Abha Power and Steel Limited — Q4 FY26

Abha Power and Steel Limited Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Ke5i7SjXGcY Published: 7 days ago

0:01 1 second Hello and good evening everyone and thank you for joining us today for Abha Power and Steel Limited H2FI26 results 0:08 8 seconds call. I am Rishi from Fenporter investor relations team and it's my pleasure to welcome to you all. We are joined today by Mr. Atishraal the managing director 0:18 18 seconds of Ahab. So as a reminder all the participants lines will be in the listen only mode and there will be an opportunity for you to ask the questions 0:26 26 seconds after the management remarks. Note that this meeting is being recorded. Let me now hand it over to Mr. Adish Agraal to take you through the financial 0:34 34 seconds highlights and the operational highlights for this year. So over to you sir. 0:40 40 seconds Uh thank you Dish. Uh hello good evening everyone. I'm Ati Shagaral. Uh I'm pleased to share the financial 0:48 48 seconds performance of ABA power and steel limited for the second half and full year for FY26. 0:54 54 seconds For H2 FY26, our revenue operations uh revenue from operations stood at 27.65 1:02 1 minute, 2 seconds crores. We reported an AITA of 1.78 cr reflecting an AITA margin of 6.45%. 1:09 1 minute, 9 seconds And our profit after tax came in at 42 cr with a pat margin of 1.55%. 1:17 1 minute, 17 seconds For the full year FY26, revenue from operation stood at rupees 62.22 crores. 1:23 1 minute, 23 seconds ITA for the year whole year was 5.35 crores with an IITA margin of 8.6%. 1:31 1 minute, 31 seconds And the profit after tax came in at 2.46 cr rupees reflecting a pat margin of 3.95%. 1:39 1 minute, 39 seconds Uh now let me cover the key operational highlights for the second half of the year just concluded. in the second half 1:46 1 minute, 46 seconds of FY26. Uh it uh it was not not so pleasant as what we have love to uh love 1:55 1 minute, 55 seconds to have obtained. But uh with the margin pressures from in uh incoming uh raw material cost and the price correction 2:03 2 minutes, 3 seconds in one of the key segments we have just survived the half yearly results. On the plant upgradation front, we have made a 2:10 2 minutes, 10 seconds very significant progress. Uh as per the fund utilization of our IPO expenses, we 2:18 2 minutes, 18 seconds have already installed and started our electric arc furnace and one heat treatment furnace. So these two parts 2:25 2 minutes, 25 seconds are already operational fully operational. Other than this uh the automated molding line, the 20 ton heat treatment furnace and other 2:34 2 minutes, 34 seconds equipments and uh appliances are uh nearly completing their stages of uh commissioning and we are on track to 2:43 2 minutes, 43 seconds fully commission our complete plant by August 31st. Now this upgradation will increase our molding molding capacity or 2:51 2 minutes, 51 seconds sand processing capacity from currently 1,000 kg per hour to 35,000 kg per hour. 2:57 2 minutes, 57 seconds That's a 35x jump in our molding capacity and this will give us a transformation transformational shift in 3:05 3 minutes, 5 seconds our uh throughput journey. On the quality and accreditation front, I'm uh very pleased to share that we have 3:12 3 minutes, 12 seconds achieved NABL accredition for our uh foundry lab of Pilaspur. 3:19 3 minutes, 19 seconds uh the accreditition has been awarded under ISO IEC 17025 and it has been given for our in-house 3:27 3 minutes, 27 seconds uh laboratory. Uh this establishes an internationally benchmarked testing capabilities within our own four walls 3:36 3 minutes, 36 seconds and it also it is also strengthening our quality assurance framework and the customer support and it is significantly 3:44 3 minutes, 44 seconds enhancing our customer confidence as well. uh it also signifies that uh the procedures that we have employed in ABA 3:51 3 minutes, 51 seconds power and steel is uh up to the marks as per the international standards required by our esteemed customers. Our order 3:59 3 minutes, 59 seconds book uh remains healthy at around 20 21.6 crores and this gives us a near-term uh revenue visibility. On the 4:08 4 minutes, 8 seconds railway front, uh we have achieved a very big breakthrough which for which we were trying for the last couple of years 4:17 4 minutes, 17 seconds and finally we have uh successfully developed uh two very critical components uh two very critical coach 4:24 4 minutes, 24 seconds components and it has come into our commercial production. We have also secured a very long-term uh orders for 4:32 4 minutes, 32 seconds these two components from a major OEM and uh this is in line with our uh vision to uh bring in uh bring ourselves 4:41 4 minutes, 41 seconds in the light of uh such customers who can see us as a long-term solution and not just one order or two order basis. 4:51 4 minutes, 51 seconds We have formally uh we have also formally entered the defense sectors what we were trying earlier also and uh recently we have uh secured two critical 5:00 5 minutes prototype castings that's actually four parts and uh it it this order has come directly from the defense PSU to us and 5:09 5 minutes, 9 seconds uh this has enabled us to cross a high barrier space and we believe that good 5:16 5 minutes, 16 seconds portion of uh our good portion of our orders come from the defense sector as well in the coming future. Uh regarding 5:24 5 minutes, 24 seconds our expansion programs, we have already uh pulled in couple of applications to RDSO. We have uh uh we 5:33 5 minutes, 33 seconds are regularly in touch with them for this uh uh for final approval of our products. uh we have made application 5:42 5 minutes, 42 seconds for I think eight nine different products uh directly to RDSO and uh which are in different stages of 5:49 5 minutes, 49 seconds approval for one product uh it's in the final stage and uh most probably we should get its approval uh within coming 5:56 5 minutes, 56 seconds weeks the main uh fundamentals are that the acts are in place the pipelines intact 6:04 6 minutes, 4 seconds and we expect that this uh this whole mass will come into the picture in our performance comments in the coming periods. Um, okay. Yes. With that, I 6:14 6 minutes, 14 seconds would now hand the call back to the moderator for the Q&A session. Thank you. 6:21 6 minutes, 21 seconds Thank you to the management for the insightful overview. We will now to move on to the Q&A sessions. Participants who wish to ask a questions either unmute 6:30 6 minutes, 30 seconds themselves when called upon or type their question in the Zoom Q&A box and I will read it out on your behalf. 7:02 7 minutes, 2 seconds Is the participants to raise their hand for asking the questions? 7:40 7 minutes, 40 seconds So we have received the questions. So the revenue has declined 20% h from 34 to 27.6 cr and pat has dropped. So can 7:50 7 minutes, 50 seconds the man walk walk us through the exact quantum of impact from each factor like insert price corre correction order difference and raw material cost inflation in absolute rupee terms. 8:03 8 minutes, 3 seconds Uh can you please repeat this thing? 8:08 8 minutes, 8 seconds So the re declined from uh 20% h from 34.6 cr to 27.6 cr and the pat has 8:16 8 minutes, 16 seconds dropped. So can you walk us through the exact quantum of impact from each factor like insert price correction and what 8:24 8 minutes, 24 seconds order deferrals and raw material cost inflation in rupee terms. 8:30 8 minutes, 30 seconds All right. Uh yes uh as we have we can see in the question itself that the reasons for this fall in this uh revenue 8:38 8 minutes, 38 seconds and the part is uh straightforward for us this time. uh this uh fourth quarter has been quite challenging for us 8:46 8 minutes, 46 seconds regarding the uh raw material point of view. Uh we were uh constrained by a lot of uh other aspects as well rather than just the raw material for this period. 8:57 8 minutes, 57 seconds uh if we see in a quantum basis that uh the difference uh uh for this uh the reason for this downfall insert price costing was the 9:06 9 minutes, 6 seconds major reason uh as we can uh we have some data for this that uh around uh 20% 9:13 9 minutes, 13 seconds has been the decline in the price of the uh the insert that we sell to our customers. Now this insert part it uh uh 9:23 9 minutes, 23 seconds devotes almost 50 to 60 uh 40 to 60% of our uh turnover comes from this single 9:30 9 minutes, 30 seconds product and it's uh fall in the uh the prices have impacted us tremendously. 9:38 9 minutes, 38 seconds So if you want me to denote the factor that has caused this kind of fall, I would say that uh 70% or 60 70% is the 9:47 9 minutes, 47 seconds reason that uh drop in the insert price has caused this kind of fall in our revenues and the pad. uh 20 30% is the 9:56 9 minutes, 56 seconds raw material reason that has uh impacted our overall working in this uh H2 FY26 10:04 10 minutes, 4 seconds and uh 10% could be the reason other reasons that we have factored in. 10:13 10 minutes, 13 seconds Okay, the next question is from Mr. Kamill Jwani. 10:22 10 minutes, 22 seconds Hi. Uh thank you for taking my question. 10:25 10 minutes, 25 seconds Um yeah just continuation to the last question. Uh new to the company if you can just uh let us know what exactly is 10:33 10 minutes, 33 seconds this insert used for and uh how is the prices I mean shaping up in this quarter so far. 10:42 10 minutes, 42 seconds Okay this uh insert uh thank you Kamill for your question. Uh this insert is a part of railway ecosystem. uh it goes in 10:52 10 minutes, 52 seconds the sleepers concrete sleepers that is used for this uh railway line manufacturing. So whenever there is a new line construction or overhauling of 11:00 11 minutes a old uh railway line railway cement slippers are being used at the time of production of the cement sleepers. This 11:08 11 minutes, 8 seconds is a steel uh iron casting part insert which goes inside the mold of the sleeper and it is casted during the 11:16 11 minutes, 16 seconds production of sleeper itself. So we are we are one of the uh I would say pioneer 11:26 11 minutes, 26 seconds producer of inserts in the Indian markets and our inserts are used by almost uh uh geographically said all 11:33 11 minutes, 33 seconds over India different sleeper manufacturer prefer to use our inserts. 11:39 11 minutes, 39 seconds So that was the point and yes uh the second part was uh how this the the 11:46 11 minutes, 46 seconds rates are looking in this quarter. Uh this right now the rates have improved a bit. uh we have been pressurizing our 11:54 11 minutes, 54 seconds customers a lot uh regarding this uh correction in prices is required for this raw material and uh other 12:01 12 minutes, 1 second geopolitical reasons and uh they have uh accommodated a bit and uh we have seen some corrections in the prices uh 12:09 12 minutes, 9 seconds positive corrections and uh we can see the things improving from here actually it's a cyclic kind of thing every two or three years this sleeper contracts with 12:18 12 minutes, 18 seconds the railways gets exhausted and the new contracts are not coming in. So there is a period of few months in which this 12:26 12 minutes, 26 seconds situation arises in every couple of years. So we can safely say that uh the worst part is already behind us and now 12:35 12 minutes, 35 seconds the all the sleeper plants are uh almost up and running or maybe they will come into production in this month or the 12:43 12 minutes, 43 seconds next month. So we'll see a turnaround in the prices and the volume both for the insert at least. 12:51 12 minutes, 51 seconds Okay. Thank you. And the second question was uh regarding this you in the opening remark you had mentioned about uh production uh hike in one of the uh 13:00 13 minutes products 35 times. So what is this exactly this product I missed out listening to that and also what is uh 13:08 13 minutes, 8 seconds how much is it contributing today? Uh I mean how how much that turnover will increase once this capacity comes on stream. 13:17 13 minutes, 17 seconds Right. Uh so Kaml the how this thing works is uh we uh a foundry capacity is 13:24 13 minutes, 24 seconds defined by how much liquid metal it can make. So our foundry capacity was always there 13:32 13 minutes, 32 seconds since we had uh diversified earlier in I think 10 12 years ago from a ingot 13:39 13 minutes, 39 seconds making unit to a steel foundry. So uh we had a very uh high capacity induction furnaces. So we had a liquid metal capacity more than what we can utilize. 13:51 13 minutes, 51 seconds Now once you have the liquid metal you need the downstream industries. So uh downstream uh manufacturing facilities 13:59 13 minutes, 59 seconds to use that much liquid metal. Earlier than the earlier uh period uh before our 14:07 14 minutes, 7 seconds IPO uh our system was not having that kind of manufacturing downstream to use 14:14 14 minutes, 14 seconds that much of liquid metal. After the IPO expenses, we have put in the to uh 14:20 14 minutes, 20 seconds really transform this uh uh foundry into a niche world-class product and for that 14:27 14 minutes, 27 seconds we have put up an automatic molding line. Now this automatic molding line it provides our it increases our capacity 14:34 14 minutes, 34 seconds 35 times. Earlier what we used to take around uh let's say a whole day to make 14:41 14 minutes, 41 seconds uh uh such uh 10 tons of molds. Now we can do it within one hour. So that is the capacity expansion that we have 14:48 14 minutes, 48 seconds done. We have uh improved ourselves or upgraded ourselves to use that kind of liquid metal which is was already 14:55 14 minutes, 55 seconds available to us. So it's a very key component or key part of the whole manufacturing 15:02 15 minutes, 2 seconds process. In fact uh if I can say so it's the most critical part where the actual casting is being made. At the time of 15:09 15 minutes, 9 seconds molding if there is a single mistake then your casting is not going to survive that. you'll have to reject it. 15:15 15 minutes, 15 seconds So uh on the most critical part we have doubled down we have increased its capacity utilization and also its 15:22 15 minutes, 22 seconds quality. Now the quality of molds that we can manufacture is up to uh up to a very high uh standard or world class 15:31 15 minutes, 31 seconds standards and this is helping us in getting orders of uh such critical nature that you have seen in the 15:38 15 minutes, 38 seconds presentation and my opening remarks as well. So that is the main aspect that we have improved uh in the uh current past. 15:48 15 minutes, 48 seconds Uh you had some other question also come I think. 15:51 15 minutes, 51 seconds So how much turnover uh how much will it contribute to the increase in turnover? 15:55 15 minutes, 55 seconds uh I mean once we start utilizing this properly uh I will not be able to say a direct 16:03 16 minutes, 3 seconds number to this but uh it has been our vision to take our capacity utilization 16:09 16 minutes, 9 seconds from around uh 20 30% to above 90% hence the steel foundry I'm saying so you can 16:17 16 minutes, 17 seconds just do the calculation that if we are able to achieve that because molding was the only aspect or uh one of the 16:25 16 minutes, 25 seconds biggest obstacle which was stopping us from going for the higher capacity utilization. So if we go that kind of uh utilization after we have upgraded our 16:34 16 minutes, 34 seconds molding system uh I think uh we have a very bright future to see. 16:40 16 minutes, 40 seconds Okay. So basically now we have to just utilize the capacity and uh that will increase our turnover automatically. 16:48 16 minutes, 48 seconds Definitely. Yes. We should see the differences in the top line and bottom line both. We hope so. But thank you so much. 16:57 16 minutes, 57 seconds Thank you. 17:03 17 minutes, 3 seconds I request the participants to raise their hands for asking the questions. 17:08 17 minutes, 8 seconds So the next question is so uh with the legacy fixed price contracts, what is the residual exposures in the order book 17:15 17 minutes, 15 seconds still not covered by the escalation clauses and when does it fully roll off? 17:21 17 minutes, 21 seconds Okay, this is the new thing that we have started communicating with our customers. Uh uh it has been our in our vision to narrow 17:30 17 minutes, 30 seconds down the uh customer baskets. Uh we are uh looking at the customers who want a permanent solution for their problems 17:38 17 minutes, 38 seconds and uh look uh their suppliers or the casting manufacturer as their uh as their business partner and not just for 17:46 17 minutes, 46 seconds one-off projects. So what we have done is we have uh persuaded our customers to go for a price variation clause in all 17:54 17 minutes, 54 seconds our orders and u this thing is taking effect uh slowly and steadily we are getting some orders with the assurance 18:02 18 minutes, 2 seconds that if there's any major changes in the raw material they will support us and uh right now to put a number to it that how much percentage we have been able to do 18:10 18 minutes, 10 seconds it is difficult. uh generally in all the railway orders that we get directly from the Indian railways there is a uh price 18:18 18 minutes, 18 seconds variation clause included in that because those are long-term sort of one year or so. So in those conditions we 18:25 18 minutes, 25 seconds are seeing those PVCs but uh again uh government sector PVC is not a real uh 18:33 18 minutes, 33 seconds real showcase of what is happening in the actual uh market. So they are not changing very much as per the market demands. So it is 18:42 18 minutes, 42 seconds not helping us that much. But again it's a support that we are getting from the uh government directly. So I will say 18:49 18 minutes, 49 seconds around uh 20 to 30% of our orders have already been converted with this PBC and uh we'll see that uh it gets up to at 18:58 18 minutes, 58 seconds least 50% in the coming uh weeks or months so that u we don't face this kind of situation again. 19:10 19 minutes, 10 seconds Okay. Uh so the next question is the trade payables have jumped nearly 3x year-on-year basis. So is the company stretching the vendor payments to manage 19:18 19 minutes, 18 seconds liquidity or is there any vendor relation risk as a result? 19:24 19 minutes, 24 seconds Um I would not say directly that we are squeezing our vendors uh for this thing but uh once the cash flow has declined a 19:33 19 minutes, 33 seconds bit so it puts pressure on uh the whole ecosystem. 19:38 19 minutes, 38 seconds Uh we have taken some advantage of our uh uh good credit good credit limits that we have been offered to us by our 19:47 19 minutes, 47 seconds regular vendors and that has supported us. For that reason this has gone a bit higher. And 19:55 19 minutes, 55 seconds another point uh was that that u we were uh we were uh so uh so regular in our 20:02 20 minutes, 2 seconds payments earlier that uh if there has been some delays in our payment in the current uh in the last H2. So our 20:12 20 minutes, 12 seconds vendors have supported us for that. So it's a cyclic thing. It happens sometimes in the middle uh middle of the 20:20 20 minutes, 20 seconds uh uh uh the half years. So we don't notice it that much and because it gets resolved before the end of the half year 20:28 20 minutes, 28 seconds but this time it has occurred right at the end of the half year. So it is reflecting very highly in our balance sheet but it's a regular working and uh 20:37 20 minutes, 37 seconds I don't think there's much issue in that. 20:49 20 minutes, 49 seconds Okay. So the next question is so defense has been a strategically significant entry for a power. So it was a prototype 20:57 20 minutes, 57 seconds order for two parts. So what is the timeline to productionization and what revenue potential does management attribute to the defense vertical over the next two to three years? 21:08 21 minutes, 8 seconds Okay, again a very difficult question to answer. Yes, defense has been our go-to sectors. We have been trying to enter the defense sector in for the past 21:16 21 minutes, 16 seconds couple of years but uh we didn't had those facilities or those experience or that uh adequate team with us to execute 21:24 21 minutes, 24 seconds the pro projects earlier. Now we have achieved uh those uh background uh things that is required to enter the 21:33 21 minutes, 33 seconds defense and uh we have been uh uh lucky enough or we have been proactive 21:40 21 minutes, 40 seconds [clears throat] enough to get uh uh a push in into the defense sectors uh by 21:47 21 minutes, 47 seconds uh by collecting two very good orders uh as the starting point for the defense sector. uh right now those orders are 21:54 21 minutes, 54 seconds being in the production line. I think these orders would be completed by next month or next to next month. So and uh 22:03 22 minutes, 3 seconds after that there is a field trial period for these orders. So these orders uh will be needed by the 22:10 22 minutes, 10 seconds PSU to be operated for 3 to four months in the field. So that might take again uh four six months. So I don't say think 22:19 22 minutes, 19 seconds we'll see anything in the this uh running uh half year or uh in the by the 22:26 22 minutes, 26 seconds end of this financial year 26 27 we can see uh uh not much contribution coming from the defense sector but next 22:35 22 minutes, 35 seconds financial year onwards we'll definitely see an uptick in the uh contribution from the defense sector. uh again I will 22:43 22 minutes, 43 seconds not put a number to it but uh uh it would be in the single digit only for the next 3 years post 3 years we uh we 22:52 22 minutes, 52 seconds would really like to take it above uh in the double digit numbers let's see how we progress on that 23:00 23 minutes I would request the participants to raise their hand for asking the questions 23:09 23 minutes, 9 seconds so the next question we have is sir uh there's the con customer concentration risks as Indian railways appear to be the largest single end customer. So what 23:17 23 minutes, 17 seconds percentage of revenue in H2FY26 came from the railways versus diversified industrial segments. 23:27 23 minutes, 27 seconds Uh yeah that's okay. Uh Indian railways we counter them as two parts. one is 23:35 23 minutes, 35 seconds supplies made directly to Indian railways and one is the supply made to the uh railway based industries. 23:42 23 minutes, 42 seconds So when we say that we are supplying directly to railways uh the portion of [clears throat] our uh revenue coming 23:50 23 minutes, 50 seconds directly from Indian railways around uh 30 to 40%. 23:54 23 minutes, 54 seconds uh uh yeah around 30% of of our revenues are coming directly from the railways for the railway based industries in 24:02 24 minutes, 2 seconds which the and our ultimate customer is railway only but our uh uh right now customer is an OEM who buys material 24:11 24 minutes, 11 seconds from us and then assemble and then supply to the final Indian railways. Uh our contribution from the railway industries goes high up high to 70%. 24:20 24 minutes, 20 seconds So that way we define this thing 30 to 40% 30 uh 20 to 30% is the ratio what we 24:28 24 minutes, 28 seconds are keeping for non-railway businesses and uh that's the way I think it should continue for the next couple of years as well. 24:40 24 minutes, 40 seconds Okay. So the next question we have is so what was the actual cost as a percentage of power cost as a percentage of revenue 24:48 24 minutes, 48 seconds in H26 versus H2FY 25 power cost okay so what we do is we 24:57 24 minutes, 57 seconds generally pick this as uh around uh 6 to 8% and uh since this has not changed for 25:05 25 minutes, 5 seconds the power cost uh the rates by the electricity board has change for the last uh two years. So I think it's the same percentage is there. 25:15 25 minutes, 15 seconds Uh other than this uh we have put our solar plant and it is giving us a very good feedback. The power generation is 25:22 25 minutes, 22 seconds good through our solar plant but we don't uh substitute its uh [clears throat] its cost from our uh 25:30 25 minutes, 30 seconds cost of the products as we are still paying its EMIs. So we are not getting a direct advantage of solar as of now but 25:38 25 minutes, 38 seconds maybe in couple of uh years later when the emis have been paid we'll see the full effect of it in our balance sheet. 25:46 25 minutes, 46 seconds So right now I'll say that it's 6 to8% and it has been constant for the past uh two years. 25:56 25 minutes, 56 seconds I would request the participants to raise their hands for asking the questions. 26:02 26 minutes, 2 seconds So the next question we have is so the insert segment you mentioned saw price correction of around 20% for this hour. 26:09 26 minutes, 9 seconds So has this pricing being bottom out or is there any further downside risk in H1 FY27 as well. 26:19 26 minutes, 19 seconds Uh I would really like to say that yes it has bottomed out. The uh rates have improved a bit uh in the coming uh in 26:27 26 minutes, 27 seconds this current month and a little bit in the previous month as well. 26:31 26 minutes, 31 seconds uh but you never can say certainly for this kind of aspects that how the market is going to react for the next couple of 26:39 26 minutes, 39 seconds months or couple of weeks in fact what is going on with the geopolitical situations but uh I think it's uh it is 26:47 26 minutes, 47 seconds safe to say that yes it has bottomed out and uh we're not seeing that uh it will go beyond uh what we have 26:55 26 minutes, 55 seconds [clears throat] experienced in the past couple of months The next question is we have what is the 27:04 27 minutes, 4 seconds split between the private and the government PSU sector as a percentage of our turnover last year and this year expected going forward. 27:13 27 minutes, 13 seconds Uh can you please repeat this thing? 27:15 27 minutes, 15 seconds What is the percentage of what is the split between private and government sector as for percentage of 27:22 27 minutes, 22 seconds our turnover last year and this year expected going forward? 27:28 27 minutes, 28 seconds Okay. For the whole year FY26. Okay. Uh again there is uh a bit of fine line 27:35 27 minutes, 35 seconds between what we are doing as a private supply and the government supply. Uh since uh we are uh mainly focused on railways and it has [snorts] been 27:43 27 minutes, 43 seconds distributed over two parts where we supply material directly to railways and we supplying to uh OEMs who are supplying to railways. So uh supply to 27:51 27 minutes, 51 seconds OEM we are uh we are counting in the private only. So our government direct supply has been around uh 30 to 40%, 28:00 28 minutes which is consistent with the last year and uh I think it should be the same in the next coming year as well. Uh so we 28:09 28 minutes, 9 seconds get around 60 50 60 to 70% of our revenue is going to the into the private 28:16 28 minutes, 16 seconds sector. Uh and uh in the coming year also I feel that it's going to be the same. uh there's no much difference we 28:24 28 minutes, 24 seconds can expect in the uh this financial year FY 2627 uh when you see for the split of 28:32 28 minutes, 32 seconds the revenues from the private or government sector. 28:42 28 minutes, 42 seconds The next question we have is so railway OM standing orders have been logged in for two components. So what is the approximate annual run rate revenue from 28:50 28 minutes, 50 seconds these orders and how many additional OS qualifications are in the pipeline? 28:56 28 minutes, 56 seconds Okay. So uh for the these two orders that we have received these two components uh that we have developed for 29:04 29 minutes, 4 seconds a particular OEM uh right now the last year it contribution was uh less than 29:11 29 minutes, 11 seconds 5%. because uh it got uh approved in the later stages of the uh H2 and uh so we 29:19 29 minutes, 19 seconds don't see we didn't see a significant contribution in the last financial year but in this coming financial year we are 29:26 29 minutes, 26 seconds expecting this uh [clears throat] these two products to contribute more than uh 10 to 12% of our revenues and uh we have 29:35 29 minutes, 35 seconds approached uh the same OEM for a couple more couple of more items that uh they think that it's suitable for a foundry 29:44 29 minutes, 44 seconds of our teacher and most probably we'll develop it in this financial year also we have approached uh uh two more OEMs 29:53 29 minutes, 53 seconds uh to develop their critical parts and the talks are going on on a good scale and let's see we are positive about the 30:01 30 minutes, 1 second outcome but uh I will not be able to say anything right now on that 30:09 30 minutes, 9 seconds okay I would request request the participants to raise their hands or type the question in the Q&A box for asking the questions. 30:16 30 minutes, 16 seconds So the next question we have is so what is the sustainable AIA margin we can expect for ABA? 30:25 30 minutes, 25 seconds sustainable margin uh I don't understand sustainable um 30:34 30 minutes, 34 seconds uh it's environment okay what is the appropriate or uh what is the predictable AIA margin for our see uh 30:42 30 minutes, 42 seconds every company wants their AITA to be as high as possible [clears throat] we had a uh not so good 30:50 30 minutes, 50 seconds this half year so our AITA has gone down a bit and uh if If you see the percentage wise uh [clears throat] we 30:58 30 minutes, 58 seconds always want it to be above uh around uh 20% or so uh in the range of higher uh 31:06 31 minutes, 6 seconds [clears throat] 15 to 20% range. So that is the ideal what we uh want to keep our AIA into and uh most probably we'll try to achieve it in this financial year. 31:18 31 minutes, 18 seconds H sorry uh Jira asked this question. Jag is this 31:26 31 minutes, 26 seconds uh okay uh or should I clarify it any further. 31:44 31 minutes, 44 seconds So the next question we have is so what is the revenue growth we are anticipating this year? 31:51 31 minutes, 51 seconds Revenue growth. Okay. Um revenue growth we it should be higher in the double digit of course and it should be we are 32:00 32 minutes trying not just lower double digit but higher double digit. I will not be able to give you an exact thing number but uh 32:08 32 minutes, 8 seconds we are anticipating a good uh year to come and most probably we'll get a good answer. 32:21 32 minutes, 21 seconds So the next question we have is so consider with the ESG factor can you explain if it is possible 32:30 32 minutes, 30 seconds um linking ESG factor with EITA I don't think where we are going with this but uh we are an ESG compliant company we 32:39 32 minutes, 39 seconds have been uh um we have produced uh solar energy we are consuming solar 32:46 32 minutes, 46 seconds energy we have offtake a lot of our uh carbon uh uh carbon consumption by using this solar energy. Right now we are 32:54 32 minutes, 54 seconds using around 40% of our total uh electrical energy through our uh ongoing solar plant. Also 33:02 33 minutes, 2 seconds we have uh signed up to put up another 2.5 megawatt facility which will further reduce our carbon print and uh most 33:11 33 minutes, 11 seconds probably in the next uh half or in this half only uh we'll start our new 2.5 33:19 33 minutes, 19 seconds megawatt as well. So our total in total around 60% of 60 to 70% of our total energy consumption would come from our 33:27 33 minutes, 27 seconds own solar plant which will further reduce our uh carbon requirement. 33:33 33 minutes, 33 seconds We are using energy efficient equipments uh as many places as possible and uh we are quite uh we are quite conscious with 33:40 33 minutes, 40 seconds the ESG factors and also uh our customers appreciate our efforts that we 33:46 33 minutes, 46 seconds take for this ESG. uh again to connect it with AITA I don't think ESG is making 33:54 33 minutes, 54 seconds any dent in our AITA and uh we don't consider the ESG factor as a detrimental 34:01 34 minutes, 1 second to our AITA margins. Uh we truly believe that we can be ESG compliant and uh good 34:09 34 minutes, 9 seconds with ESG factors and still make a good AITA. 34:16 34 minutes, 16 seconds Okay. So uh the next question is from Mr. Miss Dia Jane. Yes Dia you you can unmute yourself. 34:26 34 minutes, 26 seconds So thank you for taking my question. So uh what is the current order pipeline? 34:35 34 minutes, 35 seconds Uh yes dear the currently p order pipeline is between 20 to 22 cr. I think 34:41 34 minutes, 41 seconds it was last 20.5 CR if I'm not wrong and uh it changes daily on the basis of what new orders we 34:50 34 minutes, 50 seconds get and what orders we have dispatched uh recently. So it is uh more or less in 34:56 34 minutes, 56 seconds the line of uh 20 CR plus minus uh uh 20% or so. So it has been like that for 35:04 35 minutes, 4 seconds the past uh couple of years or so and uh we see that uh we're trying to improve it. Maybe we'll improve it in this current financial year. 35:16 35 minutes, 16 seconds So, have we signed any more orders or have we bidded for more orders any tenders? 35:23 35 minutes, 23 seconds Uh, it is a continuous process there. uh we regularly get uh request for quotation RFQS and uh we have been uh 35:32 35 minutes, 32 seconds participant in the tenders for uh I think uh we don't keep a tab on how much tenders we have participated but we 35:40 35 minutes, 40 seconds always look at that this uh uh order in hand figure uh should not go much down 35:48 35 minutes, 48 seconds to our liking and uh there are lot of orders that we have recently accumulated 35:54 35 minutes, 54 seconds and we have posted all all these in our portal as well NC portal you can see the latest orders that we have received in 36:02 36 minutes, 2 seconds fact some very good orders have come up uh in the past uh 20 20 days or 1 month or so and uh yes uh it is an ongoing 36:12 36 minutes, 12 seconds process we have participated in many big tenders as well and uh their results are yet to come so maybe we can publish some 36:19 36 minutes, 19 seconds uh good news uh in the coming weeks also let's hope So okay sir and can you share the margins 36:27 36 minutes, 27 seconds in the various products that we have the inserts the adapters 36:33 36 minutes, 33 seconds uh we don't calculate separately margins in each of the products but uh we have a fair bit of idea insert is a low margin 36:42 36 minutes, 42 seconds product so whenever the rates goes down it pulls down the complete uh uh ecosystem of the company that's why we 36:50 36 minutes, 50 seconds in the expansion mode we have uh decided to go for a multiple product strategy rather than single product strategy. 36:59 36 minutes, 59 seconds Adaptors have a better realization and better uh margin product and uh again I will not put a number to it 37:08 37 minutes, 8 seconds and for all the other products the margins varies from the product to product and from time to time a product could be a good margin giving uh in a 37:17 37 minutes, 17 seconds specific quarter and it could be a loss making in the next quarter. So that those things also happen in this uh market situation. 37:28 37 minutes, 28 seconds Okay. So and any targets for FI28? 37:32 37 minutes, 32 seconds Sorry. Uh please any any revenue or margin targets for FY28? FY28. 37:40 37 minutes, 40 seconds Okay. uh for FY28 I think u uh what we have internally 37:47 37 minutes, 47 seconds decided to go for at least double digit uh rise in our uh top line as well as bottom line and right we'd like to 37:56 37 minutes, 56 seconds maintain it that way if we can achieve that it would be a good thing to have okay so understood thank you and all the 38:15 38 minutes, 15 seconds So as there are no further questions left, I would like now like to hand the conference over to the management for the closing comments. Thank you and over to you sir. 38:25 38 minutes, 25 seconds Okay. Thank you everyone for this uh taking out time for to attend our call. 38:32 38 minutes, 32 seconds It has been an inspirational year for us. Uh we have done a few great things and few better things are possible in 38:41 38 minutes, 41 seconds the current financial year. Uh we are clear on our priorities and we remain committed uh how to execute them. We 38:49 38 minutes, 49 seconds look forward to share better numbers with you in this uh in the coming uh quarter 38:56 38 minutes, 56 seconds or half years. Uh thank you. Thank you for your time. Over to you. 39:04 39 minutes, 4 seconds Thank you everyone for joining us today. 39:06 39 minutes, 6 seconds For any questions that rem remain unanswered, please feel free write to us and we will we will be happy to respond. 39:13 39 minutes, 13 seconds You may disconnect now. Thank you.