Signpost India Limited (SIGNPOST) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Q2 and H1 FY27 Earnings Conference Call of Signpost India Limited. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. 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 this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. From the management, today we have on call with us, Mr. Sripad Ashtiakar, Managing Director. I now hand the conference over to Mr. Shripal Ashtekar, Managing Director of Science Post India Limited. Thank you, and over to you, sir.

Thank you so much, Shuda. Good afternoon, everyone. Thank you, each one of you, for joining us for the Signpost India earning call for the second quarter and first half of 2027. I would begin with a brief review of first half of the fiscal year, before turning to what I believe in this more significant story. The business we have built over the past years, and what sets it apart in Indian out-of-home media space. Our first half performance was more or less influenced by two external factors. The timing of the festive calendar this year and major approach to spend among Multinational or global clients. As the Navaratri began on 11th of October this year, vis-a-vis 22nd September last year, that moved a significant share of budget or wallet to the Q3 of this year. At the same time, the multinational and the large corporate advertisers were careful because of the global scenarios. And the cost of fuel, which has challenging most of the consumers to sustain with their second quarter budgets. That was filled most with the agency-led businesses, which are more aligned businesses or intermediaries, which connects with us as a business partner. At Headwinds, revenue from the half-year has grown by 6%. The number 286.8 crore is what we achieved. 11% to 34.5 crores. Operating cash, which was a struggle, now has tripled to 61.4 crore of greater significance. However, in this direction in which the business is moving, our core strength of digital media now accounts for one-third of our revenue, compared with a quarter or a year ago. So, the direct adult has a relationship. By Syed Arafat and a team, for about last three quarters has grown. Together, this shift makes our revenue more measurable, more sustainable, more durable, and less reliant on the intermediaries businesses. As you all know, our listing journey started in 2024. We were present in around four to eight cities. Today, our footprint has grown beyond 30 cities. Over the same period, the share of digital in our revenue has grown from 19% to 26% in 2026, and now it is accounting in this year around 34%. Long Tim. Transitions across multiple transit plus multiple media covered under out-of-home advertising, which are mostly the street furniture projects or the projects which are consumer convenience around. We have upgraded our long-term rating, and first time Signpost India has qualified for an A family, which is A- stable, is still for recognition of our improving cash generation and balance sheet discipline. Inventory is only part of the story. Expanding inventory is not in itself a differentiator. What sets Signports India apart is that we are building a company at the intersection of three disciplines, which is media, with the accuracy of technology and bridging the culture of every region. The third part, which is about the culture. This is the new thing which we added and we analyzed in last quarter. When we talk about media, technology, and culture, our three strategic pillars for Science Post India, media remains our foundation for communication, for interaction, and as we operate around 10,000-plus display points across the mentioned cities, Good morning, everyone. Long-term tenure, and the space is, as advertising writes, where urban India works, shops, travel, and spends its leisure time. So normally we caption it under WEST, which is Work, Entertainment, Shopping, and Transit. Technology is what makes the media measurable, in turn more valuable. Our proprietary planning proof of display platform, which is growing with the AI learning, gives the internal teams plus the external stakeholders as a verified record of what ran, how it has performed, why, which every answer is taken as a learning, and model has been improved even by the advertisers. Recently, we launched a project in Bangalore. With the existing contract at Majestic Metro Station, here we introduce what we believe in India's, I would say, India's first experience of experiential advertising, which is beyond out-of-home advertising, which I'll explain you further. The culture is the newest dimension of our business, and the one that I would like to dwell. As people do not walk to our media or on the panels to look for advertising, they come there for a purpose, for their day journey. When they encounter something genuinely striking in the public space, which enhances the value of public space itself, however, they carry We experience with them, because as we experience in Majestic Metro Station, Tricrate, with the normal advertising, with the experiential advertising, has humongous traction in all the mediums, which we call as UGC. So they carry the experience, they photograph it, they film it, they upload on their social handle, personal handle, the news media, or the newsprint media, or the magazines, everyone covering that space because people are encouraging that this is what we were looking for. The search has grown, which is an out-of-home advertising, basically a model, but has multiply effect or a domino effect with multiple mediums. Our objective is to make public spaces more open, more breathable, more clutter-free, which creates a memory for the consumer or for the commuter. It gives a brand a meaningful role in the life of a city, rather than merely a presence on its walls or on the panels. We applied this approach in two projects very recently, in Calcutta Park Street project and Bangalore Metro Station project, which I have described I have heard it in short. In both the responses, we felt very encouraging and collaborative approach even by the civic authorities and even by the brands, because they saw a significant change of way of communication without imposing anything on any computer or a consumer. This has significantly exceeded our expectations on the model what we always talked about, which is the asset-like model. Which I'll explain you further. When we connect the culture in action, the case study for Calcutta and Bangalore, which will be coming up by December, with the numbers and with the learnings and with the brand testimonials, plus whatever, we have learned out of it. But overall, with the team, internal team assessment, the first project I would like to talk about, which is Aphekya Ashoma, which is a Durga Puja corridor. This is the first time in the history of Park Street, Calcutta. We got lucky that our contact started this year, and this year is the first Durga Puja happened in that geography of Calcutta. Under our exclusive concession rights around Park Street, or Kamak Street, or Chaurangi, or the area which we covered connecting the flyovers of Ma Flyover. We synchronized multiple formats, including technology-driven, static, and overall, we treated it as a funnel or a tunnel to decorate it, to add value as a carnival and the communication around the carnival, not about the product much, which has integrated approach for every stakeholder and enabled the brand. to own the visitor's entire journey throughout the festival. It was a clutter-free environment, and advertisers including, like, Lloyd's, then a two-wheeler brand, or a lifestyle retail brand. Over the festival period, the corridor generated, surprisingly, between a fifth or nearly a third of our Calcutta branch revenue, which is typically annual revenue. Within that 10-day space. The second project is at Majestic Canvaas in Bangalore, which is at Nagaprabhu Kempegavada Majestic Metro Station, which is a hub point for the Bangalore city. It culminates all the intercity buses plus station plus metro. Majestic Canva, if you Google or if you check with somebody in Bangalore, it has got a humongous footfall every hour, in every day of the week. It is not morning, evening, or the pattern which we see in Bombay or in some part of the country. Here we owned the funnel of around 16,000 square feet platform area, where we decorated, symbolized every part of that tunnel. We used Japanese technology, which is beyond 8K, which is a 20K projection mapping. It is a permanent projection mapping, first time ever any media owner or a stakeholder in the asset business has ever experienced. Here we seeded a story of, or a history of Bangalore through a... A project called Tune to Life. Without a civil modification or any structural modification on the... In the platform area, we hosted a curated event which has been participated by art lovers, historians, the civic body heads. And the installation quickly become part of Bangalore's public conversation. Bangalore Metro Rail Corporation Limited has since agreed to permit such projects, which are advertising-driven, but connecting with the community-led public spaces where we add art, culture, and the celebration moment what a city is lacking for. Within a month of launch, So here would be the right guy to tell you, but around 20 plus brands has invested on that asset, which includes Flipkart, IKEA, Apollo Hospital, TVS, GE, then couple of lifestyle brands, then real estate. Not, we are talking about creating an event. The city already owns, because people are visiting that location not for our event. We are becoming their part of life during the journey. The public spaces have always held our stories. A station concourse or a street corner or a pandal or a food park street, people gathered, waited, prayed, and celebrated these places long before any brand has arrived or we have arrived. We do not build events on top of them. We give and stitch the ideation and story as a voice. That is why Stolen to Life woke Karnataka's mythical life inside the walls of Majestic Metro. That is why Aphekha Achima spoke to Calcutta in the language of longing every Bengali home known. Neither was staged for any audience. The audience was already there. We gave them something worth carrying home. This is a connected O which brings the media to life. Every single day, when technology meets public space, the wall becomes storyteller, the street becomes a stage. This is what Science Force India's vision statement is about Science for Tomorrow. A community-led gathering with purpose, a story they recognize as their own, and a brand woman into it, not stuck onto it. The moment does not stay where it happened. A mother's call from Park Street reached New Jersey, because when you see something great in your birthplace or a place where you are celebrating, it is a very natural moment for sharing the moment on the Instagram or on the WhatsApp with the community, with the friends, with the family. So we have seen a clear-cut direction where people have taken the moment on their smart device. And connected Park Street to New Jersey, or even in Chantiniketan, or even in Guwahati, or even in Delhi, which has been carried by the people who felt it is something to share with. As I mentioned, it was covered by news channels, social media, influencers. Print has given dedicated space for attempting this first time in Calcutta. So, no media plan bought. Here, by the CMO or by a brand, it is only an out-of-home space, which has triggered all this trend-setting journey. The community chose to make it. This is why every CMO is chasing the communication that further travels without a seeding, without a spend, without a performance marketing, and the plan across the geographies with the trust of the community behind it. When one medium becomes a connected multimedia user-generated platform, the brand stops renting attention and start earning belonging. Now, these two experiences are the same. Our format... But the story never does. What I mean to say is that the formats of what we are talking about will be repeated on multiple. It will not be repeated. There will be something new which is relevant to the commuter, relevant to the season, relevant to the... The creators, the cultural voices, the technology are the right partners with us. That's why we could complete these projects within a timeline and experience the great learning plus the revenue model. Here we say the city were gathered. This is on enhancing the city and connecting communities. We do not operate within religious or sporting or... Responsibility ends at the gate of the celebration. By March, we expect to have similar two, three editions, which are culture-led projects in Mumbai or in Bangalore or in Calcutta, within our existing sign contracts, which we are quantifying that this opportunity today, what we have learned, Plus this couple of more, which will be coming in this quarter and next quarter, when we can announce our third quarter results, we intend to share the contribution the Vertical has made so far and what is the capability to grow at a faster pace. Because here I wanted to make you understand we are not adding any burden of payout on us. We are utilizing the same space by adding more smarter projects. We are outgrowing the opportunity to reach multiple branch, multiple city gatherings. Endure this baton to Syed Hasivarafat, our Chief Business Officer, to take you through the operational and recent performances of the company. Thank you. Over to you, Syed.

Thank you, Shri Puchat, and good evening, everyone. I will begin with three areas of our business. The evolution of our client portfolio, progress in activating our newly won assets, And our plans to enhance yield from the assets we already have. I will then take you through our financial performance. So like I said, let's begin with the client portfolio. It has been a more focused, more higher value-based approach. In our previous calls, we outlined our intent to deepen direct relationship with advertisers and move away from low-yield, fragmented bookings. The first half of this year demonstrates this execution at par. Within our direct channel of owned media, which excludes agency-aligned accounts and traded media, revenue grew 76% year-on-year in the first half. Over the same period, we deliberately reduced the number of active billers, active direct billers, by 35%, that is, from 347 to 226, while the average revenue per biller rose approximately by 170%. This demonstrates quality over quantity. This performance was underpinned by developments across two client segments, the regional and MSME clients. The number of billers in this category declined from 269 to 155, yet the revenue from this segment more than doubled, raising 118% and revenue per biller in this category nearly quadrupled in the same period. This reflects a deliberate decision to discontinue about single-site rentals, not a loss of customers. Regional advertisers now purchase coordinated packages across our bus shelter networks, metro panels, and bus seats, covering an entire route or cluster rather than a single inventory or a single localized purchase, which has a lesser ticket value. In the second category, we have corporate enterprise clients who align with our nationally aligned media plans. This base remained broadly stable at 71 active clients against 78 a year ago, while revenue grew 40% and revenue per client rose 54% in the corporate enterprise clients category. This was led by multi-quarter commitments from anchor client lists such as Amul, Dheema Jewelers, Awada Solar, Shredam Properties, who provide greater revenue visibility and more consistent occupancy across seasons, giving us a clear hold on our revenue visibility. The benefits are threefold. A smaller number of larger accounts lowers our servicing, workload, and invoicing costs. A billing mix weighted towards established corporate carries a lower credit risk because of the hygiene of the payment cycles. And as our network expands, longstanding relationships with brands such as Amul and Hyundai give a scope to increase our share of their spend across multiple cities and across multi-formats that we are actually right now owning and going ahead, we will be expanding. The next point I would like to highlight is the asset activation. Monetizing the revenue on what we already own. Several of our recent contracts, one, are already generating revenue while implementation continues. For example, our Bangalore metro network. Approximately 50% of the assets have been activated. Installation speed on the operational transit infrastructure is limited to a window of about 4 hours every night, which is basically due to the high traffic of the metro trains, and we get to work only at post-operational hours, which is about 12 a.m. to 4 a.m., which decides the pace of the rollout. Given that we have already covered 50% of the insulation, Capacity, we are confident of reaching 75% to 100% of the activation by end of March. Similarly, in Kolkata, 40% to 45% of the streetscape media is live and already generating revenue. With early earnings boosted by strong Durga Puja bookings like Shriputsar just pointed out in October, we expect to complete the project by March. This has a clear bearing on our revenue trajectory. A substantial portion of the revenue we have already secured is yet to be fully monetized. As activation increases, revenue from these assets should rise accordingly, without the need of new concessions. The next aspect is enhancing yield from existing sites. The third level is the upgrade of sites already in our portfolio. Our project team has prioritized these upgrades into three groups, and we plan to complete the first highest priority group before March. The upgrades include digital and technology-led formats that allow both existing and new advertisers to do more at the same site. By way of example, we have held a site at the major junction in Bangalore called the Corporation Junction. For about 10 years. As a conventional format, it currently generates about 33 lakhs a month. Following the upgrade, we expect its revenue potential to increase substantially. Now, this multiplied and applied across the portfolio, this is how we intend to raise yield per square feet without adding capital-intensive new assets. Now, let me take you through our consolidated financial performance for the second quarter and the first half of FY27. Before I discuss the results, I would like to draw your attention to one change in accounting policy. With effects from 1st April 2026, we have changed our method of depreciation on property, plant, and equipment from the return-down value method to the straight-line method over the balance useful life prescribed under Companies Act 2013. As a result, depreciation for the current year is not directly comparable with the corresponding periods of FY26, and I will highlight its effect, the relevant. Turning first to the second quarter, revenue from operations stood at Rs. 134.5 crore compared with Rs. 134 crore in the corresponding quarter of last year. Within this, digital revenue grew by 38% and revenue from direct clients grew by 44%. Gross profit was 51.6 crore at a margin of 38.3 against 41.4 a year earlier. Cost of services, which largely comprises fixed fees on long-tenure media rights, rose 6% to Rs. 83 crore with the addition of new transit assets. As these costs do not vary within quarterly billings, the margins narrowed as revenue shifted into the third quarter. Coming to the employee costs, which rose to Rs. 17.9 crore from 11.2 crore, reflecting annual increments and strategic hiring ahead of our next phase of growth. Other expenses declined 7% to Rs. 9.2 crore. EBITDA at the same time stood at Rs. 28.4 crore, with a margin at 21.1%. Depreciation was Rs. 6.1 crore against Rs. 9.8 crore, primarily reflecting the change in method. Finance cost was Rs. 4 crore against Rs. 3.2 crore, and profit before tax stood at Rs. 19.7 crore. With a tax expense of Rs. 3.9 crore against Rs. 6.9 crore, profit after tax was Rs. 15.8 crore at a margin of 11.7%. In line with the previous year, earnings for shares stood at Rs. 2.96. When turning to the first half of FY27, revenue from operations grew 6% to Rs. 286.8 crore, gross profit rose 2% to Rs. 110.4 crore at a margin of 38.5%. Operating EBITDA was Rs. 62.8 crore at a margin of 21.9% against 24.4% in the first half of last year. Depreciation for the first half was Rs. 11.6 crore against 19.1 crore, again reflecting the change in method. Profit before tax rose 6% to Rs.45.3 crore, while profit after tax rose 11% to Rs.34.5 crore, representing a margin of 12%. Earnings per share increased from Rs.6.45 from Rs.5.79. Now, turning to our cash flow and balance sheet, cash generated from operations tripled to Rs. 61.4 crore in the first half from 20.1 crore a year earlier. This improvement was driven by the working capital. In the first half of last year, working capital absorbed about Rs. 47 crore, whereas this year it was neutral. Trade receivables declined by Rs. 44.2 crore. to Rs. 273 crore. Trade receivables declined by Rs. 44.2 crore to Rs. 273.1 crore, and part of these collections was used to reduce supplier payables. The steps we outlined in our last call to streamline multi-city billing and approvals are beginning to deliver those results, as seen here. Capital investment during the first half amounted to Rs. 48 crore, directed mainly at new transit media assets and funded through internal occurrence. Fund-based debt stood at Rs. 195 crore, broadly unchanged from Rs. 196.1 crore in March, and our debt-to-equity ratio improved to 0.16x from 0.68x. Cash and bank balances increased to Rs. 35.3 crore from Rs. 24.24 crore, and net worth stood at Rs. 321 crore as on 30th September 2026. In April, Crystal Ratings upgraded our long-term rating to A- stable, alongside a short-term rating of A2+. With that, I would like to hand back to Shippa Sir for closing remarks on the business outlook.

Thank you so much. As we move into the second half, we are very much encouraged by the momentum. The recent festival time has started, building across the businesses. The second half is supported by several clear drivers. The full festive season falls in third quarter. Projects in multiple cities continue to ramp up by progressing toward completion by March, what Sajir has mentioned. The first group of sites which requires upgrade will be completed by March, which will add value on the current revenue model. Then the Marky projects will be commencing. In February, supporting the fourth quarter, extending into the first quarter of 2028. In addition, we expect two, three new culture-led projects to underway in multiple cities, as I mentioned earlier. Overall, we understand the business. Overall, we know what we are operating. Every team member It's confident of delivering what we committed earlier, which is a double-digit revenue growth in 27, with a stronger second half in both revenue as well as the profitability. To conclude, let me return to the larger picture, which I outlined at the start. Over the past three years, Signpost has expanded from few cities to multiple cities. And more mature and quality-based clients. Longer relationship, direct relationship, less dependencies on intermediaries. And we are now adding the third dimension, which I mentioned and we are very enthusiastic about the cultural model for the public spaces, which will transform our asset-led model on the experiential side that every citizen, every stakeholder values for and looking for. We believe this combination of media, technology, and culture is distinctive in Indian markets, and we look forward to demonstrate what it can deliver in quarters ahead. As we approach the biggest festival of India for the consumers, which is Diwali, and for all of us, including our families, I would like to extend my warmest wishes to each of you. And your families for a joyous, prosperous festive season. Let the Diwali be more green and more wholesome for everyone to enjoy. Thank you so much. Now, we can open the floor for Q&A.

Sure, sir. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on the touch-toe telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Zaki Naseer from Naseer Investment. Please proceed.

Sir, good afternoon and congratulations on a very strong set of numbers considering the festival has shifted for a few weeks. Sir, my questions would be three, sir. Number one is we've got now 10,000 plus display points. I think the growth in profitability from here would be how you monetize each other or milk each asset to the maximum. What are your thoughts and how would Signpost go about doing this?

Thank you, Nasir Ji, and welcome to Q&A. So, when we talk about the operational assets, what we are live with the company over the period of time, the profitability expansion is more of a growing the relationship with the longer-tenure clients, Part A, which Sahyad was mentioning about, like Amol or multiple, Hyundai, Vijar. Which are driving the assets on a long-term basis. So engaging more such brands which is on the plate of business theme. Now the second part which I explained which is a project theme which grows the capability of the same asset by adding either a technology or by a smart investment in terms of a static display. Because only digital cannot work. It has to have a multiple thought around to grow the asset without increasing any cost on it. That is a part B. So one is the business, second is the project. And third one is what we are talking about, which is creating a premier iconic experiences, which will outgrow the performance of both. The way we look at the profitability to grow, apart from the conventional growth of 4, 5, 6 percent, which happens in the leasing or overall rental model.

Next would be, sir, we had last quarter, you had mentioned that in the next three quarters, you will get the receivable cycle under control. Is this progressing as per your satisfaction, sir?

Not as per my satisfaction, because still we are at around 174 or 172 from 201. But efforts are in the right direction. We are not leaving any stone by using a tool of legal barrier or legal procedure. It is more of a matured conversation, the shortfall of documents or proof of displays or disputes to get resolved, which is a documentation issue. And we are looking forward about what we have committed to achieve by March.

And my third question would be your thoughts on the geographical spread of our company, sir, and especially with a bit of insight into your partnership with BPHP, because these are very interesting partnerships. So our geographical spread or thoughts on geographical spread with a special emphasis on these relationships, sir.

As I explained to you, We cannot compare it like a west, south, north, east. For example, if we do something around Kamakya for the festival, where we have already have a contract with IOC. I am saying we are looking at the proposition which are more pin code level or a DG pin code level, where we vertically build the business on the current asset and grow business there. Because quantity will not help us to build the business of more profitability and sustainability. Definitely growing and controlling more of a regulated market in multiple urban cities will help us to grow, which we are putting our effort. So, we see the geography around signpost businesses. Ideally, we should look at the trigger points where we see the gatherings happening and why and how we can connect with them. For example, we have a Kaban Park station.

Thank you, sir. And wishing you all a very happy day while you are at Signpost and looking forward to a lasting second half, sir. Thank you.

Thank you. Thank you, thank you, Mataji.

Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your questions to two per participant. Thank you. The next question is from the line of Krish Jain from NAFA Asset Managers. Please proceed.

Yeah, hi, good afternoon. So my first question will be around the FY27 revenue and EBITDA guidance. So earlier you had guided for 20% revenue guidance in the earlier call, but right now it says double digits. Am I reading it right that, you know, the guidance has come down a little. And even on the EBITDA margin guidance side, the earlier mentioned number was 25 to 27% and H1 the number is 22%. I understand because you know you have fixed on contacts and revenue has moved to the move to Q3 because of the festive season. Is that guide still intact? That is my first question.

I will start with your second also.

Second is regarding the square feet you have across transit space transit area and digital and static media and what was the utilization of it in H1.

As far as the second question, Occupancy of the asset, which is an internal number. It is about the capability building. It is about quantifying the asset as an iconic asset or a non-iconic asset. Suppose if I have an asset in Mumbai airport, Right on the platform. Understand my limitation. It is nothing to hide, but to understand the model of business. It is not a hospitality business that I have 20 rooms luxury, 10 rooms ultra-luxury, or 50 rooms standard, and I calculate everything as a measurement tool.

Okay, got it, sir. I understand your perspective as well. I have a few other questions. I'll just get back to you.

Thank you. The next question is from the line of Madhur Rathi from Counter-Cyclical Investments. Please go ahead.

Sir, thank you for the opportunity. Sir, I have two questions. So firstly, on the receivable part, so the target 120-day receivable day, so when can we expect to achieve the same? And sir, with two of the strategies that we are following, one is the direct billing. How does a receivable cycle lower in terms of direct billing that has grown 76% YOY and H1, as you mentioned? And with the fewer customer, but higher value customers, how does that shift? If you can help us understand on that. And so second question was on the Nagpur airport order that we have received. So what is the status of that? And when can we expect to operationalize the same? And so I also understand that the Nagpur airport...

Madhurji, I think you are in a one question, you are asking seven questions. I will not be able to answer it. We're treated to two.

Yes, sir. So, firstly, on the receivable days, if you can help us understand when can we expect to achieve the 120-day and with the two strategies that we are following, how should a receivable day move going forward?

Yeah, that is one question. Second.

The second one was on the Nagpur airport. What is the status of that project? And, sir, what I have read is that Nagpur airport is itself expanding from what it was earlier, sir. So how does the scope of work improve for a signpost India, if you can help us understand? Sir, that was the two questions from mine. Thank you so much.

Thank you. Thank you, Madhuji. So, the first question about the cycle of collection, which I mentioned, I am not very comfortable with the numbers what we have achieved from 201 to 174, but coming back to the commitment what we are internally committed with each one of us to achieve the 128 cycle by March 2027, which will be around that we will be able to achieve either the numbers what. I have said around 120 or even better than that, because overall the relationship what we are driving are fetching the better numbers. Some of the old legacy has driven this number what we are seeing, so we will be able to around catch the number what we discussed earlier and commit today also about the same. Secondly, about the Dr. Babasai Bambedkar International Airport at Nagpur. has been privatized, and now we But you need to understand the quality of traffic, the connectivity will start growing once the phase one or phase, the first phase one is completed. So if suppose we are operating at around 50 flights per day, unless or until we grow it by substantial number, there won't be any expectation by the brand to expand its investment in Nagpur. We are not into a business of F&B or a parking. Suppose, if flights are increased, my revenue will start increasing. It is about the quality of traffic. Why? When? So, if we are talking about F&B or parking, then we can say, if we have a B-side, we have additional traffic, so F&B will grow and the parking will grow. We are not into a consumption model, we are more into a point-of-interest model where people spend...

Thank you so much.

Thank you. I request to all participants, please restrict your questions to one question per participant. For more questions, please rejoin the queue. The next question is from the line of Fikas Mehta from Glasswall Capital. Please proceed.

Thanks for the opportunity. Sir, thanks very much for the very elaborate address, clear up a lot of things. My main question is we've had really iconic projects in terms of Bangalore Metro, Kolkata, streetscaping over the last one year, and it looks like we are set up for a fantastic FI28 in terms of revenue growth and margins as well, given all of these we will get monetized next year. My major question is, are we seeing the pipeline of such large, iconic projects? Over the last six to nine months, so that, you know, we win them and obviously there's going to be a lot of investment for FI28 and beyond. We're not just looking at one year. We just wanted to understand your pipeline, not in terms of names or whatever it is, because it's confidential, but how confident are you of large, iconic project wins as we go ahead in the next. Anymore or...

So, as far as the new pipeline or the projects which we are evaluating and are in a mature discussion, which are more into the cities which we are present currently, and growing there vertically will be the better positioning. Plus, there are a couple of opportunities which we are evaluating, which could drive. or build the bigger businesses what we have gone or recently won. So overall, we are qualifying the project which connects to our model which is about the longevity plus the quality of commuters plus the open policy of the authority. Because we don't want to get into any landlord-tenant situation, we grow with our experience and we contribute to the society and the government, that is what we are looking at, and currently we are in a stronger negotiation discussion about almost... By the March.

Thank you. The next question is from the line of Kumar Saurabh from Scientific Investing. Please proceed.

Hello, sir. My question is around the lumpiness of the business. So, point understandable that we have to look at the business on a yearly basis. But if I look like last year, from March to June to September, revenue increased. And this year, it's decreasing. So, there is some bit of lumpiness. If you can explain the reason for this lumpiness, why it happens, and at an annual level, what gives us confidence of, you know, delivering the growth we are in messaging?

Yeah, hey. The word word you are using is the right word because overall if you see the number of growth what has come in last two years or three years, then how we see a quarter by quarter? There are multiple third party or beyond our control reasonable contributors, which is about a war situation, which is about a market, which is about So, overall, this word for our balance sheet doesn't stand. We are delivering what we have committed over year and year. There might be a measurement analysis as a statistician for a quarter to analyze. The pattern what you see across the years are It's about themselves.

The next question is from the line of Hitesh from Koshia Capital. Please proceed.

Hi, thank you for the opportunity. So, my first question is on this BMRC project, the Pango Metro project. Could you just share if the entire licensing fee associated with this project is a part of Are Q1, Q2, P&L, or is the fee linked to the number of stations that gets activated? How is it, if you can share that? That's the first question.

What we have to operate our assets is the asset implementation. The fees which is connected to the contract is fully covered in quarter one, quarter two, in spite of the number of assets that has been activated because we got the time of gestation period which you can go through an open document which was there with us. Okay, sure.

So there's a sizable cost which is sitting on the books, which is where the station activation is yet to happen. It will happen over the next two quarters.

I don't think so. I don't think so. Because we are focusing on more of a quality over a quantity. So if I say... It covers my premium iconic 20-30%. 50% is the filler one or the one.

Got it. No, no, completely understand. And so my second question is with regard to this cultural campaign.

I want to interrupt you, Mr. Hitesh, but can you please rejoin the queue? Thank you. The next question is from the line of Vishal Prasad from Rajmahal Capital. Please go ahead.

Yeah, thank you. So Shrikaji, as I am asking the question, because I have a lot and probably I will not be able to ask. As a shareholder, I wanted to give a feedback. This is our second call, and you kept your promise to conduct these quarterly calls, and thank you for that. However, since you are not an IT or FMCG business with many listed peers, you are a unique company and hence difficult to understand. But when I...

That is your and my problem. Just resolve. Collectively.

So, but when I look at the previous call as well as the current call, last call management spent 25 minutes providing the details, and this call it was 40 minutes, and the total call duration last time was one hour. So, we as an investor, as well as an analyst, we got 30-40 minutes to ask questions, and there's a lot of people who are cut down after they ask one question. So, my request to the management would be, there are different set of managements in India, some will end the call in 15 minutes, some will end in 19 minutes, and some will allow people to ask questions till they are done. So, it will take three, four calls for us to get asked whatever we want to ask to give the clarification. If you could consider having a longish call so that we understand the business. Numbers is okay. Numbers you provide in the BPT, numbers you provide in all the disclosures. But the quality of business, where we are moving, how the contracts work, how BMRCL contracts work, I don't understand it. So, that's a feedback from my side. You can consider it or you can reject it.

We can do offline with the management team or whoever is available as a mutual convenience to connect on the more elaborated call through HDA request and I think it will help you to understand more better. But overall, as a company of communication, you might have learned The business of television or radio or... Here, we are talking about an asset, which is a physical asset, which has got its importance and qualifications because of the longer-tenure commitment by the city authority. Then how FineCoast has been always the flag-holder while attempting for a newer technology, including In the digital in India, or last mile connectivity in India. For this, what projection mapping we've added, or the experiential what we added, so you need to compare it with the relevance of the competition, not with the, because from the day one, I'm trying to convey that we are not a billboard company. We are a media tech company, which attempt to connect with the spaces where city gather, where city travel, and over and above, understanding about a contract, it is an open door. For anyone to dwell with, to read, understand the obligation what we have, what the authority has. I don't see anything which... Suppose if you are talking about a leasing business, yeah, we are in leasing business. If you are in infrastructure, yeah, we create infrastructure for it. Thank you. If I meet an advocate, suppose, or a doctor, normally he understands my problem very easily and gives me a solution. As an analyst, I don't understand what the relevant question you could ask me, what is going to trigger your balance sheet. What is stopping you? It is a time which requires to mature. It is not the ticket I am selling. It is a brand who is investing in me.

Shrippaji, the problem is not from your side. We need to ask questions, and multiple questions, and probably by the end of it, we will understand it. It's not that you are not communicating, you are communicating in the perfect manner. There's a lot of details that we have provided. So, I'm not saying that the problem is in terms of communication, or there is some complexity in the business, but I need to ask...

Sorry to interrupt you, Mr. Prasad, but can you please rejoin the queue?

So, I think the earning calls that have started now will mature the discussion over the time, and people will, on a larger platform, will understand faster.

Sir, he has left the queue. Now, I am taking the next question from the line of Krish Jain from NAFA Asset Managers. Please go ahead.

Actually, all my questions are answered. So, actually, I'll get out of here. Thank you.

Thank you, please.

Thank you.

Okay, thank you. Thank you, everyone. Wish you...

Thank you very much.

Happy Diwali. Thank you so much.

Thank you very much. On behalf of FinePost India Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you, everyone.