aside for the core business, I'm asking. Can we target a INR 50 crore quarterly run rate revenue given the opportunities we are exploring in railways, defense and other satellite sectors? So thank you for your wishes that, you know, for my six months completion.

12:17 I wish we meet your expectation of 50 crores per quarter, but it may take some more time. I'm I'm not including the... What is sublanting to this 50 growth. I think this year, we'll be able to easily cross about 30 plus crores per quarter. That is because of... We need to do a lot of work on back end supply chain ecosystem for us as well as the... Some of the productivity improvement activities which we need to do at the factory level. So maybe going forward, maybe next six months to nine months down the line, we should be in a position to meet your expectation.

13:08 Understood, Ramesh. Understood. No, in fact, this also is quite encouraging. Then we will look forward to FY 'twenty eight quarter, is that right? Ravindra, my second question is on the product portfolio. So the current product portfolio, which we have at our Halol facility, In terms of progression in products, which can be made from the similar technology or similar processes, which we are following there, do you see enough scope to, you hit this INR 30 crores per quarter? Or do we need to do something... Do some more innovation in terms of products to to achieve this run rate? You are talking about Halol plant or total?

13:54 Halol. Halol. Halol. Halol plant, yes. We need to add some more products, especially into our high power devices where I think I still feel personally that our penetration in the Indian market has been a little less, which we are now seriously working on it because HPD are more businesses from outside India because of the high power, high current, and high voltage. And also, we are focusing on developing some new products for the systems. That is our equipment division. So that will help us grow faster because I feel the other product like LPD has reached its, don't peak saturation level.

14:45 I don't think we'll be able to grow much faster there. The growth drivers will be HPD in India going forward and new products in equipment. Understood. Understood. Got it. In terms of product realization, RIR Power Electronics, is there anything we are doing on where the product realization can go up, trying to enter into product portfolio where the part kit, I mean, the part consignment which is going to customer, there we get more realization by combining more components, etcetera, from our existing technology book? That is always our intention that we we...

15:33 Each and every component or a product or a device, whatever we ship it, we add some value so that our realization that that will help increasing our top line as well as bottom line. There's no doubt on that. With some of the customers we are going and where they are using this product and is there any evaluation which we can do, which is done by the customer himself. So we are trying to work on it to increase the realization as well as the, you know, some profitability. But today, also because of this West Asia disturbances, know, the pushing the cost increase to the market itself is becoming pretty difficult.

16:21 Then now adding some more value addition and then charging more to the customer is going to be a little tough till the things stabilize at restation issues. Understood, Mr. Rumi. Understood. Rumi, if you don't mind, can I just extend one more question, then I'll join the queue back? My fourth question is on our Halur sorry, our Orissa plant, probably Mr. Mehta can help me here. Sir, if you can share, I know there were some remarks on it in the opening comments by Rameshji. I was just wondering if you can help us understand a bit more on what stage the project has reached, whether we have got the electricity line in terms of capital reimbursement from the state, where are we signing at this point of time?, if you can help us there.

17:12 Yes. So we are, as Ramesh mentioned, our power issues have been resolved. Our 36... We were requesting, as you know, power from 33 k v line because that has a lot more less... Lot more fuel in terms of the quality of power. And all of those issues have been resolved. Finally, the transformer has been installed and charged, and now we should be able to get the power in about a day or two once we finish our connection. So all of those issues are resolved. Now what the next step next step is going to be the beginning operation of the of the... Both of our active reactors and qualifying product for the market in terms of the specs that we have.

18:02 We do expect that process to be... Not take more than about thirty days or so, and I would like to have in September 2026, hopefully before Semicon India, an official inauguration of production at this facility. And we are we are looking at the chief minister schedule as well and his availability. In terms of the funding disbursement, I think we are we are getting the funds, and we are even so far in terms of how much money we have invested. Government authorities have also put in that much money. We are almost ready for our second tranche or second second half of the phase one in terms of the funding. But can give you more detail in terms of how much and so forth.

19:00 Yes. Yes. Thank you very much. Participants, you may press star and one to ask the question. Next question is from the line of Sandeep Rao from Canada Bank Securities. Please go ahead. Yeah. Actually, I'm calling on behalf of Sandeep. So my question is, what's the status on the bank loan facility? What is the... Do you understand on that? Do you want to add? Take this one. Sure. So we have received the in principle approval from the bank, and they were scheduled to have the final sanction committee meeting this week.

19:52 But for some internal reasons, that has got pushed out for next week. So we'll have some update on the final sanction coming through in the next week. And we are very hopeful. The internal team from the bank who was analyzing or who were assessing the project report and related data, So they were also quite confident of getting the final approval, but we'll just wait for the next week to get the news on this. Thank you so much. Sandeep, do you have any follow-up question?

20:43 No. Thank you so much. Yeah. Thank you. Participants, you may press star and one to answer question. Next question is from the line of Nishita from Sapphire Capital Partners. Please go ahead. Yes. Am I audible? Yeah. Call me back. Yes. I just wanted to understand. You mentioned that you're planning to add some more products in our facility. So we just wanted to understand, like, do we have any products under development, and what sort of r and d spend do we do quarterly or yearly? If you could give that number. So do you not I won't be able to spell out the exact product on which we are working for various reasons of competition.

21:36 One thing I can I can help from this year on that? So we have we have been working on on development as well as prototyping of the products that will add the value to our existing product portfolio as well as get us closer to the customer, specifically for high voltage industrial and grid application. Specific products, I can say, would be, for example, most of... I won't go into a lot of technology, but sorry about any confusion. But when you when you start or or turn on a thyristor with electrical pulse, you need to isolate all the levels because of the safety.

22:22 Instead, we have we have been working on the optical scissoring that removes the need for isolation of each individual level on high voltage application. So that product, we already have at about five kV. We are trying to get higher to about eight k b level, which is the theoretical... Practically maximum for silicon power devices. Okay. Okay. Understood. And on r and d spend, what sort of r and d spend do we do? We always have been from the very beginning since my first company in US, still RIR. And I always believed in about eight to 10% spending in r and d as a long term investment because of the fact being small and the...

23:11 And one of the smallest company in this big space. Our advantage is being agile as well as being innovative and lead from the technology perspective in terms of application and efficiency as well as optimum value to the customers. Alright. Understood. And the other next question I had was on our EBITDA margins. So our EBITDA margins has improved quite a lot in Q1. So I just wanted to understand the drivers behind this margin improvement and if the current margin is sustainable or was there some one offs in the driver of improvement? When compared to the fourth quarter where this disturbance in West Asia started of last year quarter four, So the prices, the study, the increasing especially in metals like copper, gold, and silver where we use it in our equipment.

24:15 So the quarter four, we were not able to immediately pass it on to the customers. Then maybe in quarter one, that is one thing which helped us in a very systematic discussion with the customers and then updating them how the raw material prices have moved upwards. And then try to get that realization from the customer that helps us in a in a in a big way, I can say. And also our focus on various costs and the and the control over our, I don't know, purchasing system. We have we have redeployed some people and then overall, you know, combining and negotiating with the vendors properly.

25:05 So these these are certain things which helped us in, you know, increasing our EBITDA margins in quarter one. But these are all depends on how the, you know, geopolitical issues are going to be going forward. So margins is not always only on our control. It is sometimes on the control of external environment also. So if you ask me whether it is sustainable, then we'll not be able to exactly say yes or no on that. Right. But, like, if you could give some range on the long term sustainable margins that we can achieve, can it be around the range of 15, 17%?

25:52 Yeah. I was... I would always aim is to be there where what you mentioned the numbers. Our aim is to be always there on those numbers. So I'm sure we should be in a position to achieve those numbers. Okay. Okay. And I had a follow-up question on the pricing. So you that in q one, we were able to take some price increase. So was the price increase able to mitigate the input increase completely? I can say almost about 80 to 85% passed return to the customers. Maybe some old orders which, you know, we have accepted for the... With the schedules, which we we were not able to, but all the new schedules are with the new prices.

26:46 Okay. Understood. And and and my last question is on the case. Right? So I just wanted to understand. I'm joining this call, and we had a company this first time. So wanted to understand more on the CapEx plan for the Orissa plan. What is the total CapEx that we're going to spend on the plant in phase one and phase two combined? So,, you want to give the update? So the total expected CapEx for the Odisha plant is $61.08 crores. For the first phase, we expect the CapEx to be at around $2.25 crores. For the second phase, we expect the CapEx to be around $3.95 to 400 crores.

27:34 Okay. And what is the total CapEx we've budgeted for The US by '27? So we expect a CapEx of around 100... 220 odd crores for the phase one. And for phase two, we are still under the question. So maybe we'll have that update by next couple of months. Okay. Okay. Understood. And when can we expect sales to to commercialize? So Epi Epi wafers, we are anticipating to sell from third quarter.

28:24 I think that is what we said at the beginning of the call. Maybe you you said you joined it. Right. Right. Okay. Understood. Yeah. Thank you so much. That is it from my end. Thank you. Participants, you may press star and one to ask a question. Next question is from the line of from Serene Alpha. Please go ahead. Hello. Yes. Go ahead. Thanks for the opportunity. My question is to mister Ramesh. I don't know whether you have stated this question in this conference or not. I just wanted to understand more on the scale for RIR Power Electronics in next couple of years, specifically when Mr. Ramesh joined the company recently, but I think he has been associated with the company since 2024 as Regional Director, and he has prior experience of working in CG Power as well.

29:28 So he brings a kind of network which can help us to scale right there, particularly in the tailing sector. So I just wanted to understand what kind of strategy are we going to implement from here onwards, Especially when we were speaking about few targets in the past and we were not able to achieve those targets. Yes. Mean, as you rightly said, I had total experience of forty four decades plus out of which 50% has spent on sales and marketing and 50% on the business management. So I am trying my level best to penetrate the RIR products, enhance the reach in the market. So that is one which I feel that the backward pressure always help the industry to correct at the back end, whether it is productivity improvement or quality or the supply chain ecosystem.

30:36 All this, I'm trying to do put backward pressure from the market so that we can quickly do that because it is always, I believe, from the customer side, pressure on the manufacturing will always have been improving much faster than doing... Getting our house right and then going to the market may take long time. So that's how you you have seen However, numbers have been in quarter one, and I'm sure this will continue. Hope I answered your question. No. I just wanted to understand more specific on the kind of scale are we looking to from the existing plant as well as the upcoming expansion?

31:26 And do we have any can we have any deadline to it? Like, as I mentioned, in the past also, we were speaking about these CapEx projects, but nothing is materialized until now, I would say. So I just wanted to understand and hear from you, how do you think after becoming CEO of this company and the kind of network you have, you have already seen the products, you're already having so much experience. Right? So how do you see in the terms of scale, in terms of numbers, where we can go in next couple of years? So generally, we don't give any forward looking statements or commitments, but at least this year, we are, you know, targeting to grow at least three to four times than what we have done in last year in the in the top line growth as well as even even more in the bottom line growth.

32:27 As you rightly said, I'm trying my level best to use my contacts, the old contacts, and then use these products and reach those customers. That is as far as Halol and existing business is concerned. And we we have already said about our, though we have not mentioned any of... Anything about the what exactly the revenue is going to be because the Odysa plant is going to be in in two phases. In the first phase, again, it is divided into two phases. Out of the two phases of the first phase, which is epitaxy, which we are going to make the, you know, AP wafers from end of September or maybe beginning of October, that is quarter three onwards.

33:16 We are anticipating some revenue out of that in Modisa. And also, Ankit has just clarified previous question that our term loan is almost two for a second phase. And the first phase of second phase that is packaging in the existing plant. So that will take maybe our revenue will come from the packaging maybe second quarter of FY twenty twenty eight. You mentioned three times since the revenue that we did last year. I heard correctly. The growth I'm talking about, not the revenue. Understood. Okay. Yes. That's it from my side. All the best for the future. Thank you. Thank you.

34:02 Thank you. Next question is from the line of Prateenjini from Shumla Research. Please go ahead. Ankit, if you can help me understand in the INR $2.25 crore Phase one CapEx, how much we have done from our company and how much government has contributed? So till now, government has provided a subsidy of 58 crores, and company has also made an equivalent contribution. And and and on top of it, we have spent maybe $8.10 crores more, which will not qualify as CapEx.

34:53 So maybe our our contribution would be somewhere around 70 odd crores, and government has provided a subsidy of 58 crores till now. Okay. Got it. So this 70 plus 58 is around $1.30 crores. So we are yet to do around another 100 crore of in phase one itself. Right. And that is what we are seeking the bank bank loans for. Correct? Absolutely right. And the the bank loan amount is unchanged, or is it... Has it changed? No. So we have we have made an application for 70 crores. Okay. Okay.

35:39 Got it. Mister if it... Well, thank you for the opportunity again, mister Mehta. I have just one more question on our RIR Power So... And I'm very glad that we are at least now reaching the production phase of architectural effort. I was wondering if we have zeroed in or any customer has approved us or we have reached out to any customer for this offtake of architectural wafer from our plant. Yes. We have approached international customers in US as well as Taiwan. And we also have been approached by the Indian customers, which are or less government labs because they have been looking at EPI from RIR.

36:26 And so we have the the specs, and as soon as we start delivering it, we have two reactors that can deliver six inch... Four inch, six inch, and 18 EPI. 18 would be mostly for export. Four and six inch would be for domestic India. And both of the extra funds installed, mister Mehta? Yes. Yes. Great. Great. Just one last question from my side. In FY 'twenty seven, probably we will be left with around six months of production from our RISA plant. Any revenue, rough revenue projection we have kept for ourselves or target for ourselves from that plant? I think will be the one who who Yeah. Please.

37:21 Yeah. So we we are estimating and targeting revenue out of sale of FPV first in the range of twelve to fifteen crores for the second second half of this year. Got it. Got it. Good luck to the entire team. Ramesh, thanks a lot for detail answers. Thank you. Thank you so much. Thank you. Next question is from the line of Sitharamanci, Individual Investor. Please go ahead. Yes. Very good morning,. Am I audible?

38:09 Yes. Yes. Please go ahead. Yes. This is like, I think most of the people have already asked about the status of the Orissa plant actually. And then we will get the output or, like, which will be reflecting in the... Which quarter it will be reflecting. That's what I just wanted to ask you about the new Oracle project. I know, like, Halal front, you're planning to make it, like, like, two or three times more, and all the discussions I've been listening to, I'm working. I... I'm glad to share all those things. But this thing, when it will be reflecting in our which quarter it will be reflecting from the Otisaplan. That's the only question I just have. I think we said that from third quarter of this financial year, we will start registering some revenue from Odisha plant.

39:01 Okay. At least it will match Halol or, like, little bit at least. Right? That's what I It can't be to the extent of Halol because in Odisha, This year, we will be making only epitaxy wafers, epi wafers. So that will not give Okay. A high revenue of Halol. Halol is very large and compared to this particular activity. Okay. Okay, sir. Okay, sir. Thank you. Thank you. That's the only thing I just want to ask. Thank you. Thank you. Participants, you may press star and one to ask a question. Next follow-up question is from the line of Richard from Ample Capital. Please go ahead. Hello?

39:48 Am I audible? Yes, sir. Go ahead. Yeah. I would like to know the update on Richard Electronics. I read it that 20,000 chips were supplied to the company, and they'll be reviewing it. The silicon carbon semiconductor chips. So is there any update on that? We are following with them. We are following with them at at this moment, but I don't have any update from them even though we have the marketing people following up with them as well. Okay. Thank you, sir. Thank you. Participants, you may press star and one to ask the question.

40:35 Next follow-up question is from the line of Nishida from Sapphire Capital Partners. Yes. I just wanted to understand that the in the epi wafer, what sort of margin profile do we have? Is it similar to our existing products in facility? Ankit, if you can answer this question. So so we expect an EBITDA somewhere in the range of 22 to 25% on on sale of FPVAsk.

41:20 Right. So so FPVAsk has better margin than the current product. Right. Is that understanding correct? Right. So SIC products and devices would have better margins than SIC. Okay. Understood. Yeah. Thank you so much. Thank you. You. Next follow-up question is from the line of Sita Ramansi, Individual Investor. Please go ahead. Yes. Hi. Just one more doubt, maybe like are we participating in any way in semicon two also?

42:16 In the semicon? Semicon? Yeah. We should have That's... New new thing. They launched, like, Indian government, like, something like that. Anything that we are expanding from? Yeah. Yeah. Sorry. Sorry. I I... Yeah. I'm... Yeah. I'm I do. Yeah. We we have... We are working on some projects. Maybe once we are ready with the project, then maybe we will approach the government. Okay. Thank you. Thank you. You for time. You. You. Next question is from the line of Sanjay Garg, individual investor. Please go ahead. Hello. Hi. Good morning. Am I audible?

43:01 Yeah. Yeah. Good morning, management team. My question is, what is the vision statement for next five years? Because I understand you're saying that we are catering to Sunrise Industries. We want to increase products. But what is the number from which we can work backwards into each and every Sunrise industry and each and every product? For example, are we saying we'll become 1,000 crores or 10,000 crores, and this is the way we will do it? Because right now we are saying we will look into this product and try to sell it. So probably if you can throw some light. This is Sanjay. Generally, we don't give a very long term commitment or forward looking statements, but definitely, when we have opportunity, we can meet in person, and then we can discuss what is the vision of this company and where it goes to.

44:05 But in this kind of calls, we generally don't make such statements. Yep. Thank you. Next question is from the line of Charchit Rustomjee, Individual Investor. Hello. Am I audible? Yes. Yes. So I wanted to you mentioned every reactor facility. So I wanted to know what is the depreciation cycle on that and what sort of depreciation method that you follow or you would follow going forward? Can you repeat the question with... Because little louder because your voice is little feeble.

44:55 Yeah. So you mentioned epitaxial reactors in your facility. So I wanted to know what was the... Or what is the depreciation method that you might be using? Depreciation method? Yep. Of the equipment you're talking about? Yep. Of the equipment, what is the average usual life cycle of the reactors? Ankit, if you can answer this, what is our plan of depreciation? So, basically, we'll follow the same policies which we are using for Halol. So we'll be following the straight line method of depreciation to take a charge on the p and l.

45:42 And the useful life would also... Ideally, the useful life of these assets are quite long. But, generally, what we consider for plant and machinery is fifteen years. Alright. So my next question is, is the company contemplating in entering into GaN, which are... Which is daily nitrate? Yeah. I think I can I can respond to that question? So there are... You are right. There are three power semiconductor spectrum. There are three substrates. Silicon that we're doing at Halol. Silicon carbide that we are doing or we are taking over, taking back, implementing that at the global network.

46:31 I want to focus at this point on silicon carbide to its full potential because as I read and as I see the papers on gallium nitride, the vertical GaN or the the vertical structure in gallium nitride is the most suitable for power power application. And at this point, I have not seen significant yield improvement on vertical structure of gallium nitride. So at this time, I see there are only two applications where GaN is focusing. One is 100 volts on the residential charger, and second target is six six hundred fifty volts. I want to see how that goes because of the fact that there are advances in silicon carbide technology on the IP side as well as device processing and and manufacturing side. So it's it's very likely that silicon carbide can capture at least the power side of the GaN market in next three years or so.

47:39 Alright. So my final question is regarding the yield of the epitaxial wafer that you have mentioned that the company will be producing in a couple of months' time or the third quarter. What would be the yield or the targeted yield? We usually count on a semiconductor processes. We usually take about 85% yield number. And we try to do them... 85%. Okay. Please complete your thought, please. Pardon? Complete your thought, I mean, you mentioned 89% Sir, can you speak a little louder, please? Yeah. Yeah. I think 100%. So we we have... We generally try to 85%, and that's what we think we will get.

48:30 But we... Our goal is always to go go about 90. But I always come... When you look at the IP, there are some dicing losses, curve losses, and so forth that we cannot control. But at least on the defect side, we'll try to control as best as we can. Okay. Thank you. Thank you. Participants, you may press star and one to ask the question. As there are no further questions, I'll now hand the conference over to Mr. Abhishek Sawan for closing comments. Thank you,.

49:16 And thank you to everyone who joined us today and participated in the discussion. We appreciate your questions and continued interest in RIR Power Electronics. As always, we remain committed to transparent communication and delivering long term value to our stakeholders. In closing, on behalf of the Board of Directors and management, we thank you all for your participation in this call. RIR Power remains focused on operational excellence, financial prudence, and long time value creation. Should you have any further queries, please feel free to reach out to us. We look forward to engaging with you again in the near future.

50:02 Have a great day, and stay safe. Thank you again. Thank you very much. On behalf of Eruditus Reputation, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you. Thank you. Thank you. You. Thank you all. You may now disconnect your lines.