Welspun Enterprises (NSE:WELENT) Q1 2027 Earnings Call

0:02 Ladies and gentlemen, good day, and welcome to Welspun Enterprises Limited Q1 FY 'twenty seven Conference Call hosted by three sixty one Capital Market. 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. Sailesh Radha. Thank you, and over to you, sir. Yeah. Good afternoon, everyone, and thank you for joining Welspun Enterprises Limited 1Q FY twenty seven earnings conference call. We thank the Welspun Enterprises team for giving three sixty one Capital the opportunity to host this interaction today.

0:50 Without taking much time, I hand over the call to Mr. Harsh to introduce the management, following which we will begin the Q and A session. Yes. Over to you, Harsh. Thank you, Salish, and good afternoon. On behalf of Welspun Enterprises, I welcome you all to the Q1 earnings call. Alongside, I have the leadership team of Welspun Enterprises led by Mr. Sandeep Karp, Managing Director of Welspun Enterprises followed by Mr. Soren Patel, who is Managing Director of Welspun Michigan Engineers Limited followed by Mr. Abhishek Chaudhry, who is the CEO of the Transportation Vertical at Welspun Enterprises followed by Mr. Lalit Jain, who is CFO of Welspun Enterprises and Ms. Sangeetha Derpati, who's Lead Investor Relations at Welspun Enterprises. I hope you've had the opportunity to review the investor presentation that we filed with the exchanges yesterday.

1:39 The same is also uploaded on our company website. During the discussions today, we may be making references to this presentation. Therefore, I would request you to take a moment to review the safe harbor statement in our presentation. As usual, we'll start the forum with opening remarks by our leadership team, and then we will open the floor for your questions. Once the call gets over, should you have any further questions, please feel free to connect with any of us. With that, I hand over the floor to our Managing Director, Mr. Sandeep Kar. Over to you, sir. Thank you, Harsh. Good afternoon, everyone, and thank you for joining us today. We are pleased to connect with you to discuss our performance for the quarter first quarter of FY 'twenty seven and our outlook for the rest of the year.

2:27 Before I get into the quarterly performance and business updates, let me briefly revisit the strategy and business model that we have consistently articulated over the past few years. Our approach is to selectively bid for and develop high quality infrastructure assets, create value through efficient execution under our asset light subcontracting model and monetize these assets at an appropriate stage. This enables us to unlock capital from the mature assets and redeploy it into new high growth, high return opportunities without stretching our balance sheet, effectively transforming a linear build cycle into a compounding growth model.

3:24 You'll recall that in 2022, we successfully completed the monetization of a portfolio of six road assets at a combined enterprise value of approximately 9,000 crore. I correct myself, INR 9,000 crore, validating this strategy in practice. Building on that track record, we are pleased to announce that we have signed a security subscription and purchase agreement for the divestment of our entire stake in the recently completed Antasimaria HAM project.

4:12 The proposed transaction values the asset at an aggregate enterprise value of approximately INR 1,000 crore, subject to customary adjustments, approvals from NHAI and lenders and the fulfillment of other conditions precedent. We expect to complete the transaction during Q2 FY 'twenty seven, following which we will be in a position to share additional details, including the valuation multiple and the project IRR. These transactions reaffirm the strength of our disciplined capital recycling strategy by systematically unlocking the value from mature assets and reinvesting the proceeds into new growth opportunities.

4:59 We continue to enhance capital efficiency, maintain a strong balance sheet and create sustainable long term value for our stakeholders. Coming to our performance. The first quarter was relatively soft, with execution impacted by a combination of several external factors. Firstly, we experienced supply chain disruptions arising from the ongoing geopolitical developments, resulting in a volatile and uncertain operating environment. Secondly, execution across a significant portion of our project portfolio was affected by the temporary construction stoppage in Mumbai, which lasted for several weeks.

5:55 Finally, labor availability at project sites was impacted by migration related to elections in certain key areas. Despite these near term execution challenges and resulting software revenue performance, we maintained healthy profitability with EBITDA margins remaining resilient at 22.9% during the quarter. This is in line with our FY 'twenty six annual EBITDA margin of 22.8% and much above our guidance of 18% plus. This reflects the strength of our execution model and disciplined cost management.

6:44 While the respective business heads will discuss project specific details in greater detail, I would like to highlight two important milestones. The Dharavi Ghatkova Tunnel project received all requisite approvals by the end of June, removing our key execution bottleneck and paving way for accelerated progress. We have also executed the sub concession agreement for the Pune Sherur Road project. While the start of the year has been slow, slower than anticipated due to factors I outlined earlier, with some of the key approvals and project milestones now behind us, we expect execution momentum to improve progressively over the coming quarters.

7:35 At the same time, we remain mindful of the evolving external environment, including geopolitical developments, which could influence execution time lines. Our consolidated order book as on 06/30/2026, stands at over INR 18,700 crores, providing healthy revenue visibility over the next few years. The order book remains well diversified across water, transportation and tunneling segments. Our balance sheet continues to be a key strength. We closed the quarter with close to INR 1,800 crores cash and cash equivalents, providing us with significant room to pursue growth opportunities.

8:29 Beyond our financial and operational performance, we continue to strengthen our talent practices and digitize our process systems. We are also making meaningful progress on our ESG agenda, reinforcing our commitment to sustainable growth and long term value creation. With that, I would now like to invite Sarin to take you through the operational updates on our water and Westport, Michigan businesses. Following which, Abhishek will cover developments in our transportation vertical and Lalit will share a view of the financials. Over to you, Saurabh. Thank you, SG, and good afternoon, everyone.

9:17 Let me now provide you a brief update of our key water projects. Dharavi Wastewater Treatment Facility, our four eighteen MLD wastewater treatment plant, a first of its kind multilevel facility designed to address urban space constraints, continues to make encouraging progress. Physical completion has now reached approximately 70% and the project remains on track for commissioning by July 2027. Upon commissioning, it will transition into a fifteen year O and M phase, providing a stable and recurring annuity revenue stream. The Uttar Pradesh Jaljeevan mission. We have achieved over 80% physical progress across our projects and remain on track to complete the balanced execution during FY 'twenty seven.

10:08 We have also commenced O and M activities on a number of completed schemes, marking the gradual transition of these projects from the execution phase to operations and maintenance. The Banduk 2,000 MLD water treatment plant. Construction works are progressing and the civil contractor has been fully mobilized. The pace of execution has been relatively slower than initially in Visage due to delays caused by a temporary stoppage of all excavation debris transportation due to the severe AQI pollution in Mumbai City by the competent authority. The Panchakol 910 MLE water treatment plant.

10:55 Since securing the project in December 2025, we have completed the initial mobilization activities and commenced execution. With all key statutory approvals now in place, we expect construction activity to accelerate meaningfully over the coming quarters. Now turning to our subsidiary, Welspun Michigan Engineers Limited. WMEL is steadily evolving into a technology led specialized engineering platform, leveraging deep engineering expertise across tunneling, rehabilitation, pumping infrastructure and smart ops. For Q1 FY 'twenty seven, WMEL posted a revenue of INR 179 crores with an EBITDA margin of 21.3%.

11:43 The moderation in performance is primarily attributable to the factors eluded by our MD in his opening remarks. Along with that, there have been delays in the release of orders for certain projects that deferred execution and consequently revenue recognition. We are confident of receiving the LOIs for them in the coming weeks and expect execution activity to contribute positively over the coming quarters. The underlying business remains strong. As of 06/30/2026, WMEL's order book stood at INR 2,135 crores, well diversified across tunnels, pumping stations and rehabilitation projects. Turning to our operational updates, as Sandeep highlighted earlier, the Dharavi Ghatkopur Tunnel project has now received all the requisite approvals, including the long awaited High Court clearance on June 22.

12:42 With all statutory approvals in place, execution has commenced and shaft excavation is already at a level of 10 meters after completion of all piling and other support activities. In addition, we are currently executing three segmental tunnel boring machine projects along with the micro tunneling project in Mumbai, all of which remain on track for completion during FY 'twenty seven. Within our rehabilitation business, the 15.5 kilometers Mumbai storm water drain rehabilitation project remains on schedule for completion during FY 'twenty seven. In Baroda, the 2.5 kilometer GRP lined mega trunk drain project is nearing completion almost a year ahead of schedule.

13:30 Under our SmartOPS flagship business, we continue to execute two sewage treatment plant projects in Mathura and Odisha, further strengthening our presence in the municipal water infrastructure segment. Technology and innovation remains central to WMEA's growth strategy. We continue to invest in digital solutions and advanced engineering capabilities that enhance productivity, optimize asset utilization and strengthen execution across our projects. Looking ahead, we expect execution to accelerate meaningfully during the second half of the year as recently awarded projects move into full scale construction and ongoing projects progress into peak execution.

14:18 With that, I would now like to invite Abhishek to take you through the Transportation business. Over to you, Abhishek. Thank you, Saurabh, and good afternoon, everyone. It is a pleasure to interact with you all once again. Let me begin with the key operational updates across Transportation businesses. As highlighted by our Managing Director, the signing of the definitive agreement for the divestment of the Antasamaria Road asset marks another successful execution of our disciplined capital recycling and asset light strategy. We intend to replicate the same approach across our future BOT handsets, including SNRP and Pune Seru, enabling efficient capital redeployment, strengthening returns and supporting long term growth.

15:11 On our transportation projects front, I'm pleased to share that we have successfully executed the sub concession agreement for the Pune Sheru Road project. This was followed by a Bumi Pujan ceremony in Pune in the presence of Honorable Minister for Road Transport and Highways, Honorable Chief Minister Maharashtra and other dignitaries. Survey, investigation and other preconstruction activities are progressing well. We expect construction activity to accelerate towards the end of the financial year, following financial closure and the declaration of the 20 date. For our Varanasi Aurangabal Road project, we expect to receive the provisional completion certificate shortly.

15:58 The Sanathampuram Nagapattam Road project is in advanced stages of completion and progressing for achieving PCC in Q3 of FY 'twenty seven. As key projects move into active construction, we remain well positioned to deliver a strong execution profile over the coming quarters. On the digitalization front, we continue to advance our transformation road map through the rollout of eOffice and the development of an integrated digital architecture. Our eOffice platform will enhance governance, compliance and operational oversight, while the transition to a unified enterprise application architecture will strengthen data security, improve internal controls and enable seamless enterprise wide integration, creating a robust digital foundation for future growth.

16:55 Implementation of our supply chain management, Source2Pay, S2P platform is progressing well and expected to go live in Q3 FY 'twenty seven. In parallel, we are developing AI based use cases across quality assurance, safety monitoring, logistics planning and project progress monitoring to enhance operational efficiency and support data driven decision making. With that, I will now hand over to Lalit Jain, our CFO, who will take you through the financials of the company. Over to you, Lalit. Thank you, Abhishek. Good afternoon, everyone. It is my pleasure to connect with you again. I will briefly take you through our financial performance for the first quarter of FY twenty twenty seven.

17:46 Console revenue stood at INR $7.74 crore in this quarter. The business mix remains well diversified with water, transport and tunneling contribution 41%, thirty five percent and twenty four percent of revenue, respectively. EBITDA margin was strong at 22.9%, which is well above our guidance of 18% plus. Profit after tax from continuing operations stood at INR 90 crore. During the quarter, loss from discontinued operations stood at INR 34 crore. This is related to MCP project, which is in nature.

18:31 Consequently, reported PAT for the quarter was INR 56 crore. Coming to our asset monetization announcement, the signing of the definitive agreement to divest our entire stake in the Antasamaria project marks another important milestone. This is a second instance of successful completion of the project life cycle for us, following the monetization of six award assets in 2022 to Actis. Upon completion, this transaction is expected to reduce around 800 crore of debt from our balance sheet. Further strengthening of our financial position and enabling redeployment of capital into future growth opportunities.

19:22 Our control balance sheet continued to remain strong. Networks as on 06/30/2026, stood at INR 3,324 crore. And cash equivalents stood at INR $17.92 crore with net debt at INR 109 crore. We continue to maintain a strong credit rating profile with QSSL AA- positive and ICRA AA stable rating for our long term facility and QSSL A1 plus and ICRA A1 plus rating for our short term mine facilities. These ratings reflect the strength of our balance sheet, prudent financial management and robust rate profile.

20:09 Looking ahead, we remain focused on prudent capital allocation and are confident of delivering sustainable and profitable growth, thereby creating long term value for our shareholders. With that, I would now like to hand the call back to the moderator to open the floor for question and answer. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their 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.

20:56 Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sanjay Shah from KSC Securities. Please go ahead. Yes. Good evening, gentlemen, and thanks for opportunity. So my question was the very clear what positives what you have shown and what we have understood about the DGT regulatory overhang clearance, Pune, Shirod moved forward. Ananta, Simari also monetization in progress. UP, JJM, O and M now on cards. Balance sheet remains strong. But sir, what is missing always every quarter what we see that revenue visibility is missing somewhere.

21:44 So after all these clearances and all, how do how one we as an analyst or investor can see our company henceforth from now this year and next year on absolute earnings side or growth on revenue side, even order book is also declined in Q1. So can you highlight upon that, sir, will be helpful to us. Thank you, Sanjay. Lot many questions that one rolled up. Let me address the questions that I think. The first question that you have is about the revenue degrowth. So as I said, these are extraneous factors in the business, which nobody can forecast. The closing of construction and debris movement in Mumbai, nobody could have talked about the impact of geopolitical situation on availability of various materials. Nobody could have forecasted. So business operates under a situation, which is more environmental environment, which one does not control.

22:52 However, as I said, we remain hopeful that these things which are more specific to us in terms of approvals, etcetera, are behind us. And we expect to be in the growth phase for overall FY 'twenty seven, the interim blip notwithstanding. Now coming to the order book, you are right that order book will has slightly depleted, but this is normal in our business. We will we get large orders in one go, and we've depleted over a period of time. So every quarter, we can't be managing the order opening value.

23:41 But at an annualized basis, our order book has been growing, and we are sure that even in the FY 'twenty seven, we will be able to aggregate another INR 8,000 to 10,000 crores of order. However, I must say that what we were expecting in H1 and earlier, we may move on to H2 of FY 'twenty seven. I hope I've answered all your questions. Yes, sir. Except that what is the growth trajectory for this year and next year for on that topic? See, next is, in the scenario, difficult to say. As I said, we will we are going to be in the similar pace growth phase as we have forecasted earlier.

24:28 And we will forecast for FY 'twenty eight based on how this whole year evolves. But I think we are internally, we are targeting the growth rates of 15% to 20% on an annualized basis. That's great, sir. So my next question was for Mr. Saurin, sir. Sir, I would like to understand from you about the trajectory of WEL and how do you see that going ahead? I don't want any numbers or anything. But what opportunity, what we have done till now and what we see as future for this because we are very excited about that vertical. Thank you very much for these encouraging words. Yes, Michigan lies at the intersection of construction as it existed for decades and the future of construction as technology moves through the phase of improving productivities and enhancing the ability of this area to improve lives.

25:34 So as far as we are concerned, we are still maintaining a 15% to 20% growth rate for ourselves. And we feel that our excellence in the area of gray and white water, transportation and rehabilitation of existing assets and the impacts of climate change on cloud birth, etcetera, which caused flooding and our experience in managing and construction pumping stations and holding ponds and tunnels to disperse flooding areas, etcetera, will hold urban areas in good state for our business in the long term. Coupled with that, our entire interest in the technological transformation of wastewater into usable water through our smart ops platform continues to make slow and steady progress towards a unique niche where we are able to apply that to the huge numbers of polluted water bodies all over the country as well as provide unique solutions to places that require wastewater transformation where geography does not aid and abet the fact that there is land shortages.

26:55 So we are, like you, quite excited about this area and the substantial support that Welspun Enterprises provides its subsidiary will allow us to make this a reality in the years to come. Thank you, sir. Very helpful. And I'll come back in queue for more questions. Thank you very much. Thank you. The next question is from the line of Janam Jain from DAM Capital. Please go ahead. Thank you for the opportunity. So my first question is what sort of opportunities are we seeing in our wastewater treatment plant and waste water treatment plant in terms of pipeline, especially in Maharashtra and outside Maharashtra? Mr. Jayanam, can you be a bit clearer?

27:43 We are not able to hear you properly. Yes. I'm audible right now. You are much better now. Thank you. Sir, my first question was, what sort of opportunities are we seeing in water treatment plants and reuse water treatment plants in terms of pipeline, especially in Maharashtra and outside in Maharashtra? See the opportunities in water treatment plant are among us in terms of if you look at it from a spectrum of smallest to the largest, including the localities and these houses, etcetera, etcetera. It could be in the ranges of a few lakh crores at this point in time.

28:37 The question is decentralized versus decentralized, what we can tackle, etcetera, etcetera. So the currently, what we are tracking in the treatment space are projects in the ranges of about INR 30,000 crores, which are on the annual or in various stages of being developed by the client. Estimate of these treatment plants is about of which are on our horizon, I said about 40% of them are within Maharashtra and 60% are outside Maharashtra. I hope I have answered your So, in outside Maharashtra, is that the situation which we can find 60% of that opportunity?

29:29 Yes. There are substantive opportunities available in the treatment in Karnataka, in Delhi, there are multiple states. I mean, I'm talking only the states where we have an interest of there are opportunities in Gujarat. So I am not talking about West Bengal. So the opportunities are across all states in India. Right now management of wastewater and reducing reliance on freshwater is something which every state is seized with. So I think the opportunities are phenomenal.

30:17 It's the question of what fits in with the risk and reward and the doability metrics of the company that we will be targeting. Sir.. We... Sir, in the working segment, we make 20 to 25% of EBIT margins on annual basis, which is pretty high compared Sorry to our to interrupt, mister Jaynam. Your voice is not clear. Hello? Yeah. Yeah. Hello? Hi. Am I audible? Yes. It's better now. Yeah. So, sir, my second question was that we made 20 to 25% sort of EBIT margins in water segment and... On annual basis, which is pretty high compared to the compared to our peers in the Water segment. So what justifies that sort of margins? I just wanted to understand how a progress at all.

31:08 Mr. Genov, it's all about technology play. We are not playing as I said, we don't target every project. So we target projects which can offer some technology play, which allow us to be differentiated. In the run of the mill water project, I'm not too very sure these margins are not maintainable. Okay. So this is because of the technology component we have with us, which enables us to make a higher level of EBIT margins, right? That is correct. We have associations and we have Connects, which allow us to differentiate. And we have a third party, right, and it's not in house? We are developing long term relationships on those specific elements. So we there's a business strategy behind it, which obviously you would not expect me to elaborate on an investor call.

32:06 Okay, sir. That answers my question. Thank you so much. The next question is from the line of Parthakkar from GM Financial. Please go ahead. Thank you for the opportunity. I would just like to ask when can we expect the AD for the Pune Shiro project? And what would be our expected revenue for this year and next year? So we expect the appointed date to take place in Q3 of FY 'twenty seven for Pune Sharu.

33:05 We are expecting a revenue recognition of somewhere around 500 crores in this financial year. And for the February 8? I mean, I don't remember that. So if you can I request you, Mr? Pat, to connect with the team? Okay. No worries, sir. I'll do that. Thank you. That was my question. Thank you. The next question is from the line of Anand Darshan from three sixty one Capital. Please go ahead. Good afternoon, sir. Congrats from your side. I have a question to sir. Sir, could you please talk about this swap operations?

33:52 What is the total order backlog? How many projects are we working on it? Or if you have any estimate we can we have for the current year and the next year and the potential revenue we can have in three, four years? Thanks a lot. So SmartOffs for us is a very inventive and exciting play on biologically transformation of wastewater. We have not gone after the usual run of the mill sewage treatment plant programs because we are not equipped to deal with competition in that area on a process basis. Our platform deals with areas of transformation, which are not easily attacked by available technologies in an economical fashion.

34:49 And so we have had substantial progress with and water bodies that are neglected and polluted and can be rejuvenated and brought back to life for enhancing the quality of the environment. We have had tremendous success with areas such as Nalas, which have turned into sewage streams and have no geographical space available on their banks to construct proper treatment plants, which require substantial space. We are quite excited about the fact that we may be able to transform even wastewater streams that industry has, which right now are not treatable in so many ways for them to be made usable by the same industry in a collaborative manner.

35:53 So quite a few exciting areas of work for Smart Ops. We are proceeding extremely slowly and cautiously because it's water and the Welspun brand is associated only when we have the safety of the larger population and the service that we serve at heart. So yes, while it is exciting, we see a very cautious and slow progressive way forward. And we'll keep you updated as we meet newer areas of work and successfully solve problems for different sorts of industries. Sir, any revenue estimate numbers we can expect, sir, for the current year and next year from the smart office? No, I don't think think it can range anywhere from INR50 crores to INR100 crores, but we are not able to give you a little guidance.

36:51 Okay. All right. So and the next question is on the micro tunneling business. Are we exploring any opportunities in the overseas market? Or are we focusing only the domestic market, sir? Right now, we are quite busy with the domestic market simply because our fleet of machines are 100% occupied. It's very easy to go overseas, but we have enough opportunity in India that we are not tempted as of now to venture far away from our home shore. Right. So we are focusing only on the domestic market, right, sir? Yes. Right, sir. Thank you. Participants who wish to ask a question, please press star and 1.

37:42 Reminders for all participants, please press star and 1 to ask a question. To ask a question, please press star and 1. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.

38:34 I think there may be some questions. Can you would you want to take them? Okay, sir. The next question is from the line of, sir, an individual investor. Please go ahead. Hi. So my question is on the top line growth. I know you've answered a few questions on this. But in the last five quarters, you've degrown in about four. So given that the macro environment and the geopolitical environment will continue to remain volatile and difficult, Do we have confidence in delivering a 20% growth or 15% to 20% growth in this financial year? See, the confidence is there to deliver a growth for sure.

39:26 It will be more closer to 15% than 20% is what my estimate at this point in time is. It will all depend upon how things pan out and how the commodities availability and the associated challenges play out. The order book is healthy. The all approvals are in place. It's only a question of how the other things beyond our control play out will determine as to how much the growth will be. But we are reasonably confident that we will be in growth phase of the company rather than a degrowth which you've referred to. Okay. Thank you.

40:15 Thank you. The next question is from the line of Ritesh Dham Gandhi from Discord Capital. Please go ahead. Good. Sir, just wanna understand, you know, again, in the lines of just overall growth per se, we understand that a quarter or two anomalies could end up happening because of, all those stuff issues which are there. But just wanted to understand actually what's giving us the confidence from a longer term perspective? There are three things which give us the confidence. Number one, the confidence comes out there. So if you look at the order book versus our target to grow, we have an order book of almost three, three point five years, even if we were to exclude the O and M, which should also start chugging in.

41:17 So we have a very strong order book. We have the second thing, which is very important for any revenue recognition is the whole point on from the statutory stroke approval point of view, those can NAG and those are behind us and all the projects other than the Pune, has got still the appointed date to be achieved where we have signed the agreement. We are in clear for the revenue recognition. So that gives us the confidence to meet this the guidance that we have given. Third thing, we are aware as to how our projects which we are targeting are behaving. And we see the traction coming back on few of these projects. So on a long term basis, we can be reasonably confident that the growth phase shall continue not only in this year, but in the years to come.

42:28 So I hope I have answered your question, Ritesh. Sure, sir. Sir, and the other question was, if you could just upload just update us a bit on what's happening with the oil and gas as well? So there are very positive developments that have taken place over the last few days because those developments are still something that we are discussing with ONGC, I would request you to bear for another quarter or a few days before we are authorized to declare certain things. But I can assure you that the oil and gas seems to be working reasonably in accordance with what we were forecasting, what we have been all along telling.

43:25 We are as we speak, we have submitted to the client of our revised FDP for MDOSN 2000 and fivetwo. Hopefully, it will get approved in the next four to six weeks. And then we are we will be in a position to share everything based on the that we are now getting the access to going to see platform and infrastructure to evacuate our gas from the block is a very positive decision the government has taken. And once this revised LTP is approved, which we hope within the next four to six weeks we will have, we will be able to declare to you exactly where we are on the oil and gas development.

44:11 So just to understand on the oil and gas element of it is the, you know, I think on some of the early con calls, what you indicated is that after the FDP is in place and everything is sort of aligned, we would potentially look to exit this as as a as a business or is that all the intent to connect... Continue to run it and have this as a vertical of the company? So currently, as as you know, there is a focus on oil and gas in the country. You must have seen some of the Mantan 84,000 commitment. There is a clear guide clear focus for the country.

45:01 Given the situation that we foresee and the business opportunity that we foresee, there is a very high likelihood that we will develop the field and produce from there on. So that's something which is currently the thought process. However, it will all depend upon all this. All this is a matter of thought process right now until as the FDP is approved, it will be very difficult for us to say which way we are headed. Got it. Understood. And and and sir, just so that right now, just to understand, the stage we are in is that to sort of get a partner to sign off on the FPP, is it? Not the partner. It is the DGH or MOPNG with sign off. Do we exactly know what is what is needs to be done?

45:46 So we've already applied before it. We're just awaiting their approval. Yes. That is correct. Got it. And then after approval, how long typically would it to... Would it take to actually produce? About two years. About two years. Got it. Understood. Alright, sir. Thanks and all the best. That's all for me. Thank you. Thank you, Ritesh. Thank you. Ladies and gentlemen, we take that as the last question. I would now like to hand the conference over to the management for closing comments. Thank you. I thank all of you for joining us today. To sum up, I would like to reiterate that we remain committed to creating long term value for our stakeholders with a continued focus on improving return on equity and return on capital employed.

46:36 We hope we have addressed all your queries. Should you have any further questions or feedback, please feel free to reach out to our CFO or the Investor Relations team. Thank you, and good day. On behalf of three sixty one Capital Market, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.