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Vimta Labs Ltd
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Ladies and gentlemen, good day, and welcome to Vimta Labs Limited Quarter 2 Investor Conference Call hosted by Systematics Institutional Equities. 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. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Vishal Manchanda from Systematics Institutional Equities. Please go ahead, sir.
Thanks. Good evening, everyone. On behalf of Systematics Institutional Equities, we welcome you to the Q2 FY '24 Earnings Call of Vimta Labs Limited. We thank the Vimta Labs Management for giving us an opportunity to host the call. Today, from the Vimta Management team, we have with us Ms. Harita Vasireddi, Managing Director; Mr. Satya Sreenivas Neerukonda , Executive Director; Mr. Narahari Naidu, Chief Financial Officer; and Ms. Sujani Vasireddi, Company Secretary. I'll now hand over the call to Mr. Narahari Naidu for the opening remarks.
Thank you, Vishal. Good evening, and a very warm welcome to all our Q2 FY '24 earnings call. Our investor presentation and the financial results are available on the company website and the stock exchanges. Please note that anything said on this call, which reflects our outlook for the future or which could be construed as a forward-looking statement must be reviewed in connection with the risks that the company says. The conference call is being recorded, and the transcript along with the audio the same will be made available on the website of the company as well as exchanges. Please also note that the audio of the conference call is the corporate material of Vimta Labs Limited. It cannot be copied, rebroadcasted or attributed in press or media with a specific consent of the company. Now I would like to request Managing Director, Ms. Harita Vasireddi, to provide you with the update on -- update on the quarter. Over to you.
Thank you, Narahari. Good evening, everyone. Thank you for joining our Q2 FY '24 earnings call. Before Narahari takes you through our numbers in detail, let me run you through the general economic landscape and more specifically on how our industry and business have done during Q2. The global economy remains unsettled with persistent inflation, which is coupled with geopolitical disruption, as we all know. These uncertainties have dampened the global consumer demand triggering a ripple effect across multiple industries. Speaking of the industry that we operate in, certain segments of TIC markets, TIC stands for testing, inspection and certification. These markets are feeling some heat from the global conditions. If I were to elaborate, persisting inflation and lower consumer demand are influencing the import and export dynamics. This is impacting food imports as well and we --[Technical Difficulty] I repeat this is impacting food imports as well as -- and we see a decline in volumes at JNPT port affecting revenue at NFL, which has resulted in lower testing volumes for us. On a brighter note, the government is reportedly working towards reducing import duty tax on certain food items, which is expected to boost imports in coming quarters. Coming to the Pharmaceutical segment, we are noticing some deferment in research spending by some of the overseas companies causing a slight dip in the analytical and clinical trial research market. However, the preclinical market is still seeing strong traction. Overall, the industry is seeing some headwinds, which I think are short-term in nature. Coming to the updates for the quarter. Our total income for the quarter stood at INR 754 million, which is a degrowth of 6.4% on a year-on-year basis. This was majorly driven by pharma and food business, which was impacted, especially the latest impacted due to lower demand and lower volumes. The low DCGI approval for BA/BE studies was also one of the major reasons for lack of BAB approvals to the CRO industry, impacting Vimta as well. EMV continues to see good traction, whereas environment and the diagnostics have remained steady for us. In essence, despite the temporary setback, our business foundation continues to remain quite robust with long-term contracts from our customers. I believe these setbacks are transitory in nature and believe that Q3 will see an uptick compared to Q2. And by Q4, our performance should gain further momentum. To conclude, given our ongoing discussions with current and prospective customers, I remain confident of delivering growth this year. I also remain confident of achieving our revenue target of INR 500 crores by the year 2024. With this, I now invite our CFO, Narahari Naidu, to discuss the financial highlights for the quarter. Over to you, Narahari.
Thank you, Ms. Harita. Now I would like to walk you through the consolidated financial performance for the quarter ended 30 September 2023, after which we can open the floor for question and answers. I'll start with the consolidated financial highlights for the quarter. Total income for quarter 2, 2024 stood at INR 754 million as compared to INR 806 million in quarter 2 of FY '23, down 6.4% on a Y-o-Y basis. EBITDA stood at INR 179 million in quarter 2 of FY '24 as compared to INR 261 million in the corresponding quarter, degrowth of 31.4% on Y-o-Y basis. EBITDA margin for the quarter stood at 23.8%, lower EBITDA margins were driven by higher employee costs and lower operating leverage. Profit after tax in Q2 FY '24 stood at INR 63 million as compared to INR 132 million in quarter 2 FY '23, a degrowth of 52.1% on a Y-o-Y basis. PAT margin for the quarter stood at 8.4%. PAT margins were driven by higher depreciation and finance costs. Moving on to half-year performance. Total income for H1 FY '24 stood at INR 1595 million as compared to INR 1606 million in H1 of FY '23 which is flat on a Y-o-Y basis. EBITDA stood at INR 432 billion in H1 FY '24 as compared to INR 509 million in H1 of FY '23, degrowth of 15.3% on a Y-o-Y basis, translating into EBITDA margins of close to 27.1%. Profit after tax in H1 FY '24 stood at INR 185 million as compared to INR 262 million in H1 of FY '23, a degrowth of 26.6% on a Y-o-Y basis, translating into a steady PAT margin of 11.6%. On the balance sheet side, we continue to have net debt-free balance sheet with cash and cash equivalents including other bank deposits of INR 262 million. Our total debt stands at INR 193 million as of 30 September 2023. CapEx at quarter stood at INR 421 million. We continue to maintain our CapEx guidance of INR 900 million for FY '24. With that, we can now open the floor for Q&A. Thank you.
Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Lokesh Manik from Vallum Capital. Please go ahead.
Thank you. Good afternoon to the team. Ma'am my question was on the CapEx side of the business. So we have a high technological options all good depreciated in 5 years, 6 years on an average. If you can just share what would be the revenue proportion between the older lines revenue coming from the older service lines when the new upgraded service lines, we will give us an idea in terms of whether the depreciation is only aspect books, the machines are actually [indiscernible] replacement of opportunities.
For us, the CapEx investment is continuous, yes, technology does get obsoleted at a much faster pace in today's world than in the ester year. So we keep on investing in higher-end technologies. That doesn't mean we are not able to use the equipment that are already deployed for services. So there are certain tests that will continue to have the same specs that they had for several years. New requirements sum up for which we invest in new technologies. So we cannot break up revenues from old and new, it's a good mix that is quite constant year after year.
But that would be 50-50, 70-30, how would [indiscernible]
No, it will be about 10% to 15% from the new ones that we keep introducing every year, either as a new capability or as a capacity expansion. Whenever we invest, we are going into the latest technologies only. So the rest will be from the older pool.
Correct. And ma'am, we have also mentioned in the past that the facilities are actually fungible for serving different industries. So at this time, we were seeing that the headwinds on export market, like we said, as we mentioned in early comments, we have also seen good growth coming in the domestic market from the electronic segment. So how we are standing in that area? And what is the growth potential you're seeing there either in this area?
The technologies that are deployed in engineering departments such as our electronics and electrical division are very distinctly different from the ones that we deploy for analytical projects in pharma and food. So there, you don't have any interchangeability.
Okay. And just last question. Between pharma and food, what is the downtime if you had to shift between one process to the other?
There are no clear lines drawn as such. They have their individual capacities and then there are some common pool capacities. So as the need occurs decisions are taken on the fly with respect to who gets to use with resource.
Thank you very much. The next question is from the line of Ankit Gupta from Bamboo Capital. Please go ahead.
Thanks for the opportunity. My first question was on the kind of operating deleverage we had seen during the quarter with like around INR 5 crores degrowth in our top line. So we saw a significant decline in margins from around 32%, 32.5% to almost 23%, 24%. So if you can talk about what led to such significant decline in the operating margins.
Yes. So yes, that's a very good point that you have raised. Although the degrowth is to the tune of about 10% quarter-on-quarter, we see a significant dip in the bottom line because most of our costs are fixed in nature. The only variable that we have is materials, consumables, reagents, that kind of thing. But everything else, like our manpower cost, the cost of maintaining equipment, the cost of power, fuel, cost of transportation of employees. All these remain quite fixed in nature. Therefore, when you see a dip in revenues, you've already spent certain on certain incremental capacities. So that sort of adds to the negative dip in the bottom line.
Sure, sure. So like in this quarter, we saw that despite decline in the top line, the cost of reagents has increased. So that was -- is it more to do with the product mix or the revenue mix with the pharma and food contributing less during the quarter?
Yes. There is a revenue mix change here. We have animals also as a part of this cost. So there are probably more expenditure on that side of the operations. That's why you see that slight change in material costs.
And just to add to that, so in entire to the change in mix of revenues, the consumption cost would be lower in general when there are higher revenues -- so about 10% is down compared to a corresponding quarter. So that has also had some impact on the overall cost of materials.
And my second question was on our revenue target of INR 500 crores FY '26. Let's say, given the headwinds that we are seeing and assuming some bounce banking in our revenue growth during the second half of this year, we would be finishing let's say, INR 320 crores, INR 330 crores of revenue, which we had reported last year itself. So from INR 330 crore or even INR 335 crores kind of revenue that we finished this year with from there to grow to INR 500 crores revenue by FY ‘26, we need our top line to grow by at least 25%. So – what kind of visibility do we have of 25% top line growth for FY ‘25 and ‘26 for us to achieve a targeted revenue of INR 500 crores?
Yes. The flow, as you said, is definitely going to be steeper. Earlier, we were targeting a 15% year-on-year. Now that becomes 25%. Our expansion activities are nearing completion. By March, we should be able to commission the additional capacities that we are creating in terms of building and space and the new capabilities that we have been investing in or developing the last couple of years, they should yield higher revenue. In addition to our goals with customer partners, we see continuous growth of business from some of our key customers. So these remain the key sources of our confidence that we will still meet the INR 500 crore target by 2026.
Because in our case, given significant contribution comes from pharma and secondly on the food, those 2 engines have to fire for us to reach this INR 500 crores. And as you have been communicating in earlier calls also that pharma, you have been seeing good traction and that gives you confidence of achieving INR 500 crores. Given the headwind that we are seeing on the pharma side also currently, do we expect some revival in next year and FY '26 for pharma to grow significantly and drive our revenue growth?
Yes. Our confidence has not shaken. In fact, our order books are much more larger today than even the last quarter. We definitely think that the factors that influence this quarter results were more external and less to do with our companies [indiscernible] growth. One case, as I was explaining in my opening remarks, DCGI has slowed down in giving the NOCs approvals for conductor BA/BE studies. Whereas this process used to take just a few weeks, this is now making several months. There's a huge backlog, and this is impacting all the companies that are in this service. The other thing is the reduction in imports and the allotment of samples to our MSL lab in Mumbai. Now that trend we saw until end of September, October is now back to normal. And then, of course, there is a slight delay in pipelines, actually booked contracts converting into commencement of projects is only because of certain delays on the sponsored side. So all these factors are more to do with external environment, which seems to be a temporary aberration rather than anything permanent.
My last question was on the Electrical and Electronics segment. That segment, as mentioned in our press release, and as you were saying, has done well. But how do you see this segment shaping out over the next 2, 3 years? Because the significant -- like is this -- like do you think this segment can become INR 50 crores, INR 70 crores kind of segment over the next 2, 3 years? Or it's an uphill task to achieve those kind of numbers?
Capacity utilization-wise, the good news is that we are already working at close to 75% to 80% of our capacity. So we see very strong growth quarter-on-quarter. Yes, the numbers are small, the percentage looks big. But still, quarter-on-quarter, we are seeing a very strong response from the market. And if you study this industry closely, there is a lot of push from the government on Make in India and the Electronics segment is, I think, going to be one of the biggest beneficiary of this push from the government. Depends also there is a mandate that they source different components from the domestic market up to 50% that itself will trigger a lot of component manufacturing. And Hyderabad is known for being a defense component manufacturers. So there are several factors which give us a very good feel about the prospects of electronic industry. Will we reach INR 50 crores to INR 70 crores in the next 2, 3 years? That's a good question. I'll be able to answer with more confidence as we travel a year or so. So far, the confidence is very good. The markets are responding to our expectation.
Thank you very much. [Operator Instructions] The next question is from the line of Ankit Pandya from InCred Asset Management. Please go ahead.
Hi, thank you for the opportunity. Ma'am, I have just 2 questions. So firstly, on the EBITDA margin front, where it has come down to almost 22%, 23%. Do we see in the second half, given that we gain the strong momentum picking up from third quarter to go back to around 28%, 29% levels? Or there'll be some -- there can be some downside risk to margin profile for FY '24?
In Q3, our expectation is that we will come back to at least Q1 level or maybe be even able to do slightly better there. So once we are back to those levels, then we will get back to margins.
So the like the pharma and food segment that will have to again see a bounce back, that will be the key for driving the margins for the second half of FY '24 to see correctly?
Yes, yes. That we see is the approvals. There's still coming flow unless the regulator does something about this, this may continue. But the good news is what we're supposed to come in, in Q2 will now come in Q3. So we may not be able to cover up the lag, but definitely, we can do what we have done in the previous quarters.
And any particular reason that you like now there's a delay in approval for these studies in the pharma segment, any particular reason that's happening?
We don't understand them fully, but the regulator has called for a meeting with the industry mid-November. I think the industry has raised concerns on the delayed collectively. So I think the regulator wants to respond to those concerns. We'll know more once this meeting happens on what their plans are, that speed has definitely come dropped to only about 30%.
30%. Okay. And ma'am, on the pharma side. So this is more on the industry level on the [indiscernible]. So in the CRO and the CDMO segment globally, there has been challenges currently on the funding issue. So can that also be one of the reason that our pharma segment is seeing a demand challenge?
Yes. We also have sent that. In our business development efforts in the overseas markets in U.S. and Europe, we do see that there are certain companies that are becoming a little conservative in terms of expanding their R&D pipelines. But we also understand that this could be just a temporary phase, and they expect to come back to normal investment levels in R&D by Q1, Q2 of next year.
Thank you very much. The next question is from the line of Dhwanil Desai from Turtle Capital. Please go ahead.
Ma'am my first question is on the food segment. I think last quarter also, you indicated that Q2 may be challenging because of the rain part and also the Q1 was impacted by the cyclone. So barring that now seems things are normal, do you see anything in terms of change in the environment on the non- JNPT business? And also, if you can give some color that whatever challenges we are seeing on the food side, how much of that is non-JNPT food and JNPT food, if you can give some color on that?
I won't be able to share such detail on our food testing revenues, Vimta and NFL, but the impact that we saw in Q1 was there on both these revenue streams of Food division. That FX continued at MSL end of quarter 2, but the regular food testing business that Vimta does, it picked up from middle of the quarter, and it's been stable.
So let's say, even if the imports dropped at JNPT, did we get a higher share of revenue than last quarter of the total import samples? Are we progressing in terms of getting more share of the samples coming in? Because that's the journey you want to travel. So any progress on that?
There is no information available to us publicly on that. So I won't be able to comment on Vimta's our share is higher or not. We did convey our concerns to our partners that the capacities are highly underutilized. So that information is part with them. They are equally meshed in the NFL project and revenue. So that's the only submission we are able to make with the government.
Got it. And on the pharma side, in last quarter, I think we were quite upbeat. And I think this quarter, we are testing that apart from regulatory issues, there is also some deferment and -- because of the change in the macroeconomic environment at global scale. So in your conversation, are this like a 1 or 2 quarter thing, or generally when such things start people hold back things for slightly longer because they want to see things getting stabilized on our macroeconomic plan? So how has been your experience in the past? And what is your current conversation with customers steadily?
Our experiences like this, we work with both small and medium companies and also with large companies. Large companies who are more R&D focused, we do sense that they are not putting any newer investments, but they do have some current projects that they will move. That's the sense we are getting from large customers. The smaller ones, midsized ones, it doesn't seem to be impacting them so much. That's the sense we have as of now.
And last question. So we saw that we [indiscernible] this year with some growth. So are we talking about mid-single digit kind of approvals or closer to 10%? Any sense on that?
Sorry, your voice was quite jumbled. Can you repeat?
So we said that we may end the year with some growth over FY '23. So can you give some color whether we are looking at 4%, 5% kind of approach or a 10% growth is what does that you?
When we started, we were confident of 15% growth, that's where we started, and that seems quite challenging given our Q2 numbers. I'll be able to maybe answer more confidently when we connect the gain in January. There will be a growth. I'm not yet able to say what percentage.
Thank you very much. The next question is from the line of Gunit Singh from CCIPL. Please go ahead, sir.
Hi, thanks for this opportunity. So the Indian government has permitted private sector to use government labs. So I just wanted to understand how will this impact Vimta Labs?
We don't see a necessity for us to use government plans. I'm also exactly not sure what kind of infrastructure you're referring to or which industries this is related to. But so far, we have not had any thoughts in that direction.
All right. But in terms of competition, do we, I mean, foresee any other competitors or any other players coming up who might use I mean, the government labs to compete with us? So what are you commenting on that?
I don't know. It's very difficult to comment on that.
All right. My last question would be regarding the FY '24 numbers. So I mean, we are seeing that we should be able to see Q1 margins going ahead for the remaining 2 quarters. And I mean, even to maintain the numbers of FY '23, we would be -- we will be needing some growth year-on-year. So I mean, is that assumption correct?
Yes. We expect H1 -- H2 to be better than H1.
All right. So that is about 29% of margin?
I couldn't catch your last.
So I mean I'm saying that should be around 29% plus margins for H2?
Yes, it should be around that, yes.
Thank you very much. The next question is from the line of Ankit Gupta from Bamboo Capital.
Thanks for the opportunity. On the pharma side, if you can talk about how much of the revenues are contributed by large pharma or generic companies based out of India versus Vimta Labs Limited VC-funded research R&D companies who are currently facing some challenges on the funding front?
I don't have that analysis information with me because it is -- it varies from each business unit. So unfortunately, I don't have that information that you need to share with you.
Okay. But broadly, if you can say like what large pharma will be contributing to our revenues on the pharma side? Any broad number that you can share with us across...
This is quite dynamic. Quarter-to-quarter, our top 10 or top 20, there is usually a churn there.
Thank you very much. [Operator Instructions] The next question is from the line of Manav from Cabot Investments.
[Technical Difficulty] Thank you for the opportunity. And on the outset, let me first wish you all for your 39 years assumptions foundation. And also wishing [indiscernible] also who have been revealed and from the Finance Minister Nirmala Sitharaman, for his continuous efforts in the use of life sciences and healthcare. So now my first question is because a little bit we were chartering results, but I want a what a issue, we can cope up with a lung going forward. And the first question is, how are we managing our working capital? Because the way we are -- the working capital deals are going little more in the upside where we have to focus more on the downside. So how are -- what is the outlook on improving is working capital cycle going forward?
To answer to that question, on the working capital side, currently, we are cash sufficient connection days also did not significantly reduce rather, we have maintained more or 100 days in of thing.
Okay, 100 days actually, okay. So how are -- are we planning to reduce it even further? Or what your plans?
Yes. So our efforts are continues to reduce the overall receivable days. We are targeting to be around 90 days. In fact, if you see the past trend, we started with 105. Last year, we had brought it down to 99. Now we are in the region of 96, 97. So that is our continues. That's on the receivable days. When it comes to cash position, we are having almost close to INR 20 crores in fixed deposits as of September 2023.
Sir, I just want to ask how is the Europe situation going on? Because you mentioned in the last call, clinical sector as stainless. How are we seeing? Is it recovering? And we have seen incremental growth from that side? How is it turning out to the Europe situation? [Technical Difficulty] Yes, I just asked that how the Europe situation turning out today. Is it critical still? Or are we seeing recovery in clinical sector? And are we seeing incremental growth going forward? [Technical Difficulty]
Manav, so you can go ahead with your question.
Yes, I'll have the question. Thank you, sir. So Mr. Narahari Naidu, have to ask you, sir, how is the Europe situation turning out? Is it still critical or are you seeing recovery and incremental work going forward? [Technical Difficulty] Should I ask again the question?
Yes, please.
Okay. [indiscernible] Ma'am, now I'm just asking how is the Europe situation turning out to be? Is it still critical -- or are we seeing growth and recovery over there for clinical segment?
Yes, I think that comment was made based on certain feedback we had from customers in Europe between the agrochemical industry. There, we do see a response getting better in terms of their inquiries, requests for courts and stuff. So it seems better than before.
It seems fair. Ma'am, can you just provide me the employee count, which we are operating as of today?
We are around 1,400- plus for employees.
1,400-plus Okay. So yes, ma'am also the total loan book of years as of today, the loan book and the split of secured and unsecured?
So as on 30 September, the overall outstanding is INR 19 crores, which consists of INR 12.5 crores of term loan and INR 6.5 crores of working capital utilization.
Okay. Okay, sir. Sir, I just wanted to ask, like India is being very optimistic. It might be to Davos ‘23, [indiscernible] Invest India, Invest Telangana, Start-up India, Make in India. These are all initiatives is it promote in India being the largest lever intensive economy. And we have the largest chain pool and across China and population as a -- how are we see – and there are various units of problems, which are pharmaceutical and engineering companies facing across globe. What opportunities do we see being limited to meet this change and deals happen the largest gene pool for quicker and better quality medicines and formulations?
The biggest shift that we are seeing in the pharmaceutical industry is the shift towards large molecules, whether it's biotherapeutics or their or biosimilars. So biosimilars are set to have better efficacy and also safety wise supposed to be better than the small molecule. So in terms of moving towards more safer medicines, I think the whole world is walking that way. A lot of biotech ecosystem is now developing and growing in India as well. Therefore, even Vimta has been focusing on enhancing its large molecule capabilities, whether it's on the preclinical side or analytical or clinical research side. So that's definitely a trend that we see and then we are working towards capitalizing on that trend going forward. It.
Okay. So on the theme of government support, in the life sciences industry and to state the life sciences is a base contributed and Telangana undoubtedly as pharma hub, and we know [indiscernible] is 2.0 also coming up. Are recent discussions with these investors, analysts on [indiscernible]. What major concern do you see these people have in monetizing our opportunities? And also, what have we understood around our environment and how can we monetize it more cater for the new edge industry which are coming in Telangana in particular Hyderabad as well?
Sorry, parts of your dialogue were not very audible, but if I...
Okay. I was just majorly, I was asking what major clarifications does major these analysts have pertaining to Vimta, which we had given the presentation about what new clarifications or any commitments or any -- what is the count they had regarding our company, which we had clarified -- and any notion they have a company which was clarified further from these thoughts of these meetings?
Interactions with investors community have been quite enhanced by Vimta over the last many years. We are very open to interacting with this community. And always encourage you to reach out to us in case you want more information or any clarification. So there's been an increased communication with the investor community level. I think there are not many doubts out there. Maybe 5 years ago, 10 years ago, there was not a clarity on where Vimta it's in which industry, but I think that's a good understanding now.
Okay. Okay. Ma'am, now I presume that you have read this document as well, the Telangana Life Sciences will be 2030 which says that Telangana wished to be a $50 billion in revenue, plus $100 million in valuation cluster. So from the document given us confidence of growth of [Technical Difficulty] is planning to grow on -- what is stopping us from growing at the industry level is going is, what is stopping us from growing at the company level, 30%, 40%, what shortages will be facing and how can be the front changes of this revolution?
Very nice question. I think the environment for that kind of growth, on the platform for that kind of growth is currently under development. We are at the beginning stages. And we are yet to reach a level, specifically Telangana, is yet to reach a level where we could be benefited with a 30%, 40% growth rate whether it is pharma industry or electronics. But having said that, the future is really brighter. We didn't even talk of these things maybe a decade ago. And now we are talking and we are seeing examples of that kind of investment coming into the state. So that gives us more confidence that there is an ecosystem that is being built for companies such as ours to grow and stuff for more in the future.
Ma'am also, one of the need of the hour, segment to which we cater to also wastewater treatment. How are we supporting these government states and also for better execution in their part?
We do wastewater testing to our environment division. And if there are any government contracts, we participate in government bids? And based on the kind of projects that we are able to win, we work with the government partner in such projects.
And how do you see the segment going forward?
We don't see a market change in this segment. We expect the change to come in, the sooner the better for our nation, but I think there is a lot of work to be done at the regulation and implementation level. Once that starts happening, then we will see a good impact on the revenues for a laboratory also.
Right. Ma'am on the CapEx side… Yes, just last question, sir. I just joined back Q&A session. [indiscernible] Yes, just a last small question. Ma'am, the CapEx we had for this year was planned for '19. So upcoming, how are we seeing the CapEx taper because this is just the start of Mountain.
Whenever we do a capacity expansion of this size, it's usually a plan of at least 5 years. So any equipment that we buy will be in the normal course of business only.
Do we have a road map for future CapEx like INR 90 crores or INR 120 or going forward, any road map is there?
No. The CapEx plan that we have is for the expansion and the routine capital mix ensures the moment. Going forward, we would have what we would normally routinely spend, which is typically the depreciation amount. This will again change possibly if we have some exciting customer partnerships developing [indiscernible].
One clarification I had ma'am. So one of... [indiscernible]
Manav, sorry for interrupted, we have a few [indiscernible] please.
The next question is from the line of Lokesh Manik from Vallum Capital. Please go ahead.
Thank you for the opportunity again. My question was on the order book. I'm not sure if you're sharing that number, but what would the same be for the quarter across all your businesses? And what is the time frame for executing this order book?
No, we don't go into the specific order book.
Just a broad number, what it would be if you can?
That's an information that we have not so far said or want to share.
That's it from my side Thank you so much.
Thank you very much. [indiscernible] is the last question. As I now hand over the conference over to the management for the closing comments. Please go ahead.
I want to once again thank everybody for joining us on this Q2 earnings call. Appreciate all the good questions that are posed to us. We look forward to connecting with you again after the next quarter. Thank you.
Thank you very much. On behalf of Systematic Institutional Equities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.