Goodluck India Limited (GOODLUCK) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Good Luck India Ltd. Q1 and H1 FY27 post-earning conference call. 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 then zero on your touch-tone phone. Please note that this conference is being recorded. I would now like to invite the management team to give their opening remarks, post which we will open the floor for question and answer session. Thank you and over to you, sir.

FY27. Our performance reflects the resilience of our core engineering businesses, our ability to capitalize on emerging, more diversified, and future-ready organizations. During Q2 FY27, our consulary total income grew by approximately for the first half of FY27. Thank you.

We remain confident about our opportunity. Good morning, everyone, and welcome to the call. We will continue to pursue export growth while remaining mindful of global trade conditions, logistic costs, and geopolitical developments. One of the most important areas of our strategic expansion through our subsidy, Goodluck Defense and Airspace Limited, we have been making focused investments in developing specialized manufacturing capabilities, technical infrastructures, and quality systems to serve the requirements of India's defense sector. A significant development during the period was GDAL emerging as the sole technically qualified bidder for a specialised 155mm SE, M1A4 ready to pull artillery shells for Munition India Limited. An important validation of our technical and manifesting capabilities, pens orders, production is currently ongoing, involving validation activities in accordance with the government requirements from this financial year. We are also expanding the scope of our defense and aerospace subsidy to include aerospace. Within the overall capital outlet previously approved, the proposed aerospace component initiative has an estimated investment of 80 cores and an expected business benefit of almost 180 cores as disclosed in our regulatory filing. An important contributor to the company's long-term growth and diversification. Meaningful long-term opportunities involving the amalgamation of Goodluck Defense and Aerospace Limited and Goodluck Green Energy Limited with Goodluck India Limited is intended to provide a more integrated structure for managing our diversified business. Coordinated capital is focused in key areas of growth across our established and specialized Thank you.

Good morning, everyone. I will now take you through the financial performance of Good Luck India for second quarter as well as half-year FY27. I am sure by now you might have gone through a deck. The company has driven a stock of the financial group during this period, supported by higher sales volume, improved product mix, and sustained operational performance. I will primarily discuss the consolidated financial performance with relevant comments on operating cost environment. Let me now speak on second quarter first, Q2 FY27. On consolidated basis, a total income in Q2F27 stood at 13.7 billion rupees compared to 9.9 billion rupees in last year's same quarter, registering a healthy growth of nearly 38%. In terms of sales volume, tonnage is divided nearly 18.1% in this quarter. Consolidated beta for quarter two stood at 1.27 billion rupees in comparison to 980 million rupees in Q2 FY26. Vita margin stood at 9.3% compared with 9.8% same quarter last year. In terms of fact, on portfolio basis, Vita levered healthy profits at 506 million rupees, showing growth of nearly 19% in comparison to 426 million rupees in Q2 last year. While the quarter brings a strong growth in absolute revenue terms, retail and profitability, the slide in margin was mainly influenced by cost environment, more particularly, you know, high international trade costs and as well as high fuel costs, basically gas prices, which impacted our margin to the tune of nearly 150 EPS. Coming to first half of FI27, H1 FI27, we recorded revenue of 26.6 billion rupees in comparison to 19.8 billion rupees in H1 FI26, again, a strong growth of 34% for H1. In terms of sales volume, in the first half of the year, we grew by 31.5% in comparison to first half of last year. Consolidated beta increased by 38% to 2.67 billion rupees in comparison to 1.93 billion rupees in H-1 F-26. Our EBITDA margin on solid basis grew to 10% in comparison to 9.8% during the first half of the last year. In terms of solid fat, we grew by 42.4% to 1.2 billion rupees in comparison to 8.28 billion rupees last year. The improvement in both EBITDA and PAT on half-year basis reflects the benefits of operating performance, higher volume, and focus on value-added products in spite of challenging environment around us. In terms of working capital, we are maintaining working capital cycle difficult, and in fact, for first or second quarter of the year, the working capital cycles in terms of number of days are more days slightly lower than previous quarter as well as Q4 last year. We will continue to focus on efficient working network management as we grow, as well as prudent capital allocation while we pursue our growth opportunities. With this, I conclude my opening comments. Thank you for your confidence in Good Luck India. I would now hand over to the moderator to commence the question and answer session. Thank you very much.

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 their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use answers while asking a question. A request to all participants, please restrict your questions to 2 per participant to allow everyone to ask a question. The first question is from the line of Sane Desai from 11th Advices Family Office. Please proceed.

Thank you for giving the opportunity. Firstly, before asking the questions, I would like to convey my sincere gratitude to the management for taking a wonderful step in the amalgamation process. We recently participated in the presidential issue of Good Luck Defense, and rarely have we seen management take the feedback of investors so positively and take a long-term step for stakeholder value creation. We are very delighted to be part of the larger vision of Goodluck India, where all the companies will be amalgamated. So thank you for that. As a result of that, we would like to ask a couple of questions. Firstly, with regard to the vision of Goodluck Green and Goodluck Astra, especially beyond the defense products of 155 mm shells. What are the plans for products such as explosives? What are the plans for railway sector contribution, transmitter section transmission contribution? That would be question number one. If the management can give some light on the product line as well as the scale anticipated over the next few years. Secondly, what is the defense order book execution expectation in the rest of this fiscal year and FY28? And last question would be a bookkeeping question with regard to the working capital reduction and the path to debt reduction as the current debt exceeds 1000 crores on the balance sheet on a consolidated level. Once again, thank you for the opportunity and we truly believe that we can become a large player in the defense as well as the green space over the next five The

question is concerned that was regarding this transmission and power line system, so there you know because India is going day by day in solar, fossil fuel is reducing, but the problem is we have done almost 265 gigawatt in green, the lines are not there, we could not, India could not think before, so transmission line business is on the boil Today, everywhere in these four-five years, whatever capacity is available in India, it will be insufficient to augment the capacity of power vibration through this transmission line and substation. Your company is there in this field, and we are trying to increase our capacity in the next six months to take care of this capacity. As far as you ask for the railways, railways, as the government has done in this cabinet clearance meeting also, government is improving the railway infrastructure day by day. If I talk especially of the bullet train, so government has given an idea of seven bullet trains. However, it is a big guess, which route will come first, whether it will be Dilli, Varanasi, whether it will be Dilli, Avda, that cannot be said. But, railway infrastructure is on move, and your company in its infrastructure division is capable to 1000 tons, company has recently completed, and a new design of bullet train, in some part, company is already doing in its Gujarat facility. What are the two of your questions? Defense order book, given 354 orders, but more orders are also there, but we normally only announce when the advance is received. So, order book is not an issue. The only issue is the execution, because we know this particular industry, it is connected with validation, continuous inspections, and government clearances. So, we have the capability, we have the capacity, but the issue is, is government clearances or the geopolitical conditions, where it is decided by the fillers, and if the fillers are full, so material will not go. So, that is the inbuilt problem in this kind of business, but we are fully equipped to take over, and we feel assured that the yearly targets, whatever we have given, that will be achieved.

Yeah, let me speak on the busing capital. As I, you know, said in my opening remarks, so there is a huge focus on busing capital because when we grow, so it's very important, you know, to focus on that area, on net busing capital. So from, you know, March exit, you know, level, so we have already put by a week, seven days, so the focus will continue, and, you know, we have plans to, you know, put huge focus in this area. Your another question was on the debt level. Yes, it's on a little high side, but, you know, we are, we plan to be within 2.5x of our beta in terms of debt, and as of now, we are close to that, and, you know, we have again planned to, you know, how to optimize, how to, you know, be well within the, you know, our set objective for that.

Thank you so much. And with regard to the debt reduction, if you can give some highlight on when we can become a net debt-free and overall debt-free company in the long term. And lastly, we continue to maintain confidence in the company and hope that the promoter's stake also sort of resembles that confidence and stays at the current level. That would be the last question. Thank you so much.

Yeah, sure. You know, as I said, you know, we are into the growth trajectory. So, it's important to support the growth. So, you know, we intend to be close to 2.5x of our EBITDA. And eventually, in the long term, you know, we will plan how to, you know, make it, you know, lower than that. But as of now, we maintain this around 2.5x of EBITDA, you know, close to that. And we are within that.

Thank you so much and all the best for the next few quarters ahead.

Thank you. The next question is from the line of Jatin from RTL Investments. Please proceed.

Yeah, thank you for taking my question. The first question was basically on the defense business. I heard you say that you are confident of meeting the guidance you had given, so just double checking. You still think we can do 300 crores for F27? Understood. Thank you. Also, sir, just given that what is happening on shells, so we get to understand that there is now, you know, higher and higher capability shells that are being asked to be made. And if I'm not mistaken, your latest order is also of a higher capability shell. So how is our capability moving along as, you know, the shell capabilities that are being demanded by customers is, you know, getting better and better? And just to regard to that, you still think that we will be able to fill the 4 lakh capacity once it comes up next year at around that 30% margin?

It's a new ball, VV, you can say. Because in 2014, we were exporting how much? 24,000 crores. So defense, now defense industry has matured. And regarding the share's capability, the day when we established this capacity for 155 mm, and it was M107 wave, the on same very day, we had started for research and development of the next scale. This was ERFV, BB and BT. Till today, nobody has been able to make that but we have developed and we have got orders for the same. Our product has been validated by the international purchasers. So research and development is the basic part and it is of a basic nature of good luck. So it is not that we are still stopped on this EFRB 38 kilometers because you know what the shells are designed by. These are designed by the range. The first shell was 18 km range. The second one is 36 km range. But now we are working to take it to 48 km range. We will let you know the recent development in the coming days. So, if you are ahead of the competition, if you are ahead in the future, there is nothing that you cannot do. And as far as our capability is concerned, we are fully capable. We have full capacity for new requirements of the defense industry. Nearer the time, we will let you know what new developments we are making in that. So be rest assured, if we are putting that co-black plant, so that is with the greater, whatever flexibility, fungible plant, whatever care we would have taken, we have taken. After this co-black, we may need to expand more, because market is very, very volatile, and international conditions are not positive. Thank you so much, sir.

And just quickly on Astra, so last we spoke, you said that only the land allocation had happened and you were waiting for the license. Any update on that? And will you eventually consider to merge that in good luck as well?

Thank you.

Our request to all participants, please restrict your questions to two of the participants to allow everyone to ask questions. The next question is from the line of Deet Mehta from Bank of India Investment Manager. Please proceed.

Hi, sir. Thank you for the opportunity. First of all, I would like to congratulate the management of amplifying the group structure, which makes it a win-win proposition for everyone, including the minority investor. My first question is also regarding good luck defense. And like you said that we are slowly, steadily eating upwards towards the product complexity, plus the amount of our product is very high as of now. So, what kind of realizations are we currently getting? Are we expecting any improvement in realization one or two years down the line when we, you know, make even more complex products?

Since beginning, that it will be Vita margin of 30 to 35 percent, and our quarters, quarter on quarter, we are showing it is more. So, what we are trying, we are trying to be competent in the technology. So, as that technology moves ahead, so realizations are bound to increase, but definitely on the conservative side, I will maintain that this 30-35% EBITDA, we will be maintaining throughout. It seems to be true.

Sure, sir. And regarding our capacity expansion from 1.5 to 4 next year, are we broadly on track? Or are we seeing hiccups in the expansion?

It is on the track. It has already started, and the earlier guideline we have given, we are likely to not initialize.

Great, sir. Great, sir. Just one last question from my side. In our non-defense business, we have reached almost 99% capacity utilization. So from this point onwards, in H2 as well as in next financial year, what kind of volume growth can we deliver? And will capacity be a question for that? Can we quantify the volume growth which we can achieve either this year or for next financial year?

Sir, this year we have done almost 4,63,000. This year is financially 31st mark. In terms of volume, we have done almost 2,55,000 tons.

For future, for H2 as well as for F528, what kind of volume growth can we do?

The volume goes, we are expecting in the range of 15 to 20 percent.

Okay, sir, that is good to hear. Yeah, that's all from that.

In terms of revenue, 15 to 20 percent, and volume, the way we are, you know, like first hour, we delivered, as Ram sir said, 13 percent, you know, half yearly, and quarter to be delivered, you know, 18 percent. So, we will, you know, directionally, 15 to 20 percent, year on year, we will grow, in non-defense.

That's good to hear.

Thank you. The next question is from the line of Rahul Gupta from Arya Research. Please repeat.

Hello. So now, first question is, what is the expected timeline for the proposed merger of Goodluck Defense with Goodluck India? And when do you expect to complete all necessary proposals?

Yes, sir, I have a couple of approval involved from, you know, CV from NCLD. So, if you see, you know, this kind of mergers, it takes generally, you know, 12 to, you know, 15 to 15 months. So, anything better than that, you know, we will see that. But, actually, it is, you know, 12 to 16 months, or 15 months.

Okay, so, it is in under process, sir?

Yes, it is under process. It has already started.

Okay, see. Okay, sir. Okay, sir. Thank you, sir.

Thank you. The next question is on the line of Rohit from JM Financial. Please with me.

Yeah. So, firstly, thanks for simplifying the structure. I had a couple of questions. Firstly, just wanted to understand the timeline on the non-defense capacity, which is expanding from pi lakh to six lakh. The timeline on that, as well as the timeline on the defense from 1,500,000 shells to 4,000,000 shells, and also with we getting into more of longer range shells as well, what could be the peak revenue potential whenever these 4,000,000 shells get operationalized? Yeah, that's it.

For this non-defense business, taking capacity from 5 lakh to 6 lakh, it's a dynamic process. It is a continuous development process because I earlier told, de-bottom lacking is our main tool by which we increase our capacity. So, it is going on to 6 lakh and we have to see.

Did you say 1000 crore plus?

Yes, I said 1000 crore plus.

Okay, with a 30 to 35% EBITDA margin. And also this, you can scale this up to 1000 crore by FY29, or do you want to put any timeline to that? And also just from a shorter term perspective, in this quarter, obviously, we didn't see any revenues from the defense business. Just wanted to understand the lumpiness or going ahead. Will it be more structural and hence every quarter you'll start seeing revenues coming from the defense business or this will continue to be a lumpy one?

It's a defense business. I will not call it a lumpy way. It is a business of the same nature. Because this business needs validation, we have to pass through many departments. Six months, they may take five months, and which are not under our control. Because again, government decides why the geopolitical curve is going. So they may not be, government countries, government may allow. Thank you.

That is from my question.

The question is from the line of Ruth Ranch. The address of I thought to give us is received.

Thank you for the opportunity, sir. Sir, I wanted to understand the market size in terms of volumes for this 155mm shell. Could you quantify that on domestic and both export side? And maybe if data is available specific to M107, that would be also helpful.

Sir, to be very frank, this data is a classified data because this is a defense data. Nobody has access to it. Whatever data we have or anybody has, that is through the internet only. Some internet says it's a 5 million demand. Some say this is a 9 million demand. So I exactly cannot vouch for the quantity required. But, yes, one thing I can vouch for, the inquiries we are getting, LOIs we are getting, that is more than our capacity. If we are putting up a polar capacity, so we are getting inquiries more than that, even for up to three years. So, I can very well estimate that the market size must be much, much bigger, because I am a very small player in this field.

Got it, got it, sir. And sir, a lot of players have announced capacities in this space, and we are very confident on expanding from here onwards, and even beyond that, as you have mentioned, we may as likely expand beyond 4 lakh number as well. So, do you see that there's any possibility or any indications that realizations are impacted in this business?

So, realization is a function of market requirement. So, realization may go from 50,000 to 40,000 or 60,000. But what I have told in this earlier question, because we are banking upon the technology, technology upgradation. As we move from EFRB to the next, we move from 36 km to 48 km to 64 km, because God has already reached 127. But that cannot be vouched for, because that is from some quarter, which cannot be discussed. So, we are doing, we are ahead of the business, what people are contemplating today. So, if we are ahead of the competition, we are ahead of the technology, so there is no way for the excess capacity or for the new capacity to be absorbed in the market. That is my view.

And, sir, double checking on this, and inquiries are as strong on the higher capability shells as well, as strong on the basic version. Would that be fair to assume?

Inquiries are definitely on the new version, but the old version is also being used because it depends on the type of war. Because now wars are not being fought on the border. Israel Amash, it was within 18 kilometers, M107 was going, but now Russia, Ukraine, it is now the 36 kilometers. So it will depend on the nature of war and what kind of shell they will need. We have the capacity and capability of all kinds of 155mm shells. From 105 to 155, we have all the capabilities. So we have not to worry about the same. Whatever market says, we will be there.

Understood, sir. Understood. And the major driver for all inquiries in demand is from the export side. Is that the correct understanding?

Maximum, it is the export side.

Got it, sir. Got it. Thank you so much for taking my question.

Thank you. A request to all participants, please restrict your question to two per participant to allow everyone to ask questions. The next question is from the line of Harsh Vasa from SBI Capital Securities. Please proceed.

Thank you so much for the opportunity, and congratulations, Ram sir and team, for the proposed amalgamation. So, the defense question is already being answered. I just had one question now. So, what was the capacity of the hydraulic tube plants in 2QF527, and what would be our exit run rate for this year?

I could not understand. Harsh, can you come again?

Sir, I was just asking that what was the capacity utilization for the hydraulic tubes plant in 2QF527, and what would be the exit run rate for this year?

Capacity utilization in the hydraulic tube plant, it has moved to 65 to 70 percent now, And in the coming months, in the coming quarter, coming as to half, I hope it will be 75 to 80% because now the demand is coming up in this sector.

Okay, sir. And, sir, any plans if once we, I know it's a later part, but any plans if we reach 75 to 80%, we're going to do another 50,000 tons CAPEX? Like, are we going to come out with another 50,000 tons after reaching that?

Sir, this we will decide after this H2. Okay, sir. It depends on this geopolitical condition. Okay, sir. It depends on the construction equipment. So, whatever destruction is going, it will decide how much construction has to go.

Okay. Thank you, sir. And all the best for the next quarter.

Thank you. The next question is on the line of Jintan Patel from Philip Capital. Please proceed.

Sir, can you give us a breakup of capacity utilization of non-defence business?

Pardon, you are slow. Can you come again? Your voice is slow. Hello. Am I audible?

Can you give us a capacity utilization for the current quarter of non-defence business? It is almost 98 to 99 percent

for the current quarter for the non-defence business.

And what would be our revenue contribution coming from the railway business? And we're already supplying a lot of aerospace names in the aerospace industry, the big names. So what would be the opportunity size in the aerospace? What are the programs that are going to be participating? Whether we are participating in ANCA, the bidding is just likely to happen in October. So what is our opportunity size on our aerospace size?

In the aerospace, in the aerospace, we are working with Staffan. Our plant has been audited by Airbus, by Boeing, and many in the Indian condition. Because now, you know, for the new aerospace business, what we are talking about, it is too early to predict, but definitely, we are moving towards these three, four measures in the world, because India is becoming the hub of planes. We are trying to fulfill that, we are trying to become that part of that ecosystem. Because now the parts are required. So for that we are taking up this aerospace and this aerospace vertical and near the time we will update you again regarding this aerospace business.

Sure, sir. Sir, just last question. What is our overall capital investment in a different side, especially the artery cell side? And just the confirmation on the margin impacts due to the freight cost and the fuel cost would be around 150 BIPs of QGF520, sir? Can you repeat your question, please? So, what is the margin impact for freight cost and fuel cost? That is, around 150 base on EBITDA margin, sir.

Yeah.

What is your question?

The earlier question is, what is our capital investment in the defense side?

It is 300 code plus. 300 code plus. Okay, okay.

Thank you, sir. Thank you. The next question is from the line of Tanim from Solidarity Advisors. Please proceed.

Hello. Am I audible? Yeah. Hi, sir. Thanks for the opportunity. I just wanted one clarification. Back in May 2026, we posted an order on exchange for 52 crores, which was for 20,000 sales. That was with a delivery timeline of 90 days, or maybe three months. So shouldn't that have been executed in this quarter itself? Or how does that work? I'm just trying to understand when we say delivery timelines for orders is 90 days. So where does this 90 days start from?

That order has been completed in the June quarter itself.

And the recent order that we posted?

It will take some time, because it is under government approval, so it will take some time.

So, is it related to the Munitions India Tender?

This is a separate Munitions India Tender. Munitions India order we have not just posted, because we have just to get the order so far. We have not got the order, but we have qualified for being the sole bidder for this MIL quantity.

Once the order comes, we will have... Got it. And so, any clue on what ratio are we looking for the merger for good luck defense and for good luck green?

So, see, this is a, you know, a big exercise, and we have to undergo certain, you know, processes, you know, under the relevant, you know, statutes, which is going on. So, we will be able to comment only on this once, you know, valuation is done. We have already pointed, you know, to big four firms for, you know, doing the valuation, and still they are, you know, working on that. And we will share this at appropriate time once we get into the board, and then we will be, you know, actually filing and, you know, sharing.

And so, one last question. We also expanded capacity in front fork tubes and conduit GI pipes in this year. So, what is the status on that?

The front fork tube expansion is nearly complete, and it will give you results in the Q4, and the conduit, it is just going on under expansion.

Thank you. A request to all participants, please respect your questions to two participants to allow everyone to ask questions. The next question is from the line of Hrithika Seed from Anantia. Please proceed.

Hello, am I audible?

Yes, yes, please. Go ahead.

Thank you for providing me this opportunity. Congratulations on the good set of numbers. My question is regarding the EBITDA margin for FY27. Are we still expecting the margins to be within the range of 10 to 12% as guided in Q1?

Yeah, if you are talking about consolidated basis, yes. What you are saying is right. And on standard basis, B would be between 9 to 10%. Yeah.

Okay. And also, can you provide segment-wise guidance for the contribution of revenue of each segment and their margin?

Basically, I can give you a guidance. Almost in our EBITDA, it is 78%, whereas the volume is 68%, and for the non-value-added sector, its contribution to EBITDA is hardly 22%, whereas the volume is almost 32%.

Okay, and for CR, sheets and pipes, precision pipe tubes and autotubes, what would be the EBITDA margins that we can see going for this year?

Actually, you are talking again of the two parts. One is the value added, or precision tube becomes a part of our value added, where the EBITDA margins normally in the range of 11 to 13 percent. And the first part, it contains two tubes and pipes, where it is normally.

Okay, okay.

Thank you so much. Thank you. The next question is on the line of Tishar from Omega Portfolio Advisors. Please proceed.

Yes, thank you so much. I was interested in the aerospace business. So, basically, we have ES9,100 certification. They are in the non-perist side of the business. We are working with Titanium and Enconel as a material. I just want to understand the higher aspiration of a management. You mentioned that we are working with Airbus and the Boeing. So, I just want, like, where do we see this aerospace business going in the next five years and your view on that?

Sir, basically aerospace business, this is the business of the, this type of, this is the 180 course.

Okay. And so on the dependence business, are we working for this ramjet artillery, one can put a M.M. shell?

For the ramjet, this technology, I understand this is with the military only. Whenever they give the, they will open the portal, then only one can take it. And it was already delivered. Now, whenever the portal opens, then everyone can wait for it.

And, sir, this high range artillery shells like this A-Tag, K9, Vajrati, and this, I don't know if I'm not mistaken, are we working on that front in terms of the high range, more than 50 km? Thank you, sir.

Thank you. The next question is from the line of Amish from Novice Investment Managers. Please proceed.

Yeah, hi, sir. Congrats on the business, the way you know, probably might not be sure I would have wanted it. Sir, the first question is this MIL, you know, munition qualification. Sir, there was an article about they being qualified for a large export order for a Middle East country. So, and we being a sole supplier, I was wondering whether, you know, you know, we are, you know, how is this munition in their And for them, I know we can not disclose too much respect to our clients for their exports, but to the extent it is in the public domain, if you can throw some light on, you know, how much is, you know, they have already signed some $25 million of, you know, export opportunity in 2024 was one of the news articles. So, you know, how much of this we can cater to through these products and what is the typical, you know, exports that they do, you know, which we can qualify. And I wanted to know in a particular product category, we are the sole supplier, but in general, how many companies are kind of completing in these type of products, you know, vis-a-vis initial investors.

In the article, they can supply it to MIL. They will fill it because we cannot go into the details of MIL. MIL should be a good exporter to the rest of the world because the Ministry of Defence is saying again and again that we have to improve the export. So once their export increases, we are the supplier to them in one category, so our supply should also increase. As far as other categories are concerned, those other categories, whenever they give the tender, we will quote and then it will be decided. It is totally on the tender basis.

Okay, sir. And should we be assuming these types of products being procured beyond FYI this year's scope and it is not included in the guidance of this year? So, I am saying is the upside for FYI 28 is coming from this tender as in when this tender opens and we get an order, sir?

Sir, it is only my guess that in the coming years also, MIL will purchase this except the government.

Okay, sir. The last question, sir. What is the date for this completion of 4 lakh capacity? And are we comfortable that we will be able to utilize maximum in the first year of increased capacity? If you can give that sense, sir.

Already given our guideline that in the next financial year, there should not be much delay in that.

Okay, so current base case is by next year, this time, we should be starting in 12 to 15 months. Okay, sir. Okay, sir. And then we will be able to do 1000 crore plus from that facility, is what you're saying, sir. Right?

It will also take some time to ramp up, sir.

Okay, yes, yes, sir. Yeah, yeah, yeah. Okay. Okay, thanks a lot, sir, and all the best.

Thank you. Due to time constraints, that was the last question for the day. I now hand the conference over to the management for the closing comments. Over to you, sir.

Thank you for the stakeholders. Thank you for the investors. Thank you for the shareholders who have participated in this conference and given us guidelines for our future extension.

Thank you. On behalf of Good Luck India Limited, that concludes this conference. Thank you for joining us and you may not disconnect your line.