John Cockerill India Ltd Q1 FY2026-27 Earnings Conference Call | COCKERILL | ALFAFINDER

0:00 Visit alphinder.com for earning calls, significant corporate events, and personalized watch list. Ladies and gentlemen, good day and welcome to Q2C26 earnings conference call of John Cochril India Limited. Before we begin, this conference call may contain forward-looking statements about the company which are based on the delayed opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks at identities that are difficult to predict. As a reminder, all participant lines will be the listen only mode and there will even opportunities for you to ask questions after the presentation completes. Should you need assistant during the conference call, please signal not star on attached on. Please note that this conference has been recorded. I would now hand the conference over to Mr. Francois David Madino, chairman of John Cockril India Limited. Thank you and over to you sir.

1:08 >> Thank you and good evening and a warm warm welcome to everyone joining us today for part two calendar year 2026 earnings call. I would like to start by apologizing for the delay taken for the call. and this is due to board of director which has been longer than expected. So I am joined today by our managing director Mr. Fred Masin, our CFO Mr. Deepak Shindaka, company secretary Mrs. Lidi Salonurya and SGA our investor relations partner.

1:47 We have uploaded as you may have seen our financial results and investor presentation on the stock exchanges and on our company website. I hope you have had an opportunity to go through that. Let me begin with a brief overview of the steel industry and the current market environment. The global steel market remains mixed across regions with different markets facing different opportunities and challenges. Let's start with Europe. Europe continues to face a challenging environment. High energy cost and weak industrial sentiment are affecting investment decisions.

2:28 In July 2026, the European Union introduced a new tariff kota regime covering 18.3 million tons across 26 steel product categories. Imports beyond the kota are now subjected to a 15% duty while the new melt and pour requirements calls for proof of the seals true origin slabs remain exempt from the kota and duty and this is an important information because these changes the driving forces and increase the interest for investors in implementing hot rolling solutions, cold wing solutions and processing lines based on u dutyfree imported slabs. They are also supporting the localization of steel making through electrical arc furnaces.

3:28 While in China the country remains the world's largest steel producer but the market is changing. The country is moving towards what can be described as a green seal pivot. In April 2026, finished seal exports declined by 9.2% while sector value added increased by 1.8%. This points to a gradual shift towards higher value and more specialized steel products. Chinese producers are increasingly looking for downstream lines such as galvanizing annealing and finishing to support these products. At the same time, there's a significant investment in electric aress and hydrogen based methology to reduce emission.

4:17 Customers are also becoming more selective about capital investments. There are there is a stronger focus on advanced technologies, productivity, energy efficiency and decarbonization. We are responding to these changes by strengthening our presence and capabilities in China. The United States steel industry is seeing a revival. Capacity utilization reached 82% in July 2026, the highest level since 2018.

4:52 Producers are expected to invest more than $14 billion this year, including major projects such as new sheet mill in Arizona. We are also seeing strong growth in the localization of spare parts and maintenance services. This is a further strengthening domestic industrial ecosystem. India continues to be one of the strongest growth market for steel. Steel production is expected to reach this year 161.7 million tons with an unchanged target of 300 million tons by 2030.

5:30 Major infrastructure programs and production linked incentives for specialty steel are supporting more than 25 billion US dollar in investment. At the same time per capita consumption in India is around 93 kilogram only compared with the global average of approx approxim approximately 230 kilogram per person. There's a huge gap which needs to be closed in the future.

6:04 This high highlights the significant potential for further growth. Infrastructure spending remains strong. Manufacturing capacity is expanding. Automotive demand continues to be healthy. These factors are creating a favorable environment for further investment in steel. Other emerging markets like Africa and South America are also showing healthy growth with steel demand expected to grow by around 5.5% in 2026.

6:35 Brazil and Argentina remains key markets in South America while East and North Africa are benefiting from increased infrastructure development. These regions are becoming increasingly important to the future growth of global steel demand. Beyond the regional development, there are several common trends shaping the seal industry. Steel producers are moving towards higher value and more advanced products. This is increasing the need for advanced processing technologies. We are seeing growing demand for galvanizing and colding lines along with strong interest in electrical steel processing.

7:17 At the same time, customers are looking at plant modernization, energy efficiency and life cycle services. Decarbonization is also becoming an incre increasingly important part of investment decisions. Geopolitical tensions particularly in the Middle East continue to affect energy markets, logistics and global commodity flows. This is creating some volatility across industrial markets and making flexibility and local support increasingly important for our customers.

7:53 These industry trends are closely aligned with our capabilities and with the technology portfolio of the John Cockril group. Our focus is therefore on strengthening our presence in key markets, supporting customers with advanced technologies and increasing our ability to provide local support and life cycle services. Overall, while the steel market remains challenging in some regions, we see significant opportunities driven cap by capacity expansion, higher value products, decarbonization, plan modernization and the need for greater efficiency.

8:35 This gives us confidence in the opportunities ahead. The previous quarter marks the beginning of a new chapter for John Koffield industry India. We consolidated our Chinese, German and Belgian entities under GCL and this is an important step for our strategy. The objective is to create a more integrated and agile organization and we are bringing together technology expertise, manufacturing capabilities and execution strengths. We are also creating better access to the Chinese market. This integrated platform will help us work more efficiently. It will also help us respond faster to customer.

9:20 Most importantly, it will allow us to offer our global technology capabilities through a stronger and more coordinated organization. We believe this will support our growth in the coming years. Coming to our performance during the quarter, we delivered another quarter of strong year ony-ear growth. Standalone revenue grew by 82% year on year and reached approximately 149 cr in quarter 2 of the calendar year 2026.

9:56 Consolidated revenue stood at approximately 299 cr. These represent a growth of 18% year on year. Also, revenue was lower on a sub sequential basis. This was mainly due to the project cycle and the timing of revenue recognition. In Q1, several of our older projects were close to completion. We were therefore able to recognize the savings and efficiencies achieved on this project during the quarter. She supported the margin in Q1 while in Q2 the situation was different.

10:34 We have started execution of a number of new orders that we secured very recently. These projects are still in their early stages and at this stage we incur several initi in initial project costs. However, revenue and margin contribution build up progressively as the projects move forward and this has resulted in lower revenue volume and lower margins in Q2 compared with Q1. This is therefore largely a matter of project timing and mix rather than a change in the underlying business momentum.

11:13 We continue to see healthy customer inquiries. More importantly, we are seeing a strong pace of other wins. Our customers are investing not only in additional capacity. They are also investing in better technologies. We are seeing demands for advanced processing technologies and electrical steel as well as investments in downream downstream quality improvement and plants modernization.

11:44 The reasons are clear. Customer want to improve productivity and reduce energy consumption. They want better product quality and they want to meet their sustainability and the carbonization objective. These are long-term strengths. They are not limited to one quarter or one market. These trends are closely aligned with the strength of Junko. Our order book continues to grow strongly during the quarter. We secured order was approximately 1,200 cr.

12:17 With this wins, our total order book as of June 2026 stands at appro approximately 4,500 cr. I have to say it is a strong position for the company. It gives us a good visibility for the coming years and our focus now is very clear. We need to convert the strong pipeline into further orders and at the same time we need to execute the existing order book. Well, good execution will be critical as these new projects progress through their execution cycle. We expect the revenue and margin contribution to build progressively. We believe our strong order pipeline combined with our technology portfolio and execution capability gives us a solid foundation for the next phase of growth.

13:10 And let me now come to the profitability. Profitability during the quarter was affected by the project mix and the earlier stage of execution of the new order. As I previously mentioned, several new projects are currently at the beginning of their execution cycle. This means that some costs are incured up front while the current spending revenue and margin are recognized progressively as the project advance.

13:40 We also incured certain upfront cost to build the organization and capabilities required for the next phase of growth. In addition, we have some one-time cost related to the consolidation and integration of our operations following the group restructuring. These factors affected our profitability during the quarter. However, we see these factors largely as transitional. The changes we are making are aimed at building a stronger and more scalable organization.

14:17 They will improve coordination, improve execution and help us serve our customers better. As the new projects progress and the benefits of this organizational change starts to come through, we expect profitability to improve over the medium term. Our pri priority is therefore not only growth, it is profitable and sustainable growth. And if you look beyond our current order book, we continue to invest in new technologies. One important area is jet vapor deposition. We are continuing to develop this technology and build market opportunities around it. Receities as an important part of our long-term technology strategy. More broadly, we believe the next phase of growth in the steel industry will not be driven only by capacity addition. It will also be driven by technology, productivity, energy efficiency, and the need for more advanced products. This is where we believe John Coil has an important role to play. We are also strengthening our capabilities closer to our customers and recently we inaugurated our advanced coating facility at Talia in India.

15:40 This is an important addition to our value services. It will allow us to support customers with advanced quoting solution and further strengthen our position in the services and energy efficiency business in China. We have also opened a new office in Shanghai. This is an important step in strengthening our local presence and bringing our technology and expertise closer to customer in the region. The Shanghai office will also support our broader expansion in China. We are now preparing to open a workshop in China in the third quarter for the assembly of special machines and equipment.

16:25 These these will give us additional local capabilities and help us respond faster to customer requirements. These investments are part of the same strategy. We want to be closer to our customer. We want to strengthen our local capabilities and we want to combine these capabilities with the technology and expertise of the John Cockril group. To conclude, I would say that the direction of the business is clear. Our order book is stronger as you have seen and we have a robust pipeline. We have enhanced our execution capabilities and now have a more integrated global operating platform. We are also investing in technology local capabilities and customer proximity.

17:17 Be assured that India continues to offer significant opportunities for the steel industry. At the same time, we see important opportunities in China as well in the US and other international markets. We believe the medium and long-term opportunity for GCL remain substantial. There will be always challenges and execution and some quartertoquarter volatility.

17:47 This is part of the business model. But our focus remained unchanged. We want to grow the business, execute well the project and improve profitability and create sustainable value for our customers and shareholders. We are now happy to take your questions of course. And as a closing remark, I would like to thank you very much for joining us today. We are very pleased to have that opportunity to speak with you again. We appreciate your questions and your continued interest in the company. As mentioned, we remain available for further discussions with our investors.

18:28 The management team will be happy to continue these discussions offline as well. Thank you once again. Have a good day. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on the touchstone telephone. If you wish to remove yourself from question Q, you may press star and two. Participants are requested to use hands for asking a question.

19:02 Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Miland Chain from Green Portfolio. Please go ahead. >> Hi, thank you for the opportunity. Our first question is around the mentioned excavation of 8,000 pros of P line which was mentioned in the Q325 call driven by new technologies like JVD vol and external do so I want to understand is that prop by Cing is still the internal integer Great. Thank you for your question. and we are happy to respond to these questions.

20:11 the 8,000 CR target. It's not only a target for the complete organization and the management team, but this is the north stars we are following every night to find our way to success. These 8,000 crores are going to come from different streams and we have identified two main major streams. One is our organic grow and as you rightly has underlined this grow will be largely supported by JBD and we believe also volunt.

20:50 The second revenue stream will be based on external acquisitions and currently the management is investigating several external acquisition as well. So this is the two revenue stream that we want to integrate together to build a very comprehensive and logical group. Now coming back to JVD and Voltron as we several times mentioned JVD is already commercializable and we have very advanced discussion to close one project hopefully this year for JVD in Asia. I cannot mention more precisely where and with which customer.

21:45 While Volterron is a technology which has been developed by our headquarter in Belgium and the IP is belonging to John Coil SA today and not John Krill India Limited. Nevertheless, the management team is in discussion with our headquarter so that the full business case integration of Veron can be done effectively within short. We are not at the commercialization stage for Volterone since we have some R&D tests to finalize before we can bring that up to the market.

22:34 Between the IP we have today and the full industrialization of Walter technology, there will be several milestone steps in order to have pilot plans validation and clear customer demonstration model projects to show the efficiency and the ROI of the technology. Hopefully it is answer your question.

23:06 >> Thank you sir for the detailed explanation. My second question was about the that you guided a bro consolidated India 25 revenue would be closer to around 2,000 crores and the Q1 India 26 India consolidated revenue as 960 crores. So which is a gap of roughly around 1,000 crores. So I want to understand my question here is that the US entity is not yet consolidated but that alone does not bridge the fee gap I believe because you also mentioned on the call that the US contribution would be relatively small. Could you please help to reconcile this?

23:58 Yeah. Can can we ask you to to clarify your question please on the 1,00 CR? >> We we cannot hear you very clearly. If you can speak a little closer and Yeah. >> Yeah. So my question was that the consolidated calendar 25 revenue was guided to be placed to around 2,000 crores and actually the reported number was around 960 crores. through the gap of this, 140 crores. I want to understand will it be bridged by the US entity alone because as per my knowledge the US contribution would be relatively small. So can you just help me how this gap will be bridged that's my question I hope I'm clear now.

24:42 >> so I I think the 2,000 cr was was kind of a a guideline or a target. you're right that US is not a very large contributor to that though it is not insignificant but you know the most of our turnover is related to how we progress our projects. One is when we get the orders and then when we how we progress on our projects. So I think we we you will see a significant improvement in the in the in the revenue generation in the second half. and I think okay we may not be at 2,000 but I think we should not be very far if at all we include the US in that.

25:33 >> Okay thank you sir. Also one last thing I want to understand that the John Cox say reduced it from 75% to around 70% in Q4 year 25. So I want to understand what the reason behind it was it by semi disclosures or some group levels or something else. So sorry we we we could Hello.

26:08 >> Hello. >> Yeah. Am I audible now? >> Yes, ma'am. You're audible. >> Yes. Mr. Melendez, go with a question please. >> Yeah. So, I believe I am audible. My question was that that the non corporal res the sold from 75% to 70.4% 4% in Q4 calendar year 25 selling around two large shares. So I want to understand what's the reason behind it. Can you just please elaborate and should we expect any further adoption?

26:40 >> yeah so you know John John Cocker like 75% had 75% shares. I think it's a large holding. obviously being a global player they they have their priorities, they have their projects. So you know once from time to time they may want to do certain operations on their holdings and on their investments. So they remain a very large shareholder you know at present plus 70% and if as you are aware we we will be now issuing the the preference shares to them which are convertible and to that extent they will again go back to 72 plus percentage so they remain I mean they they are they are the most in interested shareholder of this company and they remain they remain interested in the development of this company. So I think you know a small a reduction like this should not be a cause for concern. Yeah.

27:50 >> Okay. Thank you so much. So just one one last question about around the roles coding facility. Can you just give me a revised date for the first revenue we should expect from this facility and what's causing the repeated delays? >> Hello. >> Okay. It has been put in operation in June. Yeah. The the facility is is now operational.

28:25 we are doing some of the testing and you know we have some trial orders so we will we will be we will start exploiting that facility as we go forward. Yeah >> we initiating production now. >> Yeah. >> That's all from my side. Thank you so much. >> Thank you very much. >> You're welcome. >> Thank you. The next question is from the line of Pratik Giri from Shubla Research Private Limited. Please go ahead.

28:59 >> Hi greetings. thank you for the opportunity. I hope I'm audible. so my first question is on >> Thank you. My first question is on JVD. sir given this process brings real economic benefits as per our assessment on zinc coating what has been the customer's biggest apprehension and feedback you know in they are sharing with you when you are presenting it as a technology for implementation if you can share few ngets you know any anecdotal example which customers have shared with you.

29:40 All right. So basically we have a different discussions ongoing and we had also different discussion last year for JBD. So just as a reminder, the technology JBD is different from the classical hot deep galvanizing process where basically you deep dive the steel into a bus of zinc to have a anti-corrosion coating. That's the way we do zinc coating since more than decades.

30:18 Jet vapor deposition or JVD is a process where you are projecting vapor of zinc on the strip instead of hot dipping it and these bring a lot of additional advantage. The first one is that you can run high speed with that. At the same time, you can really have a cutting which is more precise and with the same thickness having enhanced capabilities of of fighting against corrosion.

30:56 So there is a lot of of advantage. There is industrial lines running in Belgium which is proving its efficiency and the process of concluding the first contract is longer than expected to do internal validation process at customer site. We are not talking about technical validation but investment proence validation. Be reassured that we have besides this case we are following very closely and we should start soon other cases under discussion.

31:40 >> Got it sir. No this is this is helpful. So just to follow up on this if you can help us understand the cost differential between HDP and JBD. So for example, if someone has to put a certain metric ton of HDP and he replaces it with JVD. So what is the initial investment difference between the two processes and how in opex the two processes are different per basis if we do zinc quoting via HDP or JVD what is the cost definition on running basis?

32:15 So I I will be I cannot give very precise figures because it's really depending on the product mix that the customer is using. So let's say that the harder the material is, the higher the benefit. The first benefit is because you are running on higher speeds than the CGL, you are doing a lot of savings because you can process much more material with the same line. The second advantage is that you have zinc saving because you need you are more precise in using your zinc than on the hottest and there is a savings based on that.

32:56 But I would say the largest savings comes when you are applying to automotive steel and advanced high strength steels because in this case you can shortcut the whole production process by avoiding batch analing analing process which is extremely costly. So I would say in terms of savings for the customer we are talking about cases where it is at least 1,000 rupee saving and it can go up to 20 times this figure based on the case.

33:36 So it's it's a significant impact. >> No, this is this is really helpful. just one tiny followup again the the order that we are supposed to get this year which probably you mentioned in your opening remark what can be the typical size of that order sir if you don't mind sharing >> the order that we got are two two types one was for me >> order that you will get in >> no he says order since the year >> hopefully will get >> the order that we are looking at is in the in the range of 50 to 100 million 50 to 100 million euros. No, this is again helpful just on last question on the cost side. So this quarter if we if we try to understand you know the cost structure probably we are at 68 cr employee cost and 70 cr other expenses.

34:46 So should we take this cost base as a quarterly run rate going forward or do you see there can be some escalation in this in these two cost going going ahead? no I think the employee cost may go up a bit because you know we are we have to expand a lot in terms of our capacity to execution. so to that extent yes we'll have to add manpower on the on the execution side and that will have have some impact on the employee cost.

35:19 on the other expense side I think we could be less than what it is slightly less than what it is. It won't be more than that. Yeah. >> So on average expenses, it can be lower than the current quarters number in the next two years. >> Marginally marginally not huge. Yeah. >> Right. Right. Right. No, this is this is variable. I joined the back. Thanks a lot. And a good set of numbers in you know in challenging environment. Sir, thanks a lot.

35:50 >> Thank you. >> Thank you. The next question is from the line of Raindra Na from Nirmal Bank Securities. Please go ahead. >> thank you for the opportunity. Good evening sir. Hello. Am I audible? >> Yes absolutely. Good evening. Good evening. >> Okay sir. sir regarding this know what is the order book for FI you have given that you know I've not seen that. Can you please keep the order from the standalone and also the consolidated entity for the backlog? so the consolidated is around 4,500 cr and the standalone is half of it.

36:41 >> Yeah. 2,00 2,200. Yes. >> Okay. and sir, what is the service revenue we have booked in this quarter and what was in the previous quarter? in the standalone and consolidated entity. >> Yeah, just one second. We are we are looking for the figure. >> Yeah.

37:14 You can ask the next question till I look for the number if you have any. >> Okay. And regarding the top customer in the particularly I'm standalone entity I'm referring what is the contribution from the top customer from India that is one and the other one is you know out of the 140 crores of you know standard cons non-standard subsidiary revenue what is the contribution of different regions if you can specify that okay >> okay okay you can ask your third question while we are looking for the second one okay those are the questions sir those are the question service one is the service contribution the other one is you have given the order book service contribution the other one is your top customer contribution particularly from India what is the contribution for top customer and region specific sales if you can provide it that would be helpful particularly when China and Europe and >> so the service one I think this this quarter was significantly lower than the last time you know we are talking about maybe around you know almost one/ird of the one/ird of the of the first quarter and even in terms of the ratio to the total sales the service value services was lower.

38:48 this is not because of the lack of orders but this is because the progress on those projects was less. I think our order backlog in this area also looks very good and our margin of remains very strong as far as the value services are concerned. Yeah. And top top I think the top will be >> on the stand alone the top contributors are Tata Tatastel and GSW and on the consolidated will be adding Arsel to the to the top contributors.

39:27 >> Yeah. And that will come to around no I mean overall it will be 80 80% total. Yeah around 80%. >> The top five. >> Okay. >> Yeah. Yeah. Okay. And sir if you can give the reasons and another question I want to ask about this among the four competitors in India who according to you is giving the top you know giving a you know of coming to to when you go ask for the order who is the main competitor which comes with you in terms of you know competition in the order booking from the your Indian customers particularly >> from the top customer >> we we we focus on our products and our service capabilities rather than focusing on the customer.

40:29 I think that that is from the competition. No, I am talking I'm asking about the you know the competitors point of view who you consider the most you know likely competitors in the Indian market >> all the tier one competitors in industry industry as as we all know them as OEM. So namely the the the the biggest one that we are dealing with and are are well known so namely SMS >> yes typical >> okay so but your in India your contribution from the you know so far the downstream concern downstream steel is concerned is with perhaps with the primary metal or with SMS.

41:32 >> Same same on the on the downstream all of these competitors has a a downstream technology portfolio as well. >> Same. >> Okay. Okay. Okay. And region specific sales of the 140 crores. >> Hello sir, I just request you to rejoin the queue please for the followup question. Okay, no problem. Thank you. >> Yeah, thank you. >> Thank you. >> The next question is from the line of Kush Gunker from KPMS. Please go ahead.

42:06 >> sir, we recently won an order from JSW which was a order where our standalone as well as our parent companies also won as a group. we won the 1200 or 1300 odd crder. can you share some qualitative details with respect to what kind of discussions happened and what kind of impact it had post the merger of the Belgium as well as other companies. So what changed versus say what would have been poss discussion would have been if the merger or the things would not have been there. So any any qualitative highlights if we can share regarding that?

43:01 Yeah, definitely. there is an advantage of course as as being now a complete global organization and our our teams in India, our technology teams in India, our sales team get largely supported by our Belgium experts and senior managers and they were instrumental in the acquisition of these GSW projects. One part by the way of the project would be executed outside India in Europe >> and and and it will be executed by our subsidiary and not the parent company.

43:43 >> Yes. The parent company is now turn India limited. >> Yeah. Right. Right. yeah and sir the order book time execution timeline for the current order book would be So currently at end of June the order book of the consolidated group is 4,500 cr.

44:17 >> Yes. Exeution timeline for that sir. >> So the timeline is is up to 3 years basically. >> 3 years. Okay. Okay. and what kind of sir ramp up can we see in H2 with the new orders execution commencing? >> So currently the the hydrogen demand is still very very weak and we are really at the beginning of adoption in the steel industry of hydrogen as a reduction factor for iron.

44:56 Currently most of the customers are not considering green hydrogen that means hydrogen coming from electrolyers but they're rather pointing hydrogen based on cracking natural gas or by reducing cocoven gas coming from blast furnace or cocoon. So currently the market is initiating the new process hydrogen based but we are not at the stage where it will come from green electricity and electrolyers.

45:34 sir my question was what kind of execution ramp up can we see in H2 second half of the year as first half has been quite slow. So what kind of execution ramp up can we see for Q3 and Q4 with new orders execution commencing? >> So the the hydrogen business of Junkok Hill is not consolidated in in Junkok India Limited. This is a separate entity driven out of Europe with several worldwide service.

46:13 So I will make no comment on the hydrogen figures of business since they are not part of our scope of activity. >> No no I am asking execution. Can we can we ramp up our execution in Q3 and Q4 >> for the new project? >> Yes absolutely. >> Of course this is planned. This is planned. and engineering is already in progress. So we will see the the ramp up plays on the development and the engineering and the procurement actions that will be done before the end of the year and that will have an impact on H2.

46:53 >> Okay. Thank you. >> Thank you. The next question is from the line of BL Panchel from Viml Panchchel and Associate. Please go ahead. >> hello. Yeah. congratulations for the good set of number and you have given a very optimistic guidance amidst a very challenging environment and lots of questions which I'm going I was going to ask has been asked by previous questioners and you have answered sistically. So there is no question from my wish all the best.

47:30 Thank you. >> Can can you please repeat your question? >> Yeah. my question has been already been asked by previous participants. So no question from my no question from my side. >> Happy to have answered it. >> Yeah. Yeah. You have answered to the service. Thank you very much. >> Thank you. >> Thank you. The next question is from the line of Vanil Sha from I Fund. Please go ahead.

48:01 >> Hi good evening sir and thank you for the opportunity. hope I am audible. >> Yes you are. >> Yeah. So so sir my question was mainly on the on the two on the on the geography side right. If you can just help us understand on the outlook of of new orders what is your sense in terms of India and and international after the the current order backlog what you all mentioned are there more kind of some more order wins that we can expect? So what is your sense on that?

48:40 Yes. the the the pipeline for new orders is is still very interesting and we have possibility for new orders in different regions that that we are active on. that means that we are still very positive on the Asian regions. We are also positive on the European region. and we still see quite interesting development also in the USA. So they are there are still orders to be booked before the end of the year.

49:19 >> Sure. And and on the on the India side >> also on the Indian side. Yes. >> Got it. And and sir my second question was to to Deepak sir. sir I think as you all mentioned in the in the opening statement there were some one-offs cost due to consolidation which got impacted or which got reported. So if you can just mention what was the quantum of those cost and which may not come going ahead.

49:51 so there there are both these are both one-off as well as certain ongoing cost because now that we are we are the headquarter or the you know we are the we are the parent company for this business or the there are certain costs you know basically because of the being parent company you will have to take care of it in terms of the for example R&D the technical development etc these costs now we have to share it equally along with with others. So I think that is one important thing to remember as we go forward.

50:28 some of the I think the basic cost were in terms of the one is the transaction cost and you would have seen the impact about the impact on the forex impact on the on the notional interest that came because of the because of the transaction itself and fortunately the the parent company has agreed you know to to go for a share based payment instead of cash payment and to that extent many of these costs will actually stop incurring we will stop incurring from from the second half of the year. So that will be a a significant saving and obviously we had to do the the legal side of the deal the audit the compliances the due diligences etc. So those were the costs that were were part of this and this is these were the cost not only here but we had to do that in each of those countries you know in in in Belgium in Germany and in in in China. and being a listed company obviously you know there are more compliances for these comp these companies there you know which are outside of India. previously those were not part of their costs and now we had to do those cost there. Yeah.

51:52 >> So what what would be the quantum of those cost which was recorded in the Q2 if you can help me understand that >> that will be little difficult to do it. but we can we can come back to you we can come back to you on that. Yeah. Yeah. We we make a note of that. Yeah. >> Got that. And and and sir one last question was as the execution ramps up right I think earlier we were mentioning that the the order execution timeline generally previously used to be 2 years I think sir mentioned this time it's closer to 3 years so just wanted to understand on that and and as the execution ramps up in terms of margin sir if you can help us understand how that will shape up going ahead Execution time.

52:46 >> execution time varies different depending on the contracts and the the the development over the time is normally on the on every contract is two to three years. So the the the general answer is that you know from what we see now 3 years seems to be the the the proper assumptions. >> Got yeah you you will have some I mean basically the service projects value added projects yes they will be short duration but they also will be small value.

53:22 >> So it is more frequently coming but they of short value. I think the margins you know they they have we have been doing quite well on the margin and margins are quite consistent or I would say slightly improving and in the quarters where we'll have a large contribution of value services obviously we'll get a much better product mix and hence the higher margins going yeah so I think we we expect >> H2 to kind of reflect that.

53:57 >> Yeah. Yeah. >> Got it, sir. Thank you. >> Thank you. >> Ladies and gentlemen, in the interest of time, we'll take that as the last question. On behalf of John Cochril India Limited, that concludes this conference. Thank you for joining us and you may not disconnect your lines. Thank you. >> Thank you very much. >> Thank you. Thank you.