Tara Chand Infralogistic Solutions (NSE:TARACHAND) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY 'twenty seven Earnings Conference Call for Tara Chand InfraLogistic Solutions Limited. 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. I now hand the conference over to Mr. Manvi from Stellar Investor Relations. Thank you, and over to you, sir. Thank you,. Good afternoon, everyone, and thank you for joining us today to discuss q two and h one FY twenty seven business performance. We have with us the senior management team represented by mister Himanshu Agarwal, full time director and chief financial officer.

0:51 Before we proceed with this call, I would like to mention that some of the statements made in today's call may be forward looking in nature and may involve risks and uncertainties. The company also undertakes no obligation to update any forward looking statements to reflect developments that occur after this statement is made. Documents relating to the company's financial performance, including the investor presentation, have been uploaded to the stock exchange and the company's website. I now invite mister Himanshu Agarwal to share his initial remark... Remarks on the company's performance, and then we will open the floor for q and a. Thank you, and over to you, sir. Thank you for the introduction, Mandeep.

1:37 Good afternoon, ladies and gentlemen. I, Himanshu Agarwal, the Hold Time Director and CFO of Tara Chand InfraLogistic Solutions Limited, welcome you and thank you for joining the earnings call for the quarter and half year ended 09/30/2026. I hope you have had the opportunity to go through the investor presentation that was posted on the NSE website. Let me begin with q two FY twenty seven, which marks as a clear and measurable recovery from a difficult first quarter. Revenue from operations grew 27% year on year to 83.11 crores, while profit after tax grew 21% year on year to 9.05 crores, the highest quarterly profit the company has reported to date. And the EBITDA margin recovered by 400 basis points over Q1 to 34.7%.

2:27 We have consistently said that given the seasonality of our business with Q3 and Q4 historically contributing close to 60% of annual revenue, The year on year comparison is the right length. However, this quarter, the sequential comparison also matters because it demonstrates that the disruption in Q1 was transient. The one off factors that defined Q1 are behind us, and Q2 reflects our journey back towards the normal operating rhythm of the business. On the financial front for the quarter, total revenue grew 25% year on year to INR 84.03 crores, with revenue from operations at INR 83.11 crores as highlighted above and 23% above the q one.

3:13 EBITDA grew 11% year on year to 29.16 crores, while FAT margin was maintained at 11% in line with the same quarter last year. And earnings per share also stood at 1.15 per share against INR 0.95 a year ago. Cash back, which we continue to regard as an important earnings measure for our capital incentive fleet business, the... It grew 8% to 23.3 crores. For the half year ended 09/30/2026, total revenue grew 18% year on year to 152.46 crores, with revenue from operations up 19% at 150.74 crores. EBITDA for the half year stood at 50.18 crores, marginally ahead of last year, and cash back at 40.9 crores.

4:02 Profit after tax for INR24.9 crores last year for the same period. The entire shortfall, as I mentioned earlier, is attributable to the first quarter, and the half year EBITDA margin of 32.9% should also be read in that light. I would like to be clear about the margin trajectory. The Q2 EBITDA margin of 34.7% is a four percentage improvement over Q1, but it remains below the 39% reported in Q2 last year. For our equipment rental segment, the stand alone rentals EBITDA stood at 55% for Q2, while the specialized services contributed revenue of INR17.03 crores with an EBITDA of 12%.

4:48 A lower EBITDA for specialized services is primarily attributed to higher costs on account of heavy monsoons that led to lower than desired output at the pro... Project site. As the new That brings me to CapEx. The company invested INR106.6 crores in equipment in H1 FY 'twenty seven, ahead of the INR80 crores to INR100 crores that we had planned for the full year. This was a deliberate decision. We saw the opportunities in power and renewable energy sectors that were firm backed by client commitments, we chose to secure them. Nine machines were added in the half year, including two nine hundred ton crawler cranes, two eight hundred ton crawler cranes, a 700 all terrain crane, and a 500 ton crawler crane as well. The majority of this equipment is being commissioned during the third quarter, which is when it begins to contribute towards revenue.

5:42 As of 09/30/2026, the fleet stood at 436 machines with a gross block of approximately 662 crores. Going forward, for the remainder of the financial year, the company will take a call on more CapEx depending on the upcoming opportunities and commitments from our client. Turning to the segments, equipment hiring and projects contributed 72% of revenue in the first half of this financial year, while warehousing and transportation was at 28, whereas while steel and processing and distribution, which we have been consciously deemphasized, was negligible at only 0.2%. The equipment hiring and project segment recorded a revenue of INR59.55 crores in Q2, a growth of 57% year on year and INR108.43 crores for the half year, which was up 56% year on year. The reported EBITDA for the segment is 44%, which includes specialized services.

6:46 Then the stand alone equipment rental EBITDA margins stood at 55% for the quarter and 56% for the half year, supported by fleet utilization of 82%. The average gross monthly rental yield for H1 FY 'twenty seven was 2.83%. The sectoral mix of our rental revenue has shifted decisively towards the energy build out, which is power and renewable energy together, accounting for 53 of equipment rental revenue in the first half, with cement, steel, petrochemicals, and other sectors making up the balance. This is precisely the deployment the high tonnage CapEx was intended for. The warehousing and transportation segment returned to profitability in Q2 with revenue of INR23.3 crores, a 24 improvement over Q1 and a segment EBITDA margin of 16% against a marginal loss in the first quarter.

7:42 Steel volumes handled rose to 1,950,000 metric tons in Q2. On a year on year basis, the segment revenue is lowered by 15%, which reflects the conclusion of our RINL Vishakapatnam contract, which was there in the base period last year and the new contract of Dankuni Stockyard in West Bengal still ramping up. The sequential recovery in both volumes and margin indicates that this segment has found its footing on the new base. As of October 2026, our order book stands at 163.7 crores exit... Executable entirely within FY '27, with 74% from equipment hiring and projects and 26% from warehousing and transportation. Together with the revenue already booked in h one, this gives us the visibility to speak to fulfill to full year guidance with confidence.

8:35 On the balance sheet, our net worth stood at 158 crores as of 09/30/2026. The CapEx program has taken net debt to equity to the upper limit of one that we have set for ourselves, and we intend to operate within that ceiling. The average cost of borrowing stood at 6.26% on an annualized basis, while the net cash flow from operations for the half year was $33.0.3 crores. Lower than last year, principally on account of working capital. The receivable days were slightly above hundred days, while our target still remains to bring it down closer to eighty days. The major change has been the receivables from what we have noticed from the renewable energy sector are a little prolonged, and we are trying to work out with our clients to ensure that the receivable cycles improve going forward.

9:31 And we have good visibility on that as well. On guidance, we remain on course for the lower end of our 20% to 25% revenue growth target for FY 'twenty seven. While on margins, we expect that the full year EBITDA margin should be around 35% below our earlier band of 37% to 35% on account of the first quarter challenges. And we expect that to to exit the year closer to the band as the new fleet is fully deployed and specialized services also stabilized in q three and q four. Our strategy remains anchored on three pillars, scale, specialize, and sustain. Scale through calibrated fleet expansion aligned to confirmed demand, specialized through a differentiated high tonnage fleet, the 900 tonne metric crane the 900 metric ton cranes, the 68 meter aerial aerial platforms, and also the cell phone rubber tag entries in our warehousing division.

10:28 This creates entry barriers and commands premium yields and sustain through disciplined leverage and a conscious decision to stay away from run of the mill EPC work that does not meet our return thresholds. Every sector we serve, power, renewables, cement, petrochemical, steels, and the others, are... Is still building. The demand environment is robust. Our visibility on the work ahead is the strongest it has been, and the fleet to execute it is already on the ground. Q one tested the business. Q q two has shown its resilience, and we believe we are back on track. With that, I would now like to hand it back to the moderator for the q and a session. Thank you. Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may please press star and one on the touch tone telephone.

11:21 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. First question is from the line of Rohan Mehta from CECOM Family Office. Himanshu. Am I audible? Yes, you are. Please go ahead. Great. Great. Thanks for taking my question. So a couple of questions. Firstly, on, you know, CapEx and compared to, you know, the growth guidance. So CapEx for FY twenty seven was planned at INR 80 to 100 crores, and H1, you've already spent close to 106 crores. And we have cited that this was because, you know, the opportunities in power and renewables, it was there to be taken.

12:28 So I was expecting, you know, the growth guidance to be at the higher end. So could you just explain if you're seeing opportunity, why would you... Why are you guiding for, you know, the lower end of the range that is 20%. And given that, you know, the demand is shaping up, are we being conservative at 20%? Okay. So thank you for the questions, mister Rohin. So the CapEx is primarily the INR106 crores is consumed by a chunk of the larger machines that I mentioned in the opening remarks. And those a good amount of those coming into play in Q3 and Q4 will help with the growth trajectory that we are focusing on. And as I mentioned, we could end up on the lower band of the growth target. It's also based on the fact that our revenues are a mix of equipment rental, specialized services and warehousing and transportation.

13:32 Q1 being a little slow, there has been a good movement in Q2, which is giving us positivity in H1 where we concluded h one at 19% revenue growth compared to last year. And going by h two being on the heavier side on revenue generation as well, which was there last year as well. So the base is also on the higher side and pushing on that 20% seems very likely with the growth opportunities that we already helped take up with the new CapEx that we have done. So that that is where we see currently that it it should be where we would be able to exit the year. Got it. Got it. And in terms of your order book, so currently, it stands at about 163 crores.

14:23 And for about 20% growth, h two revenue approximately requires about 190 crores. So if I see on a net on net basis, you'll require additional 30 odd crores odd crores of incremental orders. So what sort of inquiries are you seeing right now, and how confident are you that not only will these come in h two, but you'll also be able to execute them? And in terms of the nine new machines, are they still awaiting contracts to be used in q three or q four? Okay. So to answer those questions, I'll answer the second one first. So the nine machines that have been added, some are already deployed, and the others are waiting deployment, but the contracts are already in hand. The deployment is based on the availability of space and the timeline provided by the client. So they are en route... Some are already en route deployment. The others probably would go into next month or so. So we already have contracts in line. The way we've always approached CapEx is that we go by backed up client orders when we do CapEx. So that that has always been the company's policy and will remain the same going forward as well.

15:40 For the... Could you repeat the first question before Yes. This is basically on the incremental orders that you will have to receive about the So, yeah, so we have certain ongoing discussions, and they're specifically towards the end of q three and q four, execution of orders towards the end of q three and q four, where we do see opportunity that incremental orders would flow into the tune that we would be able to hit our lower band of the growth target. Got it. Got it. In terms of your renewables segment, so renewables was 15% of rental revenue in f I twenty six, which, you know, rose to 31% in q one. And for h one, that figure is at 20%. So if you were to just calculate q two, that comes to about 11% as per my calculation.

16:36 I... I'm trying to understand what is happening in the renewable segment in terms of the volatility of the mix. So one reason maybe which I can think of is is is it because of the curtailment? Because curtailment is rising because transmission is not keeping, you know, base with capacity. So, essentially, what I'm trying to ask is, are your wind clients slowing new erection work because of this? Not necessarily. Actually, in in this q two, specifically, the share of the power sector rose significantly for our equipment rental segment, primarily because the entire specialized services that we recorded 17.03 crores was in the power sector itself. So a large chunk of our revenue from the power sector was there in q two, which has helped...

17:31 Which which kind of gave a higher percentage to the power sector independently, while the renewable energy sector saw similar absolute numbers to the Q1. And we have contracts in hand for Q3 and Q4 where we anticipate that with Q3 and Q4 numbers, the renewable energy numbers again would be on the higher side when we look at revenue distribution. Right. So just to follow-up on that. So in terms of renewables and power, the nature of the contracts, how are they? Are they long term or short term? I presume they are slightly longer term. And in terms of the power sector, like, how sustainable do you think the order flow is for for the power segment compared to the renewable?

18:20 Okay. So, yes, on the duration of contracts, if I talk about specialized services, those are usually four to six month contracts, whereas the equipment rental contracts in the power sector and renewable both are more on the long term basis. When I say long term, that is at least one year or longer. So there, we do not see any challenge. And the order flow from the power sector itself is also pretty decent because we are seeing a good activity with our capacity expansion, especially in... With a lot of these companies growing into the three by 800 megawatt power plants across various states in the country that we are noticing. So there is a good order inflow from the power sector specifically for the long term equipment rental orders as well.

19:11 Got it. Got it. Great. I'll get back in the queue for more questions. Thank you. Thank you. Thank you. You. Next question is from the line of Neeraj Sanjay from Branch Business Ventures. Please go ahead. Hi. Hi. Firstly, I wanted to clarify a reply that you have given very recently to the previous participant, which is with regards to your current order book that is not only to be executed within this financial year. It is your long term order book, like your Adani contract is for twelve months or fifteen months and same way BHEL is for longer. So in order to meet your full year guidance, you will be getting more, much more orders and that's the nature of your business, which is you don't get many long term orders, but it goes as the demand from the customer happens. Is this understanding correct?

20:07 To clarify that, sir, thank you for the question. So the recent update on NSE, think you're referring to that. So those are long term contracts. So out of those long long term contracts, only the portion that is executable in the current f y forms a part of the order book. So the order book that we give out, as we talked about in the earlier answer as well, is the order book across our both the segments, which is warehousing and transportation and equipment rentals, but executable within FY '27. So the 163 odd crores is executable in Q3 and Q3. Within the okay. So then you need INR 26 crores, 27 crores more of an order book to meet your lower end of your 20% guidance. So my question is, while I'm a bit surprised for a 20% guidance when have front loaded your CapEx in the H1 itself, I'm also a bit surprised to have a lower end of your EBITDA margin even after considering the Q1 result because more revenue will be coming from your equity equipment hiring and project business, which are reasonably higher IRR project and still we won't be able to meet 37, 38 of EBITDA margin on a consolidated basis for the current financial year. Why? What's the reason?

21:29 Has the rental yield actually come down compared to the last answer that question, so the rental yield for the half year stood at 2.8 odd percent, and that is where we see that the number should sustain for the coming two quarters as well. To answer that with regards to CapEx done already and reflecting in q three and q four, So the incremental revenue from just those seven or, you know, five or seven, I don't have the exact numbers of the machines which are yet to bring in revenue from q four, q three, and q four. The incremental revenue overall will not be able to jack up the EBITDA to that state. Right? It is at about 33 odd percent. So getting 500 basis points of additional EBITDA out of just five or six equipment over a period of six months is not ideal because otherwise the revenue earning would have to be significantly large for that to happen. So that is why the guidance or what would be company targets is is in the on the lines that I have stated.

22:39 Okay. And and in your balance sheet, there is other financial liability. I guess these are vendors credit for the equipment supplier, which you don't consider that in the as a debt for your debt to That's equity my understanding is correct. Okay. So when you are saying that you have already reached close to the one is to one debt to equity ratio and any further CapEx requirement depending on the need of the business will be then largely coming from if a vendor credit is available for that equipment? Not necessarily, sir. It will be a combination going forward like we've always been into margin plus. No. No. For for the current financial year, not the... For the future one, for the current financial year. Because you said if there is an opportunity, we might still go ahead and do more CapEx.

23:33 But then if you will do it, then you will breach all that one is to one debt to equity ratio. Right. So that that will always be there that we'll be looking at opportunities considering all aspects and not just the opportunity that walks in. So those cons... Considering all aspects, company will take a call and will factor in what we... When the credits, the banking limits, and other facilities that the company has in place while also ensuring that those internal targets that we have set for ourselves. It is more of a ceiling set for ourselves to maintain a certain level of understanding as to how we take decisions. And if an opportunity does come in that requires for us to go higher than one for a shorter... Pre... Short period of time because we're also paying back debt on a regular basis, on a yearly and quarterly basis.

24:22 So those are Mhmm. All those factors will put into... Be put into place before we go in for any new debt for this financial year itself. Understood. One last question is with regards to... Can you give the guy... What will be the expected depreciation for the full year and expected interest cost? So looking at where we stand as of September, we had about 30 odd crores of depreciation for the half year. And considering those numbers, it could be at about 60 to 62 watts growth of depreciation for the full year if I extrapolate from here because there's certain amount of depreciation for the equipment already purchased in the first half that has also been factored into this.

25:12 So that is the number. And with the interest cost, it it stands at about $5.5.3 crores currently. So somewhere around 10 and a half or 10 point... Up to 11 odd crores for the full financial year is what I Okay. Going by the current numbers, although I do not have the actual projections. Understood. Thank you. Thank you, sir. Thank you. Next question is from the line of Ashish from Ford's Family Office. Please go ahead. Yeah. Thank you for the opportunity, Himanshu. So first question, Himanshu, is on the equipment hiring and project side. I believe there were some specific issues for a particular specialized service project in last quarter.

25:58 And then I can see that there is a negative EBITDA contribution in this quarter also. So if you could help us understand where do we stand in terms of that particular project? Are we through with that project particularly? And what are what are the specific learnings for us from those kind of products? I mean, how do we avoid such a situation in future? What are what are the internal steps we have taken for that? Right. So thank you for the question question, Vishudd. On the... On that specific project, the settlement with the client is still ongoing. And once that happens, that will reflect on the numbers as well. Going forward, we anticipate, given the timeline and the time it takes for such matters to be closed, it could be towards the end of q four. By the end of q four, that we'll have... We will be able to get the real picture onto the books with regards to that settlement. And with with regards to learning and how we are safeguarding ourselves going forward, so the first learning is that we have already put into place in subsequent contract the variation clauses that will safeguard us from getting into a situation where such large variation of scope leads to these kinds of challenges.

27:14 The mobilization of resources has also been phased, has been... Is being done in phased manners in subsequent projects to ensure that we do not face a similar situation. And there are certain other internal safeguards that we put into place, which I cannot disclose in the call, but which are ensuring that we take specific measures to ensure that we do not find ourselves in a situation where we over mobilize or we over anticipate the execution that has to be done by the client. Understood, sir. Thank you. And so fair to assume that the Q2 numbers also have an impact of that particular project on the P and L side? No. So for q two, not not much of an impact from that project because that was primarily in the last quarter of the previous financial year in q one. Q two primarily, we saw that with the new project that we initiated, which was in in q two itself and monsoons playing the role that they do usually in in the second quarter, did not allow us for the required results that we were anticipating or we required to be generated with the kind of cost input that went into it.

28:30 So that is stabilizing already since October, but the... That impact has led to the lower EBITDA margin for specialized services in q two as well. Understood, sir. It is slightly improved from q one, but still there is... It is lower than what our targets are. Understood. Understood. And, sir, on the stand alone equipment and the EBITDA margin, I believe we used to do around 60% to 62 margins and for last couple of quarters, we have gone meaningfully down. So just to understand, I believe there are some upfront costs regarding mobilization of larger cranes and equipments, but we have done this kind of CapEx earlier and looked at larger machines. So moving forward, do you think we would be able to move back to that 61%, 62% margin?

29:22 Or there should be an we should factor in a new base, which is in the current range right now? Right. So to answer that and to further clarify on that, one additional aspect to our equipment... Stand alone equipment rentals is there are also cases where we have equipment hired from our associate train owners. And so because there, the ultimate EBITDAs are much lower compared to a stand alone EBITDA of owned equipment, the reason to do so is certain contracts. We have large contracts where we've got large number of machines to be deployed. And all of the machines, even though owned by us, but still not available close to that project or not able to meet the timelines as defined by the client, we have to go for local sourcing and hiring. So those costs have also come into play. But if I look at purely stand alone equipment hiring of owned equipment, the EBITDA margins would still be in that 58 to 60 odd percent range that the company has traditionally been in. So so that remains as it is only overall, the EBITDA margins have stabilized or have kind of been at this 56, 57% range now because of the additional factor of the revenue coming in from these cross hired or outside hired equipment as well.

30:46 Understood, sir. Understood. And, sir, on the warehousing and transportation side, I wanted to understand last quarter was almost a washout for us. Now here, what has contributed in terms of pullback of this business? I mean, has the Dunkuni warehouse ramp up contributed? Or are we back on track in terms of the transportation contracts? So what is the contribution of both these segments in Q2? And moving forward, at full potential of Dunkuni, I mean, what kind of run rate are we looking to achieve in this business? Sure. So, yes, the ramp up has primarily been because, as I mentioned in the opening remarks, the volumes have also increased, which has been because transportation has kind of come back on track, which would be the biggest challenge that we faced in q one. So in q two, that that is stabilized and back back on track, whereas the warehousing aspect also with the... All all the warehouses combined, especially Dankuni and the others, the volumes we saw were much better in q two compared to q one. So so that has helped to bring back this quarter to traditionally where we usually have been. And going forward, also, we do see Dankuni doing... And, traditionally, the q three and q four, these volumes tend to be higher as well. So we do see the... Going forward that we'll be able to...

32:12 That this segment will be able to also support the target that we have set for the year and push push us through them accordingly. Sure, sure. Thank you. So and last question, sir, across the segments, how significant is the higher fuel cost factor in terms of lower EBITDA margin? I mean, segments, is that a meaningful cushion for us to consider if the fuel costs remain high? So yes, to answer that, within our warehousing and transportation contracts, there are escalation clauses, which cater to a a good chunk of the rise in diesel prices on a quarterly or monthly basis depending on the nature of contracts. So that... Not necessarily in that segment, there isn't much of a challenge. We do not see much much of a challenge with any any specific rise in fuel cost. It can be nominal for a certain month or so, but overall, it regularizes with the escalation clause.

33:10 And for the other segment, which is our equipment rentals, they are primarily diesel is in the scope of the client. So there, the cost is not borne by us. In specialized services, the nature of contracts are such which are shorter in nature, and we have visibility of the diesel prices which we factor in when we are quoting for those contracts. So there, again, we do not see much of a challenge coming in with the fuel prices like we've seen in the last... In the past quarter or so. Understood, sir. No. Thank you so much, and wishing you good luck for the second half. Thank you. Thank you. Next question is from the line of Rashanth Rishi from Cascade Capital. Please go ahead. Hi. Good afternoon, Himanshu.

33:56 So considering that we have already crossed our CapEx guidance of INR 80 crores to INR 100 crores, we are at sitting at 107 crores of CapEx that we've done in this year already. Is there any more CapEx that you see happening for the next half? Thank you for the question, sir. So as of today, we do not have the clarity or we haven't had a plan on the CapEx, a firm plan on CapEx for the rest of the financial year. As I answered an earlier question as well, once we do have any firm order in hand where we feel the CapEx would make sense considering all parameters, the same will be done and executed because we won't... We would not want to let any opportunity go because of postponing any CapEx to the next f y.

34:45 We can precon certain CapEx in the current financial year, which we would have otherwise planned for the next financial year. Okay. Perfect. You mentioned... Second question is you mentioned that our EBITDA margins on the construction equipment hiring segment are... Were lower, you know, partly as a result of hiring equipment from associate companies and, you know, and then sub leasing them, if you will, to the project guys. So the rental yields have been soft over the last two to three quarters. Time, it was 2.9 or 2.8% versus 3.1%, which it used to be about three quarters back.

35:33 So is it primarily a result of this hiring the equipment and then instead of loaning it, the overall rental yields which are coming down, is it because of this? No. One of the primary reasons, sir, for that would be that the... If you would look at our CapEx in the... In this financial year as well and towards the second half of the last financial year also, we've been investing in larger machines, which have a larger absolute value of, you know, cost of purchase. And... But the yields tend to be on the lower side compared to a smaller machine, while the absolute rentals are much higher. So so that that... Because we are talking about gross yields here. So that that metric that you see of 2.8% versus three odd percent earlier is changing because of that dynamic, and the stable situation we do see would be anywhere around the number that we are right now.

36:33 Okay. Alright. Understood. So we can expect around 2.7, 2.8% Right. Yes. Considering that we are focusing on heavier equipment, and we will focus on those in the near future. Absolutely. Okay. All right. One more question. You mentioned that specialized services revenue this quarter was INR 17 crore. What was the figure in the quarter one? In quarter one, it was about INR13.2 crore or INR13.3 crore. INR13.3 crore. So in the first half, we are saying that construction equipment rentals have given us around close to crores That's correct. Of understood.

37:21 Understood. One more question. So what is the volume run rate that one can expect from the now this is the second segment. In the steel warehousing segment, what is the volume run rate we can expect going forward that we would... Yes. Usually, we do see about 15% to 20% increase in volume in the second half. So because the activity picks up significantly. So, that is where I would put that number with regards to volume of steel handle is what I understand you're asking for. So, is where we would see that kind of uptick should be there in Q3 and Q4. Okay. Okay. All right. Okay. That's it. Thank you. Thank you for the questions.

38:08 Thank you. Next question is from the line of Manish Kaila, an individual investor. Please go ahead. Hi,. So I have a couple of questions. One is, what is your current pipeline? If I can I'm sorry to interrupt you, mister Manish, but we are unable to hear you, sir. Your voice is sounding very muffled. Audible now, ma'am? Yes. Please go ahead. Hello. Yeah. So,, what is our current bid pipeline at this moment? What is the current order pipeline? Yeah. Is that the question? Yes. Right. So thank you for the question, sir. So the pipeline numbers, I'll I'll not be able to give out as such because we have certain discussions ongoing with the clients at the advanced stages. But as I'd answered an earlier question, we do have the visibility if I talk about the current financial year itself where we got executable order book of 163 odd crores in hand and sufficient room and visibility to be able to reach our targets for the year with regards to the revenue growth that we're looking at.

39:22 I was asking this question because on the previous occasions, we have given details on the big pipeline. So that was the intent. And second is there's $1.63 crore order book. Right? You clarified that this is something which has to be executed within the CEO. So what would be the consolidated order book which has to be, say, executed over FY twenty eight and so on? So traditionally, we haven't given out those numbers where we talk about order books of, you know, subsequent years. But we do... As as we have been saying that we are focusing and targeting a 20 to 25% annual growth. So that is based on certain pipeline as well as certain visibility that we have on the order books, and and that is where I would be able to... Those are the details that I can give out as of now, but not the exact numbers on the year side.

40:22 That's true. Got it. So my second question is, are you also looking at any opportunities outside of India, especially, say, Middle East, wherein quite a few competitors of yours are looking at countries like Saudi, wherein there's so much of a development happening. So just wanted to know your thoughts on that. Okay. So, yes, so the... Thank you for the question again, but we are not focused on opportunities beyond India as of now because because we have sufficient bandwidth, we believe, to work on opportunities here. And if something does come up and we do realize... We do feel that there is good opportunity to scale beyond the country, we'll look at that. But at present, we are not looking at them.

41:11 Okay. Thank you so much. Thank you. Thank you. Next question is from the line of Rohan Mehta from SECOM family office. Please go ahead. Yeah. Thank you for the follow-up. So my question is on specialized services. So please correct me if I'm wrong anywhere. In q four, you had guided f y twenty seven to be upwards of 50 crores in revenue. And in q one, you had executed about another 30 crores.

41:57 And within that call itself, you had mentioned that another 50 crores is to be executed in f y twenty seven. So... Which basically takes the year to close to 60 crore. So is that understanding correct? Yes. So are those... Your numbers and the understanding is correct. So we we are looking at at about anywhere between 55 to 60 odd crores of revenue from specialized services for the full financial year. Got it. And my next question is slightly on the strategy side. So while, I believe the current, specialized services margins, would be in the range of 17 to 18% for the, current year, but, what essentially needs to happen, for this segment to, you know, start generating margins above 20%?

42:51 And also by when can we achieve them given the capabilities, you know, you have been building over the last two in this segment? Right. So, mister Rohan, for that to happen, we do see opportunity that it could, but still we... To be practically optimistic, we would say that 20 odd percent would be the metric where this kind of the services that we are in would stabilize at. Beyond 20% could be in certain cases, would be able to push for it, but it would not necessarily be sustainable. And the the opportunities here are primarily driven by our, you know, resources already owned by the company, and we are executing certain specialized services for our client as part of our booking of services beyond just rentals.

43:41 So we are targeting that we continue to push for this as a line of, opportunity within the equipment rental segment as it provides incremental revenues with already available resources as far as far as equipment are concerned. And so that is where we continue to push towards ensuring that the margins, as you asked beyond 20 odd percent, I do not see there being opportunities for us to get beyond 20% on a sustainable basis. Got it. And in terms of your receivables, by when do you expect a big part of the collection to happen? Also, what is the status on IIM?

44:27 Right. So a big part of the receivables that stand as of thirtieth September twenty sixth will naturally come into q three and q four where the kind of timelines that we are seeing and could... Usually, we've seen also monsoons tend to also bring down the collections because of the kind of activity that hampers overall across our client sites. So... But those get better going forward. Vishakapatnam partial recovery has been done, and we have commitment on the balance towards in q three and q four. So we do see that the pending dues from our annual Vishakapatnam should be closed out by the end of this financial year as well.

45:15 Right. And as a target, the receivable number of days, how... What's your target for this year? So earlier, we did target 80. That remains our hard target. However, given the current state situation, we do see that 90 is realistically achievable by the end of this year, and we we are looking to ensure that we do that. Got it. And just last question on your yield. Could you just break down what are your gross yield and net yields for this quarter, and what was it for last quarter? So we haven't done the net yield numbers. I'll have to get back to you on that, and just drop in a mail or something, and we'll send out the details. Perfect. Perfect. Great. Thank you so much for the opportunity, and wishing you all the best for the second half.

46:07 Thank you, Robin. Thank you. Thank you. As there are no further questions from the participants, I now hand the conference over to mister Himanshu Girwal for closing comments. Thank you. So we at Tara Chand always appreciate the opportunity to interact with all of you. Thank you once again for taking the time to be a part of our earnings call for q two and h one FY twenty seven. I hope I have been able to do justice to your questions. Should you have any further questions, please do write please do write to us, and we shall respond as best we can. We look forward to continuing this journey with you in the quarters and years ahead. Thank you once again. Thank you. On behalf of TARACHAND and InfraLogistic Solutions Limited, that concludes this conference.

46:54 Thank you for joining us, and you may now disconnect your lines. Thank you.