Black Box Limited (BBOX) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Q1 FY27 Earnings Conference Call of Blackbox Ltd. 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 do not guarantee the future performance of the company and may involve risks 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. I now hand the conference over to Mr. Sanjeev Verma, Whole-Time Director and CEO of Blackbox Limited. Thank you, and over to you, sir.

Good morning, everyone, and thank you for joining us today. On behalf of Black Box Limited, I extend a warm welcome to all of you to our Q1 FY27 Earnings Conference call. I'll begin by sharing an overview of our business performance, the evolving industry landscape, and the strategic progress we have made during the quarter. After which, our CFO, Mr. Deepak Bansal, will take you through the financial highlights in greater detail. A couple of months ago, during our Capital Markets Day, we shared an important milestone in BlackRock's journey. We spoke about how the transformation that we embarked upon over the last several years had largely been completed, and that the next phase of our journey would be centered around growth. As I reflect on the first quarter of FY27, I am pleased to say that we have made a strong start on both fronts, financially and operationally, reinforcing our confidence in the road ahead. Financially, we have delivered our highest ever quarterly revenue. Supported by improved execution of the rising order backlog and the contribution from our recently acquired Brazilian entity, 2S. The quarter also saw our order bookings of U.S. dollars $339 million taking our order backlog to a record of approximately $950 million, up 83% year-on-year, And providing... Strong visibility for future growth. Equally important, we made significant operational progress during the quarter, adding a new global hyperscaler in the United States through a U.S. dollar 131 million, but 1,240 crores order, while continuing to deepen our relationship with our existing hyperscalers. These wins are a strong validation of the capabilities and scale we have built. I'm proud to say that Blackbox is the only India-origin digital infrastructure solutions company currently executing gigawatt-scale data center programs, demonstrating the scale of capabilities it has built to participate in accelerating global AI infrastructure build-out. To understand in detail why we are increasingly confident about our long-term outlook, it is also useful to step back and look at the broader technology landscape because what we are witnessing today is far bigger than a normal technology cycle. We are in the midst of one of the largest digital infrastructure investment cycles in history. This is not a short-term trend driven by single technology. Rather, it is a structural transformation powered by artificial intelligence, cloud computing, networking, cybersecurity, and next-generation digital infrastructure that is expected to reshape industries and economies over the coming decade. Industry estimates continue to move higher, according to Gartner's article published in July. Global enterprise technology spending is expected to exceed U.S. $6.4 trillion, up 14.2% year-on-year, including $822 billion on data center systems alone, a whopping increase of 62.5% year-on-year. At the same time, leading hyperscalers, including Google, has increased its budget to US$190 to $205 billion. For FY26, in its current earnings, released in July, double from last year, and so have other large players followed suit. Within this landscape, Blackbox participates across nearly U.S. dollar 250 to 300 billion of addressable opportunities spanning data centers, enterprise networking, connectivity infrastructure, cybersecurity, managed services, digital workplace solutions. Importantly, the majority of this spending is occurring in markets where we already have strong positions, particularly in the United States, where nearly 60% to 70% of spending is targeted. What makes this investment cycle particularly compelling is the convergence of multiple long-term technology trends. AI workloads are driving unprecedented demand for compute capacity. Enterprise networks are being modernized through high-speed connectivity, edge computing, private 5G, Wi-Fi 7. At the same time, cybersecurity has become increasingly mission critical as organizations strengthen digital resilience. These trends are creating sustained demand across the very capabilities that Blackbox has been building over many years. Today, Blackbox participates across a sizable addressable market spanning data center, enterprise networking, connected buildings, cybersecurity, managed services, and digital workplace solutions. More importantly, a significant portion of this investment is taking place in markets where we already have deep customer relationships, particularly in the United States, where we continue to maintain a strong presence. However, the size of the opportunity alone is not enough. Success in this market increasingly depends on the ability to execute at scale. And hyperscale projects become larger and more complex. Customers increasingly prioritize execution capability, scale experience, and the ability to mobilize skilled resources quickly across multiple locations. Winning these engagements is no longer simply about offering at the lowest price. It is about demonstrating consistent execution on mission-critical infrastructure. This is precisely where Blackbox enjoys a meaningful competitive advantage. Over the past several years, we have deliberately invested in strengthening our execution capabilities, expanding our leadership team, and building a global delivery platform that can support large-scale infrastructure programs. We continue to hire and train talent at scale, with plans to on board nearly 2,000 professionals, ensuring that we have the resources required to support our customers' long-term growth plans. These investments create significant barriers to entry and position us favorably as customers increasingly consolidate spending with trusted partners capable of delivering at scale. Equally important is the strength of the customer relationship we have built over the years. We've worked with leading hyperscalers, Fortune 500 enterprises, financial institutions, healthcare organizations, manufacturers, global technology companies across more than 35 countries. Over the years, we have built and become deeply embedded within many of their mission-critical environments, and we believe this trust creates significant opportunity to expand wallet share as customers increase investments in AI-led infrastructure. Alongside strengthening customer relationships, we have also continued to improve the quality of our own business. With the past few quarters, we have consciously rationalized several low-value long-tail customer accounts while increasing our focus on larger strategic enterprise. This approach significantly improves the quality, visibility, and profitability of our revenue base over the long term. Our objective is clear, go deeper with strategic customers rather than simply becoming broader across smaller accounts. This strategy is already translating into increasing business momentum, particularly in one of our most important growth areas. The momentum in our data center business continues to remain particularly encouraging. We continue to see healthy customer demand across AI campuses, hyper-scale infrastructure, enterprise modernization, networking, and managed services. Encouragingly, supply chain conditions have also improved over the last quarter, particularly across cables and fiber, supporting faster project execution and a stronger pace of backlog conversion going forward. Take it together. These developments reinforce our confidence in the long-term roadmap that we have shared during our Capital Markets Day. As we highlighted during our Capital Markets Day, our aspirations to build Blackbox into an $18,000 crore or U.S. $2 billion revenue company by FY30. Around 12,000 crores of this growth is expected to come organically, supported by strong execution, conversion of a robust order backlog, sustained demand for AI-led digital infrastructure, deeper engagement with strategy customers, and improved project integration. The balanced 6,000 crores is expected to come through inorganic growth. Leveraging a proven M&A engine, successful integration track record, and a healthy acquisition pipeline. The recently completed Brazil acquisition, which adds approximately U.S. $50 million in annual revenue, represents another meaningful step toward this objective. This ambition is supported by four growth pillars, hyperscale digital infrastructure, GSA America's growth across India and the rest of the world markets and evolution of our technology product solutions business towards recurring and platform-led revenues. These pillars are reinforced by a strong execution excellence. Overall, the first quarter has further strengthened our conviction that we are well-positioned to execute on this roadmap. We believe FY27 is not the beginning of a journey. It is the beginning of the scaling phase. We enter this year with a stronger business, a healthier balance sheet, expanding customer relationships, and multiple long-term road drivers working in our favor. With that, let me now hand over the call to Deepak, who will take you through the financial performance in greater detail. Thank you.

Thank you, Sunji. And good morning, everyone. Sanjeev has shared our strategic progress and the strong industry fundamentals supporting our business and the tailwind what we have right now. Let me now take you through our financial performance for the first quarter, the operational progress we continue to make and our outlook for the year ahead. Over the last three years, our focus has been on building a business that can scale profitably and sustainably. Our transformation has centered around five priorities. Strengthening the balance sheet, improving profitability, disciplined capital allocation, simplifying operations, and building a scalable operating model. Today, the quality of our business is fundamentally stronger, providing us with a solid platform to capitalize on the opportunities ahead. A key outcome of this transformation has been the improvement in our customer portfolio. As Sanjeev highlighted, we have transitioned from a fragmented customer base to approximately 300 strategic accounts, including hyperscalers, enabling greater wallet share, stronger revenue visibility, and healthier margins. This has significantly improved both the quality and productivity of our revenues. While positioning us to execute larger multi-year engagements. Against this backdrop, we have started FY27 on a particularly strong financial footing. The quarter also includes two months of financial consolidation From our Brazil acquisition to us. Equally encouraging was the improvement in profitability. EBITDA margin expanded by 90 basis points to 9.3%, reflecting operating leverage, a better business mix, disciplined execution, and the benefits of the structural initiatives implemented over the last few years. While we continue to invest in our sales organization, engineering capabilities, and delivery teams, operational efficiencies through our global capability center in Bengaluru, AI-led productivity initiatives, centralized delivery, procurement discipline, and stronger project controls continue to support margin improvement. Our medium-term objective remains to consistently operate at or above a 10% EBITDA margin while maintaining healthy returns on capital. The healthy demand environment that Sanjeev spoke about also continues to translate into a robust order pipeline. Demand across our core businesses also remains healthy. We continue to see strong customer spending across AI-led digital infrastructure, data centers, enterprise networking, managed services, and cybersecurity, giving us confidence in the sustainability of our growth pipeline. From an order book perspective, we continue to witness healthy customer demand. During the quarter, we secured orders worth US$339 million. Our backlog continues to reflect the progress we have made. Since the beginning of our transformation journey, it has increased by 83% to over US$950 million at the end of quarter one of FY27 with a growing share of large multi-year and mission-critical infrastructure programs. The tenure of our data center engagements now ranges between 24 and 36 months, providing strong revenue visibility and improving the predictability of our business. While the industry opportunity is significant, our focus remains on converting that opportunity into profitable growth, healthy margins, strong cash generation, and long-term shareholder value. Cash flow continues to remain a key management priority. For FY27, we expect our operating cash flow to EBITDA conversion to improve meaningfully over FY26, supported by disciplined working capital management. Our capital allocation philosophy also remains unchanged and continues to focus on long-term value creation. We will continue to invest across three priorities, strengthening our people and technology capabilities, supporting the working capital requirements of our growing business, and pursuing selective acquisitions that enhance our capabilities and geographic reach. The acquisition of 2S reflects this disciplined approach. In addition to strengthening our presence in Brazil, it expands our capabilities across networking, cybersecurity, and managed services while providing a strategic platform to participate in the broader Latin American opportunity. As with every acquisition, our focus remains on disciplined integration and realizing long-term synergies. Based on the visibility we have today, we remain confident in our outlook for FY27. Our guidance for FY27 is as follows. Order backlog. We should end on March 31, 2027 at US dollar 1.4 to 1.5 billion dollars, which is a growth of 65 to 75 percent. Order bookings in the year, we should do between 1.3 to 1.4 billion dollars, which is again a growth between 45 to 50 percent. Revenue, we should do between 7,800 to 8,000 crore, which is a growth of 23 to 27 percent. EBITDA, we should do between 700 to 725 crores, which is a growth of 27 to 32%. EBITDA margins will range between 9.3 to 9.4%, which is again up by around 30 to 40 basis points. Profit after tax, we are expecting between 325 to 350 crores, a growth of 38 to 50%. Historically, quarter one has been a relatively softer quarter for black box. We expect stronger revenue conversion and operating leverage in the second half of the fiscal year with this momentum supporting the delivery of the FY27 guidance outlined in our presentation. Assuming normal execution timelines and no significant customer-led delays, we believe this guidance is achievable. Going forward, we will continue to prioritize profitable growth, disciplined capital allocation, operational excellence, and balance sheet strength. Supported by a healthy order backlog, improving customer quality, and favorable industry tailwinds. We remain confident in our growth outlook. Black Box enters this next phase with a stronger financial foundation, a disciplined operating model, and a clear roadmap towards our aspiration of building a US dollar 2 billion business by FY30 while creating a long-term shareholder value. Thank you. And with that, I would now like to hand the call back to the operator to open the floor for questions.

Thank you. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone 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 comes from the line of Deep Shah with 361 capital. Please go ahead.

Yeah, hi. Thanks for the opportunity, and Sanjeev and Deepa Tondra had some great set of numbers. A couple of bookkeeping questions first. If you could highlight the organic revenue growth, given that 2S was there from 1st of May, that is one. Second, so I appreciate the comment that you made in your opening remarks about cash flow improvement. Now, you also explained in the past as to the accelerated investment that we have to make leading to a benign cash flow relative to EBITDA. So, if it gives some more teller as to… Maybe a ballpark figure where you expect this to be or the causes why you expect this to improve, given the order backlog suggests that we will actually have to make a lot more investment this year. And is that assessment correct? So that's second. Third, if I look at our order backlog and say for a moment I extrude projects which would be longer term in nature, I still see a 38% kind of increase in our order backlog if I look at managed services, maintenance, contracts, and products, which is of course very small. So, my question here really is that do you think you are being slightly conservative when you ride on 27 numbers or is it that you are expecting a lot of growth to maybe start in 3Q and 4Q and which is where the numbers will flow in 28? These are my questions. Thank you.

Okay, so I will start taking one by one. So the organic revenue, so out of the total 1,719 crores of revenue we have done for this year, the inorganic, which is that 2S has contributed around 60 crores of revenue. So all the balance revenues are inorganic, sorry, are all organic revenues. So, 60 crores came from the 2S Brazil acquisition because it was like a two-month and first quarter of them, which is basically the June quarter is normally week for them because they are into networking and the Cisco partners and all those things. So, they contributed 60 crores. On the cash flow side of it, so one is that I am talking about the operating cash flow. When I am saying operating cash flow is basically that there will be involvement in the working capital and all those stuff. But from an investment perspective, Our investment in the talent, our investment in the people, and all those things to secure these type of order book and to increase to convert the pipeline into orders and to hiring the, let's say, the best world-class people and all those things. That is largely done. We will continue to obviously hire more people and all those things. But right now, it looks like that from operations, our cash flow will be positive, and then the cycle of the cash flow will automatically pick up with the growth what we are looking at in this year. The order backlog side of it, you are absolutely right, Deep, is that most of the growth is coming up with all the execution of these projects by, let's say, end of the quarter three and quarter four, and it will spill into the next year. So that will go, let's say, the growth will spill into FY28 with the order backlog what we have because, see, a lot of execution is also dependent on the customer. We have received, like, let's say, let's say this order, what we have announced, we have received that order from another hyperscaler. Now, that order, we were, we were talking, we are talking since. So many days, and the real, the work on the ground, the hiring and all those things will start, but the work on the ground will start only from November onwards. So from, and that, and then again, it will scale up. So it is not like that, that you receive the order and you start working tomorrow, because these are not smaller orders, smaller contracts, they are large sites, they are gigawatt plus sites, they are not like smaller sites. So there is a lot of deployment and all those things which happens on that. So because of that, the growth will be growth. When we will project about FY28, you will see that there will be a growth over the current year. Let's say current year, if we grow between 22% to 25%, or let's say around 25%, then the next year growth of FY28 will be over and above those numbers. And that is why it doesn't look like very, very conservative to us in terms of the numbers what we are projecting at between 7,800 to 8,000 crores.

Yeah, this is very clear. So, actually, you answered my follow-up question to the extent that you clearly suggested that the reason this year numbers aren't conservative is that some of the order backlogs or rather a large part of order backlogs would actually flow in 28. Is that assessment correct? I'm just asking for absolute value.

Correct, correct. That is correct. And that is why when you see our order backlog, when we have given a guidance for order backlog, that is, we are saying 1.3 to 1.4 billion. And that is why we will end up with that order backlog. I may say, and probably Sanjeev will add more on that, the order backlog may be a little bit conservative because we will add more orders between, let's say, November, October to March when we will burn these orders what we are getting right now out of the 950. So probably that number may be higher and then we will be having more clarity after when we announce the quarter two results and then we will see that how we can have more clarity and more speaking on that.

Hey, Deepat, thank you so much and all the best.

The next question comes from the line of Vivek Chauraria, an individual investor. Please go ahead. Hi, Sanjeev and Deeper.

Nice to chat with you. I just wanted to touch on the non-data center part of the business because most of the growth that we are talking is coming from that piece. Is the non-data center piece sort of just treading along or are we expecting growth? Or is it a case that we're classifying some orders as a data center? I just wanted some clarity on that.

No, I'll take that. So clearly, the hyperscale cycle is larger at this time. The non-hyperscale enterprise will grow at modest double-digit 10% odd. Combining, we are putting at 25% odd at this time. The cycle for the enterprise wake will follow. The data center infrastructure is not being built to be consumed on its own. The impact of the data center infrastructure would come through a lag when the infrastructure will start to dramatically change downstream airport infrastructure, hospital infrastructure, bank infrastructure. So this is being made for them. This infrastructure is being made for what? We made for drive, efficiency, experience for end users. Like you and me, and our workplaces, right? So we're expecting, we're beefing up, seeing large-scale projects also coming through in our infrastructure on the enterprise side. For example, when we do data center infrastructure for a bank, that's our bank business. That is not a hyperscale gigawatt. That's 10 megawatts, 20 megawatts. Still large. Many years ago, it was 2 megawatts. So it will have that. The entire network infrastructure to connect will change. A case in point, just to give you an example so that you'll understand, if the head end changes, if you were to see a 4K HD video, you need a device downstream that will support that. So if the head end changes, which in this case is a massive infrastructure for data center, the consumption actually, the inference is happening at the end user, passing through an airport, getting into a hospital, going to a consumer store. Ordering food, it is coming, right? So we are bullish on that as well, but it comes to a lag. So a standard double-digit growth in that side, maybe 10%. We are focused on 300 customers, as we have called out, but we are catching the hypercycle on the AI build-out, and we expect that we move forward, that we will see our momentum on the enterprise also catch up with a lag.

Sanji, just a word on the DPS business. I mean, our growth, I mean, our revenues have jumped up, but it's not the EBIT losses. Is it a matter of scale after a point at which we'll start delivering positive numbers?

So, as product business also, we are expecting in the current year to be able to grow in the range of 20-odd percent. It's a matter of scale. We are again narrowed down or focused on only emission-critical infrastructure in that space. We are doing a lot of products. We inherited through historical. So we are now focusing on visualization products for people. I expect the growth this year catching up. But highly accretive, but as we move from there, every dollar that comes in as we move in, Just one last question, Sanjeev.

I mean, the growth that we are projecting in Q2, I mean, the ask for the H2 will be almost like a 30 to 40% growth year-on-year, and even quarter-on-quarter. Are we confident? Because we've been talking about some delays in execution. I mean, what is the confidence that Q3, Q4, we should start attempting?

So no delays on execution from that perspective. Enough backlog coming at the opening of quarter one to push through. The backlog plus the booking goal and the revenue projections, the map will work out. We're expecting to grow each quarter sequentially. Okay, all right. Thank you, Sanjeev.

A reminder to all participants, you may press star and want to ask a question. The next question comes from the line of Nandan Arikat with GM Financial Limited. Please go ahead. Yeah. Hi, team.

Congrats on a great set of numbers. Hello. Am I audible? Yes. Yeah. Congrats, team, on a great set of numbers. My question is on margins. We expect to end the year at 10% EBITDA margin, and I think we have given a guidance of 9.3% to 9.4%. Thank you. So, does that mean maybe Q2, Q3, we'll see, you know, slightly depressed margins, and then we expect the operating levels to kick in? And also, just a thought on what will be the gross margins you're building in for the data center orders?

So, I'll take that. So, I think, yes, I think we have, our goal remains 10%. And over, that's what Deepak called out. So as you look at the overall year, we expect, as you move forward, Q4 to be in that range or more. But we also continuously are looking at, as we scale this business up in the current year, with the order backlog, we are looking to invest in talent and training. We're getting into a very large-scale build-out of multi-billion-dollar backlogs. This project executions also require some investments and training. So we are being cautious on that. But having said that, at scale, we expect that we should be able to deliver at 10 or more. I think it's better to factor in what we are planning to invest and therefore guiding where the budget guided at about 9.4, 9.5 percent at this time. But I think we'll even focus on that to get to 10 percent at scale more than 10 percent.

Got it. That was clear. Okay, on the order backlog, right, so currently I think the blended average, we are delegated around 18 months. So based on your, the pipeline and, you know, what will get executed and what you see coming in in the next quarter, what do you expect, like, the average tenure would be, you know, by the end of this year?

So, the tenure for large-scale projects, Deepak, elevated about 24-36%. I had told earlier, the goal for this year for order booking, and that's showing in our current forecast as well and guidance, is 50% more than the last year ballpark in the range of 1.4, 1.5 billion. So, that's what we are planning to book, and we are well on our track to do that or exceed that this time, right? To an earlier point that Deepak said, some of these orders require pre-planning from when they start to burn into revenues. So, yes, we will end up the year, after you do the calculation of where we opened up and book, and take about 8,000 crores, we'll open up a very, very healthy backlog that will possibly cover the growth for next year, pretty much from the backlog itself. It will be very, very evident. Thank you very much. Yeah, from a data center margin perspective, I think it remains accretive for us at this time. As I said, I think we can move to focus on our operating margin for 10%. At scale, we believe it will be equally accretive, if not better.

So, congrats, and all the rest.

Participants, please press star and want to ask a question. The next question comes from the line of Mohamed Namir with EcoQuantum Solutions. Please go ahead.

Thank you for the opportunity. I have just wanted to give you a question about the tax rate. The tax rate is currently low, and going forward, what will be the tax rate?

So, tax rate currently is lower primarily because of our past operating losses, carry forward operating losses we have in the various geographies. So, tax rate is dependent on the revenue mix on the different geographies and the consumption of the past operating losses in terms of how we consume them. So, at least for next, let's say, next, for FY27 and FY28, I am expecting it to be in the range between 10 to 15%, and after that, it should regularize to around 20% type of levels.

Okay, one more question about the other income part. The other income is negative. Why is it so?

Sorry, what is negative?

Other income. I think other income is negative.

No, it is. It doesn't look negative to me. It is.

Wait, let me look at it. Thank you.

I didn't saw a negative number on the other income. Other income is, other income is 4 crores positive. I don't know. I don't know where they are reading this.

The next question comes from the line of Vivek Seth, an individual investor. Please go ahead.

I thank you for the opportunity. My query is that yesterday you received the order from a hyperscaler AI data center order. So, just wanted to know how much of the order is your integrated products and how much of the part is the service part?

No products. 100% services.

Okay. Thank you so much.

A reminder to all participants, you may press star and want to ask a question. The next question comes from the line of Keshav Bharadia with Walford Financial. Please go ahead.

Hi, sir. Congratulations on a great set of numbers and thank you for the opportunity. So just one question from my side, since a lot of our growth plans hinge on the hyperscaler and data center segment, by any chance that there is some moderation at the hyperscaler's end in terms of data center capex, does that put us at a risk of order cancellations or, you know, do our growth plans change in that scenario?

Good question. So I think the overall scale of spend is gigantic. I think the overall spend for the AI infrastructure over the next four years is about $1.6 trillion, a average $400 billion. And each time some of the hyperscalers come out and announce the results, they add up the capital expenditure. So I think we are taking over a very fairly small slice at this time of that. from our, within our addressable market that we have, right? So we don't see, in our current conversation, the current pipeline, on the contrary, we are seeing speed with respect to new projects getting announced this time. So can something dramatically change? I wouldn't be wanting to predict that. Thank you. But other markets, we have not started to harness the markets in India, which we are planning to do. So I don't see from our perspective. I think we're talking about a massive spend, and to that extent, I think our goals are well set. To fire downstream enterprise spend, because everything around that place will change, be it the network, be it connectivity, and so on and so forth. So we'll possibly get into a cycle of a dual engine starting fiscal 28 and beyond. So this is a structural shift cycle. There's not a technology spend. Just a buying compute. This is how economies will operate. This is about keeping economies ahead. With that, and where we want to play, and what is our goal?

Great, sir. And just to follow up to that, so we see a lot of CAPEX happening in India as well, you know, with the tax holiday and many global hyperscalers also coming here. So have you explored any opportunities here? And as well as is there an opportunity maybe on the semiconductor side, because you see a lot of CAPEX happening here in Southeast Asia as well. So is that potentially a segment we could tap into in the coming years?

Yes, that's a good question again. So, yes, we keep on evaluating the markets and the spend. Of course, India will go through a hyperinvestment cycle. We are seeing that as well. But even if we look at the current buildout, U.S. is currently at 67, around that gigawatt of already being commissioned and used, going to 233. Naturally, from a spend perspective. And that's the advantage for Black Box. So as that goes to mature, we are in Europe at this time in conversation. We are looking at India's potential as well. Clearly, We are clearly glued in, reformatting ourselves to see what we can do in India and the Asia market and so on and so forth. Coming on the semiconductor side, now we are looking at not being a semiconductor manufacturer or builder from a perspective of being a partner on the compute side. We have connectivity. For enterprise customers, hyperscalers are a little different. So, yes, there is an opportunity. the adjacencies, it is adjacent to us. We are evaluating that, but currently focused on where we see hypergrowth and where we're engaged at this time, but clearly from a strategy standpoint, we'll look at adjacencies and overall continuum of what we can do, so we'll evaluate that as well.

Great. And just one last question, if I can put in. So, sir, what would be potentially a distinctive moat between us and our competitors when it comes to bidding for new orders? And I mean, what is our right to win against the others? And is there a potential risk from IT companies to also provide such a service? I just wanted to understand. I know definitely that we have that customer mix since a long time, but what differentiates us from the other, and how is the competitive intensity in this kind of industry?

Yes, I think I'll answer it in two, three parts. Of course, you can grow from a growth perspective. Participating in growth, so you just ride the bus because there's a growth happening, so see whether you can be at that growth level. Second, of course, you take share because you have to compete and there's only 10% growth and you want to grow at 25%, so you have to take somebody else's share. That's the only way to grow. The third, of course, you can acquire, right? So if you look from keeping the acquisitions separate, that's our separation. I think first let's look at what we can do to participate in growth, right? So when we talk about $400 billion worth of spend on that, 10% of that possibly is addressable from that perspective, that's about $40 billion, and we're trying to do about, say, $1 billion just for argument's sake. I think the idea is to getting considered and have the wherewithal to be able to be considered These are not a competing biz that you can quote 5% less and win. That's not how hyperscalers operate. By that logic, everybody can quote 10% and want to win that. You have to win because you have capability, ability to spend, stay put, trade. over the last several years time, and therefore being considered. As you move forward, we believe that our push rate will be reducing and we'll have pull rates, so we are now getting invited more than we saw before, because we executed several hundred megawatts, close to a gigawatt by now. Able to execute at scale. These are the essential factors. This market did not exist three, four, five years ago. Largely operated by small mid-market players locally. are limited. The number of people who can, companies who can operate at scale and globally are even more limited. And from a perspective of where we are, we're talking about possibly the only Indian company who has the ability to now do this at scale, right? So I think mode is scale, mode is capability, mode is... Very importantly, participating in that. Now, coming to take share, I think from that perspective, will there be some competition? Of course, you can't be the only one playing. That's not going to happen. But I think we believe the right to win. It is evident from our order books. It will even become more evident as this. And of what we have an opportunity, ability to scale, as I told you in my earnings call, only opportunity doesn't mean much. We believe we have built a very robust execution capability. So it's pretty simple if you look at construction in general, and if you look at Indian market, and if you're starting to build a very large construction or a bridge or a dam, you know, only few people are invited to do that, right? You know, 2,000 construction companies in India. Only because you know construction, you won't be constructing a dam. So that's pretty much how it works here, right? So we believe at our scale, ability to execute, our relationship over the last two, three years, our training, I think we are well-placed. Prime infrastructure cycle. It is like the railroad of 1930s, right? So we ought to be there and put our head down and just make sure that we are able to execute better, and we are doing it.

Perfect, sir. That's helpful. Congratulations again and all the best for the future.

Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for the closing remarks.

Thank you, everyone. If you have any further questions, you can reach our Investor Lessons at Purvesh Pare or SGA, our Investor Lessons Advisors. Thank you so much.

Thank you, sir. Ladies and gentlemen, on behalf of Black Box Limited, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.