Garden Reach Shipbuilders & Engineers Limited (NSE: GRSE) Q3 2026 Earnings Call dated Feb. 11, 2026
Corporate Participants:
P.R. Hari — Chairman and Managing Director
Analysts:
Unidentified Participant
Gaurav Girdhar — Analyst
Presentation:
Gaurav Girdhar — Analyst
Good evening everyone. I’m Gaurav Girdhar from Concept Investor Relations. I welcome you all to the analyst meet of Garden Reach ShipBuilders and Engineers. Limited to discuss its Q3 and 9 month FY26 results. We have with us today Commodore P. R Hari, Indian Navy Retired Chairman and Managing Director. Sri Niranjan Mukund Valerao, Director Finance and Chief Financial Officer. And Sri Sandeep Mahapatra, Company Secretary and Compliance Officer. Please note this conference is being recorded. I would now like to hand over the floor to Commodore PR Harry sir to give his opening remarks. Sir, over to you. Thank you.
P.R. Hari — Chairman and Managing Director
Thank you Gaurav once again. Good afternoon ladies and gentlemen. It is indeed a pleasure to be here with you today. And I eagerly look forward to this particular meeting which we have once a year when we interact with you all in person. And thank you all for attending this conference to discuss our financial results of your company for the quarter ending 31st December 2025 and the nine months ending 31st December. And also to provide you a glimpse of the future outlook. As I normally do, I shall first touch upon the financial highlights.
Then provide you all an overview of the physical performance that has translated into this financial performance. Then touch upon the current order book status and also an update on the projects that we are currently executing. And then give you a glimpse again of the future outlook and also our expansion plans. Coming to the financial performance. Yes, Q3 has been a good quarter for all of us. And the results have been encouraging. Revenue from operations year on year has gone up from 1271 crores to 1896 crores. That is registering a growth of 49%. And so all the financial parameters coming down to the bottom line, our profit after tax has moved up from 98 crores during the last.
That is Q3FY25 to 171 crores during the current recently concluded quarter that is registering a growth of 74%. If you take the nine month period, I’ll just put things in perspective. Revenue from operations so far has been 4,883 crores. And if you compare the FY25 revenue from operations was 5,076 crores. We almost touched that figure in a nine months Spanish. So on the whole Q3 and the nine month period has been interesting. Good. And I can assure you that better times are yet to come. This financial performance is of course obviously the result of a strong physical performance.
And again, to place things in the right perspective, we have delivered five major platforms that is ships during the last nine months, that is the first nine months of the financial year and that is translating almost a ship every two months. These include one frigate, P17 Alpha, two anti Semitic, three anti seminary crafts and one survey vessel. And. And the way the projects are progressing we intend delivering three more major vessels in the next three months. All the major projects are progressing satisfactorily, I should say. I will just give you a glimpse of the ongoing projects and before that I’ll touch upon the order book. Our order book position as of 31st December is 18,482 crores. And interestingly this is the first time we are dipping below 20,000 which is a good news for you. Which means our execution rate has picked up. I have been attending investors meet. This is the 13th quarter since 2022.
I think we did the investors meet of course in virtual Mode sometime in April 2022. So this is the 13th quarter on a trot where we are showing year on year growth. Now I mentioned the order book position is 18,482 crores and this comprises of 10 projects consisting of 42 platforms. And these include four projects of the Indian Navy. The P7 Alpha projects. We have delivered one of the three ships and two more ships are under construction. The second ship has almost touched 93% physical progress and we intend delivering the ship in the next three months.
That is one of the ships which I mentioned that we’ll be delivering in the next three months. The third ship of this project is on track and this calendar year we’ll be delivering the third ship. Coming to the next project, there is a survey vessel large project is a four ship project. Three ships have already been delivered and the fourth ship has touched almost 95% physical construction in a month that is next month March we’ll be delivering the third ship and closing the project. Coming to the anti submarine shallow watercraft project, it’s a eight ship project.
Three ships have already been delivered and the fourth ship almost touched about 92 93%. And in the next three months in May, April, May, we’ll be delivering that platform. The other four ships of the project are on track and we intend closing this contract during the next financial year. Coming to the fourth naval project that is the next generation ocean going petrol vessel project. It is moving on track. The deliveries will start from 2027. That is financial year 2728 and culminate it’s a four ship project and culminate in financial year 2829. So far the progress of the project has been good with the first two ships having achieved almost 60% progress and the next two about 45 to 48% progress.
Now in addition to these defense platforms, we are also executing one project for the government of West Bengal. It’s a small project but a very interesting project that is for hybrid ferries. It’s a 13 vessel project and two different sizes. Seven ships of 100 passenger and six ships of 200 passenger. We will start commencing the delivery during this financial year. That means the coming financial year with the first two vessels will be delivered during the first quarter and that project will be closed during the first half of FY28. We are also doing three different projects of research vessels.
One an ocean research vessel for the Ministry of Earth Sciences. Project moving on track around 20 physical construction has been achieved. The targeted there is a contractual delivery is during the financial year 2728. Well on track. An acoustic research ship for the Ministry of Defense that is a DRDO Kochi based lab of theirs. Project on track. The production has already commenced. The delivery is during the financial year again 27 28. And two coastal research vessels for the Geological Survey of India that comes under the Ministry of Mines. Interestingly and this project will be completed during calendar year 2021 27.
That means the first half of FY28 will close this project. In addition to that we are also doing two export projects. One a small project for the government of Bangladesh. It’s thousand meter cubed meter cubed dredger on track. So far we are crossing our fingers. So as so far there has been no red flags. The the stage payments are coming in. So nothing for you to worry as of now. This project will be completed during the first half of the no. The third quarter of financial year 27. And we are also executing 12 multiple project for 12 multi purpose vessels for a German client.
I think last time when we met we had a contract of four of these vessels. Then after seeing our performance and inspecting our site and the progress, they increased to 8. And as of now it has been increased 12. So this 12 ship project is in hand. We have done the killing of two of these vessels and the third ship killing is planned later this month. Project on track the delivery of the last of these vessels. The deliveries will commence during the second quarter of financial year 27 and will stretch to financial year 29. So it’s a slightly long drawn project.
This is the status of the ongoing projects that we are executing. And to give you a glimpse of what are the orders, what we expect and what is likely to come out in the near future. We as you are aware, last time again when we met, I had mentioned that we would be bidding in such a fashion as to win the next generation Corvette order. Yes, we have won it. We have become the L1. And it is a big project. The price it’s a five ship project amounting to approximately 33,000 crores. And the price negotiations have been completed.
And the contract negotiations are in final stages. It requires certain approvals. But we are confident of this contract getting concluded during the current financial day. Which means next month we intend closing this contract. Signing the contract with the Indian Navy. They also indicated that the approval process is well on track. Which means we are hopeful and confident of ending the current financial year with an order book around 50,000 crores. In addition to this is what is assured. In addition to these orders, what we are executing and what is on the anvil the Navy has ordered already obtained.
Navy and Coast Guard have already obtained approval of necessity from the Defense acquisition council for seven projects. These include three big ticket projects. One is the P17 Bravo project. It’s a seven ship project. Approximately 70,000 crores is the AON amount. It could be around that. Maybe marginally higher. Again to be split between two shipyards. Then the LPD landing platform dock. It’s again a big project. Attractive project which has been lingering for a very long time. So the AON has finally been accorded. And the A1 value could be to the tune of around 35,000 crores. And the third big project is a 12 ship mine counter measure vessel project.
Eight and two. Eight and four. Eight ships for the L1 shipyard. Four ships or the L2 shipyard. This the A1 value is around 32,000 crores. So in addition to these there are other smaller projects. But all put together for the projects where Aon has already been accorded and where we expect the RFPs to come out from now. Which means something could come out in the next month onwards. For the next 12 months is approximately 1:55,000 crores. In addition to. Of course, of course. These are all on. None of them are on nomination basis. These are all non competitive bidding.
But the pool of competitors is limited. So we have confidence in winning at least 20% of these orders. Keeping the P17 Bravo project. What I mentioned that biggest ticket item among these. There we stand an edge. Because we already executing the P17 Alpha project. We have the design, we know the equipment manufacturers. We know exactly how it functions. So like what I assured you last Year when we met physically. So this year my care is to win the P7 in Bravo project. So let us see. And this is only for the defense segment. Now on the non defense segment, as you are aware, the government has already promulgated publicized a slew of initiatives.
And one important thing for all of us is that for the first time they’ve aggregated the demands of the government entities, I.e. oNGC and such agencies. That demand alone is coming to is available in open media. It’s coming to 207 platforms. Starting from smaller size platforms, support vessels to VLGCs and beyond. So, so a conservative, very conservative value of these projects could be plus 1 lakh crores. Naturally, they will come out in a staggered fashion. Two tenders are already out and one EOI is already out. Two tenders for platform support vessels and Mr. Tankers are live as of now.
And one expression of interest for the VLGC is also live. So, so this is moving. But of course the pace at which the other orders, what I mentioned on the defense segment perhaps could be faster. And here the competition pool is bigger so that we are all on the same page. So all in all, the defense segment and the non defense segment put together in the next, if I’m adding the non defense segment in the next 12 to 18 months, we have around 2.5 lakh crores plus on the table for us to get a substantial chunk.
Now, having said this, now the demand is good. But what about our capacity to handle this? We are good to handle the defense projects because we have been brought up, groomed, nurtured in that fashion. Now that the market has opened up for the non defense segment, especially for large platforms, we, I repeat, we had a constraint. We still have a limit. We have de conflicted the situation. The constraint has become lesser. And with this in mind, what we have done is we have systematically increased our production capacity. Two years back we had a capacity to construct 24 platforms concurrently.
Today, that is in 2025, we increased it to 28 platforms. That is big and small and medium sized put together. And with the ongoing modernization that we are executing, by the end of this calendar year, we intend announcing this to 32 ships. But this also would not be adequate to meet the demand that is existing. So within our confined geographical present confines, we will not be able to meet this requirement. And it is with this intent that we intend moving growing out of Kolkata first and thereafter out of West Bengal. So just to give you a glimpse, some of them are in liquid terms, some of them Already action has been taken.
We are going in for brownfield as well as greenfield expansion. As far as brownfield expansion, three sites we have taken over from the Shyam Prasad Mukherjee port in addition to what we had earlier of them. Two of these sites we have physically started the modernization activities to get them to production level readiness. And the third site, the negotiations are in final stages and we intend. We already engaged the consultant for the dpr. So this brownfield expansion we are good to go. With two of these facilities, we will be able to commence production by end of the calendar year.
And the third facility, which is a bigger facility, we expect the production to commence there after the modernization efforts are completed in a span of two years. This is what we are planning within West Bengal. But even then, even that is not good enough. So we have moved ahead with finalization of sites. Two sites in Gujarat, one in Kandla and one near Bhavnagar. The one is with the government entity we are partnering a government entity for the Khandla site and a private entity for the Bhavnagar site. The in for the private entity, we already engaged a consultant for finalizing the dpr.
And for the second that is with the government entity, they have engaged a consultant already. So this is where it stands. But these two facilities will take a finite time for getting production ready. Our conservative estimate is three years from now. And this should meet the demand for large size platforms both in India and for abroad. Because we are getting a lot of queries from abroad, we are not able to meet as of now. So our long term plan is to get these facilities up and about so that the demand which is coming from within India definitely and what is coming from abroad we can meet.
In addition, what we are currently doing to offset the capacity constraint is what we started about five years back or six years back on a public private partnership model where we want to test the system. So at that point of time a private shipyard had spare capacity and we had excess load. So we outsourced part construction of these vessels. And believe you me, that model has been successful. And we have been able to. Of the seven platforms which we had offloaded in partial or or 75% construction, we have been able to take out five of them.
In addition, this is a big player, private player. And in addition we had also engaged business relationship with a smaller shipyard and two of the ships we have taken out from there. So what we are doing currently to offset the capacity constraint in terms of building certain types of vessels, we are following a PPP model. So I think I have covered the financial performance. I just given you a glimpse then the status of the order book, order book position and the status of the orders. What is expected and what is our plan to address the demand huge demand that is existing.
As I mentioned I just sum up my interaction not interaction actually my conveying the point address or whatever you can call that the year so far has been good, especially the last quarter but as I mentioned the better times are yet to come. Thank you. I’m open for questions all your queries.
Questions and Answers:
Gaurav Girdhar
Thank you sir. We’re now open for the question and answer session. Would request the participants to please introduce themselves and ask the question. Would request everyone to limit their questions to too so that we can address everyone’s queries. Thank you
P.R. Hari
once a take. Second, what Director Finance was mentioning that I missed talking about the the initiatives which the government has promulgated already and some of them are active live as of now the various schemes for incentivizing or revitalizing the shipbuilding segment. So so the total financial outlay what they have provided is about 69,725 crores divided into two three pillars. First is about the shipbuilding financial assistance with a very attractive scheme where certain kind of platforms which are constructed in India based on the type of platforms get incentivized subsidy ranging from 15 to 30%.
It’s a very very attractive seam and that amounted what has been a year mark for this is 24736 crores. In addition to that the government has also promulgated an attractive scheme. Again it’s very interesting scheme. It is called the shipbuilding and ship breaking credit. Note the funds allocated for that is the 4,001 crores. And again what is interesting is that if you if any of the ship owners break a ship in India and he gets a credit of 40% of the amount realized from the breakage and this gets parked transferable and when the company builds the owner builds a ship in an Indian shipyard he can utilize this credit.
So one way it is very good for the shipbuilding ecosystem that whoever is breaking because people are looking at India as a ship breaking hub also. So we are coaxing them to come to India and binding them in so that they avail this credit facility. And in addition to this they also come out with a 25,000 crore scheme for maritime development fund. And this scheme caters for brownfield expansion wherein X percent a certain percentage of the investment made towards brownfield expansion is subsidized by the government and also around 5000 crores has been earmarked for an interest incentivization policy.
So here the interest is unfortunately very very high and none of the ship owners are able to afford that kind of interest. So 3% interest subsidy has been provided. This scheme is also active. And the last of course is development of maritime clusters. So there again the third I think I’ve covered 25,000 plus 24,000 so whatever is remaining out of the 610000 has been earmarked. My memory is right, it comes to about 29,000 I think. So that has been earmarked for 19,000. 19,989 crores has been earmarked for development of shipbuilding clusters where greenfield facilities once you set up, you get up to 50% subsidy.
So these schemes are very very interesting. And we including the activities which I had mentioned, that’s in two areas. We have commenced brownfield expansion. We will definitely be leveraging these schemes of the government including the shipbuilding financial systems. Thank you. I’m open for your questions, please.
Unidentified Participant
Thank you sir. Good evening sir, here. From ULJK Financial Services. So my first question is on Corvitis. So if you receive this order by this financial what is your execution cycle? And second question on Bravo at what stage the talks has been came?
P.R. Hari
Thank you. The next generation Corvettes. Yes, if we execute mean if we conclude the contract during the current financial year the. The first phase is the pre production phase where the design activities the are progress and based on the design activities, the equipment procurement actions. Comments. But as far as you are concerned the revenue accrual will commence two years down the line which means if FY26 and we are concluding the contract FY28 and that means the fourth quarter of FY28 we can expect revenue accrual. Is that what you meant to ask?
Unidentified Participant
Yes.
P.R. Hari
And. And the second part on the P17 Bravo, as I mentioned, the Aon of the defence Acquisition Council has already been accorded almost six months back and it is moving very fast because this is a project which Navy really wants to go and there was at a point of time a thought process for giving a repeat order but that did not rectify. So Navy is very keen on this project and I expect the RFP to come out let us say in April. If April the RFP come I’ll give you further RFP is expected to come out in April.
Then the bid submission time and all sim akin to NGC. We expect the contract for P7 in Bravo to be signed maybe February, March 2027. This is where it stands.
Unidentified Participant
Okay.
P.R. Hari
I think they have muted your mic, sir, so it must be asked.
Unidentified Participant
Yeah. Sir, first of all, thanks for meeting as usual every year and as usual increasing the order. Except this year, sir, sometime back we had a MOU with Swan Defense and we don’t know anything about what is the kindly elaborate on that Swan Defense. And recently few days back you have a tied up with Hindustan shipyard. So what is the position for these two entity.
P.R. Hari
So you said. Except this time order book. But I can assure you.
Unidentified Participant
I know, I know.
P.R. Hari
By end of the financial year, we’ll surpass
Unidentified Participant
cumulative of all last three years.
P.R. Hari
Last three years we’ll be able to touch that. Having said that, yes, we have a live MOU with Swan Defense. The intent of this MoU was for bidding and executing large platforms. The platforms which we cannot handle at our premises. So we are in discussion with a couple of foreign owners for vessels above 250 meters length. Like as you fully, fully would appreciate, some of these negotiations take as long as one year. The contract discussion, some tender conditions, not tender, the contractual conditions. Something which we don’t agree. We are in discussions with the contract. I mean the MOU is very much live.
We expect this to see light of the day, translating into an order in the next financial year. So it is life coming to hsl. We have signed a consortium agreement with them, an MOU with them very recently. This is with an intent to put our hat in the ring for the LPD project because we as grsc, purely because of the DOC size we would not have been able to bid for that. So with this mou, we’ll be able to bid because you may be aware from the media reports that Swan had an MOU sign with MDL for this project.
Unidentified Participant
Yeah.
P.R. Hari
So the moment we realized that we didn’t want to miss the bus. So we caught hold of HSL and with HSL we have signed an mo. It’s a good, let us say way ahead for both the shipyards, our expertise and their infrastructure availability. It will benefit both the shipyards for the LPD project. That is the intent, why we went in for that.
Unidentified Participant
And sir, regarding the platforms, we are moving from 24 platforms to about 32 within next one year. Sir, any outlook for next three years where we would like to be to fructify all the orders?
P.R. Hari
Okay.
Sir, as far as this platforms are concerned, yes. By the end of this calendar year we’ll be able to get it to 32 ships. Concurrent construction within our own premises. And I had mentioned in passing that two of the facilities, Brownfield facilities In Kolkata we already started the revitalization process. We expect that to be put to operation from end of this year currently. So I’m keeping a conservative figure as far as the shipbuilding capacity is concerned. We should be able to get to around 30, 35 ships by 2026. End of 2026. That mean this year by end.
But, but the order book I think. Did you want to know about this or the order book?
Unidentified Participant
No platform and order book.
P.R. Hari
Order book. So now this year if you are ending with 50,000 crores and with next year likely to be next financial, likely to be one of our peak years with respect to revenue, you consider drop plus the P17 Bravo. P17 Bravo. Also I. I would like to go conservative at this stage that hypothetically if GRSC becomes the L2 shipyard, the order book order value is likely to be to the tune of around 30,000 crores.
So if things gone well, we would like to look at ending FY27 with an order book plus around 70,000 crores. Okay. I would like to go only up to there, sir. Then we’ll see.
Unidentified Participant
Okay. Next year you can ask me sir and sir, about what about margins. Orders are not at the cost of margin. I assume
P.R. Hari
none of these, what I just discussed, none of them. Yes, we have taken a few orders at very low margins. That was for sustainability and entry. Like, like, I’ll give you an example. There was a point of time when we are doing an op, we were not sure about the NGC project.
So we had to take a couple of orders to sustain. So we had taken them at low margins. The first, I don’t know whether you remember or not, the first ferry project that we took, the electric ferry project that we took, very small project but we took it at. Actually we subsidized the project. It was to make an entry. But right now, having consolidated our position in both the different shipbuilding as well as to an extent in commercial shipbuilding, margins will be, let us say healthy. It will not be at the cost of order book enhancement will not be at the cost of margins.
I think that answers your question.
Unidentified Participant
And sir, regarding next two years, financial year 27 then 28 is landmark. 10,000 crore. Executable 28,10,000 crore.
P.R. Hari
So this year we. Okay, I’ll put it last five years we have been able to provide a CAGR of around 25% plus this year I think in my opening statement I had mentioned that in nine months we have touched 4,883 crores. So. And this quarter is also going to be healthy. So with that again we’ll be able to provide a CAGR between 25 to 30% in this financial year. Next financial year that is FY27 is going to be a peak year because that is when one P7 Alpha would have just come out.
Now I mean maybe by April means we’ll get a substantial amount there. But the last one will definitely come out during FY27. So 27 is going to be the peak year. I am putting in a roundabout fashion but that is
Unidentified Participant
okay. Thank you.
Unidentified Participant
Yeah. Hi sir, this is Harshit from Alara. Could you please give us a order book breakup in terms of the shipwise order book breakup.
P.R. Hari
I just. Yeah, I had mentioned our order book. Total order book is at 18,482 crores. And of this still P7 Alpha takes the major chunk. It’s around 46% at 8236 crores. The survey vessel large 343 crores and dissemination 2559 crores. The OPV project 3136 crores. So from the defense segment it is 14276 crores. That comes to around 77% of our total order book. The non defense segment, the ocean research vessel, acoustic research ship, the coastal research ship and the West Bengal ferries put together it comes to about 900 crores, 897 crores. The export, both the projects put together come to 1481 crores.
So the defense segment is contributing about 77%. The non defense segment around 18%. And the balance 5% is from the other smaller verticals like the portable steel bridges, the diesel engine plant, the naval surface guns as well as the ship repair. Ship repair we started with zero point something percentage when we started. Now we are crossed 1% and it will keep increasing because we were initially testing waters with ship repairs. But now we are good to go. So this is our order book breakdown.
Unidentified Participant
Thanks for sharing sir. So just added question here in the. Just in the order book which you mentioned at the year end that you want to reach 70,000 crores. Are you assuming
P.R. Hari
5050 this year and.
Unidentified Participant
50 but next year will be
P.R. Hari
next. Year is based on an assumption that we are getting the at least as the L2 shipyard. And if we get that then that is a figure which would automatically arrive it.
Unidentified Participant
Right. But in history sir, we haven’t seen any tender in shipping which has come out and got you know execute as in, you know got awarded in a year’s time frame. Look at the NGC order. So is there something that you can tell us that progress has been very good or you know, it’s such an extension of the earlier order. So it. The timelines are much lesser.
P.R. Hari
I’ll. Okay, I’ll explain. See, there was a. You are absolutely right. There was a time when the tender used to come. Then it used to take one and a half years. We ourselves have got. We also experienced similar like the OPV tender. From the time L1 declaration to contract signing. It took one year. We got declared in somewhere 2022, 23, we said. But you see the P17 Alpha project, sorry, NGC project, the tender was out in August. The L1 was declared in October. And now we are almost good to go. So you definitely there is an improvement because there has been a total change in the way.
At least my ministry is pushing the cases. So again, I would like to reiterate if the RFP comes out in April 2026, then the contract signing would happen in the next financial year.
Unidentified Participant
Okay, sir. Okay, that’s a good news. And sir, third question is just on the tie ups, which you have done one on with Swan and the other which S.L. hindustan shipyard. Now who will get the technology? Sir, as in, we have to look at foreign companies for a tie up for getting technology either on the commercial side or on the LPD side. So. Because who will be getting the technology? So that remains the key. You got the, you know, the depth now you got the capacity. But where will the technology come from?
P.R. Hari
See, as far as the medium sized platforms or less complex platforms like Uber, what we are doing or what is being currently executed by the Indian shipyards, there is no need for a technology partner. But like Kochi is building certain hybrid vessels, they don’t need a technology partner for that. My vessels, what I am building or what MD is building, we don’t need a technology partner. We are fully good to go. But for the LPD project or the VLGC project, the VLGC UI conditions itself still stipulate that an experienced and proven village ESC manufacturer. So we got to collaborate with perhaps a Korean company who has built.
So there would. There. There would definitely be a need to collaborate for the design of a vlgc. And there again the. The positive aspect is that naturally it cannot go on forever. That could be for the first project, for the next project, the Indian company, Indian shipyard, whoever is doing it will have competency. Similarly for the LPD project because it’s a complex project, there would be a need for a design partner which we have identified together along with our partners.
Unidentified Participant
Okay. Thank you sir. Thanks for answering all the questions.
P.R. Hari
Thank you
Unidentified Participant
sir. Asok from Eklawe. Sir, we have done two tie up. With Hindustan, CPR and Swan. So are we through the requirement of next five years with two tie up. Or still we are prospecting much bigger than this.
P.R. Hari
See these tie ups are with the specific intent. The intent of having a tie up with Swan sentence is because it is still active is to handle large size commercial vessels which we cannot physically handle purely because of infrastructure constraint. I mentioned that a couple of foreign projects are still in liquid form. Discussions are in progress. It is as far as HSL is concerned, it is with an intent to qualify us and use their our expertise, their facilities. For the LPD project there would be a time I had more or less stated our expansion plan though I had not given the capacity in terms of size of dock and all this stuff.
But once we develop this capacity which will take a finite amount of time, let us say three years for a full fledged operational readiness, five years, then we would use these partnerships only to supplement them. We may not need them because of capacity constraints but if we get excess load we can utilize spare capacity of other shipyards. Right now these are specific to one for a SWAN for large size commercial vessels and with HSL for LPD and similar platforms.
Unidentified Participant
Are we looking at still some tie up
P.R. Hari
at this juncture? No,
Unidentified Participant
not bigger size.
P.R. Hari
No, no at this juncture.
No, I’m talking about bigger size only. See in India there are shipyards which capacity, infrastructure capacity1. Swan has got the biggest dry dock available. It’s around 650 meters. LND has got certain capacity which is slightly more than us with respect to size of ships, not number of platforms. I’m only speaking about size and of course HSL. So we already have type 1 active with L LNT which we are not tapped so far, one with Swan and of course within HSL what we mentioned.
Unidentified Participant
So nothing NCLT Bharti, something like nothing, nothing like that. Nclt any projects?
P.R. Hari
No, no, no, no.
Because what is available in the yards which have either undergone NCLT or which is still see they are just not adequate to meet the expectations or the requirements? No, absolutely no.
Unidentified Participant
Thank you. Thank you.
Unidentified Participant
Hi sir, here Amitan Vani from PL Capital. So first question on. On the capacities which you said from 24 to 28 and 32 and by end of this CY35 plus the two capacities you said probably in Gujarat. So first question is in the will the Gujarat capacities will be jointly developed and with that capacities +35 what would be the number of vessels will be able to produce. And you said three years. I think for Gujarat at least
P.R. Hari
three years. It’s a very optimistic figure in again for creating a shipbuilding facility. One is putting it to operation, we can start manufacturing. But for a full fledged facility which has got end to end capability, which means starting from plate cutting to ship launching to delivery, I’m talking about large size platforms, it takes three to five years. I have gone this side of the three to five years band so that the production can commence there. So if you take a midpath of four years, let us say four years for both these facilities to come up then in that case we would be having a capacity to build around 12 ships in these facilities.
Large size ships. That is the ultimate aim is last size ship VLGC or above. I mean 300 meters, around 300 meters length vessels, 12 of them. Between these two facilities while utilizing the existing facilities for the weapon that is defense platforms and the smaller multi purpose vessels and so on. So 12 vessels is what we are targeting in these two facilities. Large size vessels in a span of. I put a band of three to five years. That’s all I can say at this moment because the DPR is still not confirmed. I mean it’s not a doubt.
So we don’t know the real timelines but based on our experience it could be between three to five years.
Unidentified Participant
So in terms of pipeline which you highlighted 1.5 lakh for defense and about 1 lakh for non defense. What is the number you’re looking for yourself in line with the capacities you’re creating? So cumulatively what is broad number or conversions you’re looking for in next two, three years?
P.R. Hari
See this mix of seven projects. What I. I don’t think I mentioned the seven projects. I just highlighted three of them. Big ticket items. These seven projects alone comes to one 55,000 crores to be exact, 52.5 or something. So these comprise large platforms like P17, Bravo, the LPD and the mine countermeasure vessels. Plus smaller platforms like interceptor boards and fast interceptor board fics. Fast interceptor crafts and water jet fac are very small platforms, maybe 50 meters, 35 meters and so on. So these can easily be handled with the existing facilities or through a partnership yard.
In a nutshell, with the current capacity, what we have or what we are going to have by end of this year, the projects which I am only speaking about this one 55,000 of defense alone we will be able to handle if we get P7 Alpha and around 20% only of the balance projects coming to the other segment, that non defense segment which I mentioned, approximately about 1 lakh plus crores, they contain large size platforms for that. At this juncture, we may not be able to handle them within our premises. It is with that intent that we are getting into partnership with a couple of shipyards.
When our facilities come up, let us say in three to five years, again around 15%. Because here the pool of competitors is large, unlike defense manufacturing. Here the pool of competitors competitors, it could range from the public sector shipyards to three or four private shipyards. So considering that I’m keeping a very conservative figure of around 15% of these orders at this stage directly and Baki through the collaboration with others,
Unidentified Participant
sure. So you mentioned about the outsourcing models. Just wanted to understand in terms of capability building for you and the volumes of orders you’re looking for, what is the indigenous component now? And with the new book, massive orders coming in, will it require some imports or. You can highlight on all this aspect in terms of capability building for the upcoming book. Yeah,
P.R. Hari
see, as shipbuilders we are primarily platform integrators. The customer, be it a private customer, domestic abroad or a defense customer. In 90% of the cases, 95% of the cases, they indicate, they say I need a platform, let us say a frigate or if you go to the commercial shipbuilding segment, they say a multi purpose vessel, they indicate the equipment. To the extent a private players, they say I want so and so engine from so and so manufacturer. In case of defense system, they say I want so and so engine from 1, 2, 3 manufacturers.
One of the three manufacturers, a weapon system from so and so, so and so. Therefore, as platform integrators, our responsibility is to get the best commercially beneficial for us and also meeting the customer requirements. 1 But the government trust is very much on indigenization. So we play a major role in promoting Indian entities who are into indigenous manufacturing. Having said all this, the indigenous content of the three projects that we completed in the last five years. Completed, completed means done and dusted. It’s plus 85%. The balance 50% so far is coming. It is comprising mostly of the propulsion package where India still does not have the maturity yet, technological maturity yet to do a fully indigenously developed marine diesel engine, marine gas turbine and weapon systems to an extent.
So this is where that 15% gap is coming. Now again on a positive note, the government is very serious about indigenization already. You must be aware of this schemes called make one, make two, make three and so on. So a make one means it’s a government funded project to incentivize the indigenous manufacturers. The propulsion engines are getting indigenous. But we as a nation must have patience because it takes a finite amount doesn’t come like a switch on. It will take three to five years for a product to get developed. When that gets developed naturally the indigenous content will increase.
As far as weapon systems are concerned there is a of ton tremendous improvement in the indigenous content in the weapon systems. I mean I’ll just give you an example. Like when we got into this naval surface guns. We got into the naval surface gun project about a year and a half project, year and a half back we had to collaborate with the foreign partner that is to make entry into the market and an Indian firm, around 10 Indian companies are involved in the component manufacturing. As of now It’s a success. 60% plus indigenization indigenous session has been achieved.
But we had the patients and so had our customer that the navy had the patients. So that’s where we stand today.
Unidentified Participant
So lastly on the recently released draft, DAP 2026, what is your understanding in terms of implication for GRSC and The shipbuilding industry versus DAP 2020?
P.R. Hari
DAP 2026 as would be it would be called. Yes, they have after a lot of consultative discussions over the last one year, finally the draft is now open for all of us. It is. They’ve sought comments from all of us including the general public and it focuses definitely. I’m just carrying this point what you mentioned on indigenization. Indigenization and indigenization Incentivization would be a major part of this DAP and little more flexibility for public private, private industry entry into defense manufacturing and also for public private partnership. So let us see how it finally pans out because now that it is open for everybody to comment.
So India being a democratic country, it will take a finite time for it to get fine.
Unidentified Participant
Hello. Hi sir, Vikas from isec. So just one question. Do we run a risk of commodity price inflation eating up our margins?
P.R. Hari
Commodity price increase has got minimal impact on our margins. Because in, in our case, in a, in a project if you take 100% as the project cost around 65% come out of equipment. Most of this equipment being customer nominated or in a pool of customer nominated band. So fluctuations really don’t affect because they all would have been finalized at the commencement of the contract. Then comes the yard material like steel. So in case of steel which is a major component of our shipbuilding industry, so we have tie ups with most of the Major steel manufacturers including MOUs with the biggest manufacturer in India.
So the impact is minimal. Yes, there is an impact. But the impact is very minimal. And logically it should not have any impact on the margins.
Unidentified Participant
Hi sir, here to your right. This is Raj Shah from Anam Asset Management. Sir, my question is. A few months ago we disclosed an MoU with Andhra Pradesh Maritime Board for another greenfield facility. So can you please help?
P.R. Hari
We are fishing. We were fishing.
Unidentified Participant
Okay. Okay. Thank you.
P.R. Hari
What I meant we were fishing at that point of time. We were touching base with Gujarat. We were touching base with the Andhra Pradesh. So finally we home. The first action was to show our intent. That’s why we concluded only to show Indian yes, we are there. Then we backtracked because we found it was not required. Having identified two other locations, that is. That is the reason.
Unidentified Participant
Hi sir, Deepen Wakil here from Philip Capital. So my question is, we spoke about that FY27 could likely be a peak revenue recognition year for us. So what are we looking at? So do we think that FY28 would be a plateau year and then growth can continue when NGC comes in as to how we can look so. Or there are chances that the revenue can come down a little bit before we start accelerating again.
P.R. Hari
It’s an interesting question. Yes. With 27 being a good year, a peak year. See when I had somebody had asked about the order book balance position. So like, for example P7 Alpha had mentioned that the order book balance 8200 odd crores. In this 8200 and odd crores x percentage. A small percentage. Not, not so small. It’s 10 plus percentages for the Basin Depot spares which are required for sustenance of the ship through the life cycle. So and similar fact figure is factored in every project. So when we complete a project the revenue accrual would be limited to the amount balance order book minus the Basin Depot.
Basin Depot runs independently. Independently as in we have concluded contracts with most of them. But these deliveries could be after the delivery is completed. Which means the revenue accrual from a particular project would continue beyond the delivery date. That will give us some cushion in FY28. Plus all these platforms. Like that’s why we. Why we decided to take one off projects. We had no reason because when we had the big projects in hand, it is with a strategic intent that we went in for one off project. They’re technically very challenging and it gives us a lot of national hype.
By the way, these research vessels, why we took them is with an intent that all these guys will come for delivery during FY28. Most of them are coming up for delivery. Multi purpose vessels. A series of them will get delivered. At least four of them should. Three of them should get delivered there. And yes, we need to pull back the revenue accrual of ngc. What? There was a question which was asked to me. When will the NGC start giving us revenue? What stops us from moving faster? So we will try and avoid a plateauing out in 27.
But 20 FY28, that is the intent of the management. Maybe I’ll be able to give you a better clarity on this next time when we meet. I think that would be the right time.
Unidentified Participant
Sure, sir. So second question is on our exports. So considering the geopolitical situation evolving now and we are looking at a lot more procurement happening globally. So what kind of opportunities that you foresee coming in? And some opportunities that may currently be under discussion or in pipeline, if you. Can throw some light on that.
P.R. Hari
See international business you can just segregate into two buckets. One is defense and one is non defence. In defense it is mostly government driven. It will be either through a line of credit or a G2G grant. So I’m just keeping that aside and say if it comes, it is bonus coming to the non defence segments. Today the opportunities are phenomenal. We are not able to take the orders because of collective capacity constraint. If I did not have the capacity, if somebody else had the capacity, I would have pushed it to him and partnered.
The potential is huge. Most of the European countries, be it Netherlands, be it Germany, be it Sweden, be it Norway, they are actually looking at India. Most of the customers who have approached us and whom Belgium, most of them whom we are engaging are all European customers. They were going to China, Korea. They are no longer taking orders for the kind of platforms which they approached us. The numbers are large, the order value is good. I see huge potential in this. Not only for me, but not only for grc, but for all the Indian shipyards.
And certain Middle east countries are also approached though we have not been able to break the ice so far. But once that break is made, I feel. But right now we are focusing on Europe.
Unidentified Participant
So can you hear me? Thanks for the opportunity. So I just wanted to know when you start the next generation Corvette signing, will you get advanced payments for that or how do we get a person? In the past we had advance payments.
P.R. Hari
You know, very interesting. Whenever we interact with the finance people in various ministries, they ask advance. I say I don’t want Any advance? Don’t give me any advance.
I want a stage payment. It is as per the dap. There is a stage payment. I don’t get any advance. I get a stage payment. So to answer your question, yes we’ll get a stage payment as soon as we sign the contract. There is a first stage payment with an intent to facilitate the pre production activities which involves design, commitment, certain OEM commitment and so on. Yes.
Unidentified Participant
Yes sir. So just to. Sorry. So just on the numbers I’m talking about here. So current order book 18,000 crores plus next generation covet 33,000 crores which is there in front of us going forward next financial year. The potential opportunity the P17 Bravo which is maybe at least 30 or 40,000 either which ways then we are talking about 1 lakh crores of potential order book from the non defense of which maybe a possibility of a 20% which translates to about 20,000 crores. Then again if we take the defense order which is 1 lakh 55,000 minus the P17 Bravo which is the 70,000 crores which keeps about 85,000 crores.
And again a 20 possibility over there gives me another additional 17,000 crores. If I add all these numbers it gives a potential of about 1 lakh 15,000 plus kind of an order book over a period of time. Purely for grac. Is the thought process in the right direction.
P.R. Hari
So how. I mean how I wish what is. I’ll also play in the same line, sir. No, but on a serious note sir. See there was a time when before we were listed of course we used to take the system for granted. That orders used to come aplenty on nomination. That now every order, every I repeat every order is on competition. Except what we work and get from the foreign clients. All. All these what you talked about. They are all on competition. And today the field has expanded. So we are there. Plus along with us my four sisters that is mdl, gsl, Cochin shipyard and hsl.
Plus comes Lassen Tuberose shipyard. Now they have mature and swan fledgling. I mean they’re coming up plus a couple of small shipyards like Shaft, Chowglay, Chokley of course may be to a limited action. Plus there is a shipyard in this place in my city Kolkata Chittagar shipyard. So the field has expanded. Theoretically. What you’re telling is perfect sir. Like if out of 1 lakh 55,000 and if Navy gives the RFPs as what we are. We understand that they should be giving because their intent is very much there. One 55,000 minus 70,000 the other of the balance 85,000 there are two major projects LPD project plus the mine countermeasure vessel project.
In the mine counter vessel project it is 8 and 4. So theoretically what you are telling is correct. It is purely depend on the orbit strategy at the time. I can only assure you that we would be bidding to win the P17 Bravo because that is what will keep the company moving for another 10 years. Eight years. So that is a project which will go all out to win without compromising at all on the margins. So it’s a big project and with our experience in P7 Alpha I feel we are good to go in that commercial shipbuilding.
This 1 lakh crores again is a very conservative estimate because we actually do not have the cost of some of these platforms which are going to be built in India for the first time there. I suggest we just wait and watch for maybe another six months. The stocks on RFPS coming out has been going on for the last one year. So far only two RFPs have come out in the last one year plus one UI. So let us just wait a bit and watch for the non defense defense segment is more or less streamlined. Non defense segment I suggest just wait and watch maybe six months we’ll have better clarity.
Unidentified Participant
Sure sir, again the numbers on the other side in terms of the capacity 35 is what we are targeting by the end of the current calendar year 35 from 32 since we are refurbishing the other two locations there apart from that once after four year period maybe when Bhavnagar and Kandla comes into play that will give us another capacity of another 12.
P.R. Hari
Yeah.
Unidentified Participant
Then we are looking at HSL which is for perhaps the 2 lpd plus the very large gas carriers. Now that is nine in number which is there from Shipping corporation. So there nine is what is also the potential capacity at HSL also apart from the lpd. That’s is the understanding correct?
P.R. Hari
Yeah. I would like to clarify this because HSL if you are aware they are already building the fleet support ships, large ships though they have like us they have partnered shipyard. Three of these vessels are being constructed at hsl. Again I again would like to go back to my previous statement that as far as this not regarding the capacity capacity what we have said we will meet but as far as the inflow is concerned for the non defense segment we should just wait and watch for a while.
Unidentified Participant
Sir, I think waiting and watching is right from the IPO days that we are all here so that’s not a problem. It’s just about, you know, the conversion of all this potential into numbers. So waiting is something which maybe majority of us can easily.
P.R. Hari
So for as you rightly said from the IPO days you have been waiting but you are seeing the results today.
Unidentified Participant
Undoubtedly. That’s not the point. The point is about the patients who.
P.R. Hari
I cannot comment on what comes from the non defense segment at this juncture, Sir. It will take a finite amount of time. Defense segment, I can tell you straight away because their system is streamlined. As far as non defense segment is that I would wait. You can add advice.
Unidentified Participant
Absolutely. Thank you sir. Thank you so much for all this.
Unidentified Participant
Sir. Harshit from Elara Again, thanks for the opportunity. Just on the margin front, since you now have the NGC order which will be given in March. I know you don’t like to discuss on margin, but just wanted to just check.
P.R. Hari
I try and sidestep the margin but.
Unidentified Participant
So would the margin of NGC will be similar to P17 Alpha? That’s the first question.
P.R. Hari
So P7 Alpha was a nominated project. Okay. NGC is a competitive project. But what sir had asked earlier that we are not compromised on the margins. Similar again is a perspective term. Yes, it will be similar if you. Take it
Unidentified Participant
and assuming that you bid for and win the LPD and the MIMCV order, since it’s in the collaboration mode, so their margins will be similar to what we are right now having. Would that be a.
P.R. Hari
It is the. If it is a collaboration mode, naturally the overall margin will be good. But when we share the. When we share the profit, there would definitely be a. An impact P7 in Bravo. Definitely. We are not partnering anybody. We are going independent. I thought you asked about P7P7 Bravo. We are going independent,
Unidentified Participant
right? Okay.
P.R. Hari
Yeah.
Unidentified Participant
Thank you.
P.R. Hari
We’ll look after the projects. Ma’, am, could you.
Unidentified Participant
Sir, I’m Krishna Doshi from Ashika Institutional Equities. I’m so sorry, but my question again happens to be with respect to the margins. So between the P17 alpha completion in FY27 and meaningful NGC revenue which flows in from Q4 FY 2028 onwards, which will also. So there is also a risk of execution. Tapering. While we do say that, you know, there will be some sort of a cushion which will be provided by the other orders. But then what about the margins in those times.
P.R. Hari
In FY28? I partially answered a question on an earlier. Based on an earlier query that all the projects what we had indicated as cushioned for this financial year would have adequate margin to maintain. I mean to sustain the Margins we are giving now the P17, not P7, the NGC. Our endeavor would be to pull back. The pullback means pull ahead the revenue accrual. That’s all I can promise. And we also have other verticals like ship repair. To be frank, we are not gone all out. We have taken facilities, we tested waters for a couple of years where the margins are high.
So we have not yet executed a very big order on ship repair. So we have time. We will take on ship repair orders also in a bigger way than what we are currently doing to push up our margins and revenue.
Unidentified Participant
So my second question happens to be with regards to the 30mm guns that we are doing, can you give us some outlook on the same with regards to the manufacturing capacity margins and how is the segment supposed to grow in the next three to five years?
P.R. Hari
The TMM gun project started about a year and a half. We had a collaborator from abroad and an Indian partner. And as I mentioned earlier on 10 local manufacturers getting various components made here the margins are good, margins are, let us say healthy margins are there. Currently we got order for 17 guns and all from the Indian Navy. And of these 17 guns, four guns have already been installed on board the various platforms and the sea trials and so on so have been completed. What we as far as the execution of these 17 guns are concerned, we intend completing this project by mid of 2027.
I mean all the 17 guns will be supplied. In addition, Coast Guard has shown interest. We are having a discussion with coast guard for 49 more naval surface guns. We expect the contract to be concluded by mid of this year. That means in the first quarter of FY27 we intend concluding the contract. In addition, these guns effectively use as primary guns on board small platforms and secondary guns on board the larger platforms. Opportunities are huge and we also got an agreement with our partner that we can export these guns. So what we intend doing is once the naval product stabilizes, once they run an operation for more, once they run at sea for more than six months, then we’ll start our export process.
The potential is huge here and so far there is no competition in the Indian. So far. So far in this segment there is no competition. So we see this business picking up in the coming years. Thank you. Yes ma’. Am.
Unidentified Participant
Hello sir, this is Shweta from Equilon. I wanted to know about the non defense platforms that we are making or we’ll make. How long it takes to get the order means the to and fro till the final order we get and how means other is the time like. Because there’s no flow in that. So is there more time given in the to and fro with the clients? If you can explain that process.
P.R. Hari
Okay, ma’, am, non defense orders again, I’ll put it in two buckets. One is the non defense orders coming from government entities like the research vessels. They’re all coming from government entities. And second is the orders which are coming from non government entities like the German client.
Unidentified Participant
Yeah, I’m talking of non government.
P.R. Hari
Non government. So the overall non defense order book composition contribution is about 20% as 18% in this. The export content is almost about 8%. So here it takes time. The time is not taken for the contract conclusion. Time is actually taken for establishing a relationship. We took nearly six months to get into the more than six months to get into the first contract for the four vessels of the German client. Then the next four. And the next four came almost back to back. So it is just question of making the break. And I mentioned that one project where we wanted a collaboration with another shipyard because of the size of the ship does the discussions have been going on for almost one year? One year.
But when it happens, then the flow becomes.
Unidentified Participant
So after that one year, the approvals again and again we have to go.
P.R. Hari
There is no approval involved, ma’. Am. It is a owner and the the shipyard. There’s. They are the ones who are giving the approval.
Unidentified Participant
Okay,
P.R. Hari
the one year or I mean one year. I’m exaggerating, but let us say in the first project of npv, it took six months. The six months was not for any. It was only for the negotiations to close. Because some of the conditions, what they demand and expect are not accepted. So we reach a midpath which is financially viable for both the parties. So once that relationship and the contractual terms are established, then it’s a question of concluding the contract.
So as I said, it’s a question of the first break. We already got it. And now one we are not able to handle because of the capacity constraints. Second thing is in the major project, what I discussed, it’s a question of concluding the the negotiations approval is between us and them. There’s no government involved in this.
Unidentified Participant
Thank you so much.
P.R. Hari
Yeah, please. Yes.
Unidentified Participant
Hi sir, this is Hardik Rao from IFL Capital. Thank you so much for the opportunity, sir. My first question would be with regards to the NGC package. NGC order. Just wanted to understand that we’re expecting the order finalization by the end of this financial year. Could you say as to when you know the orders for the equipment, especially electronic Equipment that goes on to that platform by when, if, if we are able to receive that order by the end of this financial year, would the order for the equipment be placed right away or could that spill over to the next financial year, that is FY27.
P.R. Hari
The order for the equipment would spill over to the next financial year. The contract signing is the kickoff for the. The. The equipment decision finalization and the decision. But on a proactive note, we have already commenced discussion with most of the major OEM because now we know who are the OEMs. In some of the cases the technical requirements have been already frozen because here we need to take the concurrence of the customer. Also this process commenced almost from the time we became we were known that we were the L1 shipyard and and we expect to sign the contract with our OEMs within first six months of placement of receipt of contract. Which means in the first half of the next financial day we’ll be able to place and that is what is a realistic time.
And we also would like to maintain because if we cannot place too early also we also need to ensure that the deliveries are just in time. I mean when we need the production. That’s the reason
Unidentified Participant
that is helpful. Sir, one last question with regards to the NGC execution. Now you know, we appreciate the fact that, you know, you’re looking at the fact that you know, 27 is going to be a peak year in terms of revenue and there’s no, not a lot of plateauing of growth in FY28. Which is why you know, an NGC related revenue is being booked in 4Q but since that revenue will only come in 4Q it would be safe to assume that at least on a nine month basis for FY28 growth could slow down on a year to year on a yoy basis.
P.R. Hari
Not necessarily, not necessarily because what I had mentioned was that almost 10 to 15 percentage of project cost is from the spares. So these will start coming and we contractually are supposed to provide them after the within X period after the contract, I mean ship delivery, last ship delivery completes. So we will be able to pad up FY28 with adequate cushion at this juncture. No concern. That’s all I can say.
Unidentified Participant
Got it sir. Thank you so much.
Unidentified Participant
Good evening sir. Thank you for your very detailed answers to all the questions. I had a question around people and automation mechanization. Given that in the next three to five years the scale is going to be very different. Could you talk us about any initiatives you are doing to train people, attract More people number one. And secondly investments in mechanization and automation from a perspective that the execution excellence is maintained. Thank you.
P.R. Hari
Very interesting question. Yes. People first. I’ll cover both the people as well as the thing you may be tracking our induction plans. We are actually inducting plan. See ours is a manufacturing company. But as our permanent strength we intend maintaining a reasonably lean strength where the. The non. Let us say the blue collar force is limited to handling core activities. So we are maintaining a lean strength which means the white collar strength would increase. So as recently there’s a live. I think it is concluded. Which is concluded as in the window is concluded. We are inducting another 150 executives.
137 executives. So. And all of them I can assure you come from top institutions of the country. The best. That’s what we pick up. This is for the. In addition as the. The skill workforce depletes we are inducting for the core jobs. We have an excellent vendor base. Subcontracted vendor base in Kolkata. Some of the best in India from various companies handling some handling block fabrication, the welding specialized welding. And so at this juncture skill the resources wise not a red flag as of now as far as automation is concerned. Yes, this is an imperative and we already started investing.
And should you visit our facilities we have some of the best in terms of the welding machines, the plasma cutting machines, the robotic welding machines and so on. And we’ll continue investing in that. It naturally to be need based because we don’t want to unnecessarily pump in capital. But yes there is a need and we are investing. We are seized of this responsibility. Robotics has also been brought in. We have a robotic welding machine which is being almost used to center capacity. So there is no issue with that.
Unidentified Participant
Thank you very much for your detailed thoughts and all the best to the entire team. Thank you sir.
P.R. Hari
Thank you.
Gaurav Girdhar
Thank you sir.
P.R. Hari
Thank you.
Gaurav Girdhar
We’ll take that as the last question and conclude the conference. I would now like to hand over the floor to Commodore Pr. Harisa for his closing remarks. Thank you sir.
P.R. Hari
Thank you ladies and gentlemen for an interesting session. As I said I personally I look forward to this particular session where interesting questions come. Sometimes you answer straight, sometimes you sidestep. It is just an occupational asset. But believe you me, 100% efforts is being put in by the company and the results are here for you to see. On a positive proud note, I mentioned that this is the 13th quarter that on a trot that and we would like to maintain it as long as we can, and the visibility is very much there.
Thank you.
Gaurav Girdhar
Thank you. Thank you so much. Sir, I would request everyone to join us for a group photo, please, and then we can proceed to the it. Thank you. Standing group for.