The Anup Engineering Limited — Q3 FY26

Anup Engineering Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=sAWao7mIBJQ Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Q3 and 9 months ended FI26 earnings conference call of the Anup Engineering Limited. 0:11 11 seconds 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 0:19 19 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:26 26 seconds zero on your Touchstone phone. Please note that this conference is being recorded. 0:33 33 seconds Before we proceed to the call, let me remind you that the discussion must contain certain forward-looking statements that may involve known or 0:41 41 seconds unknown risk, uncertaintities, and other factors. 0:45 45 seconds It must be viewed in conjunction with a business risk that could cause actual results, performance or achievements to 0:52 52 seconds differ significantly from what has been expressed or implied in such forwardlooking statements. 0:59 59 seconds Please note that the company have uploaded the result press release investor presentation and also the outcome of the board meetings on the 1:07 1 minute, 7 seconds website of stock stock stock exchange and website of the company. I now hand the conference over to Mr. 1:17 1 minute, 17 seconds Rajinaldo Duza managing director and CEO of the company. Thank you and over to you sir. 1:26 1 minute, 26 seconds Thank you. Uh hello everyone. 1:30 1 minute, 30 seconds I welcome you all to this conference call on our performance for quarter 3 and 9 month period ending December for the financial year 2026. 1:43 1 minute, 43 seconds The last few months uh has been quite eventful uh with reference to tra trade agreements between countries, 1:50 1 minute, 50 seconds geopolitical events, anxieties over aggression between countries and many other global material events. 1:59 1 minute, 59 seconds India US trade deal was also on the waiting far longer than we all expected. 2:07 2 minutes, 7 seconds These events did impact the business sentiment especially when we as a business were equally focused on exports. 2:17 2 minutes, 17 seconds Given these macro challenges both on geopolitical and economic fronts over 2:24 2 minutes, 24 seconds the last few quarters, I believe your company has delivered a decent performance. 2:33 2 minutes, 33 seconds Let me now share with you all our company's performance for quarter 3 and 9 month period ending December for the financial year 2026. 2:44 2 minutes, 44 seconds The consolid consolidated revenue achieved for P 3 is 206.9 2:52 2 minutes, 52 seconds crores a growth of 20.3% quarteron quarter 2:58 2 minutes, 58 seconds and at an AITA of 44.1 crores a growth of 13% quarter on quarter 3:07 3 minutes, 7 seconds for the 9month period ending December the consolidated revenue is 614.4 3:16 3 minutes, 16 seconds crores, a growth of 20.2% yearonear 3:23 3 minutes, 23 seconds with an AITA of 135.9 crores, a growth of 17.5% yearonear. 3:34 3 minutes, 34 seconds Profit before tax is at 112 crores, 112, a growth of 12.2%. 2% and the profit 3:44 3 minutes, 44 seconds after tax is 85.3 crores without the tax reversals a growth of 2.3%. 3:55 3 minutes, 55 seconds At this patch percentage level we are 2.4% 4% lower year on year mainly on 4:04 4 minutes, 4 seconds account of three factors and a VA change of.5%. 4:11 4 minutes, 11 seconds the interest and financing cost of 6% due to our higher working capital block 4:21 4 minutes, 21 seconds and the tax change where last year we had lower tax due to ESOPS of 9%. 4:31 4 minutes, 31 seconds So these all added to a packed percentage level of 2.4% 4% lower as compared to last year. 4:42 4 minutes, 42 seconds The return on capital employed Rosi is at in the expected range of 21.2%. 4:54 4 minutes, 54 seconds On the working capital management, I believe we could have done better. The 5:00 5 minutes average working capital was 367 crores at 2.2 two tons. 5:07 5 minutes, 7 seconds This is higher than expected mainly on account of two factors. 5:13 5 minutes, 13 seconds One, the lower customer advances and the second higher data going to long cycle orders under execution. 5:23 5 minutes, 23 seconds This is set to improve with better new order booking thereby improving customer advance positions and 5:31 5 minutes, 31 seconds closure of high value purchase orders in the coming quarters. 5:36 5 minutes, 36 seconds We expect it to be closer to average working capital terms of three uh or a little higher by the year end. 5:45 5 minutes, 45 seconds On the other expenses head uh it is higher but fairly as planned for the 5:52 5 minutes, 52 seconds year at 24.5% of revenue as against 18% yearonear. 5:59 5 minutes, 59 seconds The rationale for the increase is uh number one royalty of about 1.3%. 6:07 6 minutes, 7 seconds As we had many licensed proprietary equipments during this period mainly helical heat exchangers for llama heat 6:15 6 minutes, 15 seconds transfer and em buff heat exchangers for Brahman and role technology which we 6:21 6 minutes, 21 seconds delivered in the last quarter about 1.5% in labor and subcontracting costs uh 6:28 6 minutes, 28 seconds 2.2% 2% on contractual expenses due to timelines and sideback charges and.5% 6:36 6 minutes, 36 seconds increase in freight as there were multiple overdimensional export consignments uh needing needing 6:42 6 minutes, 42 seconds expensive logistics uh mode up to the ports of India. Please note that these all cost heads are factor in our plan 6:52 6 minutes, 52 seconds and estimation and hence does not impact our planned profitability. 6:57 6 minutes, 57 seconds Our exports was at 328 crores uh which is 53.4% 7:05 7 minutes, 5 seconds of our revenue on the industry sectors that we serve. 7:10 7 minutes, 10 seconds Oil and gas and petrochemicals still dominates with about 73% uh of the revenue. In terms of the 7:18 7 minutes, 18 seconds product portfolio, heat exchangers accounted for 57% of the revenue. 7:26 7 minutes, 26 seconds silos and centrifuge saw an increase to 7%. So on the product portfolio side, 7:33 7 minutes, 33 seconds heat exchanger still dominates uh our revenue on the new order booking. 7:41 7 minutes, 41 seconds The new order booking in the near past has been very encouraging especially on the domestic front. The pending order 7:49 7 minutes, 49 seconds book as on date is at 550 crores. It would have been much better if not for 7:56 7 minutes, 56 seconds some good probable finalization moving to this month. 8:01 8 minutes, 1 second We have few good level negotiations which is expected to be closed in the near future. 8:09 8 minutes, 9 seconds Considering our execution rate required for quarter 4, it implies that we have 8:15 8 minutes, 15 seconds about 300 cr plus worth orders for execution in the next financial year. 8:22 8 minutes, 22 seconds FY27 also with a healthy firm inquiry pipeline of around 1,00 crores we shall have better opportunities to converge. 8:34 8 minutes, 34 seconds Furthermore, with the positive India US trade deal, it should open up opportunities and even out anxieties created over the last few quarters. 8:47 8 minutes, 47 seconds We should see revival of discussions with our customers for the USbound projects converting into meaningful 8:54 8 minutes, 54 seconds business in the next few months. Our continued focus on exports should should surely help in building the order book. 9:03 9 minutes, 3 seconds Moreover, the current dollar INR rate surely helps us to be more competitive 9:11 9 minutes, 11 seconds on the contribution from all our three locations. I'm glad that they are all contributing well to the revenue growth. 9:20 9 minutes, 20 seconds The Ahmedabad plant is at a YTD revenue of 405 crores that is 66% 9:28 9 minutes, 28 seconds of the revenue. Kada at 186 crores that is 30% and Mabel 9:37 9 minutes, 37 seconds engineers with 23 crores at 4%. 9:42 9 minutes, 42 seconds Just to note, Mabel for year has major revenue coming from site fabrication 9:48 9 minutes, 48 seconds work which is in progress and hence we'll see higher revenue in quarter 4 as compared. 9:57 9 minutes, 57 seconds These revenue contributions from all our three locations provides us the confidence and reemphasizes that our investments are now delivering results. 10:09 10 minutes, 9 seconds On the Cape front, we have completed the phase 2 expansion at Kada. And with 10:15 10 minutes, 15 seconds this, we now have 20,000 square m of fabrication area out of which 5,000 square m is an open yard. 10:26 10 minutes, 26 seconds This means our KA plant now has the capacity to generate about 450 crores 10:33 10 minutes, 33 seconds revenue per year based on the product mix. 10:38 10 minutes, 38 seconds We do not foresee any major effect soon for our organic growth towards building capacities. 10:46 10 minutes, 46 seconds With all our three locations, we now have a sufficient capacity 10:52 10 minutes, 52 seconds built for our FI27 growth plan on our long-term strategies. I'm glad to 11:02 11 minutes, 2 seconds inform that on the strategy of product diversification and geographical spread we have made 11:10 11 minutes, 10 seconds some good progress in the last quarter and I would like to mention them uh 11:17 11 minutes, 17 seconds subsequently first we have made an entry into the long awaited nuclear business with a 11:25 11 minutes, 25 seconds successful order for NPC Kaiga project from a renowned EPC company 11:33 11 minutes, 33 seconds order value is in the range of 20 to 30 crores. 11:38 11 minutes, 38 seconds The focus now would be to execute this order well which shall set the path for further expansion into more critical nuclear business. 11:49 11 minutes, 49 seconds Second our entry into the thermal power business. 11:54 11 minutes, 54 seconds We have bagged an order for NTPC thermal power project to supply good number of 12:01 12 minutes, 1 second low pressure feed water heaters for their Nabi Nagar and Gadwa project here 12:08 12 minutes, 8 seconds the order value is in the range of 20 to 30 crores. Again, considering the fact that there are three more large projects 12:15 12 minutes, 15 seconds expected in the near future, this experience will surely help us secure more business on thermal power projects. 12:25 12 minutes, 25 seconds Third, our entry into precision compon machine components. We have successfully backed an order from G for supplying 12:34 12 minutes, 34 seconds critical components for their turbine frames. 12:40 12 minutes, 40 seconds Order value though small has the ability to provide visibility for the next two to three years of business. 12:49 12 minutes, 49 seconds We shall strategize further on this business line once we complete this order execution. 12:58 12 minutes, 58 seconds The deputation of a new sales and marketing head position in Dubai is contributing well to seek leads from Middle East and other GCC countries. 13:09 13 minutes, 9 seconds Also our services business that is Hanup technical services two have made good progress. 13:17 13 minutes, 17 seconds We have booked our 10th order over the last 6 months executed five and five are under execution. 13:27 13 minutes, 27 seconds Though small these are helping us build our capabilities and credibility with customers for larger play in the near future. 13:37 13 minutes, 37 seconds We as a business are very optimistic on the growth of this business vertical 13:43 13 minutes, 43 seconds which should be highly profitable on our sustainability initiatives. As we 13:50 13 minutes, 50 seconds mentioned earlier both our facilities in Gujarat are now rooftop solar powered thereby lowering our carbon footprint. 14:01 14 minutes, 1 second This shall mean business sense for us as it will improve our competitiveness in 14:07 14 minutes, 7 seconds the European market when seabbomb uh which is carbon border adjusted uh tax 14:14 14 minutes, 14 seconds kicks for supplier revelation in the near future. 14:19 14 minutes, 19 seconds On the overall broader business outlook, we surely see a good traction in the coming months with inquiry inflow from Middle East and domestic markets. 14:31 14 minutes, 31 seconds Further with the US India trade deal in place we shall see good opportunities coming through we hold a firm inquiry 14:40 14 minutes, 40 seconds bank of around 1100 crores at this point in time thus at the backing of this robot robust 14:49 14 minutes, 49 seconds inquiry pipeline we expect good business opportunities in the near future. 14:56 14 minutes, 56 seconds Therefore considering overall macro factors we continue to maintain our guidance for this year of revenue growth 15:03 15 minutes, 3 seconds of 15 to 20% and AITA in the range of 22% with exports of over 50%. 15:12 15 minutes, 12 seconds We as a business remain very optimistic of the f future business opportunities 15:19 15 minutes, 19 seconds at the backing of a strong domestic push on infra and energy security trade deals 15:26 15 minutes, 26 seconds with major economies improving our competitiveness and our latest inroads into new products 15:34 15 minutes, 34 seconds and geographies providing that strong visibility. 15:39 15 minutes, 39 seconds Having said this, being a project industry, we shall be watchful and cautious of the developments globally, especially on geopolitics. 15:52 15 minutes, 52 seconds On long-term strategic initiatives towards sustaining growth inorganically, we have been working over the last many 16:01 16 minutes, 1 second months on diversification and strategic opportunities. 16:06 16 minutes, 6 seconds As mentioned earlier, we are looking at opportunities in the space of energy related technologies, 16:13 16 minutes, 13 seconds speciality chemical sectors, package systems and many more. We will keep you 16:20 16 minutes, 20 seconds all informed of the progress as we as we get closer. 16:26 16 minutes, 26 seconds So with these opening remarks, I wish to thank you all for your patient listening. 16:32 16 minutes, 32 seconds Now I would be happy to answer your questions or any clarifications required. Thank you. 16:41 16 minutes, 41 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 16:49 16 minutes, 49 seconds star and one on your touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 16:58 16 minutes, 58 seconds requested to use handset while asking a question. 17:02 17 minutes, 2 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 17:15 17 minutes, 15 seconds The first question comes from the line of Chaitan Mura with Abascus Asset Managers. Please go ahead. 17:22 17 minutes, 22 seconds Yeah. Hi. Hi. 17:26 17 minutes, 26 seconds Yeah, let me just wanted to understand now post this US clarification uh how do we see the situation for us 17:33 17 minutes, 33 seconds because US for us last year was close to 15 to 16% of the overall revenue and 30% of the exports and this year it has been 17:40 17 minutes, 40 seconds minimal enough uh so how do we see situation going ahead for us particularly 17:48 17 minutes, 48 seconds yeah so as rightly said with this uh uh uh clarity emerging now as I mentioned 17:54 17 minutes, 54 seconds in my last uh um call as well. It was never with us customers. What was that uh uh percentage right? 18:03 18 minutes, 3 seconds Even at that percentage we were quite competitive uh as compared to US fabricators or any other uh it was more 18:11 18 minutes, 11 seconds about uncertainty in terms of what's going to be the tariff at the end of for 12 months when we dispatch. So now with 18:19 18 minutes, 19 seconds this trade deal in place, I think there is far more certainty in terms of what would be the landed cost for our 18:25 18 minutes, 25 seconds customers and we surely hope and are confident that uh that uh the 18:33 18 minutes, 33 seconds discussions will reignite now for all the projects that were basically stalled for uh a few quarters now. 18:43 18 minutes, 43 seconds Okay. 18:45 18 minutes, 45 seconds So this year any and and for this year anyway uh as I mentioned uh we did not have any auto booking from us uh which 18:53 18 minutes, 53 seconds wased in our plan and the growth plan for this year. So it whatever happens now henceforth with the discussions and 19:00 19 minutes positive moment should be an upside and better as compared to this year. 19:06 19 minutes, 6 seconds Right. And now coming to the order book the order book has gone down to 550 crores which was 740 crores last year. 19:12 19 minutes, 12 seconds Uh now how do we see the you know the execution visibility because the in the in the coming quarter we will be executing nearly about 300 crores and we 19:21 19 minutes, 21 seconds will be getting another 200 cr in order inflow. So how do we plan to end the year and uh does it mean that the next year growth is getting uh challenged? 19:33 19 minutes, 33 seconds Yeah. So, so you're right on the order booking as compared to what we opened this year uh with an as on today it's 19:40 19 minutes, 40 seconds about 550 crores that's broadly chasen because if you remember quarter 1 was literally almost uh I mean to say 19:48 19 minutes, 48 seconds negligible uh quantum that came in obviously because of the exports largely uh uh getting impacted and domestic 19:56 19 minutes, 56 seconds there was nothing at that point in time and which we visualized at that point in time that uh domestic It should revive 20:04 20 minutes, 4 seconds in quarter 1. It did not of course. But then quarter 2 was much better and quarter 3 is also in that strike rate 20:11 20 minutes, 11 seconds range of 200 crores around that we need every quarter uh 3 months block to come in. So it has improved. Uh if you look 20:20 20 minutes, 20 seconds at the uh uh pending inquiry position of 1100 crores, this is one of the best that we ever had. We our bets have been 20:29 20 minutes, 29 seconds close to 1100 to 1200 cr inquiry bank positions. The problem was finalizations of those uh inquiries because of these 20:37 20 minutes, 37 seconds uncertainties. Now with that at at our back, I'm pretty sure the 20:44 20 minutes, 44 seconds finalizations should go forward uh in the coming months and we should be able to hit a strike rate much better than 20:52 20 minutes, 52 seconds what we've done in the past. uh so so so we are hopeful and optimistic that the business would uh uh turn out turnover 21:01 21 minutes, 1 second growth exact number I think we should wait for the quarter four to get over uh because for quarterf anyway we have the 21:08 21 minutes, 8 seconds complete order booking uh with us uh we will wait for the next two months how it pans out in terms of the order booking 21:16 21 minutes, 16 seconds which we are very optimistic about uh and then uh define the growth for the next year but growth will surely be there. 21:25 21 minutes, 25 seconds Yeah, growth will surely be there. That is right. Um, okay. But what about the demand environment both in the overseas market and the domestic market as of now? 21:35 21 minutes, 35 seconds Because in the domestic market, we saw a decline in the revenue. Sorry, in the exports market. 21:41 21 minutes, 41 seconds Yeah. So export market it was so in when we opened up the year actually domestic was down, export was better than when we 21:49 21 minutes, 49 seconds went through this year. If you see the last year uh domestic was literally nothing for us. Uh all the auto booking mostly came from exports. This year 21:57 21 minutes, 57 seconds domestic has picked up because most of the auto booking and you would see that ratio changing from our pending order book positions. Uh it has it has the domestic is much higher than now export. 22:07 22 minutes, 7 seconds That is precisely because over the last two quarters there has been lot of uptick in domestic uh uh order booking. 22:15 22 minutes, 15 seconds And now with this uncertainty opening up uh I'm pretty sure even the exports will pick up and I I'm sure you should get 22:23 22 minutes, 23 seconds the confidence from the inquiry bank position of 1100 crores uh which is 22:30 22 minutes, 30 seconds roughly about 60% exports and 40% domestic. [clears throat] Mhm. Okay. 22:38 22 minutes, 38 seconds All right. And and just to and just to add to that the major uptick that we are seeing of course uh in the international market is 22:47 22 minutes, 47 seconds on the gas gas side gas business and in the domestic we are seeing mostly in the petrochemicals 22:55 22 minutes, 55 seconds uh and power. Of course power there are limited three or four projects but that itself is a pretty high volume in terms of numbers. So that's a broad break up 23:04 23 minutes, 4 seconds if you want to know which sector is kicking in. So exports is largely the gas based and domestic it is pet cam and 23:13 23 minutes, 13 seconds thermal power to some extent right and and now as in where we are standing 23:21 23 minutes, 21 seconds right now post this clarity of again I'm just repeating and the domestic traction what you have started gaining now should 23:28 23 minutes, 28 seconds we assume that both the engines are you know as you also said in your opening comment also that both the the vertical should start seeing a good trajectory of 23:36 23 minutes, 36 seconds growth Yes, for sure. And added to that chithan with all these new products that we ventured out like nuclear for the first 23:45 23 minutes, 45 seconds time, thermal power which we got in right time because we will be well placed now for the next three projects that are coming in and at the same time 23:53 23 minutes, 53 seconds the technical services which is a high profitable business uh which which we have forecasted that it should be in two 24:00 24 minutes to three years close to 200 to 300 cr kind of a business for us. uh it's it's about 40% margin business. So so that's 24:09 24 minutes, 9 seconds these three verticals also should uh give us a lot of confidence uh that we are spread 24:16 24 minutes, 16 seconds deeper into products and also wider in terms of geographies. Right. Right. Re thanks thanks I'm done. 24:26 24 minutes, 26 seconds Thank you Jan. Nice talking to you. 24:32 24 minutes, 32 seconds Thank you ladies and gentlemen. in order to ensure that the management is able to answer questions from all participant. 24:39 24 minutes, 39 seconds Please limit your questions to two per participant. 24:43 24 minutes, 43 seconds The next question comes from the line of Samir Takur with AMBET. Please go ahead. 24:49 24 minutes, 49 seconds Yeah. Hi, thanks. Uh, hi Aj. Uh, so my first question is uh, uh, you already talked about the technical services and 24:57 24 minutes, 57 seconds all. So if you can just touch upon the high volume products and MRO and how is that shaping up and if you think about the business mix from these three 25:05 25 minutes, 5 seconds service MRO and high volume products how do how should we think about in next two three years or so that's the first question 25:14 25 minutes, 14 seconds yeah so okay so let me start with the technical services business uh which is 25:20 25 minutes, 20 seconds nothing but uh but uh health check assessment of the equipments uh uh providing entity services and repairs of 25:28 25 minutes, 28 seconds uh the equipment website. Uh this is the broad three domains under this services. 25:34 25 minutes, 34 seconds Uh as I said this is should be according to us uh uh anywhere in the range of 30 to 40% kind of a profitability business 25:42 25 minutes, 42 seconds and our forecast for this business uh internally is to reach about 200 cr turnover in the next 3 years. That's the 25:51 25 minutes, 51 seconds kind of focus that we have for this business. In terms of high volume which we said it is in the in the uh framework 26:01 26 minutes, 1 second of ACEs, PSA absorber vessels maybe some sort of skids and modules. This again is is in the framework of a bit of 15%. 26:13 26 minutes, 13 seconds It will not be as high as a conventional products but they would give us scale in terms of volume. So that is fact that 26:22 26 minutes, 22 seconds about 200 to 300 crores for the next three years again that vertical and a conventional business would be close to about 1,000 crores that is where we 26:31 26 minutes, 31 seconds would like to maintain it because these are very complex uh takes a lot of management attention and also critical 26:38 26 minutes, 38 seconds in terms of execution. So, so 1,000 cr uh 200 crores and 200 to 300 crores 26:46 26 minutes, 46 seconds that's kind of visibility in these three verticals uh maybe over the next uh 3 to four years kind of on horizon. 26:54 26 minutes, 54 seconds Uh okay thanks and uh the pipeline which you talked about the 1100 pipeline so uh you said the structure should be higher 27:02 27 minutes, 2 seconds any number on that uh see normally our track historically has been anywhere between 15 to 20%. Uh 27:12 27 minutes, 12 seconds what we feel with with with this focus today and with our spread on the product mix uh it should be anywhere in the 27:20 27 minutes, 20 seconds region of 20 to 25%. We would not like it to be higher. In fact, we would like to grow the inquiry pipeline. Uh because 27:28 27 minutes, 28 seconds because we would like also our profitability to be maintained with a higher strike rate. We can definitely get a strike rate but then I'll have to 27:36 27 minutes, 36 seconds compromise on my margins to get that business. So, so I would like it to be in the region of maximum 20 to 25%. And 27:44 27 minutes, 44 seconds improve the uh inquiry pipeline uh and keep that strike rate at that level. 27:51 27 minutes, 51 seconds Okay. So would it be fair to assume that we would uh end up the year with somewhere around 600 cr backlog or something? 28:00 28 minutes That's what we are planning for right. 28:02 28 minutes, 2 seconds Okay. Thanks. Uh that was also my second. Thank you. 28:12 28 minutes, 12 seconds Thank you. The next question comes from the line of Vun Mishra with VM Chambers. Please go ahead. 28:21 28 minutes, 21 seconds Hi. Uh am I audible? Yes, please. Go ahead. 28:27 28 minutes, 27 seconds Hi. Thanks. Uh thanks for the opportunity. Uh I think my question is broadly broadly answered but uh just 28:41 28 minutes, 41 seconds hello we are not able to hear you. 28:54 28 minutes, 54 seconds Hello. Uh, are you all able to hear us? 29:00 29 minutes Yes sir. The current participant has left the queue. We'll move on to the next participant is from the line of 29:07 29 minutes, 7 seconds Chira from SKP Securities. Please go ahead. 29:14 29 minutes, 14 seconds Thank you for the opportunity. Uh so I just want to ask uh which segment we are targeting in the nuclear segment that we 29:22 29 minutes, 22 seconds have for into so uh our target is basically on the 29:29 29 minutes, 29 seconds heat exchanger side and the columns and vessel side. So the current order that we are banned is on the columns and 29:37 29 minutes, 37 seconds vessel sides and we would be making our attempts to get further deeper into heat 29:43 29 minutes, 43 seconds exchangers and the critical uh uh primary island equipments. 29:49 29 minutes, 49 seconds Okay. So so uh what sort of an opportunity are we seeing uh in this particular segment? 29:58 29 minutes, 58 seconds uh so let me let me uh uh mention why we have taken this first step after many many years. So as as you know nuclear is 30:06 30 minutes, 6 seconds a very very critical domain in terms of execution and uh we were wanting to get into this for many many years now and 30:15 30 minutes, 15 seconds but after having put up our facilities and capabilities in place we thought it is the right time now to move into 30:22 30 minutes, 22 seconds nuclear and that's how we ventured into uh the first step taken is to get into this columns and tanks because they are comparatively 30:31 30 minutes, 31 seconds uh easier I'm not saying it is very easy but comparatively easier. Uh so we want to execute this. U of course the start 30:39 30 minutes, 39 seconds has been good so far. It's been I think 4 months into this PO uh 3 months into this PO sorry. Uh the start has been 30:46 30 minutes, 46 seconds good. Uh I think uh maybe another couple of months and we shall get more confidence in terms of venturing into other opportunities for NPC. 30:56 30 minutes, 56 seconds uh this also would open up the doors for other uh nuclear opportunities outside India not only in India but we just want 31:03 31 minutes, 3 seconds to wait for uh to a couple of months more to get that confidence right got it got it thank you sir that's 31:11 31 minutes, 11 seconds it from my side and just so just to give you an indication of what opportunities this field can open up uh I'll give you a 31:20 31 minutes, 20 seconds simple product like a steam generator which is required for uh for MCCR projects uh one set is in the range of 31:29 31 minutes, 29 seconds 100 to 500 crores uh but of course we need to work hard to get there build our credibility and I think we've taken the 31:35 31 minutes, 35 seconds first step uh moving in this direction right congratulations 31:43 31 minutes, 43 seconds thank you thank you the next question comes from the line of 31:52 31 minutes, 52 seconds mosana with monach network Please go ahead. 31:56 31 minutes, 56 seconds Um thank you for the opportunity. Uh Raji, you just talked about NPC. Um can you also elaborate on the other two uh 32:05 32 minutes, 5 seconds product diversification program spread that you talked about um entry energy into the thermal power as well as into precision engineered components. So some 32:14 32 minutes, 14 seconds bit more color on these uh new uh ventures that you have taken and uh what kind of potential do you see uh for the business to gain traction into these? 32:28 32 minutes, 28 seconds Yeah, go ahead. Uh so so the first one was the thermal power plant where as 32:35 32 minutes, 35 seconds engineering we were not qualified to make any products under uh NTPC through 32:42 32 minutes, 42 seconds this uh we had to go of course through the through the approval procedures and then and finally we got qualified and we were successful in begging this order. 32:53 32 minutes, 53 seconds uh as I said it it was in the range of 20 to 30 cr bracket not a big one for now but what it does is that it gives us 33:01 33 minutes, 1 second that step into uh number one getting qualified with NTPC and second move to the next category which is high pressure 33:09 33 minutes, 9 seconds heat exchanges which is almost maybe three to four times value of of this product so that's what we are aiming at 33:18 33 minutes, 18 seconds uh there are next two more projects big projects upcoming one is uh for Adani thermal power where the order has been 33:25 33 minutes, 25 seconds already backed by L&T and torrent power these are the two big and there's a third one which is which is little confidential uh which we know of that 33:34 33 minutes, 34 seconds come up so this gives us a step and a possibility to participate in in the in 33:42 33 minutes, 42 seconds the uh in the negotiations for uh low pressure and high pressure feed water 33:48 33 minutes, 48 seconds heaters the overall number uh for all these three projects for the feed water 33:56 33 minutes, 56 seconds itself could be in the range of a ballpark number. Of course, it would differ a little on the on the design, 34:03 34 minutes, 3 seconds but it would be in the region of 700 to 800 crores uh for the three projects put together. Of course, we will have to 34:11 34 minutes, 11 seconds participate uh be competitive and prove our credentials on this first order that we've taken and I believe we would be up 34:19 34 minutes, 19 seconds against three to four competitors in India. Understood. 34:26 34 minutes, 26 seconds And the next the next one was the machine specialized precision components. Uh again this was a complete 34:33 34 minutes, 33 seconds diversification for us. Uh we had strategized this for many many years. uh but we thought this was the right time 34:41 34 minutes, 41 seconds to get into uh uh uh because turbines as you know the both thermal and gas power plants the number of power plants that 34:50 34 minutes, 50 seconds are coming globally is is is in in very large numbers and G was a strategic customer for us uh because we can 34:59 34 minutes, 59 seconds foresee two to three years kind of a uh future order booking for these kind of uh quick cycle time orders. uh now these 35:08 35 minutes, 8 seconds are something which we have never done before. These are fabricated plus machine components. uh that's the reason I have said that once we complete this 35:17 35 minutes, 17 seconds uh we will strategize on on on on how do we take this forward but it looks like if if we are successful in executing 35:25 35 minutes, 25 seconds this probably it will be a long time horizon of two to three weeks kind of a business horizon that we can see uh though not large but these are very 35:34 35 minutes, 34 seconds critical and it could come on nomination basis as I I believe we are the only guys in India who have taken this at 35:41 35 minutes, 41 seconds this moment Understood. 35:46 35 minutes, 46 seconds Um just one last question on the inquiry pipeline. You said it's around 1100 crores. Um I have any any idea on what 35:55 35 minutes, 55 seconds could be the strike rate considering things are improving on the geopolitical as well as on the direct front? Um any 36:02 36 minutes, 2 seconds idea what could be our strike rate uh at this point? 36:08 36 minutes, 8 seconds Yeah. So uh so Mohit first of all let me just clarify this 1100 cr is a real time 36:15 36 minutes, 15 seconds inquiry it will keep ticking as as some other inquiry is getting finalized you'll be able to get new ones in at 36:22 36 minutes, 22 seconds this point in time it is 1100 but over the last uh 3 to 4 months we have seen it between 900 to 1200 crores so so 36:31 36 minutes, 31 seconds that's a real time uh inquiry pipeline in terms of your question on the strike 36:38 36 minutes, 38 seconds rate as I mentioned on the earlier question uh we as a business would like to keep it anywhere between 20 to 25% 36:46 36 minutes, 46 seconds not more than that because uh getting more than that is easier uh you just compromise on the margins and then take 36:53 36 minutes, 53 seconds the order but but uh but we since we want better profitable orders we would like to keep a very good balance uh on 37:00 37 minutes the strike rate and not exceed uh between 20 to 25 and focus more on getting more inquiries and improve the 37:09 37 minutes, 9 seconds pipeline uh improve the funnel rather than focusing on strike rate. Of course, strike rate if you compare on a focused 37:17 37 minutes, 17 seconds set of inquiries could be much higher but on the overall pipeline we would keep it at 20 to 25% max. 37:26 37 minutes, 26 seconds That's sir uh that was helpful. Uh thank you. That's all from Thank you. 37:34 37 minutes, 34 seconds Thank you. The next question comes from the line of Rahel with Sappire Capital. Please go ahead. 37:41 37 minutes, 41 seconds Good evening sir. Can you hear me? Good evening. Yes please. Go ahead. 37:48 37 minutes, 48 seconds Yes sir. Hi sir. For this net interest cost which was high in quarter 3. Now what is the outlook for quarter 4? What 37:55 37 minutes, 55 seconds what is the steady state interest cost one can factor in? So, so even for quarter 4 we would be able to maintain 38:04 38 minutes, 4 seconds it at this level. Uh as you know the it was higher because we had a higher working capital. We have forecasted [clears throat] for the quarter 4 and we 38:12 38 minutes, 12 seconds we expect this to remain at this level of around 1 to 1.1%. 38:18 38 minutes, 18 seconds Okay. And uh uh uh F6 end what what do you think the order book 38:25 38 minutes, 25 seconds will be? Uh so what kind of order book you will end the year with to enter FI27? 38:32 38 minutes, 32 seconds So as I as I mentioned it on the earlier question uh uh of course our our our target would be much higher than that 38:39 38 minutes, 39 seconds but we expect it to close at the current rate close to about 600 closes. 38:46 38 minutes, 46 seconds Um then with let's say 15 20% growth you're targeting 26 right? Um meaning quarter 4 38:55 38 minutes, 55 seconds you do a run rate of more than 220 230 crores. Um going forward will that run keep exceeding to capture a 20% or so growth period 27? 39:08 39 minutes, 8 seconds Yes for sure. So ourility our expected uh uh order intake uh on a 39:16 39 minutes, 16 seconds three block 3 month block period is roughly about 200 to 250 crores. uh we are already reached that run right now. 39:23 39 minutes, 23 seconds Uh and with things improving in the future uh I predict that we should be uh 39:30 39 minutes, 30 seconds uh at that or better level. Uh and we have quarter one as you know our average cycle time is anywhere between 9 to 12 39:38 39 minutes, 38 seconds months kind of a cycle time. So we will have to focus more on the short delivery items maybe around 8 to 9 months. And if 39:48 39 minutes, 48 seconds you look at what we have strategized on this product like the uh uh technical services uh the high volume products 39:56 39 minutes, 56 seconds these are all anywhere completion between 6 to 7 months. So for the next year that is where we would focus on uh 40:05 40 minutes, 5 seconds to deliver uh the growth plan for next year but as I said uh we would wait for the our focus right now into close 40:12 40 minutes, 12 seconds quarter 4. we would wait for a couple of months before we come back to you uh and I would be in a better position to give 40:19 40 minutes, 19 seconds the exact numbers right so and similar on the margins as well epida margins any scope for 40:26 40 minutes, 26 seconds improvement and if so how yeah so margins are be as we have guided it will be in the region of uh around 40:35 40 minutes, 35 seconds 22% for this year and going forward as I mentioned in the past our endeavor would always be to maintain a bitter margins of 20% class. 40:45 40 minutes, 45 seconds Got it, sir. Thank you so much. All the best to you. Thank you. 40:52 40 minutes, 52 seconds Ladies and gentlemen, if you wish to ask a question, please press star and one. 40:58 40 minutes, 58 seconds The next question comes from the line of Ganesh Ram with Unifi Capital. Please go ahead. 41:05 41 minutes, 5 seconds Thank you. Um Ready. Um I just have a few questions. The first one is uh I think it's been hammered a bit the order inflow status. When I look back the last 41:14 41 minutes, 14 seconds few years, you've typically started the year with a larger order book than the revenue you build in that particular year. This sort of seems to be the first 41:21 41 minutes, 21 seconds of many years where the situation would be the opposite right if at 15 20% growth you probably have to deliver,000 41:27 41 minutes, 27 seconds crores stop line in 27 and you begin the year with 550 to 600 crores. So could you help and and that would mean that 41:35 41 minutes, 35 seconds effectively in Q4 you probably need around 400 crores order in order inflow to get to that uh number right so if you 41:43 41 minutes, 43 seconds could just help me understand is there any risk to this FY27 guidance or are there other moving parts that's going to help you compensate uh some granularity 41:51 41 minutes, 51 seconds on this that will help us build some confidence yeah so so you are right uh uh Gisham 41:58 41 minutes, 58 seconds you're right in in in your uh in your uh numbers of the previous sales that we started off with an opening balance of 42:08 42 minutes, 8 seconds of good order intake. Uh as you know u last year the domestic was was really 42:15 42 minutes, 15 seconds really bad. there was nothing in the la the three quarters of last year uh which definitely impacted the order intake and 42:22 42 minutes, 22 seconds that's that's the reason we see uh lower base uh because of the of the market 42:30 42 minutes, 30 seconds conditions that we had at that point in time. uh fortunately domestic has picked up which you are seeing the reflections 42:37 42 minutes, 37 seconds in in in uh in the numbers and now with these uncertainties and especially the US trade deal out of uh the way I think 42:47 42 minutes, 47 seconds uh we will also see the revival in terms of uh of uh export business and we should be back to those earlier days 42:56 42 minutes, 56 seconds where we have inquiry pipelines and they get finalized within a within a 2 to 3 months period. 43:03 43 minutes, 3 seconds and then that ball keeps rolling on inquiry front. Unfortunately, what was happening over the last maybe one and a 43:10 43 minutes, 10 seconds half year or five to six quarters was mainly that the finalization were getting deferred because of these 43:17 43 minutes, 17 seconds uncertainties. Having said that, we did realize as a business uh that we also need to strategize and be prepared for 43:25 43 minutes, 25 seconds this position. And that's the reason if you see strategically we have put a few blocks in place uh number one we have 43:34 43 minutes, 34 seconds moved our focus to higher volume lower cycle time equipments. So if you see that itself in today's context is about 43:43 43 minutes, 43 seconds 10 to 12% of our revenue is coming from high volume low cycle time. So when I say low cycle time, these are like six 43:50 43 minutes, 50 seconds to seven months kind of completion equipments and then we focused on uh the services business 44:00 44 minutes which is anyway a quick turnar around uh maybe by the time you get the order and you close it is just about one and a half to two months and a very profitable 44:09 44 minutes, 9 seconds business. Now these three two blocks is going to help us uh moving forward uh in 44:15 44 minutes, 15 seconds terms of building our pipeline for next year. uh even though we would not open up uh the auto booking to the original 44:24 44 minutes, 24 seconds liking that in the past that we would have had as I said we wish to open this year uh that is FI26 at about 600 core 44:32 44 minutes, 32 seconds level or higher if it is possible but even if it is not these blocks are going to help us uh so that in the first two 44:40 44 minutes, 40 seconds quarters we can book orders for these uh uh smaller cycle times maybe 6 to 7 months and still deliver in the 44:49 44 minutes, 49 seconds financial So that is our plan. Uh we are communicating to our customers in that sense. Our sales and marketing team is 44:57 44 minutes, 57 seconds also moving and strategizing in that direction. So so so so to summarize the 45:03 45 minutes, 3 seconds the answer yes uh the opening borders opening uh order book position as compared to the previous ways it looks 45:11 45 minutes, 11 seconds uh lower at 600 crores. That's precisely because of both the cylinders not firing 45:19 45 minutes, 19 seconds together that is domestic and international. But today I think we have reached a point where both the cylinders should start firing. Uh the inquiries 45:28 45 minutes, 28 seconds should start getting finalized and the strategies of moving into high volume low cycle time equipments and the 45:35 45 minutes, 35 seconds services business should give us that confidence uh for the growth into the next year. 45:43 45 minutes, 43 seconds Thanks. If I can just follow up on that on the current order pipeline of,00 crores right um I'm assuming there's no 45:50 45 minutes, 50 seconds US so with the US what could that pipeline look like and in this,00 what would be the mix of those services or 45:57 45 minutes, 57 seconds the higher volume products that we'll need so so on this 1100 crores uh uh 46:08 46 minutes, 8 seconds it's not that there is no issues there is some small percentage maybe 2% of it uh which was which was uh on the back 46:16 46 minutes, 16 seconds burner for some time. Now customers have started the the discussions again but with this uh opening up now I'm pretty 46:23 46 minutes, 23 seconds sure in the next few months it should at least bring about 200 to 300 crores kind of an inquiry position that is firm 46:30 46 minutes, 30 seconds inquiry position for the project bound for United States right and and and and the high high 46:39 46 minutes, 39 seconds volume product contribution in this,00 will be how much so at the moment uh for the high value 46:46 46 minutes, 46 seconds item is about 13% uh 13 to 15% range. Uh but as I said we would be now seeking 46:54 46 minutes, 54 seconds for more because these will come at a shorter duration in terms of receiving the inquiry and finalization because these are normally 47:02 47 minutes, 2 seconds not called as long lead items for customers. These are short lead items for customers. So they generally come towards the end of the project. So 47:11 47 minutes, 11 seconds all these projects that we have quoted for the long deal the short lead items should follow in the next couple of 47:17 47 minutes, 17 seconds months and which should all well for us in terms of uh uh strategizing. 47:24 47 minutes, 24 seconds Understood and this was my second question. Um thanks thanks for answer and this is the second question is on the working capital fund itself. I 47:32 47 minutes, 32 seconds remember there was about 120 crores odd to receive uh and then I think about 20 30% of the payments were still pending. 47:38 47 minutes, 38 seconds if you could just give us a update on that and on the key. 47:49 47 minutes, 49 seconds Hello. Hello. 47:59 47 minutes, 59 seconds Uh yes sir. Sorry to interrupt. The current participant has been disconnected. 48:04 48 minutes, 4 seconds We'll move on to the next question. It's from the line of Sonel with precision capital. Please go ahead. 48:11 48 minutes, 11 seconds Hi sir, this is Sonal Manaz from Precient Capital. Um I had a question on working capital and receivables which 48:18 48 minutes, 18 seconds the earlier gentleman was also alluding to. Wanted to understand uh like you were mentioning your discipline around bidding for orders with a margin of uh 48:28 48 minutes, 28 seconds 22%. what are the cutoff levels in terms of your receivable days in terms of how you look at uh working capital from a 48:36 48 minutes, 36 seconds project by project perspective uh that's the first question I have and the second one I'll ask after we be done with this 48:45 48 minutes, 45 seconds yeah so on the uh working capital side uh based on the long cycle items that uh 48:52 48 minutes, 52 seconds we are now quoting for with the hedge facility with us where we can make much bigger 49:00 49 minutes items and long cycle items. We expect the work average working capitals to be about three turns in between three to 49:07 49 minutes, 7 seconds four is what we would like but I think three is a more practical approach. 49:11 49 minutes, 11 seconds That's roughly about 120 days kind of a working capital uh that we would carry. 49:20 49 minutes, 20 seconds Okay. Uh and sir, is there a difference between export orders and domestic orders in terms of working capital as well or there's nothing to read there? 49:32 49 minutes, 32 seconds Yes, of course. Uh export working capitals are much better uh in a sense that the pure advances that we get on 49:40 49 minutes, 40 seconds export orders are generally higher. They are in the tune of average 40%. Whereas for domestic orders they are in the tune 49:46 49 minutes, 46 seconds of average 25%. So you have a 15% kind of an advances in your in your in your bag which helps definitely your working capital. 49:57 49 minutes, 57 seconds So we so from from strategy perspective it always better for us to take uh better higher export one is on the 50:07 50 minutes, 7 seconds working capital front that it is better and also uh because of the exchange rates we are generally conservative when 50:14 50 minutes, 14 seconds we take the orders and invariably we have seen uh on the historical data that we always tend to gain on exchange rates 50:23 50 minutes, 23 seconds uh for export. So, so in that sense the preference is definitely always export. 50:29 50 minutes, 29 seconds But having said that I did mention in the past as a business uh we have strategized to be a 50/50 kind of a 50:37 50 minutes, 37 seconds business uh mainly from from the risk perspective. So so we have our own risk assessment matrix and based on that we 50:45 50 minutes, 45 seconds have defined ourselves that we should be 50% export and 50% domestic business. 50:53 50 minutes, 53 seconds Got it. Thanks for sharing this. Uh by what timeline should we expect the cash conversion cycle to come down to around 120 days from where it is right now 51:01 51 minutes, 1 second around 190 200 odd days like is there ballpark you have in mind in terms of time. 51:08 51 minutes, 8 seconds So based on our workings and projections I think quarter one should be the time where we should come back to we should 51:15 51 minutes, 15 seconds end the year maybe close to three and one should be a clear between 3 to four terms. 51:23 51 minutes, 23 seconds Word. Thanks uh for your answer. Thank you sir. Thank you. 51:31 51 minutes, 31 seconds Thank you ladies and gentlemen. If you wish to ask a question, he will press star and one 51:49 51 minutes, 49 seconds participants if you wish to ask a question you may press star and one. The next question comes from the line of Ashes Dukar with an individual investor. 51:59 51 minutes, 59 seconds Please go ahead. 52:01 52 minutes, 1 second Uh hello sir, thank you. Uh my question is uh uh there was a news item that China investment will be open up uh in 52:11 52 minutes, 11 seconds Asia. So I just want to understand what will be the impact or or do we have any Chinese competition in our products? 52:25 52 minutes, 25 seconds So Ashish for for the kind of products that we deal with I don't think we will have uh uh that competition on two 52:34 52 minutes, 34 seconds fronts basically one is of course the uh the kind of equipment that we make are quite voluminous so from that perspective the transportation cost is 52:43 52 minutes, 43 seconds generally huge and on the second most of the material that we use is all indigenously available in India today 52:50 52 minutes, 50 seconds for us. So from from that perspective uh we can still compete for projects in India and especially when it comes to 52:59 52 minutes, 59 seconds PSUs I'm sure you are aware that making India definitely governs. So from those perspective I don't think uh this is going to be a challenge for us. 53:11 53 minutes, 11 seconds Thank you sir. 53:17 53 minutes, 17 seconds Thank you. The next question is from the line of Ganesh Ram with Unifi Capital. Please go ahead. 53:24 53 minutes, 24 seconds Yeah, sorry I think I got disconnected last time for some reason, but I was just asking the current numbers of inventory receivables tables and then uh 53:33 53 minutes, 33 seconds we seen the commodity basket moves quite sharp here the last two quarters. Are you seeing any impact of it and how do you generally pass on these RM costs? 53:41 53 minutes, 41 seconds How how is it set up with your customers? 53:46 53 minutes, 46 seconds So uh when it comes to the raw material Ganesh uh uh it is all built in into the 53:53 53 minutes, 53 seconds cost estimation for us. Uh we have a crafting model uh wherein uh we forecast 54:01 54 minutes, 1 second probably next two to 3 months kind of a window in terms of the raw material purchase for us. uh for us the larger 54:11 54 minutes, 11 seconds volume of bar is coming from plates and tubes and to some extent for jeans. So these are the three broad category range 54:19 54 minutes, 19 seconds that we focus and we build that estimate into our uh cost estimation. So uh so so 54:27 54 minutes, 27 seconds it's built in. So if we see a projection of it going high we we built in that into our costing. uh if you look at 54:36 54 minutes, 36 seconds historical uh data uh I think we have got it right most of the time uh except during the covid time where I don't 54:45 54 minutes, 45 seconds think anyone could have got uh right so so otherwise in a normal businessh scenarios I think we are able to 54:52 54 minutes, 52 seconds forecast that much better built in into our costing and and maintain our profitability 54:59 54 minutes, 59 seconds right so it's so because if the uh execution is let's say 9 months for the order and maybe you're halfway through 55:07 55 minutes, 7 seconds and the RM prices start going up if it's not back to back as at the time of booking the order that uh impact of RM 55:15 55 minutes, 15 seconds price moment who would that who who would that or is there like an escalation clause that's built in 55:22 55 minutes, 22 seconds no in our case our projects are 100% fixedterm contracts there are no variable uh contract uh but but uh to 55:31 55 minutes, 31 seconds answer and give you that confidence uh once we get the PO four to 6 weeks is the time wherein we place the orders for 55:39 55 minutes, 39 seconds our raw materials. So it so the cycle would be longer in terms of execution but the raw material placement is 55:47 55 minutes, 47 seconds generally happening anywhere between four to 6 weeks from the PO received. Uh so in that sense we are locking in the 55:54 55 minutes, 54 seconds prices much earlier and nowadays when when the volatility is very high we generally try to go back to back with 56:01 56 minutes, 1 second our vendors so the prices are secured uh for us. Uh to add to that we generally 56:08 56 minutes, 8 seconds as you know have two modes of uh modes of uh uh orders right one is negotiable bid with the private customers which is 56:17 56 minutes, 17 seconds like once we freeze maybe within a week to 10 days we'll get the PO so so it's more secured more certain in terms of 56:26 56 minutes, 26 seconds tendering is where generally the window between we quote and when we get the PO is anywhere a gap of 3 to four months 56:34 56 minutes, 34 seconds that is where our forecasting model comes more handy as compared to the private customers where there is negotiable bid. So, so for more helps on 56:43 56 minutes, 43 seconds the tender side whereas on the private side it is more certain and today if you see our break up between tenders and 56:51 56 minutes, 51 seconds private business it's around 60 40 60 is the private business 40 is about uh tender business and moreover the order 57:00 57 minutes placement from PO is 4 to 6 weeks. So that should give you the confidence that we are able to lock our prices quite early in the execution. 57:10 57 minutes, 10 seconds That's very clear. Just the data keeping question is uh currently um the the the numbers for inventory receivables 57:19 57 minutes, 19 seconds payables where is it right now and the RM split. Thank you. 57:27 57 minutes, 27 seconds One second. Let me get the number. Yeah. 57:31 57 minutes, 31 seconds Okay. So, can we get this offline to you? Can I if it's Yeah. Yeah, that's fine. That's fine. That's fine. That's fine. Perfect. We'll get back to you on this. 57:39 57 minutes, 39 seconds Uh N will get back to you on this. Perfect. Thank you. 57:48 57 minutes, 48 seconds Thank you. The next question comes from the line of Kabir with Kabir Investments. Please go ahead. 57:57 57 minutes, 57 seconds To know now that the we see more opportunities and more inquiries pip uh coming up in the US business uh can we 58:04 58 minutes, 4 seconds expect H2 to grow at a faster pace maybe move higher from the 15 for the next year. 58:16 58 minutes, 16 seconds Sorry Kabir can you please uh repeat your questions? There were a little bit of disturbance. 58:21 58 minutes, 21 seconds I'd like to know that the US business is we see the US business opening up. Can we expect to grow at a faster pace in 58:28 58 minutes, 28 seconds the second half of the next financial year? Maybe to 25 30% from the 15 20% growth that we doing this year. 58:37 58 minutes, 37 seconds uh so so Kabir what I I believe uh uh our focus today is to to close the this 58:44 58 minutes, 44 seconds financial year with Q4 execution and at the same time as I mentioned we foresee a good uh intake with all these 58:52 58 minutes, 52 seconds uncertainties moving off so I believe let's wait for the couple of months before we come back to you uh for the 58:59 58 minutes, 59 seconds next call where we will be in a better position uh to to put the exact number on the growth but surely uh Our attempt 59:07 59 minutes, 7 seconds would be to grow much faster than what we have grown this year. Okay sir. Thank you so much. 59:13 59 minutes, 13 seconds And and then these are just just a note these are pure organic numbers. Uh inorganically if something goes right we could land up much higher. 59:25 59 minutes, 25 seconds Great. Thank you so much. 59:30 59 minutes, 30 seconds Thank you. The next question comes from the line of sake Kapoor with Kapoor and Go. Please go ahead. 59:38 59 minutes, 38 seconds Yeah, namaskar sir. Hope I'm audible. Namaskar. Very clear. Please go ahead. 59:44 59 minutes, 44 seconds Yes sir. Sir, sorry I was late into the call. So maybe a repetitive question but sir what explains uh firstly the lower 59:51 59 minutes, 51 seconds turnover and hence the lower profitability Q1 Q the September quarter consolidated revenue at 232 K and our 1:00:00 1 hour December quarter revenue at 207 K and thereby the profitability down from 43 to 34. That is my first question. 1:00:10 1 hour, 10 seconds Uh so sake uh uh if you if you look at historically uh quarter 3 uh is always a 1:00:17 1 hour, 17 seconds weaker quarter for us from the perspective of number of days because because there are lot of festivals 1:00:24 1 hour, 24 seconds around that time in the manufacturing zone that we are in and if you look at our historical uh plan we we plan it 1:00:32 1 hour, 32 seconds with quarter 3 at that number. So, so we were exactly on plan uh for the growth that we had planned for uh and and and 1:00:40 1 hour, 40 seconds and that is how if you look at even in the future you'll always find uh quarter 1:00:47 1 hour, 47 seconds two uh better than quarter three uh except that if you look at quarter one quarter last year we've done much better 1:00:55 1 hour, 55 seconds than Q3 of last year. So so a short answer this is as per the plan of the business. 1:01:02 1 hour, 1 minute, 2 seconds Okay. So, so, so then then yearon-year comparison there is a compression in margin. So, that is on related to the product mix part or what explains uh that part of the story? 1:01:14 1 hour, 1 minute, 14 seconds Yes, that is broadly on the product mix which which we had uh I had articulated in the beginning of the year uh because 1:01:21 1 hour, 1 minute, 21 seconds we moved to now scaling up based on high volume products as well which are high volume lower margin business. So, so 1:01:29 1 hour, 1 minute, 29 seconds that will pull a bit of a little lower and that's why we said that we will be in the range of 21 to 22% of AITA. 1:01:39 1 hour, 1 minute, 39 seconds Okay. And so going ahead for Q4 is traditionally a large quarter for uh engineering organizations concerned like 1:01:47 1 hour, 1 minute, 47 seconds us. So uh we should expect uh the same trend line for for Q4 in terms of at least the execution to be on the relatively higher side. 1:01:59 1 hour, 1 minute, 59 seconds Yeah. Uh so so last quarter is always the the busiest quarter the full quarter 1:02:06 1 hour, 2 minutes, 6 seconds with full number of working days. So we expect it to be uh to be definitely in the similar trend. 1:02:12 1 hour, 2 minutes, 12 seconds Okay. And so just to conclude here uh we have also seen that in the oil and gas space there there has been muted response in terms of the capability or 1:02:21 1 hour, 2 minutes, 21 seconds the capex done by the the the PSUs especially the OMGC of the world and uh and also uh uh the crude prices have 1:02:31 1 hour, 2 minutes, 31 seconds also remained. So how has this affected our uh order booking part firstly and our pricing power also in terms of uh 1:02:38 1 hour, 2 minutes, 38 seconds the bids wherein we are participating as as a as a measure of the US our clientele are it towards this oil and 1:02:46 1 hour, 2 minutes, 46 seconds gas refinery the prochemical segment. So uh how are we seeing this pricing power part uh for us? And then second question 1:02:55 1 hour, 2 minutes, 55 seconds is pertaining to the the new facilities ramping up firstly at the KA and also at at at the manufacturing plant at Marvel. 1:03:04 1 hour, 3 minutes, 4 seconds So how are these going to contribute uh going ahead? 1:03:10 1 hour, 3 minutes, 10 seconds Yeah. So sit you're right in terms of the investment from PSUs and that is the precise reason if you see uh last year 1:03:19 1 hour, 3 minutes, 19 seconds almost three quarters it was literally zero from domestic we had to completely depend on on export business and that is 1:03:28 1 hour, 3 minutes, 28 seconds why we could survive uh because our focus was equal on exports. Uh as we speak now as I mentioned in the call 1:03:35 1 hour, 3 minutes, 35 seconds earlier and and I think some some of uh uh the gentleman had this question. So domestic has picked up. So last over the 1:03:43 1 hour, 3 minutes, 43 seconds last quarter if you see the domestic contribution is is way higher as compared to export. And now with these uncertainties on trade deals and others 1:03:52 1 hour, 3 minutes, 52 seconds uh out of our way, we think that both the verticals in terms of exports and domestic should fire equally and we 1:03:59 1 hour, 3 minutes, 59 seconds should be in a much better position to to to uh have a better uh order conversion in 1:04:09 1 hour, 4 minutes, 9 seconds terms of uh profitability. Of course, as the demand goes down, there are there are many capacities which are which are 1:04:17 1 hour, 4 minutes, 17 seconds which are weakened. uh in India and abroad and people get to uh the the margin game. So obviously it it it it 1:04:25 1 hour, 4 minutes, 25 seconds builds a little bit more aggression in the market in terms of pricing and that brings the pricing level down and that's where the lower strike rates and other 1:04:34 1 hour, 4 minutes, 34 seconds things come up. But we as a company are quite watchful. Uh we want to grow and at the same time grow profitably that's 1:04:43 1 hour, 4 minutes, 43 seconds the balance that we want to keep. So we are very cautious on every opportunity that comes our way that we maintain our 1:04:49 1 hour, 4 minutes, 49 seconds profitabilities as well. Uh your next question in terms of the the the 1:04:56 1 hour, 4 minutes, 56 seconds locations Kada as I mentioned we have already completed phase 2 as planned. So I had said that by quarter 3 we will uh 1:05:05 1 hour, 5 minutes, 5 seconds we will commission. Now Kada is fully operational with three completed manufacturing base and one open yard. So 1:05:13 1 hour, 5 minutes, 13 seconds it has got a capacity to deliver approximately about 450 crores per year of course depending on the product mix 1:05:21 1 hour, 5 minutes, 21 seconds in a full 12-month period. So that's the capacity which is which is commissioned put to use and and moving well. Uh in 1:05:29 1 hour, 5 minutes, 29 seconds terms of Mabel as I said Mabel by quarter 3 uh that is 9 month period it was at 23 crores. uh of course better 1:05:37 1 hour, 5 minutes, 37 seconds than last year but in a sense uh it will uh most of its execution is uh is a site 1:05:45 1 hour, 5 minutes, 45 seconds fabricated equipment which are right now in progress and we expect them to close in February and March. So so Mabel 1:05:52 1 hour, 5 minutes, 52 seconds should uh do much better over 50 to 60 crores uh depending on the 1:05:59 1 hour, 5 minutes, 59 seconds execution. So it's it's moving well. We are not going to have any any capex right now. As I said, we see that opport 1:06:08 1 hour, 6 minutes, 8 seconds that plant to have a capability of anywhere between 150 to 200 crores uh without any further investment there. 1:06:15 1 hour, 6 minutes, 15 seconds So, so that's that's how the locations are and as I mentioned in the call, all three locations are firing very well and 1:06:22 1 hour, 6 minutes, 22 seconds we are very happy and glad that all the three locations are contributing well and and in the order books we have orders from this new facility for SHA 1:06:31 1 hour, 6 minutes, 31 seconds also which have been just commissioned that uh uh 11 I think so the the bid the the closing order book position. 1:06:40 1 hour, 6 minutes, 40 seconds Yeah. So 550 the closing order book has that facility also. So all the reactors, vessels and columns we make in that 1:06:48 1 hour, 6 minutes, 48 seconds plant and all the heat exchangers we make in our uh Ahmedabad plant that is strategically how we are bifocated 1:06:55 1 hour, 6 minutes, 55 seconds between the two uh companies both are named as an engineering. So we can always move things around. uh but but 1:07:03 1 hour, 7 minutes, 3 seconds strategically exchanges in Ahmedabad and uh vessels columns and reactors and other big components in Keda 1:07:11 1 hour, 7 minutes, 11 seconds because it is on a national because it is on a national highway it makes sense for us to move to the port. 1:07:19 1 hour, 7 minutes, 19 seconds Okay. And how is Mabel positioned in the in the three vertical in terms of specialization and uh how do this this unit fits into? 1:07:30 1 hour, 7 minutes, 30 seconds So Mabel is specialized into making silos and tanks. That's the product portfolio that's there and that was the precise reason why we acquired that 1:07:38 1 hour, 7 minutes, 38 seconds company because we didn't have that qualification to make uh uh silos and tanks under engineers India limited. So 1:07:46 1 hour, 7 minutes, 46 seconds so they are specialized only in making silos and tankages and also added to that some site work. 1:07:53 1 hour, 7 minutes, 53 seconds Okay. And lastly sir on the order book front how much is attributable? You mentioned a figure for from the Mabel unit out of the total 550. 1:08:04 1 hour, 8 minutes, 4 seconds So after the total 550 Mabel right now has a pending order book of 45 crores. Okay. That is addition to 550. 1:08:13 1 hour, 8 minutes, 13 seconds No no that part of this 550 because we are looking at a console level. Yes. 1:08:17 1 hour, 8 minutes, 17 seconds Console level and and uh and and that will be all mostly executed in this quarter and the coming quarter. 1:08:25 1 hour, 8 minutes, 25 seconds coming in. Okay. Sorry sir. You please. Yes. Mel is 100% a profitable company. 1:08:34 1 hour, 8 minutes, 34 seconds Thank you for all the updates sir and all the best to the team. Thank you so much. 1:08:40 1 hour, 8 minutes, 40 seconds Thank you. The next question comes from the line of Ganesh Ram with UniFi Capital. Please go ahead. 1:08:48 1 hour, 8 minutes, 48 seconds Ready? I hope you aren't tired of hearing my voice but just one question which is the receivables from US. I think there was about 120 crores of 1:08:54 1 hour, 8 minutes, 54 seconds which we received 70 already 70%. So where is the position with that right now? 1:09:02 1 hour, 9 minutes, 2 seconds So we we had balance about 30 crores receivable from that for the equipment that we had already made it ready out of 1:09:09 1 hour, 9 minutes, 9 seconds which uh already 50% has come in and we expect that the balance to come in next month sorry this month not next February 1:09:18 1 hour, 9 minutes, 18 seconds already into February. So opt for 120 crores. 15 crores is left. That's correct. That's correct. 1:09:26 1 hour, 9 minutes, 26 seconds Okay. Thanks. 1:09:30 1 hour, 9 minutes, 30 seconds Thank you. Ladies and gentlemen, this will be our last question. It's on the line of Vun Misha with VM Chambers. 1:09:37 1 hour, 9 minutes, 37 seconds Please go ahead. 1:09:39 1 hour, 9 minutes, 39 seconds Hi. Uh thanks for taking my question. Um I just had a question on the strategy pivot uh so to speak uh where we have 1:09:48 1 hour, 9 minutes, 48 seconds decided to go into short cycle high volume equipment also. Uh I think you 1:09:55 1 hour, 9 minutes, 55 seconds mentioned in the call that uh Kada phase 2 the expansion has happened which has given us the capability to execute uh uh 1:10:03 1 hour, 10 minutes, 3 seconds large cycle equipment. So uh how does this uh sort of um go with the decision to move into u short cycle high volume? 1:10:17 1 hour, 10 minutes, 17 seconds Uh so Wun uh I couldn't get the question clearly but uh uh let me phrase it. So 1:10:24 1 hour, 10 minutes, 24 seconds you're saying we strategized uh getting into high volume low cycle and the SCA facility which has been installed for 1:10:33 1 hour, 10 minutes, 33 seconds high tonnages. Uh so how would this match that is what your question was that's right that's right that's right 1:10:39 1 hour, 10 minutes, 39 seconds okay so so as I said uh high volume products in terms of ACS PSA or the 1:10:47 1 hour, 10 minutes, 47 seconds vessel those are all will be made in uh order of plant because they are smaller so why do why we have strategically 1:10:55 1 hour, 10 minutes, 55 seconds bifocated between these two is based on the logistic challenges that we have Ahmedabad facility being in the city 1:11:02 1 hour, 11 minutes, 2 seconds limits Anything bigger than 5.5 m moving out becomes extremely difficult because of the traffic. So all these small cycle 1:11:11 1 hour, 11 minutes, 11 seconds time item generally would be smaller in size and they would be made here and the larger cycle times which are generally 1:11:19 1 hour, 11 minutes, 19 seconds larger in sizes will be focused to be made in Kada. However, having said that as I said there are three bays in Kada 1:11:28 1 hour, 11 minutes, 28 seconds with closed and one open yard. Open yard is where the place is where we can make all these small cycle time items if 1:11:37 1 hour, 11 minutes, 37 seconds required. If we do not have enough space in order then that facility is available but generally we would prefer higher 1:11:46 1 hour, 11 minutes, 46 seconds size higher tonnage and longer cycle time equipments to be made in Kada because the plant is generally designed for that. 1:11:55 1 hour, 11 minutes, 55 seconds Right. Understood. Understood. And uh just uh just as a followup uh this uh uh short cycle high volume equipments that 1:12:02 1 hour, 12 minutes, 2 seconds you mentioned uh what would uh they be like in terms of margin they would be as I mentioned earlier too 1:12:10 1 hour, 12 minutes, 10 seconds they should be around 15 to 18% margin profile right right understood understood thank 1:12:18 1 hour, 12 minutes, 18 seconds you thank you so much for your presence and thank you brother thank you ladies and gentlemen that was 1:12:25 1 hour, 12 minutes, 25 seconds the last question for Today I now hand the conference over to Mr. Rejaldo Duza for closing comments. 1:12:37 1 hour, 12 minutes, 37 seconds Yeah, thank you all for your uh very interesting questions and I hope I was able to clarify to your satisfaction. 1:12:46 1 hour, 12 minutes, 46 seconds In case if you have any further queries, please free feel free to connect with us and we would be happy to respond. I take 1:12:55 1 hour, 12 minutes, 55 seconds this opportunity to thank my wonderful team at Anoke and to each and every stakeholder helping us deliver value. A 1:13:03 1 hour, 13 minutes, 3 seconds big thank you to our shareholders for your trust and support as always. So once again, thank you. Take care and stay healthy. Thank you. 1:13:16 1 hour, 13 minutes, 16 seconds Thank you on behalf of Anup Engineering Limited. That concludes this conference. 1:13:22 1 hour, 13 minutes, 22 seconds Thank you for joining us and you may now disconnect your lines.