Data Patterns (India) Ltd (NSE: DATAPATTNS) Q2 2025 Earnings Call dated Nov. 11, 2024
Corporate Participants:
Monali Jain — Moderator
S. Rangarajan — Chairman and Managing Director
Venkata Subramanian — Chief Financial Officer
Analysts:
Dipen Vakil — Analyst
Nemish Sundar — Analyst
Unidentified Participant
Hardik Rawat — Analyst
Jyoti Gupta — Analyst
Omkar Chitnis — Analyst
Sahil Karia — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Data Patterns Q2 FY 2025 Earnings Conference Call, hosted by Go India Advisors. [Operator Instructions]
I will now hand the conference over to your host, Ms. Monali Jain from Go India Advisors. Thank you and over to you.
Monali Jain — Moderator
Yeah. Thanks, Ryan. Good evening, everyone and welcome to Data Patterns India Limited Earnings call to discuss the Q2 and H1 FY 2025 earnings. We have the senior management of the company on call, Mr. S. Rangarajan, Chairman and Managing Director and Mr. Venkata Subramanian, Chief Financial Officer. We must remind you that a discussion on today’s call may include certain forward-looking statements and must be therefore viewed in conjunction with the risk that company faces.
May I now request Mr. Rangarajan to take us through the company’s business outlook and financial highlights, subsequent to which we will open the floor for questions-and-answers. Thank you, and over to you, sir.
S. Rangarajan — Chairman and Managing Director
Thank you, Monali. Good evening, ladies and gentlemen. It is my pleasure to welcome you all to our Q2 FY 2025 earnings call. I hope you had the opportunity to review the earnings presentation available on both the stock exchanges and our website. Before Venkat presents the financial results, I’d like to provide a brief overview of some important updates and key highlights for this quarter.
In Q2, as you have seen from our results, our revenue growth in the second quarter has been weaker-than-expected, primarily due to a deferment of a scheduled delivery from one customer worth INR27 crores. Take off of this will happen in H2 and we are confident of meeting our FY 2025 revenue growth guidance of 20%, 25%. We are expecting order inflow of around INR700 crores to INR800 crores in FY 2025. We’ve received orders of INR83.5 crores till H1. We have further received orders of INR82.7 crores in October. We are L1 for INR227 crores, which we expect delivery within 12 months. We have a very strong bidding pipeline and we’re targeting for another INR2,000 crore to INR3,000 crores orders in the next 18 to 24 months. Despite the challenges in revenue, our team has been focused on driving operational efficiencies and improving the overall profitability of the business. This has resulted in improvement in margins. We are hopeful to achieve our stated guidance of EBITDA margin at 35% to 40% for the full-year.
Our order book at the end of Q2 stood at INR971 crores. The order book as on date stands at INR1,281 crores, including orders negotiated. Our dedication to research and development has resulted in the development of several new products, which have been planned to demonstrate to be able to participate in larger tenders and thus increase the TAM for Data Patterns. Data Patterns is strategically utilizing the proceeds from QIP to advance the product development initiatives. A significant portion of QIP funds have been allocated to expanding research and development capabilities. We are leveraging that to drive the development of next-generation products that align with emerging industry requirements and technological advancements. We’ve been continuously recruiting talent to enable us to address the new product developments and ensure sufficient training resources are available for the planned growth.
Our total headcount was 1,504 with 1020 engineers at the end of Q2. We advanced up the value chain by developing comprehensive systems using reusable building blocks and leveraging our existing competencies. This strategy has facilitated our expansion into new geographic markets, including Europe and East Asia, where we have successfully competed with foreign OEMs. Our sustained investment in products and technology, totaling INR124 crores in capital expenditure over the last five years and an anticipated capex of about INR150 crores in the next two years to meet the anticipated growth. Our financial performance over the years reflects a strength of our business model and the effectiveness of our strategic initiatives.
Despite decline in revenue, our gross margins reported, our import improved and are at 76%, up 700 basis points from same quarter last year. EBITDA was down 16% year-on-year at INR34.3 crores. However, we were able to maintain the margins at 38%. Profits were at INR30.3 crores, down 10% year-on-year, while margins are better at 33%. Our in house designing and development are yielding better margins given the operating leverage and prudent financial management. We have robust order book as on-date of INR1,281 crores, where growth has been as seen across all verticals, development orders contributing 18% to the top line and production at 73%.
Our diversified order book with significant contribution of Radar at 67% and Avionics at 21% highlights our strategic positioning. Our order inflows during the quarter was lower than expected. On that note, in Q2, we secured the following orders, including production orders for export Avionics worth INR15.7 crores, production order from DRDO for Avionics worth INR6 crores. Keeping the secular tailwinds in mind, we are committed to sustaining a revenue growth of 20% to 25% and maintaining high margins between 35% to 40%. We aim to capitalize on the following opportunities, focus on fire-control radars, expand radars and smaller radars for UAVs, ensuring cost competitiveness with in-house IP in radars. Develop electronic warfare products, meet the requirements of Army, Air Force and Navy, provide military radars, video relays and other equipment. At this point, I pass the floor to Ventak for his comments.
Thank you.
Venkata Subramanian — Chief Financial Officer
Thank you, sir. Good evening, ladies and gentlemen. We are happy to present our financial performance highlights for Q2 of FY 2025. Let’s delve into the overview of our financial highlights. In Q2 FY 2025, revenues were down by 16 percentage to INR910 million due to delay in delivery of order worth INR207 million. Development contracts contributed to 18 percentage, while production contracts 73 percentage and service contracts approximately 9 percentage in Q2 FY 2025, highlighting the diversity in our revenue streams.
Electronic warfare and avionics contributed highest to the revenue at 48% and 19 percentage respectively. Similarly, our order book stands at around INR971 crore as on 30th September, with a good mix of both development and product — production contracts. We were able to improve our gross margin at 76 percentage led by better product mix. In H1 FY 2025, we maintained the revenues at INR1,951 million with gross margin at 74 percentage and EBITDA margins at 37 percentage.
Our net debt-free balance sheet reflects prudent financial management. As of 30th September 2024, we hold over INR557 crore in cash and cash equivalents, underscoring our financial strength and liquidity. Overall, we delivered a decent performance in H1 and are confident of a better second half and a steady growth momentum in the years ahead.
With this, we will now proceed to the question-and-answer session. Thank you.
Questions and Answers:
Operator
[Operator Instructions] The first question comes from the line of Dipen Vakil from PhillipCapital. Please go ahead.
Dipen Vakil
Thank you for the opportunity, sir. Sir, my first question is relating to your order inflow. So you have posted that this year we’ll be getting somewhere close to around INR700 crores worth of orders in FY 2025 and in next two to three years, we’ll be getting somewhere close to around INR2,000 crores or INR3,000 crores worth of order. Sir, is it possible for you to tell us the kind of order pipeline which is there, which gives you confidence for such a such great order inflow. So I don’t want the numbers, I understand for the competition, you may not be comfortable with numbers, but at least the areas where such tenders are out and bidding is going on.
S. Rangarajan
Okay. See, as you are aware, our strength is in radars and electronic warfare as a percent plus any avionics. And since we have done a fair amount of development across the radar platform or airborne radars, we expect some additional contracts enabled us to happen. Similarly, in electronic warfare, we have done some developments and these are all critically required for our services and our development organizations. So we believe that these orders also will come our way. So these are two areas of the contracts we’re expecting and regarding the other INR700 crores expected, these are all — some of the orders already been executed. We expect repeat orders to happen and some are new orders which discussions are on order — in order with the customers and the orders are expected in the next two to three months time to see that we execute all these orders probably in six to 12 months. So they are in advanced stage of discussion. I can’t give you the exact order retail, but that is how the numbers have been made up.
Point three is, we are also using the QIP funds. We are actually developing very large products. These are coming into some maturity now. The next three to four months’ time, the first of the products will get announced and we believe this will also find a fair amount of interest in the services in Air Force, Navy etc. So we expect maybe based on our demonstrations, we expect some initial development contracts to happen to then go through various levels of times. So we are very possible on the order intake going ahead, though there has been a delay in the first quarter, this has been pushed for reasons beyond our control. But these are all happening, being pushed but not lost, so it will — orders will happen. And on the other area where we are doing development, we are very, very confident or aggressive to see that this is coming out very well, products coming out very well. So we expect that this will really give the Philip — for a substantial growth in the company there in next few years.
Dipen Vakil
Got it, sir. Sir, and on this [Technical Issues] line, sir, you mentioned that capex also, you are going to do a capex of close to INR150 crores in next two years. So everything will be largely on the product development side or there’s something which will be there also from the interest higher side or maybe some other acquisition side of it. So how do you see your capex stabilization in next few years?
S. Rangarajan
No, no, you’re talking about asset INR150 crores, right?
Dipen Vakil
Capex?
S. Rangarajan
Capex right?
Dipen Vakil
Yes.
S. Rangarajan
Yeah, yeah. Basically we are planning infrastructure because in keeping with the product development, we’ve already got additional land, some building construction we are going to do, plus also all the test equipment and production infrastructure just to be it generated. So this will take over the next one to two years because once the large orders start happening, we need to have a streamlined production infrastructure to deliver on those requirements. See, these are all very complex systems and these are not — it’s not like a normal commercial system where quantities are there. Quantities may be large, but the value is very high. So there’s lot of tests and integration just to happen. We need to have some infrastructure to do all of that. So we’re planning ahead to see that these are all-in place by then large contracts happen, we will have the infrastructure to start deliveries. So this we’ll be phasing it out in the next two years and we have an idea what to do. We have the land already available with us. So plans around to see how we can build on it and all the other test infrastructure which we need to produce. So more capex mostly is in that area. Yeah, we are thinking about the other or merger or [Indecipherable] but we taken a stand on this at this moment.
Dipen Vakil
Got it, sir. Sir, last question. Sir, you have mentioned that this year’s growth guidance is close to around 20% to 25% growth and next year you are confident that you will be looking at an order inflow of close to around INR200 crore in FY 2026. Sir, so is it are we — and with the delivery timeline of close to around six to 12 months for the orders which are coming in, do we see it — is it like can we presume that this we will be doing better than 25% growth in coming years, say, two years down the line versus the 25% growth that we are doing right now?
S. Rangarajan
Your intention to grow fast, but I can’t comment on that particular growth line now. I think we will probably wait for another one quarter before we see which orders are going to come and what timelines this can get delivered because the clutch of orders which we’re expecting, some will be delivered over many years, few years, some has to be delivered in 12 months and 18 months. So we need to see which orders happen in the next few months time by which time then we can give you a proper guidance on next year available so now the growth is. But our interest is to grow fast. That is why we have raised money to build products because though the initial growth is 20%, 25%, we would like to grow at a faster rate in the coming years. But how it’s going to happen, I’m not at the liberty today because we need to see the mix of orders happening.
We will be able to guide closer to the year end, we’ll be able to give a guidance next year. But they are thinking a lot ahead on four, five years of delivery and contracts for four, five years and that is why enormous amount of infrastructure and development we are doing today. You know, imagine 70%, 65%, 70% of the organization are development engineers. So you can imagine the amount of development which we’re doing in products. And so our focus is build in India, design in India end to end so that we can compete with international companies in large format contracts. So towards that, we’ve been put in efforts. I’m sure it will fructify you in the coming years. But we will tell you more and more as and when things start happening. There will be a lot of things in mind, but it actually all become real. So we will wait a few months to see how the reality happens.
Dipen Vakil
Got it, sir. That’s all from my side and all the best for second half. Thank you so much, sir.
S. Rangarajan
Thank you.
Operator
The next question comes from the line of Nemish Sundar from Elara Capital. Please go ahead.
Nemish Sundar
Yeah. Sir, am I audible?
S. Rangarajan
Yeah.
Nemish Sundar
Yeah. Thank you for the opportunity, sir. Just wanted to check on something. So, sir, HAL has recently received order for the Dornier 228 upgrade. So will Data Patterns be playing any role for avionics in that?
S. Rangarajan
Yeah, co-ordinate Dornier 228 upgrade program depends on how HAL takes this further. At the point, I can’t comment because the tender is in technical evaluation now, but we have quoted. So we’ll have to wait and watch how HAL decides and how competition is there and what is their present level of thinking. We want to do this, but we’ll have to wait and watch the next few months what really happens.
Nemish Sundar
Okay. So estimated timeline, we would expect something around in the next six to 12 months some update on…
S. Rangarajan
Yes, six to 12 months, definitely we expect division because they need to deliver maybe in the year 2026. So they should finalize it. If I were HAL, I’ll finalize it faster. So really I don’t know what happens. But yes, I think we should get some idea in the next six months next time.
Nemish Sundar
Okay. Thank you. And just one more question I had. On the BrahMos missile missile, the seekers, is there any update on the seekers between you and the other PSU player who was involved? So any updates on that?
S. Rangarajan
We are yet to carry out the life test. Every month they’re saying this month. So I hope this month the life test happens. Once the test happens, we expect contracts to happen from seekers because India wants to do Indian seekers. We expect that to happen. But I can’t comment let the life test happen, missile tests are happening, it is yet to happen.
Nemish Sundar
Okay. Thank you so much, sir. I’ll get back in the queue.
S. Rangarajan
Yeah.
Operator
Thank you. [Operator Instructions] The next question comes from the line of Aman Soni [Phonetic] from Invest Analytics Advisory. Please go ahead.
Unidentified Participant
[Technical Issues] Hello?
Operator
Aman, if you any — speak up? Thank you.
Unidentified Participant
Am I audible?
S. Rangarajan
Yeah.
Unidentified Participant
Yes, sir. Hi. Sir, in last phone call when — when we asked about the effect of delayed Indian supplies to HAL from General Electric, you indicated that the company will be able to manage by supplying other products and there will be slight growth in Q2. But if you look at the current numbers, it seems we were not able to do that compensation. So can you please throw some light on what went wrong for us in this quarter? And secondly, we are maintaining our guidance on top line basis for full-year. So is it same for bottom line as well like 30% growth we were targeting?
S. Rangarajan
See, normally we try to keep some other contracts in case that doesn’t grow, we do this. But in this case is not only one contract group we delivered, there is a series of other things also. There were some delays on acceptance or valued delays are happening. So we are not able to compensate whatever we could not do. So this is probably next quarter or next half year, we should be able to deliver it. That is why we are maintaining guidance of 20%, 25% as we paid last tag. That will go because this contract — all the products are ready. So as and when cleared for delivery, we will be able to deliver it. So we’re waiting for that to happen. So if these costs have shifted, we didn’t plan to shift firstly when it happened nevertheless. As regards the guidance, idea is to increase bottom line more. But the contracts which you are expecting still not happened. So there is a shift in the contracts. So I’m hoping that the contracts will come. We are taking some advance action. I will be able to talk about it probably end of next quarter better than what I can do, but we’ll definitely maintain our — whatever guidance we gave you last year.
Unidentified Participant
Like profitability guidance for 30% is maintained right now, right?
S. Rangarajan
This is what we would like to do. As of now it stands, we’ll have to see whether the mix changes as we go along.
Unidentified Participant
Got it, sir. Got it. That’s it from my side.
S. Rangarajan
Because the mix — whatever mix we are having would give us better bottom line. That is why we save the 30% guidance. So we’ll see how the mix goes at the end of — probably next quarter we will…
Unidentified Participant
Got it. Thank you very much, sir and all the best.
S. Rangarajan
Okay.
Operator
Thank you. [Operator Instructions] The next question comes from the line of Somal Shah from Parrys [I] Investments. Please go ahead.
Unidentified Participant
Hi, sir. Our order inflow for past six months is just INR83 crores. So why is it so less? Any particular reason for that? Or are we facing any competition or something like that?
S. Rangarajan
No, this orders have got delayed. It is not competition. We’re not lost whatever we plan, we never lost the order. We will only get the shifting of the order book in a sense that inquiries have not come and have got postponed for reasons which we can’t control. So which we all expected to happen in the first six months and got postponed in second six months now. So we expect that to also negotiated with INR220 odd crores is L1 also should come probably in the next one month to two months time because the [Technical Issues] acquisition also takes time. But general, there has been a general delay in inquiries and contracts. Nothing to do with competition. We have not lost the orders.
Unidentified Participant
Okay. So basically what we have guided for INR700 crore to INR800 crore for this year stands I mean we can — we can get to that order book?
S. Rangarajan
Yes, yes, already it’s 80 plus 80, INR160 crores, INR170 crores received by October plus another INR200 odd crores already L1. So it’s basically about INR400 crores. Another INR300 crores, INR400 crores are in the pipeline. There are lot of enquires are coming now. These are all significant contracts. Whatever I’m projecting to you are all orders where we know for sure it will come to us. Order we project to you is not based on tender orders. Tender orders, you don’t know which way it will go. So we are only projecting whatever which has to be ours, but unfortunately, some of them, the inquiries are getting shifted for some position at the customer end and it is not beyond our control. But it will all happen. What will happen is they won’t accelerate delivery, they’ll shift the order, but delivery will — they’ll want it urgently. So we are trying to take utmost action on those components because when the order happens, we are — we don’t delay deliveries.
Unidentified Participant
Okay. Okay. And for FY 2026, as we are expecting orders of INR2,000 plus crores. So normally, what is the timeline for delivery once we get the order?
S. Rangarajan
No, I didn’t say FY 2026 is INR200 crores, I’ve said, 18, 24 months INR2,000 crores plus we put INR2000 [Phonetic] crores. See this depends on the mix. I’m not able to say now because the product mix decides what delivery schedules are going to be. Some of them have a three year delivery line, some has one at 18 months, some it is 12 months. So it will be data mix. So that is why towards the end of this year, depending on what contracts you’re going to get on the delivery time you’re going to ask, I’ll be able to give proper guidance for FY 2026.
Unidentified Participant
Okay. Okay. It was just — I mean in the presentation, you have mentioned that expecting orders were 20 million in FY 2026. So that’s the reason why I asked you, yeah.
S. Rangarajan
Okay.
Unidentified Participant
Okay. That’s it from my side. Thank you and all the best for the future quarters.
S. Rangarajan
Thank you.
Operator
Thank you. The next question comes from the line of Sushil Agarwal from NPCC [Phonetic]. Please go ahead.
Unidentified Participant
Hello?
Operator
Sushil, if you can please unmute your line and ask your question. Since there is no response, we move on to our next question, which is from the line of Hardik Rawat from IIFL Securities. Please go ahead.
Hardik Rawat
Thanks for the opportunity. I wanted a clarification on the capex guidance over the next two years. So this INR150 crore is largely towards R&D, what part of this will be towards the infrastructure building that you talked about?
S. Rangarajan
See, R&D is shown differently. So all INR150 crore we are talking only about capex in building test instrument test facilities and lines to be set-up for production as and when it happens. It is just an average value, it is not exact number, exact number will work out with no clearance in the next one or two quarters. But the idea is, we’ll be spending a bit more to see that infrastructure is created and production volume happens, whether you can address the production requirements.
Hardik Rawat
Sure. And so, what — our R&D spends, what do we envisage our R&D spends to be like for FY 2025 and which areas will this be targeted at?
S. Rangarajan
See already, we have spent some INR67 crores on R&D spend over the last 12 months or so. And out of which majority is actual materials, procured towards product development. We’ll continue to buy materials and also build-in certain areas. So this will go on to see where the products are getting finished. So that development is there and the money has been earmarked for this development. That is why we’ve taken QIP funds to do this exercise. The product development mix is going to be in three, four areas. One is in radars and these are airborne radars, which we’re designing ourselves. Second is on electronic warfare suite. We’re developing again airborne warfare suite. There is also ground systems on electronic warfare we are designing. The third is participating in some make to programs on radars and EW is also areas where we are participating. Fourth is in communications, building our own radios, network radios and things like that which is required for all Army, Navy, Air Force. This will be required as we go along. And so we’re building Indian radios, Indian waveforms and systems like that. So, four areas we’re working on. We’ll still have some additional money with time to build-on some satellites, but we just postponed that because we want to get clarity on how the business is going to happen.
So we have complete competency to build our own satellites and launch it, the money is there. We want to be really sure how to spend the money until we get idea of contracting what’s going to happen, we postponed this a bit at. As and when we get clarity and maybe we can start spending the money. At the present moment, it is in the bank. But these are main areas where we are working on the present. And as we go along, there are new requirements for the market is coming up. So the cash available is always good. We can address those opportunities quickly and we have really good advantage because one good thing is that we do all of — all of the system development in-house from mechanical engineering for airborne systems, to structural whatever, all the electronics, the domains, the IP and the test equipment infrastructure, [Technical Issues] requirement so for all of them. Everything is done in house. So that gives us an advantage that we have a tight coupling of the product and design and a delivery timeframe, which is not practical for anybody else to buy an integrate to do. So there is a need in the market, the customer, they will address the need, we have an early bird advantage. This is what we want to try to leverage other than going to borrowners and getting a tie-up and then building it here. We are putting this effort, building local competencies and products. So that is where it’s going to go.
Hardik Rawat
Sure. With regards to the delivery that got deferred in the current quarter, was this a GOI related entity, was this for some external exports customer?
S. Rangarajan
As a GOI entity, but there is also an export customer who is going to — we are also talking to see if we can deliver next quarter. This is not last quarter, thought of we’re getting for next quarter. Again, there may be some extensions in delivery. We don’t know. We’re trying to talk to them to see products are ready and we’d like to ship it. So on — we are going ahead to see what we should do. See this business, you know has always been a last quarter business all along capex with government. But what we’ve managed in the last two years, somehow stabilized quarter-to-quarter with some kind of long-term contracts on hand. So we are able to mix and juggle and see that contracts when we try to reun out the cash flows and that is why quarter-to-quarter. But sometimes this happens at — it’s not in our control. Those really do the development production on-time, sometimes the acceptance takes time and then it rolls over the next quarter or next half.
We need to probably get more contracts, so that this smoothening is possible and also look at it. So that is all the company is working towards. You see it louder order book. Order book size becomes much bigger. So then we can plan it based on even if there’s going to be ups and downs in acceptance areas and lifting material from government, we still be able to keep an even cash-flow. We’re working towards it. We’re trying to build product mix and contract mix such a way that we can give a more predictable quarter-to-quarter uniform kind of delivery. We are still there. We are trying to achieve it. We’ve done quite a lot during the last two years, but this quarter we could not manage it, but we’ll bounce back again is that we think.
Hardik Rawat
Got it. And sir, in this INR20 billion to INR30 billion worth of pipeline that you’ve talked about over the next 18 to 24 months, can you give us a rough idea as to what proportion of this could come from non-government of India export orders?
S. Rangarajan
See today, there we see export — we do export, we do some INR100 odd crores export this year, we’re planning to do. We won some nice contracts in Europe and in South Korea, then also in UK. We built some products for UK and it is dumb and we’ll get products have done very well in the last few years and they are all getting large orders. So back-to-back, we are also increasing the order on us, so that’s a good thing. But see that our focus is at the present moment is in Indian market. See, in India all along, we’ve been doing subsystems and components for DRDO and the market where MOD [Phonetic] has just opened up for full systems. It is our endeavor to see that we address the big market with full systems, so that scale can happen, substantial scale can happen, not be a INR500 crore company, get into INR2000 crore, INR5000 crore company, we want to do that. So the market is there. And of course, it’s a slow market. It takes time to get the contract, but there are like some low lying opportunities, low hanging fruits. If we can be quick nimble and the technology is outstanding, we’ll be able to address the market. So that is what we’re trying to do now to see the next two, three years like we are nimble and be as long as products we’re trying to design, which the customer would love to have. So we beat the competition and get contracts. So that’s what we’re trying to do.
So we are doing this. Meantime also looking at four year, five year kind of horizon where we can also win contracts with the [Indecipherable]. So it’s a mix of things we’re trying to do to get scale. So that’s where we are today. So this I don’t know I answered your question, I’m not very sure.
Hardik Rawat
[Indecipherable] billion, whether it is largely exports or…
S. Rangarajan
So exports is going to be a bit less now because focus is not there, we need to focus on exports. We want to put a separate export team and build that capability and competence because here today we are very R&D-driven organization. So we need to move to a different marketing model to see that we are — we were internally thinking what is it we should do, we are planning to see what we can do there. But export takes more time. Why I’ve talked about Indian simple systems and orders is, once the full systems come in India and the first order intake happens, we start delivery, then these products can be exported to the world because these are complete equipment, not parts of our equipment. That will then really bring us the export two years down the line, we should start exporting. Now it’s some inquiries have come based on what we’ve delivered to customer here in India. We have got some contracts with Hungary, which is going to get delivered. Similarly, we will get some contracts with UK for full systems. If these things happen, it is good. But then we need to put a lot of marketing orientation and sales process there to see that we can get the larger orders. If will happen a bit slowly, focus is going to be more on Indian systems where scale can happen substantively in the next three years.
Hardik Rawat
All right. This is really helpful. Thank you so much and all the best for the second half.
S. Rangarajan
Thank you.
Operator
Thank you. [Operator Instructions] The next question comes from the line of Jyoti Gupta from Nirmal Bang Institutional Equities. Please go ahead.
Jyoti Gupta
Thank you for the opportunity. My question is, you know, while our major contribution in revenue comes from radars, we also see that the biggest customer is BHEL. We missed our estimates by the same proportion of the delayed delivery? Is it because there was this delay in receipts from the BHEL side or what? And second is, do you think such kind of delays in receipts to happen because our largest customer is BHEL and are we somewhere there is a delay in payments coming from BHEL, so which might impact our third and fourth quarter numbers as well? The other thing is, while we are concentrated on the domestic part and exports are going to take a step back, how confident are we that the production — the development products that are there will have — has enough TAM for the next three, four years? Can you give some — throw some color on this?
S. Rangarajan
Yeah, I couldn’t understand the second question, let me answer the first question and come to your second later. First, this radar contracts to BHEL is not the largest contracts and there is no delay with BHEL. So it’s not BHEL that we are talking about, the delivery delay is not part of radar and the assumption that it is BHEL and they have delayed basement or a lifting of contracts is not correct, it is not BHEL. So I’m not named BHEL. It is not BHEL anyway. So that is not one. Second is, in continuation to the same question is, if this is going to happen regularly, what happens really. See, I’ll tell you what some of the government institutions, based on their need, they lift material and sometimes postpone materials because their own requirement for delivery may change because they buy material in so many people and there is a — which they do. But what happens is after some time, they will deliver, then urgent deliveries happen. So sometimes some shift happens. So we need to be more — what do you say, we need to take care of our requirement, get more contracts rather than, we have no control over their lifting, delaying, deferment, all of them.
So as an organization, I think we need to take care of that from our side and plan better. So this is what we’re learning that sometimes it happens, but we never expected that one or two quarters we’ll continue to not keep delays. So that has affected us this quarter. We need to plan much better from our side. So we can’t blame the customer for all this. We need to take care of it and see that. So we work — we are working towards it. We are trying to develop further products where these products need is very high from the customer, so delays will not happen. The customer will push the institutions to deliver. So that is focus we are trying to do, see that this kind of things don’t happen. So that’s the first part of the question.
Second, I don’t know what exact question was, development expand any, can you repeat the question?
Jyoti Gupta
What I mean is that your concentration, your research and development part is commendable and your information is more on developmental products and projects. Just wanted to understand, is there enough time for the next five years that whatever we are developing will be sold out in the next five years while maintaining the same margins or do you think there could be some dip in the margins going forward?
S. Rangarajan
No, no. Whatever products we are developing now, we are developing because we believe they are low-hanging fruits and the requirement is large. Whatever product we are trying to do now because, see, one-off product development, one contract is still — we will have to take a tender base. We can’t do product development against that because win or lose will happen on a tender. So we don’t want to risk that. So whatever product we are trying to develop here will be required in quantities, which will be delivered over many years, maybe seven years, five years, six years, etc, three to seven years. So this will give you repeat production year-on-year and these products which we develop, once we start getting contracts in India, they have the same requirements outside India, but similar requirements are also there. So that’s all gives me an export potential also. So we identified a few products like this, which has got a fair amount of scale and the size of business is extremely large. Initial orders will be a few hundred crores, but subsequent to that, the production order is few thousand crores.
So we are trying to only look at such contracts because today, we’re seeing the overheads and size of the business and the opportunities is there, they’re not really looking at low value small products, one-off contracts getting to one tender business. They may participate in one or two, but that is more because we have a competency, this is a little bit of value-add we do, we can build the product, so that is not — will not be a focus area. Focus area is long-term products. And yes, these are all should happen in the next two to three years. Production products should happen in two, three years. We cannot wait five years, seven years is a long-time to wait and do product development today because we need to look the next five years and scale the business. So we are very, very focused on how to scale the business in the next three, five years to much more at least three to five times our size, we need to do this. So we’re looking at products which will give us that kind of bandwidth, the addressable market and a long-term contract order book with few year order book on hand, so that this up and down and quarter-to-quarter should not happen. So we’re looking really large, large business growth and products coming out very well. Actually, outstanding engineering is coming out, what we’re doing. And we believe that the customer would love the products when it comes out.
So we are very, very [Indecipherable] very positive on what we’re doing in the — in the short and medium-term. Long-term, we’ll have to look at how to do this, but short and medium is what we’re looking at now to bring stability and growth, substantial growth in the company.
Jyoti Gupta
Sir, one more question. What about the Dornier side? You — in our last conversation, you said that you have done your part of avionics, yet the Dornier has not been — some issue with the avionics part in terms of delivery of Dornier, is that resolved or is there something or have I missed out on the information?
S. Rangarajan
No, we have delivered whatever was told to us, we delivered in record time radar and EW systems. We delivered in record time, eight months to 12 months we delivered a completely new airborne systems fully qualified and certified and shipped, so they are undergoing flight trials now. So HAL has taken decision, how do you want to do, they want to import, can you look at Indian products? So the tender has come, so they will evaluate the TECs happening, they revaluate the project and then come to a proportion. We are pushing saying that we have outstanding products. It’s a really — this is jointly done by DRDO and us. So this is a good product. It is world class. So it is Indian and we can meet their commitment. We meet everything [Technical Issues] boxes, but it is worth the HAL and the user decide what they want to do. So I can’t comment on it, but we have done our part and we have to wait to see how it really plays out.
Jyoti Gupta
So we have competition from the international players or is within domestic only you have competition which is…
S. Rangarajan
No domestic competition for us, most of what we do, there is no domestic competition, it’s all international competition.
Jyoti Gupta
Okay. And are they — is our rates cheaper or there are cheaper? I mean, since we have done an excellent job, then we should be bound to get this contract for Dorniers going-forward?
S. Rangarajan
See, we don’t know what price is tender, nobody knows what other person will quote, I have no idea. We have an indication of what they will quote, but we normally know what they quote. So I can’t comment on that. But it is not just quote or price, it’s more on how India views programs from India and how decisions are going to be taken. We hope that we should convince them to take Indian product. So that’s why we are. We have done our job as I told you. So we are going for — we do the sale process now and see what really happens.
Jyoti Gupta
Okay. All the best, sir. I’m sure you will do very well. Thank you.
S. Rangarajan
Thank you. Thank you.
Operator
Thank you. The next question comes from the line of Somal Shah from Parrys Investments. Please go ahead.
Unidentified Participant
Hi, thanks for allowing me a follow-up. Sir, what is our current data days?
Venkata Subramanian
On a trailing 12-months basis, as of September it is 243 days, which is in comparison to March 2023 — March 2023, it was 308 days and it has come down to 243. 2024 also we had 280 days. If you want to — September is on a trailing-12 month basis.
Unidentified Participant
Okay. Okay. So are we looking to get it down further by end of this year or this is a normal, I mean, data days for our type of investment.
S. Rangarajan
No, see, it all depends on the product mix, product contract mix, development contracts takes longer time because we develop some products and most of what we develop — most of the contract is development. But what happens, it goes to a lot of trials and testing, sometimes field trials, sometimes aircraft trials and until that is done and so modificantly we require after trials. So these are development in nature. So there tends to be some delays in payment because there is some addition subtraction happens. But more and more production contracts we get and the payment cycles because there is no new design validation, verification and trials. So it will go through — a normal acceptance process is already done. So the better days will — it tends to come down. Today, lot of mix of development contracts were done, we’re delivering development contracts. That is why the extended timelines are there. We believe that this has to be brought down as we go along. It will happen over the next one or two years. More and more we start — our product develops, get into a series production and then quarter-to-quarter delivery happens there or month-to-month, it happens. For some time in the next two years, we expect it is month to month delivery, not even a quarter to quarter delivery. When these kind of things start happening and that is 70% of our business, if we do that, you will see data days will come down substantially.
Unidentified Participant
Yeah, because currently, I think [Speech Overlap].
S. Rangarajan
Product mix. See, we can work — only we have to work on those kind of product mix. Today, what’s happened is the whole business in India is DRDO driven and development driven. That’s the only business we’ve been seeing. We’ve not gone into the production model, MOD tenders come in one and most of those tenders are all going to BHEL and HAL and on a nomination basis, lot of things happen, so that’s what is happening. Very few are really coming to private sector because the entire product should be available and some of them make one — takes a long-life cycle to see the orders are placed and all that. So that this is a slow process. The government is clear that they have to shift the way we are doing, but it takes time to shift and also to for us the entire product to be there to position amongst it. So this will happen over the next two years. But in the meantime, we need to see how to move away from so large development to contracts to production orders. What we are trying to do is, we are developing our own products other than what DRDO developing products are there, which will directly go to services. So that is another area where the substantive hardware can happen — delivery can happen. But again, in that initially some testing is involved, it will take a year, year and a half, then it goes into production.
But we have to move from this to that, then datas come down substantially.
Unidentified Participant
Okay, okay. And sir, what percentage of our sales is to government companies versus the private companies?
S. Rangarajan
See, all are government [Technical Issues] private here. See this HAL, BHEL and all the large companies only are ordering because they get the large orders and through DRDO, when we’ve done some product development, then they get the final order as a system integrator fully, back-to-back order with us. So it’s either PSU or the services MOD business is what mainly. Other than for this year, maybe more than 15% we do exports, that is all private, but we’re exporting. But look in India context, they are very little private. Slowly it will have to happen. The large organizations, Tata, L&T, you know, whoever this, let’s say, Adani, all of them start getting large contracts and where the consortium approach takes place, an ecosystem gets done in India and we start developing products for them, then the kick-in of private sector business starts.
Till now, since they are not really developing also, they’re all tying up with foreigners to bring product, the kick-in from India is going to be Tier 4, Tier 5 on components rather than subsystem, systems like what we do. So it’s going to take some time. The ecosystem is to kick-in, after which we’ll have Indian private sector. We are also talking to a few to say, why don’t we do this? We need to create an ecosystem here, see that Made in India is possible. But these are all in work in classes now.
Unidentified Participant
Okay, okay. So as of now, all India sales is all to government companies and exports to private companies?
S. Rangarajan
That’s right. That’s right.
Unidentified Participant
Okay, okay. Yeah, that’s it. Thank you.
S. Rangarajan
Yeah.
Operator
Thank you. [Operator Instructions] The next question comes from the line of Omkar Chitnis from Trade Brains Private Limited. Please go ahead.
Omkar Chitnis
Thank you for giving an opportunity. Sir, my first question is, sir, how many contracts are you expecting to get from IP business by FY 2026 and how many patents do you hold as of now?
S. Rangarajan
Come again, how many — what did you ask? First question.
Omkar Chitnis
How many contracts are you expecting to get by from IP business by FY 2026 and how many patents do you hold?
S. Rangarajan
See whatever we get, see it’s very complex phenomenon here. Whatever we get contracts it’s development is done by us. So IT belongs to us in terms of products own everything 100%. The number of contracts varies. It doesn’t make sense to give you number of contracts, it give me 100 plus, but or 60 plus, sorry, 100, 200 small parts are also there. So that doesn’t actually answer any question. But yes, all of them are designed by us. We are not a system integrator as now, all products are developed and designed by us. But this comes for a tricky question of what IP we mean. So when you do with government, sometimes DRDO, though we do development, as part of the contracting process, the IP gets transferred to government. So it is our IP, it also gets transferred to them. So that’s a tough question to answer because that is the way the — the nature of business is in India, government wants to own all IP. So that is there. But we use the IP to build the next products and we take on from there on. And they do program wise, we do product. So we differentiate with products and then grow the business.
The second question is on the patent, we brought our patent, we have one patent with NACL long back, 10 years, 15 years back, they did. But the focus is not to build patents. We’re building products here. We’re not doing basic research and which is patentable. Here the product IP belongs to is building products. These products exist in the international market. So really we don’t want to really build any patents and process here and we are not in that game at the present moment. We want to scale by building products because India is importing and there is enormous opportunities in India. We want to address and build business here. So I’m not really looking at the patentable kind of developments here.
Omkar Chitnis
Sir, as you mentioned, you want to tap international market. Are you planning for any partnerships, any joint-ventures with global defense companies for technology development?
S. Rangarajan
We are getting orders, already some three, four companies approached us and we are all building products for them. They are also increasing the size of orders to us and getting more product developed by us. Slowly it’s happening because last five, six years, we’ve had excellent performance, systems were not failed, they are working very well. So we’re getting confidence. So slowly more-and-more companies are coming. We are also — but actively, we have to do that. We meet our marketing arm to see the proper development is happening. Today, our bandwidth is more focused with the Indian programs, but I think we are putting some international brand with marketing brand to recruit and train and address markets so that we start getting small orders and five years from now, we wanted to be a very big business. So we need to do that we’ve not done that yet. We are getting some contracts, but that is not a sustained, what do you say marketing effort which you have put. We need to do that.
Omkar Chitnis
Okay. Sir, my last question is, sir, out of INR971 crore order book, out of that, any orders from Israel, East Asia and European Union?
S. Rangarajan
Israel no, East Asia, yes, Europe, yes.
Omkar Chitnis
What percent of that order book, sir we will consequently.
S. Rangarajan
They have got INR100 odd crores of Europe and East Asia.
Omkar Chitnis
Okay, sir. Understood. And thank you, sir.
S. Rangarajan
Europe is — UK is evolved from Europe, including UK.
Omkar Chitnis
Okay.
S. Rangarajan
INR100 odd crores, I don’t — exact amount, but it is INR120 crores, INR130 as of [Technical Issues].
Omkar Chitnis
Okay.
Operator
Thank you. The next question comes from the line of Sahil Karia from White Pine Investment Management. Please go ahead.
Sahil Karia
Yeah, thank you for the opportunity. Sir, could you just let us know about the new 228 platform? Like have you participated only for the IAF platforms or also the Indian coast guard platforms?
S. Rangarajan
So presently, the tender is, I think AN. Indian Coast Guard will follow I think.
Sahil Karia
Sorry, sir, couldn’t get you.
S. Rangarajan
No presently the tender, answer the tender. I think present tender is for Navy. I don’t know if the tender is for Indian coast Guard. If Indian Coast Guard requires it, it will follow. The present tender, I think I’m not very sure, but they don’t tell us the end-use, requirement tender only has come, but I think it is for Navy.
Sahil Karia
So could you just tell us like for how many aircrafts or like for how many platforms you all have the tender for?
S. Rangarajan
How is that relevant?
Sahil Karia
And so we can get the size of the order book or like the size of the order that the company has for the Dornier 228 platform.
S. Rangarajan
So we have quoted a price now, we don’t want to disclose all that now on both the forum, it’s a tender which is still in-process in, we can’t expect.
Sahil Karia
Okay. And sir, the next question is like since we are like spending our development — development money on the radars, different types of radars and specifically on the airborne radars. So do we have any plans in entering GaN based radars?
S. Rangarajan
All are GaN based. We’ve been doing GaN based from 2014.
Sahil Karia
Sorry sir?
S. Rangarajan
Not today, all expand Radars which we have done is GaN-based and the first radars we delivered to ISRO in 2013-2014 for coastal surveillance radar which we designed was a GaN based, SSPA-based system which we delivered in 2014, a full radar was designed and delivered by us. Then we won the contract for [Indecipherable] radar, we won about INR380 crores. This is aligned radars for Navy and Army — Navy and Air Force. That is also full KR module GaN based, which was — we won the contract and all the deliveries have been completed last year. All lines radars have been installed, we are expecting one more order, the negotiation is over, the order should come probably next two, three weeks, all negotiation is completed. So that is also GAN based only. And we have some orders for transportable solution of course radar for Czech Republic and Hungary, that is also GaN based. We delivered the Dornier 228 contract airborne radar, that is GaN based air module, AESA, already delivered the Delhi and 10 months with data contract, full airborne radar was delivered by us.
We are now working on two other programs for helicopters and things like GaN based and then the new developments [Technical Issues] are GaN-based, everything is GaN based. And this we’ve been doing for last 10 years not today.
Sahil Karia
Okay. So, sir, if like we have already developed the GaN based radars and we are into it. So are there any plans to enter the Uttam radar or the [Indecipherable] radar for this so called platform that the IS is planning?
S. Rangarajan
We want to do everywhere. We want to be only source everywhere. So where would you not want to do? We will definitely want to be there. It all depends on government whom they address and what they want to do, but we are ready.
Sahil Karia
Okay. Okay. Thank you so much sir. Thank you.
S. Rangarajan
Thank you. Thank you.
Operator
Thank you. The next question comes from the line of Sushil Agarwal from NPCC. Please go ahead.
Unidentified Participant
Hello?
S. Rangarajan
Yeah.
Unidentified Participant
Hello? Can you hear me?
S. Rangarajan
Yeah.
Unidentified Participant
My point was actually recently HAL specifically they have been awarded a huge project for Dornier for other LCA, NK1, so [Technial Issues].
S. Rangarajan
Dornier? Dornier?
Unidentified Participant
Dornier, LCA helicopter and LCA helicopter [Speech Overlap]. I know they have been awarded recently last six months, major project for around INR80,000 crore, INR90,000 crores. So are we expecting some awards from those things?
S. Rangarajan
Yeah, we will be quoting wherever we are complement with requirement and so we need to see because some of the products already approved and we are the only supplier in the LCA platform and Dornier anyway the tender is new, tender is going on we don’t know what’s going to happen. On the helicopter side, we have some products, which we already certified for and some contracts can happen. So it all depends how it’s going to go and what government decides to do. We have some products, but I can’t tell you exactly when the contract will happen, will it happen at all, I can’t tell you. But yes, we are looking at those kind of requirements. It depends on HAL and I mean how they want to go ahead whether they want to import or they want to do the India, the decisions are been taken by them, but we have products for them.
Unidentified Participant
Other thing is on this long — this high-value projects that we have been talking since we have been telling that in…
S. Rangarajan
I’m not able to hear you clearly. There is some background noise. Can you repeat this question?
Unidentified Participant
Means 5.1 high-value projects what we are talking that very big project we are expecting when we can expect in 2025 or in 2026, when some timeline is there?
S. Rangarajan
I can’t give you clear predictions today. Their work, how it happens is you build the product and it has to go to certification, qualification when the contact has to happen. We expect that in the next three years, this all should happen, maybe earlier, but I can’t exactly give you timelines.
Unidentified Participant
And the last thing, I want is that if some order details are put in between also during, because we are getting any update only in the last three months, only on three months, that becomes a long-time. There is a long period in between, so if you can get some updates in-between, it will help us.
S. Rangarajan
Yeah, see, we don’t want to keep carrying any order we don’t announce. So that is why we normally announce only in-quarter end or the results. But if a big order happens, maybe we’ll like announce it, we’ll see. But this has happened that this is coming to the end last year, it is not like that. There has been a general delay in the contract this year. But those contracts were not lost, none of the contracts have lost. We believe that the orders will happen now. This is again some of the divisions have postponed these orders. But let’s see what we can do, if we can announce it earlier, see.
Unidentified Participant
Yeah, because similar type of orders, other competitor companies are announcing, it will help us. It will give investors more confidence because once you get orders then it gives more confidence to the investor.
S. Rangarajan
I understand what you’re saying. We didn’t want to do every week announcement and all that, that’s why we kept it away like this, so that we are not really unless doing this, but nevertheless, I appreciate what you’re saying. We’ll discuss internally in the Board and see what we make sure.
Unidentified Participant
Okay. Thank you. Best of luck for your next H2.
S. Rangarajan
Thank you. Thank you, [Technical Issues].
Operator
Thank you. The next question comes from the line of Anay Mittal from Invest Analytics Advisory. Please go ahead.
Unidentified Participant
Hello. Am I audible?
S. Rangarajan
Yeah.
Unidentified Participant
Sir, thanks for the opportunity. Sir, I just had one question. I really enjoyed the conversation that you spoke about where you were speaking about the end-to-end solution rather than a standalone product, right? So you actually elaborated a lot on that today. But if you can give us some idea as a investors in terms of what could be the target market for such product, number-one. And number two, in terms of volume — in terms of value, right? And number two, do we have any other competitor who does that type of product, which you believe that you are in the process of making and you are close to what you said. So do we have like any visible competitor in India who can be — who can win give some competition to us. If you can elaborate more on that, it would be a great [Technical Issues].
S. Rangarajan
See the target markets looking at is about INR5,000 crore, INR10,000 crores or above is what we want to build products for. We don’t want to build products for small contract value. It is anyway we are doing with DRDO. These are all large contracts and we want to look at that and that is all we have taken money in building products. As regards competition is concerned, India is a large country, always you have competitors. So what we are trying to do is being a bit ahead in terms of product technology and ahead engineering. So if you look at it, we are ahead of others, but it’s all depends on how government deals. Finally, everything is a government division because it’s DRDO division, it is user division, services division, Air Force, Navy, they all get together and decide whether they will say, okay, product is good, you go ahead, we’ll wait three years, wait other people do also do, then we will see that also can happen. So that is the risk element here. We want to eliminate the risk element, very urgent needs and address the needs immediately. It’s a product which is international quality. And immediately there is no competition available with the kind of timelines which we are aggressively put for ourselves. So we’re trying to see whether that works. So we’ll see, we’ll push, we’ll see it works. We are hoping it will work. They are very, very committed to what we’re doing. It’s a 24/7 development work we’re doing here. So we are really putting our heart and soul in it. So I hope we will be successful and pray that we’ll be successful. But yes, we are doing what is best there. And these are all large orders. If it comes fully or it gets split into two people, three people, then the value of the contract comes down. We believe that it should — but it should give us some large business in the next two, three years is what we’re doing.
And initially we should get some development contracts, which will recover our developing money also is what we’re thinking.
Unidentified Participant
Okay. And sir, and also when you spoke about this, you also gave your strategy on first catering to Indian market and then the export market on those products opens up, is there a rule that we have to go that way or it is only that it acts as a proof-of-concept for us in India and hence it is successful and hence it acts as a sample for other countries as well, if they have to come up and order those solution. So are we not waiting at the expense of India to grow is my question, sir to be direct.
S. Rangarajan
I agree with you, maybe we should try it also partly. We are a bit moving — we want to do this because it all involves lot of right testing and other things and we’re doing part of the product, part being done by government. So we need to collaborate with them before we go out. Some of the things we’re doing on our own, we don’t need government. There we can practically go ahead. The products are nearing completion. We need to start testing waters like you said. This is another discussion internally we are doing. So we were focused on doing India first. We are also like you people are also telling in the office that maybe we should do in parallel also, we are trying with the idea and let us see where it goes. The product has come out, maybe in exhibitions participate, all this we need to do to start why India first, why not outside. If India is there, it gives confidence to other users in the world that already is accepted in India, but that is not mandatory in some cases, like you say, so we can also go abroad. We’re not done that till now, but maybe we’ll consider doing that also.
Unidentified Participant
So that’s — maybe you know it better than us, sir, but it’s only a suggestion from investor point-of-view that if you have room for growth, yeah, yeah, yeah.
S. Rangarajan
Yes, yes, yes. I agree with you, we’ll agree to do that. This discussion has happened in Board meeting even three days back.
Unidentified Participant
Great. Okay, that’s it from my side. Thanks and have a wonderful [Indecipherable]. Thank you.
S. Rangarajan
Thank you.
Operator
Thank you. Ladies and gentlemen, as there are no further questions, I would now hand the conference over to the management for closing comments. Please go ahead.
S. Rangarajan
Yeah, thank you. So what I would like to say to the investor and people is that this business is more year-end business as of now, being lot of development contracts we’ve taken. We’ve tried to even out last few years. We’ll try to do that more as we go along. My — whatever we committed to the market, we stand by that. We still think in the next six months, we will deliver all the products as we planned. We have the orders in hand, some are expected orders still and we are ahead and product wealth in those areas. These are — this is point number one.
Point number two, genuinely what we’re trying to do is build a large company here, build infrastructure, build products and those products will have to be world-class. And those will give us substantial business to see that several — at least a few years order book we should have on hand. Any large given business has not one and a half years or two years, but at least three-plus years orders on hand before you know, they know that year-on-year, they know what they’re going to deliver. They’re trying to achieve that by building products, getting the TAM and then see if the contracts will happen. I think we are doing the right thing. We are very convinced that we’re doing the right thing, the direction is very clear. They are not trying to buy and sell and integrate to see that the order book comes at low L1 business everywhere and increase my size of business and keep delivering it because I feel that with the size of business which is there, if we do IP in India and build and build big, it may take some time, but that is going to actually build solid organizations which can stand on it by itself and then scale and even grow outside India, we are trying to be there. We are probably trying very different from others, but I think we are steadfast in what we’re trying to do and we don’t want to — one or two mistakes happen or delays happen, but that should not affect us in our long-term direction and growth.
I think we are in the right track. We are very convinced that what we’re doing is right and have built-up outstanding competency in-product engineering, which is every visitor who comes here, including some of the farmers who came last month, they were actually astonished with the engineering. So we believe we are on the right track. We’re getting the right signals from even international bodies. So we will have to put our head down and build the organization. This is what we want to do and this is what the Board wants me to do. So we’re on the right track. We believe we will do very well in the coming years.
So thank you for the questions and thank you for listening to me. If you have any doubts, any questions, kindly forward it Go India and they will forward it, we’ll get them answered for you. Thank you very much.
Operator
[Operator Closing Remarks]