Ladies and gentlemen, good day and welcome to Elecon Engineering Company Limited's 2Q FY 2026 conference call hosted by Emkay Global Financial Services Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touch-tone phone. I now hand the conference over to Mr. Ashwani Sharma, Emkay Global Financial Services Limited. Thank you, and over to you, sir. Thank you. Good afternoon everyone. I would like to welcome the Elecon Engineering Company Limited management and thank you for this opportunity we have with us today. Mr. Prayasvin Patel, Chairman and Managing Director, Mr. Dipak Dalwadi, Head of Gear Division, Mr. Kaushik Patel, Head of Material Handling Equipment Division, and Mr. Narasimhan Raghunathan, Chief Financial Officer. I shall now hand over the call to the management for the opening remarks and post which we will open the Q& A session. Over to you, sir. Thank you, Ashwani. Good evening, everyone, and a very warm welcome to our Q2 and H1 FY 2026 Earnings Conference Call. On the earnings call today, I am joined by my colleagues Mr. Aayush Shah, Non-Executive Director, Mr. Dipak Dalwadi, Head of Gear Division, Mr. Kaushik Patel, Head of Material Handling Equipment Division, and Mr. Narasimhan Raghunathan, Chief Financial Officer. The press release and the investor presentation have been uploaded to the stock exchanges and are also available on your company website. I trust you've had the opportunity to review them. Let me begin with a brief overview of the macro environment and our business positioning, followed by a detailed review of our financial performance, which Mr. Narasimhan, our CFO, will take you through. Elecon Engineering Company Limited continues to stand strong as a leading manufacturer of Industrial Gears Solutions and Material Handling Equipment. Our commitment to innovation, engineering excellence, and deep customer relationships across key industries including steel, cement, sugar, power, and marine has enabled us to remain resilient in an evolving global environment. We hold a leadership position in India's organized industrial gear market along with a strong foundation for delivering solutions in the MHE division for seven decades. Our global footprint spans nearly 95 countries, supported by a robust distribution network and a long-standing relationship with key industry players. With our long-standing experience and engineering capabilities, we are well placed to capture opportunities emerging from the ongoing capex cycle both in India and overseas. As a part of our strategic vision, we aim to increase the share of exports to 50% of the total revenue by FY 2030. This global ambition is underpinned by strong R&D, product innovation, and strategic tie-ups with global OEMs. Our business is anchored by two divisions, Industrial Gears and Material Handling Equipment, each playing a distinct role in shaping our overall performance. The Gear Division, which contributed approximately 76% of our consolidated revenue in Q2, delivered a steady performance, growing 9% YoY in revenue. Despite a challenging external environment, the domestic business continued to build on the momentum, while the overseas business has demonstrated a resilient performance during the quarter in spite of delays in order receipt and execution, primarily in select overseas markets affected by geopolitical volatility. However, this is a matter of timing. I want to emphasize that the underlying demand remains healthy, and we have witnessed robust order inflows in both markets and are encouraged by the sustained enquiry levels, which bodes well for the future order inflows. The division is well positioned to build on this momentum, supported by improving market sentiment and ongoing capital investments across key industries, i.e., steel, power, and cement, which is expected to drive growth. We are also witnessing encouraging order visibility in the sugar segment, reflecting broader industrial momentum. Having said that, we do not foresee any material impact on the business from a full year perspective. Our Material Handling Equipment Division continued its strong growth trajectory with 33% YoY revenue growth in Q2, supported by robust demand and increased execution. This performance is driven by a healthy order book, largely from power, cement, mining, and port sectors. As we pivot towards product supply and expand our aftermarket services, we believe this division will continue to deliver sustained growth in the years ahead, backed by a healthy pipeline, solid order backlog, and deep customer relationships. All in all, despite short-term execution delays in international markets, the business fundamentals remain strong. The timing difference between order intake and execution has temporarily impacted revenue recognition, but with a solid order book and execution pipeline across both our divisions, it provides a strong foundation and visibility for healthy growth in coming quarters. Elecon Engineering Company Limited remains focused on driving its long-term growth strategy. We are actively diversifying our business portfolio and expanding our presence across new sectors and international markets. Our wide range product portfolio, backed by strong in-house R&D and engineering capabilities, continues to differentiate us in the industry. Our ability to deliver customized, high-quality solutions positions us well to meet the evolving and complex needs of our customers. With this, I hand over the call to our Chief Financial Officer, Mr. Narasimhan Raghunathan, for a detailed overview of our financial performance for Q2 and H1 FY 2026. Over to you, Mr. Narasimhan. Thank you sir. Good evening. Today it's my pleasure to take you through the financial highlights for the quarter and half year ended 30th September 2025. Financial Performance Q2 FY 2026 we are pleased to report a resilient and encouraging performance in Q2 FY 2026 despite some short term external challenges. For the quarter ended September 2025, our consolidated revenue from operations stood at INR 578 crores compared to INR 508 crores in Q2 FY 2025, reflecting a growth of 14% on a YoY basis. This growth was primarily driven by strong domestic demand across both our Gear and Material Handling Equipment Divisions. The overseas business remained flat during the quarter, impacted by timing related delays in order receipt and execution due to geopolitical volatility in select international markets. Nonetheless, the enquiry levels in most overseas markets remain encouraging and we expect execution to pick up pace in H2 FY 2026. Domestic demand too is picking up meaningfully, particularly from the core sectors of power, steel, and cement. The domestic market contributed 79% to the consolidated revenue while the remaining 21% came from overseas markets. The order intake for Q2 FY 2026 is INR 688 crores, a strong 28% growth YoY. It is contributed by domestic market INR 516 crores, up 32% YoY, and overseas market INR 172 crores, up 18% YoY. This robust order inflow along with healthy enquiry levels keeps us optimistic for higher growth in the second half of the year. Our consolidated EBITDA for the quarter stood at INR 126 crores compared to INR 112 crores in Q2 FY 2025, an increase of 12% YoY. The EBITDA margin for the quarter was 21.7%. EBITDA margin was impacted temporarily due to higher employee cost and a change in the product mix within the Gear division. We expect margins to normalize in H2 FY 2026 as volumes pick up and operating leverage comes into play through recently commissioned capacity ramp up and order book converts faster into revenue. Profit after tax for the quarter stood at INR 88 crores representing a PAT margin of 15.2% for the half year ended September 2025 after adjusting for the one time arbitration income of INR 25 crores recognized in Q1 FY 2026. In Material Handling Equipment Division, adjusted consolidated revenue stood at INR 1,043 crores up from INR 901 crores in H1 FY 2025. Adjusted EBITDA was INR 231 crores up from INR 205 crores with an EBITDA margin of 22.1%. Apart from the above INR 25 crore recognized in the revenue in Q1 FY 2026, an additional INR 10 crore was also recorded under other income as part of arbitration settlement, and further INR 80 crore was recognized as an exceptional income below PBT representing unrealized mark to market gains from investment reclassification. As a result, profit after tax for H1 FY 2026 including these one-time incomes stood at INR 263 crore. Segment-wise performance, the Gear Division contributed 76% of total revenue in Q2 FY 2026. For the quarter ended September 25, the Gear Division's revenue stood at INR 441 crore compared to INR 405 crore in Q2 FY 2025, up 9% YoY. This performance was resilient despite delays in order execution due to delay in receipt of orders from customers. We anticipate faster conversion of order into revenue in H2, helping us stay on track to achieve the full year guidance. The EBIT for the Gear Division stood at INR 85 crore in Q2 FY 2026 compared to INR 87 crore in Q2 FY 2025. The EBIT margin declined to 19.2% in Q2 FY 2026 compared to 21.5% in the same quarter last year, primarily due to the increase in employee cost and change in the product mix with respect to engineered and catalog products. EBIT margin was also impacted by accelerated depreciation on newly capitalized assets. However, we are confident as the revenues scale up we will be able to recoup the margins with operating leverage playing out in H2 FY 2026. The order intake for the quarter was INR 497 crore, reflecting a 15% YoY increase. Open order book stood at INR 771 crore as on 30th September 2025, providing strong visibility in the upcoming quarters. The Material Handling Equipment Division continued its strong growth momentum in Q2 FY 2026. Also, revenue for the quarter was INR 137 crore compared to INR 103 crore in Q2 FY 2025, up 33% YoY. This growth was driven by solid demand in the product supply and the aftermarket segments, particularly from the cement, power, and port sectors. The EBIT for MHE stood at INR 35 crore compared to INR 26 crore in Q2 FY 2025. The EBIT margins improved to 25.7%, up from 25.4% in Q2 FY 2025. The order intake for the quarter stood at INR 191 crore compared to INR 104 crore in Q2 FY 2025. Open order book for MHE stood at INR 455 crore as at 30th September 2025, reflecting strong growth prospects going forward. On the balance sheet front, we continue to maintain a robust balance sheet with strong net cash position of around INR 600 crore, offering us significant flexibility to pursue growth opportunities, capex plan, and navigate macro uncertainties. Looking ahead, the capex budget for FY 2026 to FY 2028 is estimated at INR 400 crore, aligned with our long-term strategic goals. Furthermore, we are pleased that the Board has declared an interim dividend of INR 0.50 each, that is 50% per equity share of face value of INR 1 each, reaffirming our commitment to delivering value to shareholders. To conclude, we are confident of achieving our annual guidance of achieving consolidated revenue of INR 2,650 crore and EBITDA margin of 24% in FY 2026. Our strong order book, healthy enquiry pipeline, domestic demand momentum, and anticipated acceleration in international execution in H2 provide the foundation for a strong finish to FY 2026. With that, I would like to open the floor for questions you may have. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Vishal Biraia from Bandhan AMC. Please go ahead. Hello, good evening. Have any of our clients told us to delay the execution, especially in gears, domestic or abroad? The domestic market has taken some time in the beginning to take traction. However, there have been no incidences in the local market where they have asked us to delay the execution. On the other hand, in the international market, yes, there have been situations because of the geopolitical scenario where the customer is confident of the project that they are going to go through with it, but they have paused for a while. When I look at the gears business, the revenue growth of 11% seems to be much at the lower end and the contribution of international business is not very significant. On the domestic side, could you elaborate as to what is happening? On the domestic side, we are doing various projects, especially if you look at it in the power, cement sector as well as sugar. The orders quite often come in lumps. We recently received an order in gear in the power sector which was one of the largest, amounting to INR 800 million. It comes in lumps quite often. Therefore, if you look at it, these orders have come in. However, the execution may be for a longer duration because the customer wants the deliveries in the last quarter or in the first or second quarter of next year. Those kinds of situations we have to play around with. What is important is that we are confident of reaching our annual targets of top line, which is the revenue as well as the EBITDA margins by the end of the year. Could you elaborate the reason for decline in margins in the gear business? See, it all depends on the product mix. As I told you, it not only depends on the product mix, but it also depends on the turnover or the top line. By the end of the year, it will all even out to the projected EBITDA that we have defined. We used to guide for about 25% margins in the gear business. Should that be achievable for the year? Yes, definitely. Once the turnover picks up in the second half, as what CMD has said, the margin of whatever we have projected, it definitely is achievable. Okay. Thank you for answering my question. Thank you. Thank you. The next question is from the line of Mr. Balas ubramanian from Arihant Capital. Please go ahead. Good evening, sir. Thank you so much for the opportunity. I just want to understand the decline of margins for gear divisions. I just want to, if you could share that product mix side, what is the mix between standard products and customized products in this quarter? See, that information always give it to you. To understand a product mix also means that it depends on the order type, the size ratios, and the requirements, the turnover in after sales products, etc. and the type of gears given, even in whether they are worm, helical, planetary, couplings. Various kinds of variables are there. However, as I told you, the margins that we have kept in various products at the end of the year, they will all even out to achieve our annual targets that we are extremely confident of. It may even further improve more, which is a possibility. Please be rest assured that the margins will be maintained. Okay, sir, we are targeting. Would you still like to get the breakup? If you want, we can always give it to you of the custom built gears. Yes, definitely. Yeah. See, catalog products, it is 54%, and engineered products, it is 46% for Q2. Okay sir, thank you. My next question regarding aftermarket international expansion. I think we are targeting 50% of international revenue by FY 2030. Right now our U.S. service team is in place and we also planned for Europe. I just want to understand what is the go to market strategy for winning international service and repurchasement contracts, and is any targeted revenue contributions from international services side the next three to five years time frame. See, basically I would put it this way, that our strategy is that we go and try to get orders to areas and territories where we have not yet focused much on, which is South America, certain countries of Europe, part of a small part of Middle East and so forth, including the fact that Russia also has a good etc. There are various areas that we would like to penetrate further. The geopolitical situation right now is not helping the business environment. We all know there are wars going on, which is slowing down the situation. Quite often projects are being held up. Certain projects are also getting cancelled. Luckily we have been the kind where our projects have not yet got any of them have got cancelled. The scenario still seems to be dull and slow. We are hopeful that we will be able to reach our targets by the end of FY 2030, which is I'm sure will put the entire company in a very different position because we will be able to gain the strength of able to cater to any recessionary trend for years to come. Okay sir, that OEM business side, I think they are targeting €7 million in this year. I just want to address, understand on the customer onboarding side. Is there any concerns about margin dilutions to onboard new OEMs? Because OEMs contracts are typically competitive. We have considered all this situation. We are not expecting that what we have committed those margins we will be able to maintain. Though the tariff scenario in the U.S. is fluctuating wildly day on day basis, we are confident that we will be able to achieve the margins that we have committed. My last question on the defense side, that P-17 Bravo projects, it's nearly around INR 1,000 crore kind of opportunities. What is the current status of this order and what kind of timeline for the official tenders and like, and what kind of margins this kind of large defense projects? As of now. See, the P-17 Alpha is just more or less about to get commissioned. Normally what happens is the ships, once they are launched and they go through the exercise of trying out all the equipment and testing all the equipment, and once they are satisfied with the performance of the ship, after which they will normally go in for the active ordering of the ship as well as the equipment, which will happen for the P-17 Beta or Bravo, and they will place orders with the shipyards. We are expecting as of now that in the third quarter of this year the tenders would be floated for the ships. After which, once the shipyards get the order, they will then contact us for the requirement of the gearboxes. We are expecting that by Q3, Q4 of FY 2026, that is next year, the orders for P-17 Bravo would get finalized. Thank you, ladies and gentlemen. In order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit the questions to two per participant. Should you have a follow-up question, please join the queue. Again, the next question is from the line of Raj Shah from Enam AMC. Please go ahead. Hello sir. Thank you for the opportunity. My first question was, sir, in the defense front, there was this P-17 Bravo large order that you mentioned about. There was another order, relatively of smaller size, around INR 200 crore, about which we mentioned in the earnings call post Q1 results. Any update on that order? Yeah, that is regarding the aircraft carrier. The Aircraft Carrier, the one that has already been launched, has been quite successful. It had been also used in the recent war that we had with INS Vikrant, which we had with Pakistan. However, it was not fully in action where none of the aircraft flew from there into the foreign territories. What we find is that they will go into for this requirement very shortly. The duration, time duration that we expect would be either the last quarter of this year, which would be last quarter at FY 2026, or the first or second quarter of FY 2027. Okay, another question was. Sir. During the previous call we mentioned that there was some pain point in the sugar sector when it comes to, in the domestic space, when it comes to ordering. Any progress that has happened in the sugar sector on orders? This year, the order inflow from sugar has been much less. It has been a bit dull. However, we see a good number of inquiries which have come up for the next coming, which means for the next crushing season which would happen in FY 2027. The deliveries would take place practically by September FY 2027, and we are hoping that we should be able to back good number of orders for that requirement, which would get finalized in a month. Thank you very much. Thank you. Thank you. The next question is from the line of CA Garvit Goyal from Nvest Analytics Advisory LLP. Please go ahead. Hi, I'm audible. Yes, you are. Good evening, sir. My question is on this shipbuilding part only, where last quarter we talked about the INR 200 crore order, and now we are saying happening, and now the order will be coming more towards the end of this financial year. Is there any specific reason that the orders are getting delayed? That is one. Secondly, are you getting any big order from any marine side of the port area? That's my first question. Yeah. First, the projects normally, when it happens with the defense units, normally get delayed, okay? Because there are too many agencies to coordinate with. It is the Indian Navy, then the shipyards, okay, the inspection agency, which would be a separate agency, then a certified body and so forth. It takes a huge amount of coordination to get everyone together and finalize orders. Therefore, they do get delayed by two or three months very easily. They are right now delayed. There is a project which is likely to happen soon. How soon, that we do not know. They are NGNV, which is, yeah, it is called the Next Generation Naval Vessel. That hopefully would get finalized soon. Right now we are also manufacturing gear units for the New Generation Patrol Vessels, OPVs as they call it, NGOPVs. These are the orders which are right now hot. We believe that soon they will get finalized, especially the NGNV. You mentioned the international market order procurements are getting delayed. In this environment, what is giving us the confidence that H2 will give us the recovery and we will be able to meet our target? The environment is still tough, right? Can you put some color on that? See, the pending order position is quite strong. The inquiry levels are also quite good, and the body language of the customers who have given us inquiries, they seem to be telling us that, hey, look here, we want to finalize the order soon. That is giving us the encouragement and confidence that we will be able to achieve our targets. There can be the chances they can further delay these deliveries, maybe because of the environment, right? There's always a possibility. We are reasonably confident because the orders that we have on hand have not stopped us from executing. The political scenario also seems to be such that the wars seem to be. Ending. Especially the one in the Middle East as well as the Russian war, people seem to be getting fed up and wanting to bring it to a positive conclusion. Rather than the situation deteriorating, we believe that the situation will be improved and therefore we are not worried that any of the orders would further get delayed. The guidance which we are targeting, we need to do INR 1,500 crore in next two, which essentially means the quarterly run rate of INR 800 crore. Can you tell us, is it going to be a uniform execution, or should we expect in the range of INR 650–700 crore in Q3 and the rest will be in Q2? See, we have done a fair good amount of capex, and the new equipment has already started arriving. A lot of them have started producing for us, and we are reasonably confident that with the capacity increase that we have had and the new equipment which are performing well, we should be able to achieve our targets with reasonable confidence. No sir, I'm trying to understand, like, is it going to be uniform in Q3 and Q4, or will it be like Q3 will be a little less than Q4 and Q4 will be major as happened in the last year. Q3 normally has more holidays. That is number one. The other thing is normally when you try to increase the production and output, it slowly and gradually increases. Q4 values are always higher than Q3. I presume that would also be the trend this year. However, we are keen that we would try as much as possible to increase our turnover in Q3 so that Q4 becomes more and more comfortable. Understood, it is quite often difficult. One last question, you mentioned to one of the parties. Sir, we will request to rejoin the queue for the follow up question. Thank you very much. The next question is from the line of Kashyap Javeri from Emkay Investment Managers. Please go ahead. Thank you so much sir for the opportunity. First of all, keeping question on the international subsidiaries, if you can give some number for H1 in terms of revenue, how it is, you know, probably grown and what has been the margins there. Second question is, you know, on the overall export side, I know there has been a significant amount of discussion here, but my question is that between 2024 to 2029 or 2028, over a period of 5 years, we are committing about INR 750. Sorry, about INR 650 crores of capex, and you know, we are doing that even at accelerated depreciation given that that kept coming from operating leases. One, you know, it seems like the confidence on that export business seems to be extremely high over, let's say, next about three, four years. You know, where does that come from on the longer term? To suffice for that accelerated depreciation, should one assume that the EBITDA margins on now export business is going to be probably bit higher than what we are doing today, given that it will have to be an engineered product. I will put it this way. Our export margins have always been better than the domestic margins. That is number one. Number two is that these commitments or these targets that we have taken are the targets which in the long term are very strategic for the company as a whole. The reason being that if we are able to achieve our targets by FY 2030, which we are reasonably confident of doing, it will help us hedge against recession, especially domestic recession. What would happen is that while the inflow of orders out here reduced, the orders from the international market would help us in sustaining not only the turnover, the top line, but also the bottom line, the margins, the EBITDA margins that we are talking about. That is extremely important for us to achieve. Therefore, there is a lot of focus. The entire organization is focusing more on exports and also seeing to it that the exports are coming from various territories, different territories, from South America, from the Middle East, from Africa, the Far East, etc. so that you are able to automatically hedge against ups and downs in the economic activities globally. Have I answered your question or should I? I understand that, sir, but you know, when does that, given the fact that INR 650 crore of commitment and accelerated depreciation because of operating leases, this has to come sooner than later, right? As of today, at least in the numbers, they don't give that kind of confidence, which is why this question keeps coming up again and again. Depreciation is going to be an issue if that does not happen, particularly once we spend another INR 400 crore, which is why, See, first of all. You have to understand that this capex is coming all from internal accruals. That is number one. Number two is the capex that we are doing are for various reasons. It is not only enhancement of capacity, but it is also to take care of the wear and tear that has happened to the machine tools where we have not done capex in the past, okay? It also helps you in improving your quality and improve your productivity. That is a necessity and that happens with all engineering industry. That is number one. Number two is the margins that we have committed year on year since the last three years or last four years. We have been able to maintain and we are confident that we will be able to maintain them. As long as the demand is concerned we are fully capable of rising to an occasion where if there is an increase in demand we would still be able to meet with it. These are the strengths on which the company is driving itself further ahead. I do not see why it is not giving you the confidence when the management is fully confident. If you would like to further add two points. This INR 400 crore of capex, what we plan to do over a period of three years. No, not necessarily all the whole thing. We don't plan to take it as an operating lease. Partly it will be, that has been historically in the past two years if you see, partly it will be funded by our own internal accruals and the balance we would take into the operating lease. We will decide depending upon our requirement and what we would like to keep it as a result. Okay. Some numbers on H1 on the subsidiary side, if growth number also will do, if not absolute top line number. Yeah, and the margins also if possible. Can you repeat the question, please? The revenue number for the subsidiaries and their margins. Yeah, the revenue numbers for the quarter is INR 83 crore. Okay. The same quarter, sorry, H1 and the H1 last year. Yeah, this May current year is INR 152 crores, for INR 162 crores for the current year H1. Last year it is INR 188 crores and the margin? Sorry, I could not catch that last. Yeah, just a minute. Hold on. INR 180 crores became INR 156 crores. Have I understood that correctly? INR 162 crores. Okay. The EBITDA margins? Yeah, just percentage is what current year is currently 12%. Okay. Compared to the last year, it's a 15%. Okay, sir, thank you so much. Thank you. Thank you. The next question is from the line of Pratik Kothari from Unique PMS. Please go ahead. Yes, hi, good afternoon. First question on. I mean we started this journey on onboarding OEMs I guess about one and a half, two years back, and last quarter we had declared about 18 OEMs that we have onboarded. One, how has this journey been with them in terms of, because we started first providing them with prototypes and then some commercial supply and just some ramp up, some conversation. Qualitatively, quantitatively, how has that journey been until now? Yeah, see Pratik, last year earlier this thing, 18 OEMs is what during this quarter there has been no additions. However, the progress on those things remains the same. We are developing various products and various operations also. Enquiry has also been good from those OEMs. One of the expectations was that once a year or two passes, you are expecting that there will be a sharp ramp up because they were testing waters with us. Once the confidence builds up, are we seeing that, or does all of that seem delayed given the geopolitical situation? Yes, that is the situation. However, they are promising a good number of orders because they have been. Most of them are saying that they are satisfied with the product that we have delivered. They have put it on trials, and they seem to be happy. We are now, you know, kind of cajoling them to give us more orders. That is the scenario. There are some where we have received more orders. But. I would say there is nothing that we can say with confidence that these are large number of orders. We are expecting more from them. April, approximately a few, at least INR 30 to 40 crore is what we are expecting. Correct? Correct. And the one question to Narasimhan in. A cash flow statement, we see this. I'm so sorry to interrupt you in between It's my second question. First was a follow up. Yeah. Narasimhan, I mean in the cash flow statement we see this INR 22 crore of FX loss. If you can just highlight where does this get booked and what is this regarding? This relates to the unrealized. When we translate our OC accounts, that relates to the unrealized loss. That is the reason this will b e under other comprehensive income. Yeah. Okay, great. Thank you. Thank you. Thank you. The next question is from the line of Mayank Bhandari from Asian Market Securities. Please go ahead. Thanks for the opportunity, sir. This large order of INR 80 crore in power sector, is this part of gears or gears plus MHE Both? Is this high speed gears or. Which type of gears are these? I would say custom built gears required for a particular process. We are yet to qualify for the high speed gears. How is our journey going on there? High speed gears. We have tested the gears, given it to the desired client. He has also witnessed it. However, he has not placed further orders on us. Some of the other he is dwindling. However, we are trying to time to tell him that everything has been satisfactory. Now you need to place more orders on us. That is where the position lies. We are reasonably confident that in a month or two we will receive some orders from them. What would be the execution timeline or margin profile? If you could highlight, it would be executed within two years. Okay, within two years. On the defense side, NGNV order is what you are expecting. What would be the quantum of the order? Difficult to tell you right now because it will depend upon the entire pricing structure that would be done, but it is an order that. Would b e reasonably good for the company to execute, and we are looking forward to it. And sir, on this different thing I'm sorry to interrupt you in between, Sir. I would request you to follow up. I'm really sorry. I would request you to rejoin the queue for the follow-up question. Thank you very much. The next question is from the line of Navani Naredi from Naredi Investment Private Limited. Please go ahead. Thanks for the opportunity. My first question is, as government is exploring the capabilities and looking to become self-reliant in rare earths production, what's our scope going forward in it? I mean, do we have any scope in this line? We have not explored any rare earth situation as far as we are concerned. We are into our own traditional equipment as of now. However, our material handling equipment can be utilized for rare earth exploration. All right, my next question is since your total investment is around INR 995 crore, how are you planning to deploy these funds? Yeah, these funds we have parted in various instruments, which has been explained. The safer instruments, and considering the liquidity and safer instruments, various investments. It has been deployed. Aren't you planning any further acquisition or any further a cquisition [data] that I'm talking about? As of now, there is nothing on the horizon. However, if anything turns up, naturally everyone will be informed about it. All right, thank you so much. Thank you very much, ladies and gentlemen. That was the last question. I now hand the conference over to the management for closing comments. Thank you. Over to you, sir. I would like to thank you all for joining this call and for your continued support. We are encouraged by the steady momentum across both our gear and MHE diversity. We remain committed to consistent execution, prudent capital allocation, focusing on high growth segments positions us well for sustained performance. We remain confident in our ability to build on this momentum, strengthen our market leadership, and continue delivering value to our stakeholders. We will continue to focus on maximizing value. Thank you once again for your participation and trust in us. Should you have any further queries, please feel free to reach out to our CFO Mr. Narasimhan Raghunathan. Thank you and have a great evening. Thank you all. Thank you very much on behalf of Emkay Global Financial Services Limited. That concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.