Kusumgar Limited (KUSUMGAR) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Kusumgarh Q1 FY27 conference call hosted by MK Global Financial Services. 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 touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Harsh Mittal from MK Global Financial Services. Thank you, and over to you, sir.

Thank you, Althony. Good morning, everyone. On behalf of Kusamgarh, I would like to welcome all to Kusamgarh Q1 F27 Arnitz call. Today on the call, we have with us the senior management team of Kosonga, Mr. Ankur Kothari, the CEO, Mr. Narendra Jain, the CBO, and Mr. Ratan Jha, the CFO. Now, without further ado, let me hand over the call to Mr. Ankur Kothari for his opening comments. Over to you, sir.

Good morning, everyone. Thanks for joining us. On behalf of the board of directors and the entire Kusunwe family, I'd like to welcome all our shareholders, analysts, and members of the investment community to our earnings call for the first quarter of financial year 2027. This also happens to be our first call, first investor call after becoming a publicly listed company. So we thank the investors for their trust and confidence that they have placed in us. I would also like to thank Harsh and NK Global for hosting today's call. This is a proud moment for us. Kusundra's listing on the exchanges is an important milestone in a journey that began several decades ago. But we see this listing not as a destination. It's the beginning of a much larger journey with a much larger ambition, and we are grateful for the trust and confidence the investment community has placed in us as we take this next step together. Since this is one of our first interactions with many of you in this format, I would like to take a few minutes to introduce Kusunga and share what makes us a differentiated business. Kusunga's work in engineer fabrics began in 1970, and the company as it exists today was formally incorporated in 1990. Around 2009-10, we made a decisive shift into manufacturing SK, marking a pivotal phase in our transformation into an engineer textiles company. For a number of years, through FY17-20, our revenue held steady, but over the last 5-6 years, we have grown approximately 7-8 times, transforming from being a fabric supplier into a specialized engineering fabrics and aerospace and defense solutions company. Looking back over fiscal 2020 through fiscal 2026, our revenue grew at a compounded annual rate of approximately 35%, and profit after tax grew significantly faster at above 70%. Over the same period, a reflection of both scale and improving profitability as our business mix shifted towards higher-value military and aerospace work. We listed on the NSE and BSE on July 15th this year an important milestone as we begin this next charter as a public company. Over the years, we have evolved from a trading company into an engineering textile manufacturer and today into a company with growing capabilities across military and aerospace fabrics and solutions. We see ourselves as a technology-led company with deep roots in fabric science and material science chemistry. What do we do? Today, we operate across four reported market segments. First, Aerospace and Defense Fabrics. These are performance fabrics engineered for the most demanding applications, including parachute canopies, tactical clothing, speciality gear, and other such applications where our core strength lies in polyamide and polyester predominant technology and polyurethane chemistry, which the combination of these materials is critical for durability, strength to weight ratio, waterproofing, abrasion resistance, etc. Second, aerospace and different solutions. This is where we forward integrated from just being a fabric supplier into manufacturing and supplying complete integrated systems, including parachute systems, protective and camouflage solutions, rapid deployment solutions, et cetera. This has led to a shift up from our value chain from just being a material supplier to a solutions provider and has driven a large portion of our growth over the last several years. Third, industrial and automotive fabrics. This segment serves steady, diversified demand across automotive and general industrial applications. It has been a part of our business for several decades, and it continues to remain an important part of our overall portfolio today, and we hope that this continues to grow steadily as it has over the last several years. Fourth, our outdoor and lifestyle fabrics, also sometimes called our activewear business. Here, we supply performance fabrics to global outdoor and activewear brands, an area where we work closely with international partners entering or expanding in the Indian market. This is a business that we started a few years ago, and we have rapidly scaled up. There is a large underlying demand that this business can serve and which we are very excited about for the future. We have focused on driving growth across all four of these segments rather than concentrating our efforts on any single one. We have several organic opportunities to grow. We always remain open for partnerships, for collaborations, for tie-ups, and that has also been a major part of how we have been able to grow so well over the last several years. We work with a broad and long-standing customer base across these segments built over several years. Let me also give you a sense of the operational scale behind these numbers. We operate seven manufacturing facilities, six in Gujarat and one in UP, spanning the full value chain from preparatory and weaving through dyeing, printing, finishing, coating, lamination, and fabrication of certain specialized products. This vertically integrated setup gives us direct control over quality and delivery. Over decades of process knowledge and product development, we have built a portfolio of more than 1,000 unique fabric SKUs, each engineered for a specific application. As of March 26, we employed just over 2,000 people across manufacturing, engineering, product development, quality assurance, and business operations, supported by a dedicated R&D team focused on pushing the technical frontiers in fiber science and chemistry. Exports have become an increasingly important part of us. Our stories, and we continue to see growth in our international markets as we deepen our global partnerships. An important question that comes up in all investor communication and conversation is, what is our moat, and why is our business hard to replicate? I think the most important part of this is decades of technical know-how built. By our team, starting from our founders themselves, we have over four, four and a half decades of accumulated expertise in engineer fabrics. You know, these capabilities are, they take a lot of time, involvement, R&D, and material science expertise to build. For example, manufacturing zero porosity fabric for parachute applications, where we are only one of two suppliers globally, Our fabrics are rated for minus 50 degree climates, where We are a very proud supplier to the Indian military. We are also the only Indian manufacturer of Kevlar filament fabrics, and one of the very few companies globally that can consistently manufacture fine denier fabrics from 25 GSM and above. Second, qualification barriers. Pretty much everything that we do requires extensive testing, validation, and approval cycles, often taking years. Once we clear that bar with the customer, we become deeply embedded, and switching costs for the customers becomes very high. This has been a cornerstone of our success and a philosophy of doing business that we continue to cherish and will keep building upon. Third, partnerships and know-how that are difficult to replicate. We hold exclusive partnerships with several organizations, global leaders in their respective fields that give us access to IP, to know-how, to relationships, licenses, etc. And over a period of time, as we build long-standing relationships with these global technology partners, our own foundation of knowledge keeps expanding, which keeps on feeding on itself. And fourth, co-development in patients. Many of our products take over a decade to materialize, but once they do, they translate into long-term, sticky, recurring business. This is not a business built for quick wins. It's built for durable, defensible partnerships. Now I'll hand over for a few minutes to Mr. Ratanjha, our CFO, who will take you through our Q1 financial performance.

So, let me now walk you through our performance for the quarter. On a consolidated basis, revenue from operations stood at 247.2 crores compared to 122.5 crores in the same quarter last year. A growth of approximately 102% over a year. This growth was formerly driven by execution of our daily financial contacts, which has scaled many foodies in the quarter. On a sequential basis, revenue declined from 312.8 crores in Q4F26 to 247.2 crores in this quarter, a decline of roughly about 21%. This is not a demand issue. Q426 includes a concentrated push-off export sequence that was expedited following the resolution of credit-related uncertainty into the U.S. markets, pulling forward volumes that would otherwise have spread more evenly across the quarters. We view Q4 as the anomaly, not QR, and expect revenue to normalize progressively throughout the year, as our order books, executes, one and more, even cadets. A bit of for the quarter was 75.9 crores as a margin of approximately 31%. Year-on-year basis, this represents a margin expansion of roughly 900 basis points from the 22% in Q1 FY26. Given by a richer, higher margin product mix, including the ready parachute contacts. Sequentially, margin moderated from 41% in Q4 FY26, largely affecting lower operating leverage as revenue normalized of the elevated Q4 basis rather than any deterioration in underlying profitability. Profit after tax for the quarter was 42.6 crores as a margin of approximately 17% compared to 6.6 crores and 5% margin in Q1 FY26. Our new product development pipeline continues to strengthen, and we are actively broadening our funnel across products, segments, and geographies.

Thank you, Pratan.

This is Ankur back here. Moving forward, I would like to sort of address something that is very directly with the investor community. As management, we would ideally prefer not to give you very detailed guidance on revenue or profitability for the future. This is primarily because there are a few structural uncertainties in our business that we genuinely do not have control over. Firstly, 90% of what we do is linked to long-standing product approvals. When these approvals will come, when they will get commercialized is inherently uncertain. So beyond building for a few months, we really do not have great clarity of what the future holds at any point in time. Secondly, a meaningful portion of our business flows from government tenders, largely from the Indian military, but also from certain foreign military. These tenders and the business linked to them. Tend to have an inherent sense of unpredictability. Over a longer time period, you have a reasonably very good sense of how we perform, right? So over a few years, I have a very strong feeling around, you know, how much business would materialize from where. But when it does and which quarter it would come is uncertain. And thirdly, as a business, we have a global spread, both in terms of raw material sourcing and end customers. The impact of things like the last year's U.S. tariffs, and given the volatility around the world over the last few years, this has on, while, you know, on an overall, on balance, this has had a beneficial impact for our business, it does affect our numbers and it makes them unpredictable, both from positive or a negative side. I think, lastly, we are a very new company on the public markets. As a company, as a philosophy, we would rather, you know, play it safe and not make promises that we may not be able to keep. Over time, as we gain more experience navigating these markets, and we have done several quarters, and we have developed a much better sense, and we have educated the investment community about how our business works. We expect the portion of our business also to become more predictable, and we hope to be able to guide you better as and when that happens. Of course, we remain committed to informing our investors and the broader community in general whenever there is anything materially significant that is happening in our business, which we shall be doing. But in the larger present state of our business, we intend to speak to a policy of not providing formal, forward-looking guidance. With that, I would like to thank you all once again for your time and your trust in Kusungar. We are happy to now take your questions, and I'll pass on the mic to our moderator. Thank you all for listening to us.

Thank you. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone 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 comes from the line of Aadesh Gosalia with Spark Capital. Please go ahead.

Thank you so much for the opportunity and congratulations for the management for a great listing and a very great set of numbers in the first quarter. I had a couple of questions. Firstly, just a data-keeping part that if you can share our segmental revenue breakup between the four segments that we classify.

So, we are working on single segments, so that is why the segmental reports is not applicable to us.

Okay, okay.

Okay, so secondly, in the Q4, we had received our order, the A&D solution segment, which was, you know, pending, and the spillover happened in FY27. So our Q1, if you can share that, how much of our Q1 revenue was driven by that particular order? And how much of it was from new orders, or if we can just, you know, give some break-up or clarity on our Q1 revenues.

Yeah, I think reasonably, I think a significant portion of our, you know, revenue in Q1 did come from those parachute contracts overflowing. But you have to understand that from an annualized basis, it wasn't too much off the mark. And the rest of the business was sort of as per usual, all the other things going on. If you actually look at it for a couple of our segments, Q1 tends to be sort of the weakest quarter, and so I think I would say that this quarter, in terms of its revenue, would be broadly reflective of what you would expect, though Q4 in general tends to be... On a secular basis, it should be the best quarter, but it depends on, you know, where is the aerospace and different solutions business falling in in which quarters.

I think I did miss when the CFO server was talking about the Q4 revenue, so just if you can elaborate more, like around 40-55% of F826 revenue did come in Q4 of last year. That's right. I think I did miss when you just elaborate something more on that.

I think that's, yeah, sure. Yeah, so I think two parts to that. One is that of the, you know, one of the parachute contracts that we got, we were able to ship out a portion of that in Q4. So that led to a little bit of a rise in revenue there. And as I think we mentioned in the commentary also, around, I mean, between 10 to 15% of our revenue tends to come from the United States. And a lot of that for the year had been kept locked up. Which once the tariffs got lifted in, you know, in Q4 of last year, that got shipped out. So that's what led to a larger Q4 than usual. And that's why I think this, as I think we said, I think this Q1 is better reflective of what, you know, of what an average quarter would look like, though structurally, there will continue to be a little bit of an up and down in our business for reasons that I mentioned before.

Okay. And on the same lines, on the margin profile also, like the last year, our margin, EBITDA margin came at around 19%, then in Q4, it went up to 37%. Now we are at 31%, and F526 landed was around 27%. So, you know, if you can even share something that how we should look at our margins, considering the volatile nature and just some kind of light on it would be really helpful.

I think if we expect for, again, right, and that's why I'm always uncomfortable guiding too much forward because of whatever reasons, but under... So, if you look at 25 and 26, I think there would be reasonable guides for, I mean, we should expect very similar numbers in 27 for EBITDA as a percentage.

Okay, okay. But I think hopefully the kind of volatility that we have seen can burst also, like 90%.

I think that was a very dramatic thing because both affected by aerospace and defense solutions business going out and then the tariffs coming in. So I think that was a more dramatic shift. I think you would see less dramatic shifts. But again, you know, the world has continued to surprise us. So, never say never, but under normal circumstances, we should expect it to move a few percentage points and not as dramatic as you saw between, let's say, Q4 of last year and the Q1 of last year.

Okay. Okay. Thank you. And just to ask two questions. One, firstly, if you can share something on the outdoor and lifestyle segment, I think that has much more visibility as compared to other segments. So if you can share something like the capacity that we have already put.

I think we still, yeah, I think the outdoor and lifestyle business, I mean, capacity at this point of time is not really a constraint for us. It's progressive product approvals that, you know, brand by brand, customer by customer, we continue to get approvals. As these approvals come in, the volumes also, you know, once you ship in one season, the next season, the volume typically tends to increase. So we are on track there. No complaints.

Yeah, but do we have some kind of like 6-8 months kind of visibility on revenue from that segment or even that?

So, I think the way I would put it is that while we do have what we like to call projections from brands, what we have seen in the last couple of years is that even after that, you know, they end up having fairly material changes. So, that's why we become uncomfortable in sort of giving you more exact numbers. But we, if I were to say that right now, the projections that we have in place with these brands are... You know, are pretty strong and, you know, it should drive reasonable growth within that segment itself.

Okay, and just last question, in the geopolitical situation, like the tariffs thing is not actually, you know, going away, it's coming up and down, and the Middle East thing going on. Is it affecting our business a lot, and how are we, you know, working around this entire situation?

Yeah, so three things, right? I think when we had the tariff situation last time around, we did work out a few arrangements with our end customers to ameliorate the situation if it were to happen again. So, you know, if it happens, would it affect our business? Absolutely. And I think it's going to affect everyone, but not so badly as it last time because of some things that you put in place. In general, I think we believe and we hope that, you know, the kerfuffle that's going on in the Middle East should lead to increased defense spending, and that, from a longer-term perspective, should be a tailwind for us. So, fingers crossed.

So, we do supply to Middle East, like we have customers in that market also. Thank you.

We are both a raw material and a finished products supplier, right? In terms of raw materials, you know, we do end up, you know, selling goods to people and eventually end up all over the world. But at this point in time, in terms of finished products, Middle East is not a meaningful portion of our business.

Okay, 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 Rajat Sadeva with Kizuna Wealth. Please go ahead.

Yeah, hi, Anja, sir. Thanks for the opportunity and congratulations on a big set of numbers. So, my first question is on the partnership you have made. So, the product says basically on the decoy, on the carbon profile. So, can you throw some light on the technology and the partnership? Agreement which we have made with the Russian company and which we have made with the Japanese company. And what's the opportunity of that product?

So our arrangements with our various foreign partners come under fairly strict confidentiality agreements, Rajat. So I would not be able to answer very detailed responses on these. All I can say is that in both the area of stealth and camouflaging, as well as lightweight materials that include carbon and its sort of forward goods, we are working on those. And we hope that, you know, we continue to, you know, that these, that, you know, the products that we develop become growth drivers in the future. At this point in time, it would be too early and premature for me to say more than that.

Okay, and second question on the demand front, can you explain the dynamics of the technical textiles, particularly in different fabric, aerospace fabric, and parachute applications? Like, what are the key technical specifications required in this product, and how do the industry dynamics differ across India versus the global market like China, Japan, etc.?

So, a few different questions, Rajas. So, let me sort of take one by one. So, I think there is a fixed and then there is a sort of a surge demand in some of these things, right? By definition, everything that happens in a textile product is a consumable, right? Right. So let's say you have an armed forces of, let's say, you know, a million soldiers. Now, every year they'll need uniforms, they'll need winter clothing, they'll need, you know, let's say even, you know, even the camouflage products that you do or even the parachutes that you make, they go out of service and then they have to be replaced. Right. So there is a sort of a fixed demand. Now, what is the surge demand? Let's say there is an event that is happening, there is war is brewing, and then people would like to not only replenish their inventory, but also keep a larger stock as to when, if and when they would need these goods, right? So, the way you have to look at this market, whether it's uniforms, whether it's technical clothing, rucksack, sleeping bags, bulletproof jackets, parachutes, camouflage, is that at any point in time, you're going to have some steady demand, and then you're going to have surges when events happen. So, that's one. Now, everything that goes into the military goes through a fairly rigorous... You know, technical approval process, right? It's not so easy to get a qualified, and it always tends to be, you know, a few people who are qualified, and within them, the business basically gets distributed. So, I think for Kusundar, you know, as far as India is concerned, we are an incumbent supplier for a large set of products, and we hope to be able to maintain our incumbents' advantage. As far as the global market is concerned, we are a challenger. We have been able to sort of make inroads, get our products qualified, and we are hopeful that that is something that we are able to do continuously and that portion of our business keeps growing. Now, I don't know if I answered your full question, but, yeah, from what I could gather.

Yeah, yeah, understood. And just last question on the competition burn, like, how does the Kusumjad have been placed versus the company like Glider India versus the company like Koli enterprise?

So, I think all companies have their own, you know, strengths and advantages and disadvantages. I think if I were to talk about, and we have a lot of respect for Gliders India Limited, they have been a large supplier to the Indian military for several decades, right? There are a set of products that they manufacture, which are mandated by the government of India to be supplied by them. And in fact, if I were to talk of Kusunga, our strength comes from a couple of different sources. One is the raw materials, right? We do the raw material, and cost is one part of it, which is an advantage. But more importantly, it gives us faster turnarounds. It gives us more ability to develop fairly technical and high-performance parachute solutions, which others would find difficult, too. And the second advantage is that we have certain partnerships, which gives us access to design, know-how, and products, and which helps us bring world-class products to the Indian military. So that's our advantage, and I think every company has their own advantage. In some cases, it's legacy. In some cases, it's agility. In some cases, it's materials. So everybody finds their own space. I would not like to comment upon specific customers of ours, but we do supply fabrics that are used for bulletproof jacket applications to manufacturers in the country, yes.

Great, sir. Thank you very much. Best wish for the police.

Thank you so much, Ajat. The next question comes from the line of Nishita Jain with Safaya Capital. Please go ahead.

Yes. Am I audible?

Hi, Nishita. You are.

Yeah, hi. So, I just wanted to understand, you mentioned that we do finished products and raw material both. So, can you give the revenue bifurcation between how much revenue does raw material contribute and how much of it? How much does the finished product contribute? And do we also use the raw material in captive consumption?

So, I think our revenue stemming from our fabrics business continues to be the majority of the business. Though, you know, Nishita, I mean, the entire solutions piece of our business is more recent. So, you know, that's something that will take time. But it has grown pretty fast. So, that's one thing I would be happy to say. I would not, if you were to ask me what percentage of my business stems, of my business comes from, sort of, sorry, what was the second question you asked? Make sure that you can repeat it. I got a little confused.

If we use the raw material for our own use, for captive consumption.

So, I think that in any case, I actually, to be honest, I do not have ready numbers for that, Nishita. I would be happy to take it offline and, you know, have somebody from my team, you know, get back to you with that information.

Okay. Okay. Sure. No problem. My next question is on what is our total capacity, if you could say, and what is the current utilization level?

Yeah. So I think in terms of capacity, again, right, it becomes because there are certain products that, you know, are sort of take, go at five meters per minute, and then there are others that go at 30 minutes per minute. So it becomes difficult to give an estimate of total capacity. So it depends on product mix. However, on utilization, I would be, you know, we are currently between, you know, I would say 55% to 60% utilization. We did a very large capex, you know, that sort of came fully online last year. And so we are hopeful that that's something that gets, you know, I would ideally want it to be fully utilized next quarter. But, you know, our business just takes time with approvals and business growth to come in.

Right, understood. So, because we did a large CAPEX last year, I'm assuming that this year we don't have any big CAPEX plans. Is that right?

I'm so sorry. Can you just repeat? I lost you for a few seconds.

Yeah. I just wanted to understand if we have any big CAPEX plans in FY27, FY28.

So at any point in time, we are exploring. So there is a standard business that we have, right? Where we are doing engineer fabrics and, you know, sort of the solutions piece. Within that sphere, we will largely be doing maintenance CAPEX, and there isn't any large CAPEX plan. And, you know, but we are exploring certain new areas of business to get into. These are still taking shape. And they, so what I would say is for new technologies and new areas that we are looking into, there could be some CAPEX that could be coming up, which, you know, at this point in time are not fully materialized, so I cannot really talk too much about them. But in terms of our regular business, there isn't, we do not really need any, I mean, we need some maintenance CAPEX, but nothing significant.

For maintenance, and if we have some sort of idea on what CAPEX we can need for, like, the areas you are venturing into.

So, I think because, you know, as far as those areas are concerned, because they are emerging, it's difficult to pin down numbers. But for maintenance, you know, I think at any point in time, it will be, you know, a few percentage points, right, that this is required. So, one can say that between 5% to 10% of your gross block at any point in time, you can assume it's a maintenance capex that you have to keep doing. There's always also a little bit of B bottlenecking that happens once in a while. Nothing planned as such, but, you know, hopefully, you know, there is some large business that comes in, and then, you know, we put in some maintenance capex to, sorry, so from the bottlenecking capex to bring it online.

Thank you. The next question comes from the line of pre-Srinivas Reddy with Srinivasan Market. Please go ahead.

Hello, sir. Am I audible?

Yes, sir.

Yes, sir. Thank you very much, sir. And congratulations on the quarter, sir. Sir, could you please help us with executable order book as of June 30th, sir?

No, sir. We do not comment on our order book, sir. I think, and I just didn't explain to you, sir, why I'm not giving it out to you, sir. At any point in time, sir, we have orders that are in various stages. One is where we have received formal POs, then the second is where we have LOIs, and then the third is where we have projections. It becomes difficult for us to sort of parse these numbers and be able to, you know, sir, exactly tell you which of these will get shipped out. So, to be honest, sir, you know, allow us to work on it. Maybe in a couple of quarters, we'll be in a better position to analyze and to give you better, you know, sort of visibility on what these numbers look like at a present point in time. All I can say, sir, is that this year, in general, looks to be a steady, good year of growth, and, you know, with sort of, I would say, reasonably, with not too much volatility. But, you know, again, the world is sometimes very interesting, and they throw up some surprises, but right now, it seems to be a good year of growth.

Okay, sir. On receivables and cash, adapter days have moved from roughly 59 to 117. Could you walk us through the receivables position at the end of June? Like what collection of cycle we should model for FY27? And whether you expect operating cash flow to turn positive this year?

So, sir, we have not circulated the letter's position in this quarter. I think it would be safe for me to say that, yes, I think, let me, sort of the Q4 was an anomaly in general because, you know, we had a very large quarter and those receivables sort of obviously looked artificially higher at the end of March. And I would say first that business has normalized at this point in time, and it's sort of a more regular level of debtors that, you know, if you look at our sort of last... A couple of years of history, that will give you a good indication of where we would stand, sir.

Okay, sir. What about the, like, you know, cash flow to 10 positive this year, sir? Whether it is 10?

I think it will be positive, sir. It is positive only, sir. Yes, sir.

Okay, sir. And one final question, sir. Sir, you know, on the finished parachute systems being executed now, are these under your own design and IP, or under your licensing arrangement as with the FY25 program? Yes, we are.

So, it's an under-licensing agreement, that's right, with one of our technology partners, sir.

Thank you. The next question comes from the line of Prakar Tibrewal with Choice Institutional Equities. Please go ahead.

Yeah. Hello, Ankur sir. So, I wanted to understand how does our defense fabric business work? So, do we just sell the fabric to our customer and they then make their end product? And what kind of use cases are for these kind of fabrics?

Great question. So I think there are two, three different models that we follow. One is, as you rightly said, that we basically supply fabrics to our end customers, sorry, to our customers and who then are supplying further to, let's say, an Indian military or, let's say, a foreign military, right? So that's a standard model. Actually, let me start with the applications first. So, I think the applications are winter clothing, super high-altitude clothing, rainwear, rucksacks, sleeping bags, bulletproof jackets. I think I've covered most of it, but I may have missed out a few things. Tanks, maybe sometimes. So that's one. The second model is sometimes, you know, especially internationally, we supply it through agents who then, you know, are sort of what I would call. The registered agents for those militaries through whom we work. And the third, which is very interesting, is where sometimes a lot of governments, I mean, in the case of Indian government through the, you know, through entities like Gliders India Limited or through Troop Comforts Limited or through other, you know, PSUs, they buy directly from us and then they make finished goods out of it. So, a few different models, but Prima PC, what you said, which is that we make, you know, we supply fabric, somebody makes finished goods out of them and supplies to the military, largely stands correct. Except, obviously, for things like parachutes and camouflage systems, etc., where we manufacture the end product itself.

Got it, got it. That's great, sir. So, you mentioned there are two players in the parachute systems market globally, including yourself. I heard that there were two players in some parachute system.

Nice, sir. There are lots of people, sir. Lots of companies all around the world we work with, sir.

Okay, so can you just give an example of how many competitors do we compete with in the domestic aerospace and defense market?

Sir, there is no clear answer for product-to-product, category-to-category. You know, for example, if you take something like the parachute system, you know, one of the other questions asked, you know, somebody mentioned gliders, India Limited, right? I would, you know, and I would not call competitors. I would call them peers, right? We all have our own strength and our own area that we do in. So, there the competition is lower. But if you were to take, let's say, a simple fabric, let's say something that is used for rainwear, I think the number of people increases. I think customer stands out within them for its quality, its consistency, its adherence to specifications. So, I think category to category varies, sir.

Thank you. The next question comes from the line of Harish Mittal with MK Global Financial Services. Please go ahead.

Thank you, Azrit. My question is to Angkor, sir. Sir, we have seen a fabulous journey in the past decade for Kusumgarh, and we have last month had a successful listing. My question is, sir, what catalyst do you see going ahead which will keep on this growth driver being robust? And keep our revenues going. This is my only question. Thank you.

I think, and let me give me some time to think through it. I think there are a few mega trends that are driving, you know, that we have seen actually drive our growth over the last few years and that we believe will continue to be prevalent over at least the next several years to come, right? One is the entire focus on aerospace and defense in India and indigenization therein. If we believe that the aerospace and defense industry, you know, will develop supply chains in India, I think that is something that Kusundar will continue to try. The second is, you know, global situation in terms of defense spending. That is also something that we believe is secular and that will keep, you know, driving us. And the third is, you know, the standard focus on, you know, China plus one, global supply chains moving. All of these are throwing a lot of opportunities to us. It's our ability to take advantage of them, which we

hope we are able to do well, that should drive our growth.

Thank you. So, I pass on to, again, to you the floor for any closing remarks.

Thank you, Harsh. Thank you, everyone, for being kind to us on the first call, listening to our answers, and we hope to be able to continue speaking with the investment community, answering their questions within the, you know, constraints of what we can. Thank you for your time, for your attention. Thank you.

Sir, on behalf of MK Global, I thank you to the management team for giving us the opportunity to host the call, and I request Alrick to please continue the call. Thank you.

Thank you, sir. On behalf of MK Global Financial Services, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.