Q1 21/22

Jul 13, 2021

Ladies and gentlemen, good day, and welcome to HFCL Limited q one FY twenty two earnings conference call hosted by Sabuda Teladhar Private Limited. As a reminder, all participant lines will be in a listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to mister Sarman Katya from Prabhudas Hillandhar Private Limited. Thank you, and over to you, sir. Yeah. Thank you, Ayesha. Good afternoon, everyone, and a warm welcome to you all for the HFCL Limited first quarter FY twenty two results conference call. My name is Somal Bhadhyay, and I'm from Prabhudas, Lehadir. At the outset, I would like to thank the management for giving us the opportunity to host this call. Before we begin, I would like to mention a short cautionary statement. Some of the statements made in today's conference call may be forward looking in nature. Such forward looking statements are subject to the risks and uncertainties which could cause actual results to differ from those anticipated. Such statements are based on management's belief as well as assumptions made by information currently available to the management. Audiences are cautioned not to take not to place undue reliance on these forward looking statements in making any investment decisions. The purpose of today's earnings call is purely to educate and bring awareness about the company's fundamental business and a financial overview of the quarter and the review. Now I would like to introduce you to the management participating in today's earnings call. We have with us mister Mahindra Natham, promoter and managing director mister Viar Jain, chief financial Manoj Beth, Company Secretary, and Mr. Amit Agarwal, Head Investor Relations. I will now hand over the call to Mr. Mahindra Nathal for his opening remarks. Thank you. Thanks, Sumil. Thanks a lot for your introduction, and good afternoon, ladies and gentlemen. Thanks to all of you for joining HFCL's earnings call for the first quarter of financial year twenty twenty two. The quarter one of financial year twenty twenty two results, press release and investor presentation are all available on the website of the company and on the stock exchange. First of all, I hope you and your loved ones are healthy and looking forward for better days ahead since vaccination drive has intensified and also with the beginning of relaxation of lockdown restrictions in many parts of the world. The pandemic has brought the entire country in severe difficulty and has forced governments and companies to relook at the traditional ways of doing business. However, I am humbled to inform you that HFCLA has stood the test of time with sustained business operations for which I am grateful to all our stakeholders, especially to our employees for waiving the situation and managing to keep the operations going without any disruptions. Our actions have not only helped in ensuring smooth business operations, but has also led to the steady performance reported this quarter despite COVID-nineteen restrictions. Friends, as you all know, India is the second largest telecom market globally. Telecom is also the backbone of the digital economy and digitally connected India. Initiatives taken by the Government of India, such as performance linked incentive scheme, augurs very well to boost the indigenous telecom business. This will help our country in long way in making the country a global hub for telecom innovation and telecom manufacturing. The scheme has been introduced at the most appropriate time when not only the domestic industry is geared up for starting manufacturing operations at increased pace within India, but also large manufacturing giants from across the world are increasing their presence in India. HFCL, through its wholly owned subsidiary, HFCL Technologies Limited, has also submitted its application under PLI scheme. Coming to our growth drivers, the Department of Telecommunication has allotted additional spectrum for four gs wireless services to telecom operators recently concluded an auction. This will benefit HFCL as growth in optical fiber deployment will be critical to further improve the quality of telecom services and support the surging mobile Internet demand as well as have the potential to bring substantial social and economic benefits to consumers, businesses, and state governments. Currently, India has a fiber based network spanning across 28 lakh kilometers as against the target set up by National Broadband Mission to deploy as much as 50 lakh kilometers of optical fiber by 2024. Union Cabinet has recently approved BharatNet to be implemented on public private partnership model. Attendance for the project are to be sorted very soon. This network is projected to have demand of 12 lakh kilometers of fiber optic cable comprising of both overhead and underground cables. This massive demand of fiber optic cable coupled with the demand of associated transport and access equipment like Wi Fi and optical access equipment presents tremendous business opportunity for the company, both in equipment and project segment. Secondly, Union Cabinet approving five MHz four gs spectrum for Indian railways is a great opportunity for us, With estimated investment of Rs. 25,000 crores, the project entails to provide secure voice, video, as well as data communication services for operational, safety, and security applications of national transporters' network. A four gs long term evaluation technology specific to railways, which is called four gs LTR, R means railways, will be used for modernizing signaling and for ensuring pain protection, safety, and while also maintaining constant communication between local pilots and guards. This sends tremendous opportunity offering for us from this modernization campaign of the Indian Railways. As you all know, trial spectrum for five gs already been allotted to telecom operators. Auction for commercial use of five gs spectrum is expected to happen in the beginning of twenty twenty two. Rollout of five gs networks will result in massive increase in demand of optical fiber cable, related radio access network, and other required equipment. This again presents an excellent market opportunity for the company. Your company will be presenting large number of equipment and services segments required for four gs network. To name a few, As you all know, we are one of the largest capacity of manufacturing fiber optic cables in the country, which will see huge upsurge in demand when five gs networks are implemented. Secondly, we started development of five gs radio access networks, both for micro sense and small sense, which will be requiring very large network numbers in the five gs network. We are in process of starting development of transport network equipment like routers, central gateways, and switches, which are also required for five gs networks in a large quantity. In short, five gs network implementation presents a very attractive and large opportunity for the company, both in domestic and international markets. As I have been maintaining over the previous earnings calls, it is imperative for HFCL to keep pace with capacity and capability buildup ahead of these opportunities. Having made significant strides towards advancement of technological and R and D capabilities, we have gone ahead with ramping up of our manufacturing capacities across our optical fiber and cable businesses. We are on course to increase our capacities across optical fiber, optical fiber, cable and FTTH cable by 25%, twenty two % and twenty % respectively. These capacities are coming up at our Hyderabad, Goa and Chennai plants. Estimated commissioning dates range from Q2 to Q4 of financial year twenty twenty two for various products. The Hyderabad facility expansion shall be manufacturing new types of cables, including microduct, micro module, advanced ribbon cable, aerial cable, armored and unarmored cable, amongst others. Furthering our quest of technological leadership, we did inaugurate our new R and D center at Bengaluru during this quarter With a view to accelerate development of new technologies and next gen products and solutions, this is our dedicated R and D center for five gs and Wi Fi products. Guiding high on success of first PM warning model village in Haryana, We are pleased to update you on our next project in Vedobit Two in Karnataka. This demonstrates the strength of our indigenously developed Wi Fi products which are PM1E compliant. The project will connect the residents of this remote village to a slew of digital services in affordable and accessible manner. We plan to implement such network in many more villages. We continue to enhance the quality of our order book with the desired tilt towards products and focus on bettering our margin and cash flows. As of 06/30/2021, our consolidated order book stood at INR5884 crores. New orders for fiber optic cables and equipment are being received regularly by your company. Moreover, we have participated in tenders worth more than INR6000 crores, which are mostly for products, which will get finalized in due course. We will be happy that 75% of planned promoter shares have already been released on July 1. We are fully focused to get the remaining 25% to release in next couple of weeks. Let me now brief you on key performance metrics for the quarter. Revenue for Q1 FY22 stood at INR1206.87 crores as compared to Rs. 699.76 crores in quarter one of financial year twenty twenty one, thus recording an year over year growth of 72.46%. EBITDA for the quarter stood at Rs. 191.54 crores as compared to Rs. 83 crores in quarter one of financial year twenty twenty one. In fact, EBITDA margin increased by four zero three basis points and today stands at 15.88% for quarter one of financial year twenty twenty two. For Q1 for FY22, profit after tax rose to Rs. 90.69 crores as compared to Rs. 21.34 crores for quarter one of financial year '20 '20 '1, recording a growth of 325.82%. Tight margin also improved by four forty two basis points to 7.52 in quarter one of financial year twenty twenty two as compared to 3.04% of quarter one of financial year twenty twenty one. Segment revenue for telecom products during the quarter stood at INR375.40 crores as compared to INR205.41 crores of quarter one of financial year twenty twenty one. We expect revenue from telecom products to continue their uptrend. Our outperformance reflects sustained growth and strengthening our value proposition that we have achieved over the last few years. Looking ahead, our constant focus on innovation, steady expansion of our product bookings, margin focused shift of the product mix, alignment of our offerings with emerging and future market opportunities, deepening of our market engagement in export geographies, added contribution from our underdevelopment capacities, and pursuit of new products and opportunities by our recently constituted dedicated five gs division shall keep fueling our journey towards sustained growth in revenue and profitability growth. The order and inquiries flow from domestic and also overseas markets remain healthy. I am confident that we have done our homework well and laid a strong foundation for an exciting future. We are focusing on achieving the targets we have set for the next few years and are confident to keep that growth momentum continue in the years to come. Thank you very much once again for your keen participation in our growth journey and wish all of you good health. With this, I conclude my opening remarks and open the floor for question and answer session. Thank you very much. Thank you very much. We will now begin the question and answer session. Disconnect from the line. The first question is from the line of Ashish Tavan from Ashish Tavan and Company. Please go ahead. Good evening, mister Nada. Thank you for this opportunity. Hello? Yes. Please go ahead, Ashish. Yes. My first question would be as to your order book. Can you elaborate a little bit on your order book, how much you received this quarter? Current quarter order book, you know, Ashish, orders keep on coming in bits and pieces for Right. No. Book amount reducing. Like, in every presentation, it's coming down every quarter. You know, you have to understand one thing. I've been telling in every earning call that we are going to increase our revenue from products rather than EPC projects. And products orders are not received in a huge quantum as such. As an EPC project, receive one order in a big quantum and then no order will come for two years. Product orders you keep on receiving, which are to be delivered in next two or three months. Now if orders are to be delivered in two months or so, they are receiving smaller quantities, not in a larger quantity. That's why when you see the revenues shifting towards products from EPC, you will find that order book at one point of time is not very large compared to what you would have got from EPC. But overall order flow in the year and overall revenue will keep up its momentum of growth as we have already projected that we are going to have a growth of 15% to 20% in the current financial year. That is what we expect that our growth will be 15% to 20% in our revenue in the current financial year. EPC orders going down because of execution of the project does not mean that overall revenue will go down in any case because as I said earlier, we expect in the current year, 45 of our revenue will come from products. And the product orders are not received, as I said, for a year or two. They are received for two months, three months, one month kind of a situation. So therefore, you would find order book reducing, but overall revenue growing. Yes, sir. And you said that 15 to 20% growth of revenue you're looking for this year and for the what we expect looking at all the coming years at the market and over the years, Yes. Let's see. Expect 15 to 20% growth. 15 to 20% growth every year? I'm I'm talking about the current year. And, sir, a little forward looking statement for three to four years if you I cannot give forward looking statement, but looking at the market situation, that way the market is growing, five g, FTTH, BharatNet, I expect this growth momentum will continue. And not only India, you know, as we are developing our own products and technologies like five g, like Wi Fi, like optical access network, like, for example, transport network for five g. And these are our own IPRs, our own technologies. They have a huge market abroad also. And not only these technologies and products, are exploring fiber optic cable also. And all these put together, there's a huge market opportunity not only domestically but internationally also. For therefore, there's no reason for me to believe that this current growth momentum will be kept up in future also. Yes, sir. My last question would be, please, can you throw some light on BSNL's current position? Are you again participating in BSNL tenders? Look. BSNL's current position has improved. From our receivables from BSNL have come down considerably. And as far as we are participating in BSNL current four g tenders are concerned, we applied for doing proof of concept. Now first, let the proof of concept be completed. Let us qualify in that, then we will decide how to move ahead in that. Okay, sir. And in this quarter, sir, investors always complain about mutual funds not buying shares of HFC. On this quarter. Do you think there is mutual fund buying that has come about? Do you have any I cannot comment on that, that who will buy or who will not buy. You know? It is for the mutual funds. Knowledge where some investors have come in or mutual funds have picked up stake? Pardon me. I couldn't get your question. Are you aware of any mutual fund buying Some mutual funds have bought, but I am not remembering the names right now. But, yes, some mutual funds have bought shares. Thank you, sir. Thank you. The next question is from the line of Saket Kapoor from Kapoor Company. Please go ahead. Yes. Sir. Thank you for the opportunity. And, sir, steady set of numbers, sir. As you have articulated to us, investors, that the mix is going to change, and it will be more skewed towards the product side. So how is that half going to change? Is is the first quarter numbers reflecting the same correct me on that, sir. Because when we see the 20 contracts and services, there, I think, show the revenue has declined on a q on q basis, but the margins have improved. And on the stock in purchase of stock in trade, there we see a figure out in the vicinity of 4 to 500 crores. So how should one look at this revenue from operations part when we have a a large sum in the stock and trade portion? So if you could explain this mix and the way forward, when are we going to see that change of 45, 50 five, I As far as products are concerned, this year, this quarter, we had a 31% revenue from the products. If you compare with financial year 2021, it was 27%. This quarter has increased to 31%. Overall, as I said, our endeavor is to take it to 45% on a yearly basis. Now why would it increase? Number one, our capacity for fiber optic cable is getting expanded as I have informed you in my presentation earlier also, And that revenue coming up will show increase in product revenue, number one. Number two, as the new products which are being designed are getting completed, they will start giving Us revenue. Number three, Wi Fi products, which have already been designed. They will have increased revenue in the current the remaining of the year. This last quarter also, that could have had higher revenue, but for I don't know whether you people are aware of semiconductor shortage worldwide. Worldwide, there has been a huge shortage of semiconductor, which is the chips. And because of that, production of all kind of telecom equipment has suffered all around the world. This is expected to ease down from the mid of the quarter two. And then you will find the Wi Fi and, you know, microwave radio products point to point and point to multipoint, which we have designed, will also show increased revenue. All this put together, as I said, there will be increased revenue from the PERCs during the current financial year. Thank you. We would request the one participant to please come back to their questions here for any follow-up questions. The next question is from the line of Hardik Yas from Inti. Please go ahead. Good afternoon, sir. Yeah. Good afternoon, Harjit. My first question was pertaining to the PPP that we are seeing BharatNet project is likely to take off the phase two. Is it likely to take off anytime soon in the second half of the year? Look. You know, BharatNet phase two has been already been approved by the cabinet under PPP model, and we expect the tender to be floated very, very soon, maybe within a week. And the target of the government is to finalize this in next two, three, three months time frame. And once it is finalized, you know, it has to take up take up very fast because there would be set timelines given to the PPP players who come and, you know, get business out of this tender to implement the network in a defined time frame. Because as you would recall, the prime minister has already announced that in three years time frame, every village of the country would be connected over fiber optic cable. So I expect this standard to be announced soon, to be decided soon, and to be implemented in the faster speed speed because there already set guidelines for the, you know, parties which are working under PPP model. So I expect not only early finalization, early implementation, but as I said during my presentation, huge demand opportunity is coming up for fiber optic cable and all kind of associated equipment. And I am looking at BharatNet PPP tender as a huge business opportunity for the company as a supply of not only fiber optic cable, but all kind of equipment which we are going to manufacture or we are manufacturing. For example, Wi Fi equipment. You know, whole reason for this broadband optical connectivity to the villages is to give broadband connectivity to the villages for which Wi Fi would be required. Some cases, fiber to home would be required for which we are preparing our equipment. Transport network would be router and all these things would be required, 40 GB router, 100 GB router. We are designing that. So all put together, BharatNet presents a huge market opportunity to the company, and this opportunity would start fortifying from next calendar year, maybe quarter two of next calendar year or maybe little earlier also. Okay. Okay. So, sir, follow-up question on that is after the four g auctions, are we also looking at private telcos giving us orders on the services front? Services front, you know, we have already you know, we have been doing services for private operators in terms of optical fiber network being weighed down by us. As I've told you many times, optical network for Jio in North India, including for mobile services and also for FTTH services is being laid down by us. So not that we will see that we are already having revenue from four gs service providers currently in form of reading their optical fiber network and FTTH network all across North India. Yeah. Okay. So we are currently in services. We are not having any BharatNet contribution, which will grow only from next year second quarter onwards. That No. In the BharatNet phase one, as you would recall, we have implemented Punjab network already. Yeah. Our current network is getting implemented. Okay. And in the current fine current quarter, which is going on, we see that there will be some reasonable revenue coming up from the Jharkhand implementation we should do, which should be somewhere around hundred crore plus. Okay. Sir, last question on the product front. As compared to the last quarter, that is the fourth quarter of last year, what is the volume of products that we have sold? I'm asking this because of this being a COVID hit quarter. So the product revenues were were at at par, but in volume terms, what is the difference that we have sold? You know, last quarter, we our revenue had 28% mix of products. This quarter, we have 31%. In terms of volume, it is almost the same. This quarter, we had INR $3.75 crores. Last quarter, we had a INR $3.88 crores. This quarter, as I said, little while earlier, could have been higher, but because of shortage of chipsets, which were to be imported from Qualcomm. But from their committed supply, they expressed their inability to supply that quantity in the current quarter because of shortages of chipset worldwide. So which we are expecting this supply to increase in the current quarter, and therefore, the increase in the revenue. Okay, sir. So more or less price increase that we have seen in the first quarter because the volume being sold has been more or less the same. Price increase, I can't follow you. Optic fiber prices have strengthened, and that is how we could Yeah. That is on the fiber side. You know, optical fiber prices have definitely strengthened, and it continues to strengthen further. But, yes, there will be some more or less a limit now. Okay. Okay. Thank you so much, sir. I'll be back in the queue. Thank you. The best. You. The next question is from the line of Abhishek Jain from Adient Capital. Please go ahead. Congratulations on good set of numbers, sir. Sir, we or not? Yeah. Thank you. Sir, can you throw some light on the margins? We have seen, like, I'm we are actually quite surprised positively by the margin performance. How you see the margins are going to remain Like, what is the key? What's your outlook on the margins? Actually Let me first tell you the philosophy of the company. Okay. Philosophy of the company is to go for more of the product revenue, less of the EPC revenue, the turnkey revenue. Reason being one, when you sell products, it has involvement of less working capital. Number two, it has better margins also. Number three, you are able to sell worldwide because you are having IPR. So your market say market segment increases. Now as we go for more of our product revenue, the overall philosophy that margin percentage should improve would be there. It would continue. So in the current quarter, you know, and more or, you know, current quarter, what you see as the margin increases is again because of product mix. You know, EPC contracts also, some products have a higher revenue, higher profitability, some have a little bit less than that. So Quarter to quarter, you would find some variation. Quarter to quarter, some variation would always be there. Every quarter cannot be same or every quarter cannot have an increased trend or a decreasing trend. But on overall basis, you'll find margin percentages improving year on year basis. We cannot be categorical about quarter to quarter because quarter to quarter, there may be slight changes. But on a year to year basis, there will be increase. Okay. And second question, sir, on the PLI side, are you applying for anything anything update you want to do at Yeah. We have already applied. As I said during my presentation, we have applied to our hand % owned subsidiary, Active Cell Technologies Limited. They already applied and reason of framing this 100% owned our own subsidiary is that as you would know, under the Income Tax Act, the tax slab comes down from 25% to 18%. If a company is formed after a particular date, which was April 2019, if a company new company is formed and the profit comes into that company, then the tax level is 18%, then the current other side is level of 25%, which we have incurred. Because of tax rate coming down by 7%, we have formed a wholly owned subsidiary under which we have applied for PLIC. As a last question, if you can throw some light on the new products which are being mentioned in the house, what kind of opportunity is there, like small cell for five g engine cool core, ground services or radar, EO products, software defined radio? What kind of opportunity is there, sir? Look. You know, all these products have a huge opportunities. I'll come one by one. First, coming to this, you know, fiber optic cable, first of all, you know, which is new product in a sense. The newer type of fiber optic cables we are now designing and going to produce, which includes newer type of ribbon cables, bonded cables, all kind of cables, high capacity cables. So these are various new market opportunities where we had not been there. You know, like, high, you know, count cable, fiber count cable, which is required in data center. IVR intermittently bonded with different cable, which is required in European market. Micro cable, is a lower diameter, which is, again, required in European and US market. These are the new products we are coming up with, and these new products will, of course, have huge demand opportunities coming up in future, new kind of cables. Now coming to other telecom products. One, for example, I would, you know, start with five g. Five g macro cells and small cells. Now as the five g networks come up, the demand of radio access network, which is the micro cell or small cells will be in huge market, huge numbers, whether it's a mid band of 3.5 gigahertz or whether it is a micro or whether it is a millimeter band of 28 gigahertz. It is going to have a huge market opportunity because this would be required in lakhs and lakhs of numbers in India and abroad. And we are designing micro cell as well as small cell for this mid band. This is 3.5 gigahertz band and 28 gigahertz band, which is a millimeter wave band. So, you know, demand is in less and less. You know, it will reach in the millions all over the world. So it's a huge market opportunity. Similarly, the transport network, which is routers or central gateway for five g networks and also the routers for BharatNet kind of networks would also be required in huge number. 10 gigabit, 40 gigabit, hundred gigabit routers, which are also partly already designed by us and are undergoing now some modification to suit to BharatNet requirement are also requiring huge market numbers, you know, five g network as there is a BharatNet network. Wi Fi, you know, we have gone into Wi Fi six already, you know, which is a new generation of Wi Fi, which is compatible to five g. Now that is, again, you know, if a five g traffic incoming and it has to be distributed to a subscriber, it needs that kind of a capacity as much as five g. So Wi Fi six would get it to that demand. Backhaul radios, again, high capacity backhaul radios will be required to, you know, do the backhaul for five Wi Fi six that we have already designed. So likewise, if you go on and on, these all products were huge market opportunity domestically and internationally because of new kind of technologies, new kind of networks, new expansion of fiber optic networks, and FTPS networks happening in the world. Thank you, sir. Thank you, sir. I have three more questions. I'll come in the queue, sir. Thank you. Thank you. The next question is from the line of Saral Seth from I Insec Securities. Please go ahead. Hi, sir. Congratulations on a good set of numbers. So my first question pertains to what would have been the second wave impact on the revenue as well as bottom line. Look. You know, mister Seth, there has been some impact, not like the first wave. Impact has been about, I would say, a hundred 50 to 2 hundred crores. Reason was simple. You know, most of this impact came from different side of our business. Entry into cantilements were restricted to us. You know, many large number of cantonments entry was restricted because of COVID situation, and rightfully so, army did not allow entering of outsiders in the cantonments for the fear of forces getting into the grip of COVID. As a result of that, about a couple of months when this pandemic was surging in a huge number as we have seen in the country, unfortunately, restriction was there in entry of our people in condominium. And as a result of that, some supply could not take place. Mostly services could not be rendered to get to the milestone of the projects, which are required to be completed to us to bill for the services. So we could not do that for a couple of months. So that impacted, number one. Number two, the second impact, but a smaller one was that our customers, the operators, were not able to execute large portion of their networks, fiber optic networks in the cities because of COVID restrictions. Work was Construction was not allowed in the cities. And as a result, demand for fiber optic cable came down a bit because customers were not able to install the network, so they were not able to lift our products. So those orders were there, but revenue could not be achieved because the customers were not able to lift their products for their requirement because cities were not able to implement their networks. So some impact happened because of that. I would say something like $40.50 crores impact was there. Hundred 50 crores impact was there on account of services part of it. So there would be I would say there was about 200 crore impact. And if I see the profits, you know, I would say if you take the PBT margin of 10% or so, PBT margin could have been higher by about 20 crores or so if that revenue had been achieved. Alright. Thank you, sir. My second question would pertain to, sir, with regards to PLI benefits. Would we be funding through internal accruals or would be requiring debt for the PLI benefits? So this would be partially through internal accruals and partially through debt. Right, sir. Thank you. I'll call back in queue. Thank you. The next question is from the line of Chetan Shah from Geet Capital. Please go ahead. Hello? Yes, Chetan. Please go ahead. Yes. Hi. Sir, just two quick questions from my side. One while in your opening remarks, you were explaining about the ongoing CapEx and the timeline related to the CapEx. Could you kindly share CapEx for next two, three years? How much will you spend in current financial year, which is FY 2022 and how much 2023 and '24? And following question to that is once we once we're done with this CapEx, which is a capacity expansion, after that, how much you think we will be able to, you know, take our our revenue to I'm just trying to understand the gross block to revenue mix. What is our asset ton possibility, non EPC side of the business? If you can give something, that will be very Chetan, the current year's CapEx estimated to be about 210 crores. Out of which 25 crore has already been incurred, the rest $1.85 crore needs to be incurred. Out of this $1.85 crores, hundred 40 5 crore is expected on enhancement of cable manufacturing facility, which I have described little while ago, which is taken to Hyderabad, Chennai, and Goa, all three places, including some backward integration and including expansion of fiber facility, fiber manufacturing facility also. Fiber what we have a capacity of 8,000,000 fiber kilometer is being expanded to 10,000,000 fiber kilometer, and similar expansion in the capacity of cable expansion is going on. And some backward integration is also happening to reduce our cost and competitiveness in fiber optic cable, number one. Number two, balance 40 crores is going to be incurred on creation or manufacturing facility for defense products for which a separate facility required as per the regulation for which we would be doing in Hyderabad. Land is almost allotted to us maybe another next couple of weeks or maybe earlier than that. So this manufacturing facility will come up in Hyderabad, which would cost us about INR 40 crores also, around INR 40 crores. So CapEx plan for manufacturing facility is INR210 crores out of this INR25 crores have already been incurred. Revenue, as I said, we are looking for a growth of about 15% to 20% in the current financial year, wherein entire year would not be utilized for increased capacity to earn revenue. It's only the part of the year because from quarter two onwards, this capacity expansion is happening. As a matter of fact, the first phase of capacity expansion in Hyderabad is getting commercial in next couple of days. In next couple of days, it is going to go commercial, first phase. Second, third phase will go, you know, commercial consequently. So the full impact of this capacity expansion of cable as well as fiber is going to be seen in the next year. Current year, no. Half of half or less even. So in spite of that, we expect to increase the revenue by 15 to 20%. Now in future, you know, if I keep the capacity constant, what it is just now, still we see that revenue will see a growth of 15 to 20%. This trajectory would be maintained with the growth in the revenue of cable as also the defense products. This trajectory would be maintained to 15% to 20%. Now coming to what would be the CapEx for next years two, three, actually, we are still not planned. We are under planning stage of that, and we will come back to you in the next earning presentation that what could be the CapEx for the year two and three. We are certainly working on that, planning that, looking at the market size, looking at the future potential of different products we have. Certainly, we would need some more capacity expansion to cater to the demands we are experiencing from our customers. Some more would be required. But right now, you know, I would say, yes, we are looking at that, and next earning call, we'll come back to you for that. But current year, 210 crores, of which 25 crores is already incurred. Sir, one follow-up question on the same. When we sir, while answering the question to couple of previous investors who can list, you talked about shifting your revenue mix to product side to about 45% in a year to come. Could you just help us understand how does this mix change in revenue will help to improve our working capital cycle. Because what I didn't understood looking at our past financials that due to more tilt towards EPC side of the business, it not only reduces our margin, but also strain on our working capital. So does this mix change once we once we have a almost close to fifty fifty EPC stroke product mix in revenue? And and just one more question added to that. If I see our FY twenty one balance sheet, our receivable numbers are are pretty high. It may be due to, you know, end of the year number. But if you can just tell us that how much does that include in the first quarter and what is the trajectory? Because you explained about the SNL receivable is improving. How about other receivables, please? Look. You know, first of all, coming to the second question first. You know, you are right. You know, last financial year, last hundred days, we had 45% of revenue. And as a result of that, you could see that the numbers of receivables are higher. That is number one. Number two, product and EPC. You know, let me tell you the definition. Product deal of any supplier product, you start getting paid depending upon the terms and conditions, you know, sixty days, thirty days, ninety days. In EPC contracts, you get paid on the basis of milestones. But having achieved a particular milestone, you get paid irrespective of the fact that you could have supplied earlier, but milestone has not been completed, you don't get paid. Now what has happened in this defense EPC contracts? Though their profitability is reasonable, there is no problem with the profitability. The problem is the payments. What happened last year and this year? Last year, pandemic, three months no work, absolutely zero work in those EPC contracts. As a result, you could see the revenue was just INR700 crores. A complete lockdown, nobody was allowed to enter into tournaments, but particularly you would recollect At that point of time, there was a flash point with China in our northern borders and that and our majority of our calls in the northern borders. As a result of that, you know, this we could not do any work. As a result, you could see the revenue was only 700 crores. Correct. Now number of cases so milestones could not get completed. Now number of cases, what has also happened in which issue I'm taking up constantly with Indian Army as well as BSNL. A network gets completed when all the aspects of the network or the issues involved in the network are completed. What happens? Certain part of work is the responsibility of the customer, DSML or army. Now what happen for example, construction of buildings where network equipments are to be installed. Construction of fiber where on which our equipment will be installed and connected. If buildings are not there, if fiber is not there, irrespective of the fact that I have done my work, installation, commissioning of equipment, milestone would not be completed because the entire network has not been tested. Now how can the network be tested in the absence of fiber or in the absence of a particular building where equipment has not been installed because the building is not there. So if there is a link of 1,200 kilometers, let me just give an example, which has 20 substation in between, and one substation has not been constructed by the army in between where I have to install my equipment and I could not install, the entire link is not complete. In a chain, if one link is not there, chain link is chain is broken. It's that kind of a situation. I have done 90% of my work, but milestone is not getting completed without any fault of mine. So we have taken this issue very vehemently with customer, army and BSNL both, and told them, please complete this as soon as possible so that my, you know, billing is completed and my permit is received. And we have taken it up very strongly. I had meeting with BSNL, combined meeting with BSNL, army, navy, air force, all of them where I have insisted on this point, and I'm having now regular meetings with them so that little milestones are achieved and payments are received. So you're right. You know, it is a contract because of these issues. See, a higher, you know, receivables because supply has been made, you know, services have not been done and the billing is not complete for services. As a result, the supply payment which has been billed is also pending. So that is the problem in EPC contracts. Apart from that working capital investment, you have to really work in a completely, you know, different manner in terms of working all over the country to implement such contracts. So what we are trying to shift the revenue more top products does not mean that we will be stopping EPC contracts. We would still be going for EPC contracts, but on a very selective basis where we believe that payments could be realized in a much easier manner. The payment cycle is better or where we see customers able ability to complete their side of the work quicker. So we will be going for EPC contract, but revenue mix, we would like to shift towards products which have higher profitability because of your own technology, higher catch up area for customers because technology is having been your own, you are able to sell it worldwide. This is the reason why we are shifting our revenue mix, is lower working capital cycle and higher profitability. Sorry for the long answer, but I thought you must understand the whole thing. Thank you for such a detailed explanation. Sir, just one last question. You wrote me a remark. You were explaining about the new r and d facility at Hyderabad. Oh, Bangalore. Bangalore. Sorry. Sorry. My apologies, As Bangalore and you also spoke about about the focus on developing a new product opportunity. So just wanted to get a sense that what kind of annual budget or how clear are we looking at, or is there any ballpark number you have in your mind that will spend $10.20 crore a year or maybe more or how the product is more than that much than that. Currently, our r and d expense is going to be about hundred 50 crores. Okay. It's 15 crores has already been expended in the q one. Q2, Q3, Q4 would see INR135 crores, which would be spent on R and D. Part of that would be some part like fixed assets buying test equipment and all that would be capitalized. All salary and all are being written off as you know, normal expense. Thank you. We would request the current participant to please come back in the question queue for any follow-up questions. And we have several participants waiting for their time. We would request all the participants to please limit your questions to group the participant. The next question is from the line of Neeragh Dalal from Main Bank. Please go ahead. Thank you for the opportunity. Couple of questions. One, we we disclosed that product revenues are about 31%. What will be the breakup in terms of optical and nonoptical of this? And of the 45% that we are targeting, what would be the split? Okay. Optical, nonoptical in the current this last quarter, of the $3.75 crores, optical was about 290 crores 295 crores, and about $80.80 crores have been from nonoptical, which is Wi Fi and all that. And I and I may be wrong by 1 or 2 crores, but it is more or That is fine. Yeah. Any of this nonoptical could have been higher as I explained, but for the shortage of chipsets, which happened in the last quarter, which is expected to improve from, I would say Second half. September of the current quarter. This could have been higher, but unfortunately, it could not happen because of worldwide chip shortages. But, yes, the revenue is $7.29 $2.95 and 80 crores. And when we say the 45% would go up to 45%, would the mix be broadly the same for the years? Or No. The mix would change. I think, you know, numbers would go higher for non optical products. Optical will also go ahead because, you know, new capacities are being added. But generally, I would say it would be 70% for optical products and 30 for non optical products in the current year. Got that. Got that. And one last question on the PLI. I don't know whether you disclosed any CapEx plan for the PLI scheme. I just wanted your comments on that. No. We have given it for approval, not really disclosed the CapEx plans. But, you know, as the approvals come on, you know, next earning call, like I said, we will come up with the exact numbers and, come up with the CapEx plan. Great, sir. Thank you. You. Thank you. Thank you, Neera. Thank you. The next question is from the line of from Ventures. Please go ahead. Good evening, sir. Sir, a couple of questions. Sir, you did mention that the revenue from product business will be around 35%, you know, in FY '20 '2, and your focus is also to continue to increase the share of product business in total revenue. So, sir, I just wanted to know where do you see the share of product revenue to your total revenue in the next two, three years, say, by FY '20 '4? I you know, as I said, this year, it would be coming to about 45%. And with the increase in defense products revenue, like software defined radios, fuses, and all that, this is expected to increase further. In my opinion, it should reach to about 60% in next two to three years. So at that level of contribution from product business, that is 60%, where do you see the operating margins of the company? Well, they would they would increase significantly. I won't make a forward looking statement that how much percentage that would be. But generally, as you see, the margins in this, know, product business is higher than the EPC margin. So profit before tax, I would say, PBT percentage in product business would generally be 13 to 15%, generally, depending on product to product. It would generally be 13 to 15%. Okay. Okay. And, sir, what is the current debt on the books, and where do you see your debt by the end of this year and next year? Current debt in the books, you know, we have about working capital facilities and, you know, term loan and all put together is 9 about 900 crores, little less than 900 crores. And where do you see it by the end of this year and next year considering your CapEx plans and working capital improvement and everything and internal accrual? For FY '22, we expect it to become 800 crores. Okay. And next year also, we can expect a reduction in that? Next year, there would be some prepayment, and there would be some may maybe some and as I said, we have not framed up the plan for next year's requirement. But if you have kept it, it may go by a little bit again. So it may be around the same level, or it will be a little bit down. Okay. My last question is, sir, you did mention about this 200 crores of CapEx in this year. So this is only for the existing business. So if you get any approval in the PLI scheme, so any CapEx, there would be additional CapEx. Right? That would be additional, of course. So but we do not know when the approval will come and when will be required to spend. And that spend is also to be done in three years. It's not required to be done in one year. It is 20% and then 40% and then 40%. It's something like that in three years time frame. So once the approval comes, then we'll sum up the strategy. How much of that % is going to be in the first year, whether 20% and then forty forty? So we'll be you know, once we know that approval is coming, then we will be able to frame up the plan. Right now, large number of people have applied, so we have to wait for the approval to come. So your internal assessment I mean, what kind of investments you you are, you know, ready to make in that PLI scheme if you get the approval? I mean, is it, like, a very big, like, 500,000 crores of investment, or what is the quantum you people are looking at in three years? You know, the minimum as per the scheme, minimum investment required is hundred crores. Minimum. Okay. Know, how much we will make will come to know once the approval comes. The minimum required is hundred crores. So whatever we do if the approval comes, it's going to be more than hundred crores. But once the approval comes, which I expect in the current quarter, we'll definitely come back to you in the next earning call. Okay. Thank you so much, sir. Thank you. Thank you. The next question is from the line of Risham Akita, an individual investor. Please go ahead. Hi, sir. Thank you for the opportunity. Most of my questions have been answered. Just one question, sir. Can you just give some color on how the optical fiber and optical fiber cable prices have been shaping up and give a, like, a sort of a comparison with respect to how they were last year at this time, quarter one of FY twenty one? Look. You know, optical fiber prices, if I take, they're firmed up, you know, worldwide because of the increased demand of fiber optic cable and consequently fiber all over the world. I would say that earlier when we started this year or little before that, it was about $250.55. You know, it was going around 250 rupees or so. You know, 250. Before that, it was about $2.80. Starting of the year, it was $2.80. It came down to $2.50 or so. It has, again, gone around 300 rupees at this point of time. Around 300 rupees. Sometimes, few little bit more, little bit less, but around 300 rupees for fiber kilometer. Understood, sir. And about optical fiber cable? Optical fiber cable, you know, it's a different transfer, different, you know, different kind of fiber cable. Depends upon what kind of fiber it is, 12 fiber, 48 fiber, whatever. But, generally, I would say they have gone up by roughly I would say, earlier what it was about, you know, 850 rupees per fiber kilometer of cable, it has gone around 900 rupees or so. Okay. That's Again, this would be different in different count of cable. I cannot generalize that, but it's more or less. So that's very helpful. Thank you, sir. That's it for my side. Good luck. Thank you. Thank you. The next question is from the line of Singhajan from SKS Capital. Please go ahead. Hello, sir. Thank you for the opportunity. Thank you. May ask you for permission? Please go ahead. Hello? Yeah. Please go ahead, ma'am. Yes, sir. I wanted to ask I was a bit late to the call, so I wanted to ask what is the order book currently? What is the pipeline you're expecting? And so one more specific question would be, there's a big order that Mazagon got recently of 45,000 crores in the summary. We have previously supplied. So do we see a opportunity Look. Know, the Magigandha order is for submarine, which is not part of our anywhere near our product range. So we don't see any opportunity in the submarine kind of products. But, yes, we are in discussion with Majigaon dock, and we have signed an MOU also. Let me tell you. Since it was not a major issue, we did not make any public information on that. But, yes, Majigaon dock, and we have signed MOU from our subsidiary company, STL Limited, for development of wire harnesses for the ships. And that MOU has already been executed, and our people are in process of development of such wire harnesses. These wire harnesses are made out of either fiber optic cable or fiber or copper. So and we have set up a facility in Chennai for manufacture wire harnesses, very low CapEx, but expected high revenues. This is going to happen for wire harnesses for telecom sector, which we are already doing. We are producing wire harnesses for telecom sector for connecting radio head to the, you know, base you know, this baseband of a Mhmm. Base station by you know, and these are made of fiber. So which are already being produced by us. What we have also done kind of shifted from not shifted, increased our production range going for wire harnesses for automobiles, for ships, and submarines will also come later, for aerospace also. And much amount of MOU has been signed for designing wire harnesses for ships, which should be required in a very large quantity, because ships are very large. And we expect revenue to start flowing from wire harness business in the current year. The very low CapEx, we have already executed this and we expect about INR50 crore plus revenue in the current year, which is just starting year, very, very starting year with just few months of working, couple of months or three, four months of working. But we see this revenue would go up in the next two months. Reason one, as you know, the automobile industry is turning towards electrical. Most of the automobiles are going to be electrical in years to come. A huge amount of wire harnesses will be required because this will be electrical working and you need wire harnesses in that. Similarly, we are working with aerospace industry. We have already signed and had a discussion for development of wire harnesses for I cannot name the project right now because this is confidential, for which is being developed for Indian forces. And our STL is already doing that work, you know, designing wire harnesses for that application. So coming to that, you know, this wire harnesses and this business is going to show significant growth in future future to come. Thank you. That was very helpful. But not much down to 45,000 per hour. That's a separate project. But, yes, with much down to we have another MOU. Yeah. Yeah. That was helpful, anyway. And so what is the pipeline that you're looking for? For this kind of order. For the entire like, it's a fair. So right now, we have an order book about 910,800 some crores. About 5,900 crores. And which will which will keep on increasing. You know? What is happening, as I said earlier, since we joined late, you know, we keep on receiving orders, you know, for products on a regular very regular basis. They don't come in a, in a big order like thousand crores. They come 50 crores, 80 crores, 70 crores, hundred crores, such kind of orders are received regularly and supplies made regularly. That's number one. Then we have participated in tenders for more than 6,000 crores already and which are to be decided one after another. So we will receive orders from that also. A large number of opportunities are coming up now. BharatMat opportunity, are opportunities railways, there are opportunities coming up in various other segments where we are going to participate. So orders will keep on flowing. And with those orders and this market, what is there now with the increased market, I expect our revenues will also keep on growing with a steady state at the same pace which it is going now. Yes. Thank you for that. Very happy. Thank you, Nya. Thank you. The next question is from the line of Manvesh Kulkarni from IIMans Global. Please go ahead. Sir, thank you for taking my question. Thank you thank you, mister Kulkarni, for coming up and asking questions. Please go ahead. Yeah. Yeah. Yeah. Just I just wanted to know about the plans for relieving the remaining place shares. Oh, relieving place share. In fact, you know, this whole % could have been released instead of 75%. One bank said 75%. All banks said hundred. One particular bank said 75%, and we have to go pari passu with every bank. So unfortunately, we didn't have the time to go back to the bank and stop every place to be released till the time when the 100% happens. So we said, let's release 75%. Twenty five % to that particular bank we have gone back again and we hope that within a month or so or less than that we will get that release of 25% also. But I had promised to all my investors, shareholders that pledge of the shares to be released. So 75%, which is very, very large quantity, has already been released. And mind you, even this 25%, there is no loan taken by promoter or the company against shares. These are all collateral against the working capital loan or term loan which had been taken by the company. Right. Right. Right. Thank you very much. Thank you. The next question is from the line of Fatma Ahmed from Naruto Family Office. Please go ahead. Yeah. Good evening, sir. Yeah. Good evening, sir. Nothing is good. Yeah. Yeah. So I just have one question. Your presentation was very insightful, so most of the questions are answered. But this turnkey contracts during the con during the quarter, we have seen a very sharp margin jump. So were there some milestone achievements that led to this EBITDA margin improvement for that particular segment? But, no, it is more of a revenue mix. As I said earlier, some products have a higher profitability, some have a lower profitability. If you have done, you know, kind of a deliberate more of software products in a particular month or particular quarter, they have a higher profitability than a hardware product. So the revenue mix keeps on changing and consequently, there is always some variation in the you know, margins also. Every year, every quarter, they cannot remain constant. But one thing is sure, with our stress on more products, higher profitable business, margins will keep on growing at a steady state rate. But quarter to quarter, it can be different. Sure, sir. So I I understood about your product division, but I was little curious about this turnkey contracts because there it has the jump is almost 400 bps from 10% to 14% or 14 and a half percent. So that's why I was a little curious as to what is it. It's a product mix. It's a product mix. Purely product mix. Nothing else on that. Okay. Thanks. Thanks a lot. Thank you. The next question is from the line of Ravi Neta, an Investcorp. Please go ahead. Ravi I want to ask you about the defense order. When do you expect some sizable orders from your defense electronic users or software defined radios? Look. You know, software defined radios are in development right now. Any order from them will take time. It will take time. But elect electronics users tender has already participated. Sample have arrived for offering to the army. We expect the army to come back and asking for samples anytime soon. I think it is being decided at the highest level. So once the, you know, sample are asked for and they are tested, then order would come. But any size sizable big order is expected in only after few months, but, yes, some other products like, you know, night vision devices, which we have already participated in the tenders, we expect those to be rolled out sooner because the testing is currently going on. Tests are going on in a different army facility, then we expect those orders to be received a little sooner than the fugitive little sooner than the fugitive. So in this year, we can expect the ninety days the reason order? Yes. This year, we can expect. Yes. Okay. Some small orders have already come, but the larger orders, we can expect it. Yes. Absolutely. Okay then. Okay. Thank you, sir. Thank you. The next question is from the line of Deepak Mehta, an individual investor. Please go ahead. Thanks for the opportunity. Good evening, sir. Good evening, Deepak. Yeah. Yeah. I want to congratulate, first of all, management and you for walking the talk, what you have been talking. I think they have been executing very well. And I think our company is on the inflection point, and we are we can see that we have already started the HFCL two point zero, and it will it will go long, long, long way. So my question is around the five g, sir. For five g, what kind of what kind of products we will be offering? I think we have optical cable, which will be used in five g. And second, we have five g cell points. So if you can throw some light on the product and service offering, what will be the role of r and d offices, and how we are tech to get are accepting the right talent for right execution, sir, on five g points. A lot for your face walking to talk. I really appreciate that. You know, I said that product mix will change. It is changing. I said that margin increase will happen. It is happening. I said from the pledge of the shares would be released, it has happened. So it's walking the talk. It's really right word, thanks for saying this phrase. I thank you very much, number one. Number two, for five g, as I said earlier, fiber optic cable is one of them. I you know, what we have done in the company tried to, you know, create a range of products which would which would be required for five g business five g network. Number one, fiber optic cable, which will be required in large quantity. Number two, cell side radios, you know, which is access radio access network, what we call it, which is fitted in the towers which you see different places, which includes macro cell, which is a large cell, which will go to a small cell, both indoor and outdoor. Those will be recording huge, huge numbers as I explained earlier. Then the routers and the cell side routers, which we call front haul gateway. These are some of the products which we are designing, which are required in large number in five g networks. So this is not end of the list. There are many more products required, but these products would require in huge quantity. And this is what we are working on. This is what we will be offering to our customer. That is number one in terms of products. Second, we are also going to do, which I could did not talk earlier in my presentation, but let me tell you now. We are also going to develop a system integration division totally devoted to five g. Now and and and let me tell you. This is I one second. Something stuck with No problem, sir. No problem. Again, you know, why this system integration division now? Because as you would have read in many newspapers or the magazines or Internet, five g network is going towards open RAN, open radio access network. Earlier, it used to be same supplier supplying core and the access network. Now this has been disaggregated. Networks are disaggregated. Radio access network can be from one supplier. Core could be from another supplier. Transmission could be from third supplier. Now if you have multiple supplier in a network, then you need a good system integrator to integrate the entire network and make it work as a singular network. That capability we are developing now because we believe in a open RAN environment of five g. The very large amount of services will be required for system integration. And let me tell you, I am already in touch with number of multinationals also who want that kind of system integration services from us in India and abroad, and we would be in touch with operator also in coming time to offer this SI services. And this SI services right now, I'm not projecting any number, but I have very high expectation from this division, which would start operational by the q three or the beginning of q '4 of this year. And though we have not projected any number in our AOP from this division, not in this year, definitely we do not know what it will be in the next year, but we have I have good expectation from my SI division to get reasonable revenue and profitability from India and abroad, both particularly dedicated to system integration business of five gs network for a reason which I explained to you, open networks, where there are multiple suppliers, so you need a good systematic data. And thank you so much, Karin. My last question is around the product side. So you have said that it's around 50% of our total revenue. So I'm not sure if you can address the what is the total addressable market for our program? I know Addressable market is thousands of crores. Can tell you, it's thousands of crores. Addressable market worldwide would be billions of dollars, you know, so that's not relevant for us so that we are not looking for that kind of a market worldwide or that, but India also is a thousands of crores. Okay. And I believe that we will be competitive in terms of globally. Oh, yes. In terms of price and product quality. I'll give two examples. Why you know, this cable business, we are competitive. We are exporting. We are selling in India more com most competitively. Wi Fi, for example, we have designed. We are selling in good quantity in India. Good quantity in competing with multinationals. No problem. Sir, what will be the role of Qualcomm in of Qualcomm partnership in the five g? You know, Qualcomm partnership or technology, you know, instead of chips and all that, that all means that basic chipset, the basic semiconductors comes from Qualcomm, and the entire product is designed around that. Qualcomm or, you know, some cases, it could be some other surprise also, not necessarily Qualcomm. But, yes, Qualcomm is being the main, you know, you know, developer in the wireless technology. Chipsets and the semiconductors come from Qualcomm around which you build up, you know, the entire box or the equipment where Qualcomm gives you active help and support. Okay. Thank you so much, sir. I wish you best of luck and best of health. Thank you. I also wish all of you best of health. Thank you. The next question is from the line of Anshish Pandey from Quant Money Manager. Please go ahead. Hi. Thank you for taking my question. Many congratulations on a good quarter. But sir, just taking a step back, if you could just tell me what was the underlying growth rate that we are experiencing right last I could not follow your question. Why is it not very clear? Can you say it again? Yes. No. I was just saying that if you could just talk about the underlying growth rate that we are experiencing in the business right now, of course, comparables for us is a little bit hard to decipher. But let's say in the month of June and and through this month of July, what is the underlying growth rate are we experiencing, like, 15% or higher? So if it's one of growth rates in the business right now. Look, you know, on overall year to year basis, I said 15 to 20% growth rate would be there. Quarter to quarter, it could vary. Reason being, for example, you know, these are rainy season. Some part of the country would have monsoon rains and execution of networks may suffer. So growth may not be as much as you could you would be able to see in quarter three or '4. Quarter '4 normally sees higher revenue because then the time at that point of time, the working conditions are much better and what happens all around the all around the place. So quarter to quarter, they may be somewhat less or more, but on overall basis, you would find, you know, this year, we would we expect to get a growth of 15 to 20% in revenue. Thanks for that. Also, what is the receivables position right now? And do we expect to significantly improve upon the situation by the end of the financial year? Let's say, you receivables right now remains at about 3,053 crores as against what we had 3,056 crores at the March, which means that you can say whatever was the revenue of this current quarter has been realized, not the same revenue, last quarter or before that quarter, it has been realized. So current working capital cycle, what we have is right now it's about ninety days. But as I said, the milestones need to be complete for realizing revenue. Now we are in that phase, trying to complete the milestones as soon as possible in the defense contracts. I cannot name the commands and the course for a security reason, but I can tell you, we have set up our target fifteenth hours, thirtieth hours, thirtieth September, thirtieth October, like up to December to complete various parts of the network for the defense forces and realize our revenue out of that. I think from quarter three onwards, you would like you would see significant amount of receivables coming down because of these milestones getting completed and money being received. Significant amount of receivables will start coming down from q That is much appreciated. Thank you. Could you just repeat the receivables number exactly now versus March? It was three thou it's almost the same. 3,053 crores now, which was 3,056 crores in March. Oh, it sounds like So whatever is the revenue of the current year has been realized. Not the same same deliveries, but last quarter or before that quarter. But, you know, realization is about 1,200 crores in the current quarter. You can say that. Yeah. And if you could just talk a little bit about the receivable situation in the account standard on the account, and also the traction that we're receiving in export and whether we can meet the target that we have stated before in export for the financial. Its first financial. Yeah. I can talk about that. Current receivable from BSN is around 50 crores. But to be precise, it is 53 crores. We saw earlier about hundred and 60 crores. It has come down to 53 crores. That is what. And this 53 crores, I think, this quarter, we should be able to realize most of it. Thank you, sir. Coming to export target, current year, we have set up an export target of 300 crores for us, although which I believe we have already done export of about INR66 crores. INR66 crores has already been exported and we are well on way of achieving our target of this INR300 crores from the current financial year because there is a good demand of fiber optic cable as well as other products which are producing like this Wi Fi radio and accessories and including radio radio communication network, which are executing in Dhaka and Mauritius. So currently, as target of 300 crores, we are well set to achieve that target. I don't find any problem in that. Next year, financial year 2023, we have set up a target of INR500 crores, which also I believe we should be able to achieve without much of a problem because the expansion for the fiber optic cable which we are doing in Hyderabad, large part of it is directed dedicated towards export products export products. So we should be able to increase our exports out of that. And number two, our new products coming in shape, you know, which are designing, that should also be able to expose. INR500 crores, I also believe we should be in a good position to achieve in FY23. But the current year is INR300 crores as it is about INR125 crores or so, which we did last year. No, I think we did INR200 crores last year. We should be able to exceed INR 300 crores without much of a problem in the current year. Thank you so much. Very positive, Helmut. Thank you so much, and all the best, sir. Thank you. That was the last question. I would now like to hand the conference over to mister Somal Bhatia for closing comments. Thank you, sir. Thank you for giving us this opportunity to. Thank you. Thank you very much, Somal, mister Bhatia, and thank you to all participants for spending your time and being with us in this earning call. And let us all meet again in the next earning call for after the q two, and wish you all very best for health and well-being. And please take care. Get vaccinated. That is most important so that even if any third wave is there, none of us are impacted. Thank you very much. Thank you. Thank you. Thank you. On behalf of Tabula Hindadan Private Limited, that concludes this conference. Thank you everyone for joining us, and you may now disconnect your lines.