Bajel Projects Limited — Q4 FY26

Bajel Projects Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=trS6E_hNfTY Published: 2 weeks ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to Bajel Projects Limited Q4 FI26 earnings conference call hosted by 0:10 10 seconds Anti Stock Broken. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions 0:18 18 seconds after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on 0:26 26 seconds your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Dena 0:34 34 seconds Tawari from Antique Stock Broking. Thank you and over to you sir. 0:39 39 seconds Thank you very much. Uh good afternoon everyone. 0:44 44 seconds Welcome all of you to 4Q FY26 post result conference call of uh Bil 0:50 50 seconds Projects Limited, a Bajage group company to discuss results. I am uh extremely pleased to have with us today Mr. 0:58 58 seconds Shakhar Baja chairman of the company Mr. 1:01 1 minute, 1 second Rajesh Ganesh managing director and CEO Mr. Nikesh Bandari CFO and Mr. Harsh Harris head corporate strategy and 1:11 1 minute, 11 seconds communications. As you all have seen the company has reported very strong set of numbers and we believe that uh they are 1:19 1 minute, 19 seconds on well on track to achieve significant improvement in years to come under a very capable leadership. 1:28 1 minute, 28 seconds Now to discuss results I invite uh Mr. 1:31 1 minute, 31 seconds Vij to give his initial remarks and then over to management for detailed discussion on the call. Over to you sir. 1:40 1 minute, 40 seconds Thank you very much. Good afternoon everyone and a very warm welcome to the inaugural annual earnings conference 1:47 1 minute, 47 seconds call of Bil project limited. I'm Shikhar Byaz. It is my privilege as chairman of 1:55 1 minute, 55 seconds the board to open this inaugural in earnings call project limited and address all of you today as we discussed 2:03 2 minutes, 3 seconds our operational and financial performance for the quarter and the financial year ending 31st March 2026. 2:12 2 minutes, 12 seconds This is a milestone moment for us while Bajel has now been listed for over a year over two years. This is the first 2:21 2 minutes, 21 seconds occasion on which we are formally engaging with the investors and analyst community through an earnings call. We 2:30 2 minutes, 30 seconds see this as beginning of an outgoing and a transparent dialogue and we look forward to building this relationship in the years to come. 2:42 2 minutes, 42 seconds This year the Bajad group celebrates 100 years. In 1926, my grandfather Late Sri 2:49 2 minutes, 49 seconds Jamnalandi laid the foundation of what would become one of the India's most endearing business houses built on the 2:58 2 minutes, 58 seconds belief that business must serve a larger purpose through the freedom struggle through the license through 3:06 3 minutes, 6 seconds liberalization and now at the age of artificial intelligence that founding philosophy ki ki 8C the align 3:16 3 minutes, 16 seconds of word and deed has remained our northstar. Every Vaj company in every 3:23 3 minutes, 23 seconds era has been measured against this standard. 3:29 3 minutes, 29 seconds Origin of Bajel. The power transmission and distribution business that today constitutes Baja was invisal enlisted 3:38 3 minutes, 38 seconds and nurtured for many years within By lectures by my son Anand. By 2022, the 3:46 3 minutes, 46 seconds Vajay electrical limited board had arrived at a clear conviction. This business has outgrown the combined of a 3:54 3 minutes, 54 seconds consumer net parent. It need it capital need execution rhythm and strategic 4:01 4 minutes, 1 second horizon were fundamentally distinct and it deserved an independent platform with 4:08 4 minutes, 8 seconds its own focus its own balance sheet and its own runway. The demerger was born 4:15 4 minutes, 15 seconds out of belief in what this business could become when given the freedom to charge its own cost. Badger project 4:23 4 minutes, 23 seconds limited was the result of that convention conviction where Bajel stands today 3 years on. I'm 4:33 4 minutes, 33 seconds pleased to share that Bajel today stands as a focused independent project and product company with a clear strategic 4:43 4 minutes, 43 seconds agenda, a robust order book and a steadily improving margin profile that spans across 4:52 4 minutes, 52 seconds domestic power transmission, new energies, manufacturing and select international markets. The financial 5:00 5 minutes outcome of the year reflects its trajec trajectory. 5:05 5 minutes, 5 seconds Standalone revenue from operation grew to 2,792 crores, a 7% increase by profit after 5:14 5 minutes, 14 seconds tax expanded to 27 crores, a 74% growth that speaks to the discipline of the 5:21 5 minutes, 21 seconds selective execution. MC Abitar grew to 125 crores with a margin improving from 3.4 to 4.4%. 5:32 5 minutes, 32 seconds In view of this strong performance and a mark in view of this 5:41 5 minutes, 41 seconds strong performance and a mark 100 years of viage the board of directors have recommended a maiden dividend of60 5:50 5 minutes, 50 seconds per equity share that is 30% dividend payout in the face value of 2 rupees per share for the financial year 6:00 6 minutes 31st March 2026 subject to the approval of the shareholders at the ensuring 6:08 6 minutes, 8 seconds annual general meeting. But what gives me as chairman the greatest satisfaction is not in any single number or order. It 6:16 6 minutes, 16 seconds is that Bajel has carried forward intact the values it inherited. 6:22 6 minutes, 22 seconds Quiet execution, integrity in every leading, care for the people and the community we operate in. This is the 6:30 6 minutes, 30 seconds operating philosophy the Bajad group has run on for last 100 years and hopefully 6:37 6 minutes, 37 seconds this will be the philosophy that Bad will run for the next 100. With this I would like to hand over to Rajes Lanesh 6:45 6 minutes, 45 seconds MDN CEO to take you through the year performance and road ahead. Thank you. 6:55 6 minutes, 55 seconds Thank you Mr. Chairman for setting the context. It's both a privilege and a responsibility to take this company forward in the spirit you have outlined. 7:05 7 minutes, 5 seconds Let me now walk our investors and analysts through the business, our strategic direction, the operating environment and our performance for the 7:13 7 minutes, 13 seconds year. For those of us joining for the first time, Vel Projects Limited was carved out of Vaj Electrical Limited 7:22 7 minutes, 22 seconds through the merger of its EPC arm with the clear objective of creating a focused and sustainable business for power infrastructure. 7:32 7 minutes, 32 seconds Since our listing on the 19th of December 2023, we have remained committed to building a 7:39 7 minutes, 39 seconds specialized projects and products organization, one defined by safer and stronger 7:46 7 minutes, 46 seconds execution capabilities, cost discipline, and a long-term value creation mindset. 7:53 7 minutes, 53 seconds We have built capabilities across extra high voltage transmission lines, substations and monoples enabling us to 8:00 8 minutes qualify for projects up to 765 KB. We have executed multiple projects across India and internationally. Today, Bajel 8:08 8 minutes, 8 seconds stands as a specialized power transmission player with focus on execution. At the heart of this 8:16 8 minutes, 16 seconds transformation story is Rasta 2030, our six-year strategic road map to position Bajel as a future ready and globally 8:23 8 minutes, 23 seconds recognized peer and power transmission infrastructure sector. The road map rests on a few clear pillars. Expanding 8:31 8 minutes, 31 seconds our presence in high voltage and technically complex CPC projects. 8:35 8 minutes, 35 seconds Growing our international business selectively and profitably. Improving margins through operational excellence and digitization. diversifying into 8:44 8 minutes, 44 seconds adjacent infrastructure opportunities and strengthening organizational capabilities to support long-term scale. 8:52 8 minutes, 52 seconds Underpinning this is a deliberate shift in our orientation from scaleled growth to quality growth. This means better 9:00 9 minutes project selection, discipline fitting, execution experience and a sharper focus on operating margins. I'm pleased to 9:07 9 minutes, 7 seconds share that this shift is now becoming visible in both our operating performance and the composition of our project portfolio. 9:18 9 minutes, 18 seconds Before turning to our performance, allow me please to talk about the industry. 9:23 9 minutes, 23 seconds India's power sector continues to be one of the most attractive markets globally. 9:28 9 minutes, 28 seconds The country is targeting roughly 900 gawatt of non fossil fuelbased installed 9:34 9 minutes, 34 seconds capacity by 2036 which represents a significant increase from current levels. To enable this 9:42 9 minutes, 42 seconds transition, the central electricity authority also called CA has outlined a transmission road map requiring 9:51 9 minutes, 51 seconds approximately 1 lak 14,687 kilometers of transmission line and 12 9:59 9 minutes, 59 seconds lak 74,185 NVA of transformation capacity. 10:04 10 minutes, 4 seconds Now at all of this at an estimated investment of around 9 lakh crores through 2032 which translates to roughly 10:11 10 minutes, 11 seconds about 1 lakh cr per year spanning high capacity 765 KV and 400 KV extra high voltage AC corridors as well as 800 KV and 350 KV HBDC lines. 10:24 10 minutes, 24 seconds Looking further out, India's national electricity plan advisages this transmission capex outlay driven by 10:32 10 minutes, 32 seconds large scale renewable integration, growing electricity demand and the modernization of the national grid. 10:40 10 minutes, 40 seconds Interreional transfer capacity will play an increasingly central role in moving renewable energy from generation rich 10:48 10 minutes, 48 seconds regions such as Rajasthan, Gujarat, Ladak and the offshore wind corridors of Gujarat and Tamilad to demand centers. 10:56 10 minutes, 56 seconds Additional structural tailwinds are emerging from green hydrogen corridors, the data center capacity, industrial electrification, EV charging 11:04 11 minutes, 4 seconds infrastructure and the need to replace aging grid assets. 11:10 11 minutes, 10 seconds While ordering activity in FY26 saw a temporary moderation owing to capacity and bandwidth, the medium-term 11:18 11 minutes, 18 seconds opportunity remains robust and well funded. Internationally, the Middle East, Africa, and parts of Southeast Asia are witnessing a parallel 11:27 11 minutes, 27 seconds investment cycle in high voltage transmission. The Kingdom of Saudi Arabia in particular has committed significant capital towards grid 11:34 11 minutes, 34 seconds expansion under its uh vision 2030 framework and several Middle East North Africa utilities are actively tendering 11:42 11 minutes, 42 seconds large 500 KB transmission projects presenting selective well priced opportunities for established EPC 11:50 11 minutes, 50 seconds players with proven delivery capabilities. Against this backdrop, we see meaningful opportunity for Bajel to 11:57 11 minutes, 57 seconds participate selectively and profitably in this uh multi-year growth cycle, leveraging our capabilities, our 12:04 12 minutes, 4 seconds strategic partnerships and our disciplined approach to project selection. 12:10 12 minutes, 10 seconds As I've mentioned in prior interactions, execution is the heartbeat of our organization. During the year we successfully commissioned 17 power 12:18 12 minutes, 18 seconds transmission projects completing one lakh uh sorry 1,168 circuit kilometers across transmission 12:25 12 minutes, 25 seconds lines and substations which I believe is roughly 10% of India's total transmission line capacity addition in the entire year of FY26. 12:36 12 minutes, 36 seconds This was achieved despite significant headwinds which I'm going to talk about in a in a moment. The last financial year was characterized by shifting trade 12:45 12 minutes, 45 seconds uh policies and heightened glo geopolitical uncertainty which has affected growth across regions and 12:52 12 minutes, 52 seconds sectors. This has also impacted the global supply chains and significantly had an impact on commodity prices. 12:59 12 minutes, 59 seconds Towards the end of the year, US Iran war further stretched global supplies with crude oil reaching over $100 a barrel 13:07 13 minutes, 7 seconds raising to giving rise to overall inflation. The US Iran war also resulted in slowdown of our plans in the Middle 13:16 13 minutes, 16 seconds East North Africa region. As an EBC company, Bajel remains exposed to the vagies of market fluctuations in aluminium, zinc and steel prices. 13:26 13 minutes, 26 seconds Components made from these commodities incur significant amount of uh the company's total procurement cost. 13:32 13 minutes, 32 seconds Aluminium and zinc prices in the LME witnessed an overall uptrend throughout the year. In the first half, prices were at the mercy of trade tariffs and 13:40 13 minutes, 40 seconds counter tariffs imposed by major economies while geopolitical tensions in Iran supported strong momentum in the second half. Steel prices followed 13:48 13 minutes, 48 seconds downward trajectory till December but rose again thereafter post implementation post imposition rather of 13:56 13 minutes, 56 seconds safeguard duties on imports supported by surging uh material cost and fluctuate infrastructure demand cycle depreciating 14:05 14 minutes, 5 seconds currency further added to the challenges. We also faced manpower challenges sign especially in execution due to shortage of skill labor and core 14:12 14 minutes, 12 seconds activities like foundation erection and stringing. 14:16 14 minutes, 16 seconds Uh oil oil prices going up and non-availability of LPG adversely affected our supply chain operations towards the end of FY26. Higher wages 14:25 14 minutes, 25 seconds and imposition of new labor code is also expected to increase cost further. 14:29 14 minutes, 29 seconds Despite all the above challenges, our unexecuted order book stands as on 31st of March 2026 at 3,442 14:37 14 minutes, 37 seconds crores. Order outflow for the year stood at roughly 3,100 crores as compared to 14:45 14 minutes, 45 seconds about 2,000 crores last year, which is a 55% increase year on year. Among the notable milestones of the year was the 14:52 14 minutes, 52 seconds 700 crore TBC order from MCTCL [clears throat] for 420 KB substation and transmission line project in Satwad. 15:00 15 minutes We also secured key project wins from PGCL such as Mansour transmission project and vindia pool project for this technique our domestic order book in 15:09 15 minutes, 9 seconds both interstate as well as intrastate transmission infrastructure building. 15:14 15 minutes, 14 seconds Post March 2026, we have secured orders up to,000 crores plus just over thousand crores, including our first order from 15:23 15 minutes, 23 seconds the Middle East and North Africa region valued at approximately 400 crores for the construction of a 500 KBO 15:29 15 minutes, 29 seconds transmission line. We're currently L1 or in advanced stages of negotiation with customers in orders worth over 2,000 15:36 15 minutes, 36 seconds crores. We are also actively pursuing opportunities worth 22,000 crores. We see this trend continue over this 15:44 15 minutes, 44 seconds financial year and this should further support our audible growth. 15:49 15 minutes, 49 seconds FY226 was also a defining year in shaping our strategic partnerships both domestic as well as international. On the 10th of 15:58 15 minutes, 58 seconds March 2026, we announced a strategic collaboration with uh NIF, National Investment and Infrastructure Fund, 16:05 16 minutes, 5 seconds sovereign linked fund of the government of India and Anand Grid Private Limited. 16:10 16 minutes, 10 seconds uh NIF promoted power transmission developers. This triparted arrangement enables us to jointly deliver 16:17 16 minutes, 17 seconds highquality and costefficient power transmission projects in India. We also entered into a 50/50 JV uh in the 16:26 16 minutes, 26 seconds Kingdom of Saudi Arabia with Alsharif Contracting and Commercial Development Company Limited establishing a long-term platform for growth in the Middle East 16:35 16 minutes, 35 seconds in one of the fastest growing electricity infrastructure markets globally. 16:40 16 minutes, 40 seconds To support our growth ambitions, we've been investing in strengthening our manufacturing capability. We want to continue improving our margins by reducing our costs among other things. 16:52 16 minutes, 52 seconds Focus area includes better and better margins, achieve hedging of commodities, efficient efficiency improvement across 17:00 17 minutes manufacturing, supply chain and execution led by an internal project which we call project NE a specific transformation initiative to improve 17:08 17 minutes, 8 seconds data systems process and our broader digitization agenda. Our manufacturing facility at Ranjen near Pune is being 17:15 17 minutes, 15 seconds expanded to 110 to 120,000 metric tons peranom. Once operational, the expanded 17:22 17 minutes, 22 seconds facility will significantly enhance our captive capability and ability to serve both domestic and international demand. 17:31 17 minutes, 31 seconds The macroeconomic optimism that characterized FY26 has been considerably tempered as the world enters FY 2027. 17:40 17 minutes, 40 seconds Conditions turn challenging in March 2026 with the widening and intensification of the US Iran conflict zone. But despite all the challenges, 17:49 17 minutes, 49 seconds India remains a considerable power sector growth market underpinned by increasing power demand and supply. We 17:57 17 minutes, 57 seconds remain cautiously optimistic as we enter FY 2027. 18:02 18 minutes, 2 seconds With that view of the business, the operating environment and our strategic progress, let me now invite Nitesh, our 18:11 18 minutes, 11 seconds chief financial officer to take you through the detailed financial performance for the year for the quarter and for the year. Over to you. 18:23 18 minutes, 23 seconds Thank you Rajes. Good afternoon everyone. It is a pleasure to address all of you on our inaugural earnings 18:30 18 minutes, 30 seconds call. Let me take now take you through the financial performance for the fourth quarter in the full year followed by an 18:37 18 minutes, 37 seconds overview of our balance sheet and our credit profile. 18:41 18 minutes, 41 seconds So on the financial performance of Q4 FI2526 FI 202526 has been a year of many firsts 18:50 18 minutes, 50 seconds for Brazil and more importantly an a year of consistent and measurable progress. 18:57 18 minutes, 57 seconds Through the year, our focus remained firmly on improving the quality of our order book and execution portfolio. We 19:06 19 minutes, 6 seconds have consistently prioritized projects with stronger margin visibility, better contractual structures and lower 19:13 19 minutes, 13 seconds execution risk. Our teams delivered on multiple key transmission projects across India while maintaining a sharp 19:21 19 minutes, 21 seconds focus on operational efficiency and working capital management. 19:26 19 minutes, 26 seconds Talking about the numbers for the quarter ended March 2026, our standalone revenue from operations 19:34 19 minutes, 34 seconds grew by 26% yearonear to 1,08 crores. 19:40 19 minutes, 40 seconds This is the first time budget projects limited has crossed 1,000 cr in a quarter. A huge milestone quarteta 19:50 19 minutes, 50 seconds grew by 39% to rupees 38 crores with an eeta margin expanding by 30 basis points to 3.7%. 20:00 20 minutes Profit after tax for the quarter stood at rupees 16 crores translating into a fat margin of 1.6%. 20:10 20 minutes, 10 seconds Now for the full year FI 2526 standalone revenue from operations grew 20:16 20 minutes, 16 seconds by 7% to rups 2,792 crores. 20:22 20 minutes, 22 seconds IITA grew by 38% to 125 crores jumping from 90 crores last year with an 20:29 20 minutes, 29 seconds IBITA margin improving from 100 basis point to 4.4%. 20:34 20 minutes, 34 seconds Our profit before exceptional items and tax stood at rupees 42 crores a growth of 73% year on year. 20:45 20 minutes, 45 seconds Profit after tax after the exceptional impact of labor code of rupes 7.772 20:52 20 minutes, 52 seconds crores stood at rupes 27 crores registering a pat margin of almost 1%. 21:00 21 minutes On the balance sheet, we continue to exercise student capital management and disciplined working capital control. Net 21:08 21 minutes, 8 seconds working capital stood at 124 days as of 31st of March 2026. And our net to beta improved to around two around 2.8 times. 21:18 21 minutes, 18 seconds Return on average capital employed for the year stood at 15.8% an improvement of 300 basis points over 21:26 21 minutes, 26 seconds the previous year. a clear reflection of improving operational efficiency and disciplined capital allocation. 21:34 21 minutes, 34 seconds Cash borrowings have reduced from 121 crores last year to 31 crores this year. 21:41 21 minutes, 41 seconds In December 2025, Crystal reaffirmed our long-term credit rating at Crystal A table and short-term 21:49 21 minutes, 49 seconds credit rating at Crystal A1, recognizing the strength of our business model and the resilience resil resilience of our financial profile. 22:00 22 minutes That covers the financial performance for the year. With that, I hand it back to Rajes for the outlook and the closing remarks. 22:10 22 minutes, 10 seconds Thank you Nitesh. Let me now share a brief view on the year ahead before we open the line for questions. As we enter 22:20 22 minutes, 20 seconds FY 2627, we are optimistic about the sector's trajectory and confident in our strategic direction. The tenderling 22:28 22 minutes, 28 seconds pipeline across transmission, renewable integration and grid infrastructure remains robust and we continue to see 22:37 22 minutes, 37 seconds strong wellpriced opportunities emerging across both domestic and select international markets in line with our 22:45 22 minutes, 45 seconds Rasa 2030 road map. Our priorities will remain consistent. Exercising disciplined execution, doing risk 22:53 22 minutes, 53 seconds management, and creating sustainable long-term value for all our stakeholders. 22:58 22 minutes, 58 seconds Before I conclude, I'd like to place on record my gratitude to our customers for their continued trust, to our partners 23:06 23 minutes, 6 seconds for their collaboration, to our bankers, to the board for their guidance, and most importantly to our agile team for 23:14 23 minutes, 14 seconds their tireless commitment and execution experience. Thank you. We're now happy to take your questions. 23:21 23 minutes, 21 seconds Thank you very much. We'll now begin with the question and answer session. 23:24 23 minutes, 24 seconds Anyone who wishes to ask a question may press R and one on the touchstone telephone. 23:30 23 minutes, 30 seconds If you wish to remove yourself from the question queue, you may press R and two. 23:35 23 minutes, 35 seconds Participants are requested to use handset while asking a question. 23:40 23 minutes, 40 seconds Ladies and gentlemen, we will wait for a moment while the question symbols. 23:46 23 minutes, 46 seconds Participants, you may press star and one to ask a question. 24:01 24 minutes, 1 second Anyone who wishes to ask a question may press star and one. 24:20 24 minutes, 20 seconds First question is from the line of Rahul Kumar Mishra from Antic. Go ahead. 24:28 24 minutes, 28 seconds Hi uh thanks for the opportunity and congratulations to the entire team for a healthy set of results for 4 as well as for the entire year. So I have a couple 24:37 24 minutes, 37 seconds of questions. So my first question would be on the margins uh trajectory. So we see that over the past few quarters we have been seeing the consistent 24:45 24 minutes, 45 seconds improvement in our operating margins like around 220 bits of margin expansion to 4.8% % in the last quarter. However, 24:52 24 minutes, 52 seconds this quarter we saw and uh during the opening remarks uh MDC has already alluded to the fact that uh there were some challenges like uh uh higher 25:00 25 minutes commodity cost uh supply chain and this is I understand it's not just pertaining to our company but it has been industrywide and apart uh so my question 25:08 25 minutes, 8 seconds is apart from these uh have you seen any other challenges like we are executing question 25:15 25 minutes, 15 seconds like uh uh do we have any legacy order uh in the current order book. 25:26 25 minutes, 26 seconds Okay. Um, could I answer? Yes, sir. 25:33 25 minutes, 33 seconds Yeah. Okay. All right. Yeah. Thanks. Uh, thanks. Thanks very much for the question. 25:39 25 minutes, 39 seconds Yes. We can take all the questions because there will be a lot of repetition and then answer all of them together. That's a better way to do it. 25:49 25 minutes, 49 seconds Let's get all other questions and then you summarize that and give a full answer. 25:57 25 minutes, 57 seconds Yes, Mr. Chen. 26:01 26 minutes, 1 second So the moderator can go for the second question. Uh yes, sir. Participants you may press star and one to ask the question. 26:14 26 minutes, 14 seconds Next question is from the line of Nishida Sanisha from Sapphire Capital. Please go ahead. 26:21 26 minutes, 21 seconds Yes. Uh thank you for taking my question. So uh I just wanted to know you mentioned that we are expanding our 26:28 26 minutes, 28 seconds manufacturing facility to 110 to 120,000 metric ton. So I just wanted to know 26:35 26 minutes, 35 seconds what is the cex for that and when will the uh uh expanded facility be 26:42 26 minutes, 42 seconds operational? My second question would be on what kind of revenue growth do we see in FI27 if you could give some sort of 26:50 26 minutes, 50 seconds guidance for that and the current order book that we have of around 3,400 crores. What is the execution timeline 26:59 26 minutes, 59 seconds for that and if we have any order book pipeline what is our what does our order book pipeline look like? Yeah, that is it for my side. Thank you. 27:12 27 minutes, 12 seconds Thank you. Uh management, the participants will come back in the question queue and we'll request you to answer the questions one by one if possible. 27:22 27 minutes, 22 seconds Yeah, we'll we'll do that. Thank you. 27:24 27 minutes, 24 seconds So, so I I'll answer Rahul's question first on the um on the on the margin trajectory and uh yeah well so Rahul 27:34 27 minutes, 34 seconds last six months uh the the commodities have been on a bit of a run. I mean we all know that aluminium, steel, zinc, 27:41 27 minutes, 41 seconds copper all of them have been on a bit of a run. So it does present a challenging environment. Uh aluminium we've managed 27:49 27 minutes, 49 seconds to by and large hedge. We still have some open exposure but especially for the new orders but the but the up to March uh end of March you know financial 27:57 27 minutes, 57 seconds year I think we completely hedged. So but there's no way to hedge the zinc and others. So you see so those have to be 28:06 28 minutes, 6 seconds uh have to be dealt with. Now uh we are in conversation with our customers to see given the extraordinary 28:13 28 minutes, 13 seconds circumstances if if some sort of leeway can be provided. In the meantime we're also looking at you know possibility of 28:21 28 minutes, 21 seconds tightening costs further uh especially improving productivity and and things like that in order to in order to uh you 28:28 28 minutes, 28 seconds know keep the keep the margin uh you know in order to keep the margin going. 28:33 28 minutes, 33 seconds So hopefully that answers what you were asking. Um on the on Nishita's question 28:40 28 minutes, 40 seconds on manufacturing uh capacity uh the overall capex outlay in Nishita is 170 28:47 28 minutes, 47 seconds crores and uh what we're trying to do is uh to increase the capacity of the plant 28:55 28 minutes, 55 seconds from the current 45,000 metric tons to about 110 to 120,000 metric tons. So you 29:01 29 minutes, 1 second see it's a two and a half times uh sort of growth in capacity. We we're trying to do that in three phases. The first 29:08 29 minutes, 8 seconds one is to uh get the big galvanizing bath ready which is the heart of uh a tower manufacturing or a manufacturing 29:17 29 minutes, 17 seconds facility. Now that be done by August um and uh we should be spending a large portion of this capex this year itself. 29:29 29 minutes, 29 seconds The second part of this second phase is to improve the TLT, the transmission tower capacity, which currently stands 29:38 29 minutes, 38 seconds at about 2,000 metric tons per month. I mean, that's going to go up to 6,000 metric tons per month. Now for that 29:44 29 minutes, 44 seconds we'll have to once the new bath is commissioned then we'll have to flatten out the old one and we're using that 29:51 29 minutes, 51 seconds area to put new new machines and and in the process we and and that would be ready by the end of this financial year 29:59 29 minutes, 59 seconds or max by the start of the next financial year. And the third phase is uh we're setting up a brand new monopole 30:07 30 minutes, 7 seconds line because we believe that the demand for monopoles uh in the future will be high and and and that's a segment where 30:14 30 minutes, 14 seconds you know we we have an inherent strength both in design as well as in manufacturing. So so that would be phase three and that would go till the end of 30:24 30 minutes, 24 seconds next financial year. So that would be um you know and the funding of it is uh uh 30:31 30 minutes, 31 seconds 120 crores of this is through term loan nishita and the balance uh 50 crores is through our own investments. So that's 30:39 30 minutes, 39 seconds on the you know on the revenue growth for FI27 um I mean projection for the 30:45 30 minutes, 45 seconds year it's a bit early in the year but um I think we should be in I mean our endeavor is obviously to grow the focus 30:53 30 minutes, 53 seconds is not to grow the top line significantly but I do acknowledge that a certain amount of scale is required 31:01 31 minutes, 1 second for pitch cost adoption in this business so um we targeting anywhere upwards of 15% uh and be quite confident we should 31:09 31 minutes, 9 seconds get there. Um the current order book as you know stands slightly south of 3,500 31:16 31 minutes, 16 seconds crores and uh well in the first um you know the first 40 days of the of the 31:24 31 minutes, 24 seconds current financial year we've already received orders worth,000 crores and we are L1 in orders worth another 2,000 31:33 31 minutes, 33 seconds crores which we should hear about quite soon. So uh given this I think we should be we should be in a position to end the 31:42 31 minutes, 42 seconds year with an un an executed out book of about four to 5,000. Hopefully that helps. 31:53 31 minutes, 53 seconds Do you have any follow-up question? Yes. Uh am I audible? Yes, you're audible. 32:00 32 minutes Yeah. So uh just wanted to know so you mentioned that capex would be phase wise. So and uh from what I understood 32:09 32 minutes, 9 seconds phase one and phase two will be operational by the end of FI27. Is that correct? Yes, that's correct. 32:17 32 minutes, 17 seconds And um majority of it so around like 130 140 crores is we'll spend on phase one 32:25 32 minutes, 25 seconds and phase 2. Is that understanding correct? 32:29 32 minutes, 29 seconds Well, yeah. But yeah, more or less, Nishita. I think that I would, you know, I I would say say 60 to 70% perhaps. 32:41 32 minutes, 41 seconds Okay. Okay. Understood. So, what what is the uh revenue potential that we can get from this expanded manufacturing 32:49 32 minutes, 49 seconds facility that will be operational by the end of FY27? And how are we going to ramp up this facility? 32:58 32 minutes, 58 seconds Well, I mean um tower capacity availability of tower manufacturing capacity and monopol 33:05 33 minutes, 5 seconds capacity is a challenge in the market because uh as as the sector is witnessing quite a bit of demand uh you 33:13 33 minutes, 13 seconds know there is also demand happening uh you know at that you know at the supplier end as well and there's a lot 33:20 33 minutes, 20 seconds of substitution happening out there because solar is also growing and solar is winding so uh you know So it's kind 33:27 33 minutes, 27 seconds of becoming challenging to have you know long-term relationship with suppliers who manufacture good quality you know towers that are needed for for our work. 33:37 33 minutes, 37 seconds So the endeavor here is really to try to insource as much as possible the raw material that we need as much as 33:44 33 minutes, 44 seconds possible. Right? So that's the endeavor here and it's more to ensure that we protect our margins and that we that uh 33:54 33 minutes, 54 seconds you know that we uh that we to some extent uh you know insulate ourselves against possible increase in in 34:01 34 minutes, 1 second conversion cost prices etc etc due to higher demand right so the big objective is to ensure that we have sufficiently 34:10 34 minutes, 10 seconds in-houseed our captive demand okay okay thank Thank you so much. Yeah, thank you. 34:18 34 minutes, 18 seconds Thank you participants. You may press star and one to ask a question. 34:30 34 minutes, 30 seconds Ladies and gentlemen, you may press star and one to answer the question. 34:40 34 minutes, 40 seconds Next question is from the line of Yeshaic stock broking. Please go ahead. 34:46 34 minutes, 46 seconds Hello. Um, thank you for the opportunity. I'm so cool. If you could just throw some light on the industrial industry dynamics both on the domestic 34:56 34 minutes, 56 seconds as well as industrial bank and secondly uh are we looking for any extra HDC projects in coming months in the coming year? Thank you. 35:10 35 minutes, 10 seconds Yeah. Could could we take one more question and then perhaps I can answer. 35:16 35 minutes, 16 seconds So uh so I also have one more question on the capacity expansion side. So since we are we have announced the capex for 35:23 35 minutes, 23 seconds 27 and 28. So how will that shape us you know help and execution as well as on the profitability front where do we see this going forward? 35:36 35 minutes, 36 seconds Okay. So let let me uh let me uh uh take a stab at the industry dynamics. Well, I 35:44 35 minutes, 44 seconds I did mention in my opening remarks as well that India is uh one of those markets uh is is an exciting market for 35:52 35 minutes, 52 seconds power transmission and distribution particularly because if you see uh you know the the demand for electricity 35:59 35 minutes, 59 seconds continues to grow. the demand for energy overall continues to grow and uh when we see electricity finding application into 36:08 36 minutes, 8 seconds you know into mobility we see a lot of EV vehicles we see it coming into people's kitchen thanks to the uh thanks 36:15 36 minutes, 15 seconds to the LPG uh availability crisis that that we are sort of facing at the moment and and and several other things even in 36:24 36 minutes, 24 seconds industrial applications electricity is finding itself in there so from a demand point of view there's uh you know there's And there's quite a bit of 36:31 36 minutes, 31 seconds tailwind industry tailwinds uh that we talking about here. I mean the government outlay for both uh intra as 36:39 36 minutes, 39 seconds well as interstate projects are close to greater than one lakh every year. So that's actually uh significant uh outlay 36:49 36 minutes, 49 seconds and the ambitions of the government also in terms of you know having 9002,000 gawatt of capacity coming on stream in 36:57 36 minutes, 57 seconds the next 5 years is is a significant target and more than half of that is actually going to come in renewable energy. So that means grid stabilization 37:05 37 minutes, 5 seconds becomes a challenge and uh and hence more amount of work needs to be done in that area too. Overall generation is not really the bottleneck. I think 37:14 37 minutes, 14 seconds transmission and distribution appears to be the the bottleneck here and so a lot of a lot of work is being done uh in 37:21 37 minutes, 21 seconds that space. So uh I I would I would um I would be quite optimistic about the about the industry picture for for India 37:30 37 minutes, 30 seconds and I I would I I would say the same for international select markets. I mean we are we are we are looking at GCC we 37:38 37 minutes, 38 seconds looking at Mina uh we're looking at some parts of Africa and all these markets we are seeing quite a bit of capacity 37:45 37 minutes, 45 seconds expansion in line with what's what we seeing uh in India if you take Saudi Arabia for example or UAE or or Omanu 37:55 37 minutes, 55 seconds or or Egypt markets like that I mean there's considerable amount of work that's happening and there's big plans for grid expansion as well so overall I 38:04 38 minutes, 4 seconds I say from a industry point of view both local as well as international the picture is is rather bright. Um for 38:12 38 minutes, 12 seconds bidding for HBDC well we do not have HBDC in our portfolio yet but uh but we are keen I must say we keen and if an 38:21 38 minutes, 21 seconds opportunity presents itself we are sure to grab it. Um uh and we we are quite keen to add add that uh in our uh in our 38:30 38 minutes, 30 seconds uh repertoire on the on the uh uh on the well from a qualification point of view we are actually completely qualified 38:39 38 minutes, 39 seconds now. We're qualified for uh 765 KV both GIS as well as AIS. So in that sense 38:46 38 minutes, 46 seconds qualification or credentials is no longer a challenge for us but so we but we are we're waiting for the right opportunity when it comes to HBDC really 38:54 38 minutes, 54 seconds uh on the capacity expansion as I was as I was uh mentioning to uh to to as well 39:02 39 minutes, 2 seconds um what it does is it really helps us in our execution you see uh because we have much better control over uh availability 39:10 39 minutes, 10 seconds or or uh you know over um u uh over for manufacturing of these tower parts, right? And and it needs to be I mean it 39:19 39 minutes, 19 seconds needs to be done to a certain specification. I mean there is quite a bit of design and engineering involved in this one and uh we'd like uh we'd 39:26 39 minutes, 26 seconds like that to be in our own hands so we have better control over it. It also has uh quite a bit of bearing on cost you see I mean if we are able to insource 39:35 39 minutes, 35 seconds and if we are able to build scale then uh our objective is to bring down cogs and and this would help uh in that uh 39:44 39 minutes, 44 seconds you know in that journey thank 39:52 39 minutes, 52 seconds you thank you participant one to ask a question. 40:05 40 minutes, 5 seconds Ladies and gentlemen, you may press star and one to ask a question. 40:13 40 minutes, 13 seconds Next question is from the line of Ashok Jen from Aush Capital. Please go ahead. 40:25 40 minutes, 25 seconds Ashok may I request to unmute your line and proceed with your question please 40:37 40 minutes, 37 seconds if you can hear us may I request to unmute your line and proceed with your question. Hello. 40:46 40 minutes, 46 seconds Yes ma'am. Yeah. Am I audible? Yes ma'am. Yes. 40:51 40 minutes, 51 seconds Yeah. So yeah can I proceed? 40:57 40 minutes, 57 seconds Yes ma'am go ahead. Yeah, in the um in the trapertide STV of ve projects NIS uh 41:05 41 minutes, 5 seconds Anand grid who will be funding the selected power transmission project since we are already paying finance cost 41:12 41 minutes, 12 seconds of about 53 crores for uh fiscal year 20 25 26 additional borrowing burden for project execution and subsequent 41:21 41 minutes, 21 seconds ownership of these power transmission assets will draw our EPS further down. 41:26 41 minutes, 26 seconds My query to you sir is how will the dual role of varial project turnkey EPC contractor and also a 26% equity 41:35 41 minutes, 35 seconds stakeholder in the SPV impact the profit and loss balance sheet and cash flow of bil project during and after the 41:43 41 minutes, 43 seconds commissioning of the selected power transmission project under the tripotype SPV we'll be glad if you could throw some light on the same s 41:52 41 minutes, 52 seconds yeah certainly happy to yeah Um uh could I yeah let me let me answer that one. Uh 42:00 42 minutes so uh I mean thank you for the question that's really a very good question. Uh but let let me let me let me take a 42:09 42 minutes, 9 seconds couple of steps back and tell you why we did this right. I mean we we we we have no interest in in asset ownership. 42:18 42 minutes, 18 seconds Let me make that very clear that that's that's not the business that we are in. 42:22 42 minutes, 22 seconds Now we've done that because of two reasons. See one is that uh NIF uh is a uh half owned by the government of 42:30 42 minutes, 30 seconds India. is the sovereign wealth fund of India and they've got maki LP partners there like the Canadian pension fund and 42:37 42 minutes, 37 seconds like you know Abu Dhabi sovereign wealth fund etc etc and several of them it gives us an opportunity to to work with 42:45 42 minutes, 45 seconds these people you see I mean that that that that's that's one second it gives us a way of increasing or improving the 42:53 42 minutes, 53 seconds quality of our order pipeline yeah of our unexecuted order book you see um now the arrange ment the tripartite 43:01 43 minutes, 1 second arrangement is very clear the the financing of it is largely going to be done by NIF and an yeah and we'd be 43:10 43 minutes, 10 seconds taking we'd be taking a small equity and in return what we're getting is uh is uh 43:17 43 minutes, 17 seconds the EPC agreement backto-back EPC agreement for executing any of the projects that we win yeah so to that 43:24 43 minutes, 24 seconds extent uh I I think it's a win-win for all the parties involved I think it's a big strategic win for us. Should we be 43:32 43 minutes, 32 seconds able to bid and win projects successfully? Of course, you know, the the the proof is in that. But if we do, I mean, these are these are large scale 43:40 43 minutes, 40 seconds projects and you know, that would give us a significant boost to our pipeline straight away. And and my opinion is 43:47 43 minutes, 47 seconds that these are high quality orders. We should be able to you know a lot of the parameters regarding execution and 43:55 43 minutes, 55 seconds commodity prices would be in our hands and that could help us perhaps uh you know uh earn better margins or also 44:03 44 minutes, 3 seconds better terms in terms of in terms of EPC execution. So um so I actually see a positive impact on the BNL as a result 44:12 44 minutes, 12 seconds of this madam. Uh uh but yes I mean had there been an element of asset ownership I completely agree with you. uh but but 44:19 44 minutes, 19 seconds that's not the case. The the agreement also quite clearly stipulates that we would be exited out uh as soon as the as 44:27 44 minutes, 27 seconds soon as the the you know the project is is commissioned. So to that extent uh we don't see ourselves managing or 44:34 44 minutes, 34 seconds maintaining onm of these assets for the long-term reason. 44:38 44 minutes, 38 seconds Okay sir. Thank you sir. My second question is are the losses of the five joint ventures of employee welfare trust 44:46 44 minutes, 46 seconds of 6.667 667 crores as per item eight of our results being fully booked or more are more are to come in the coming 44:55 44 minutes, 55 seconds years. Could you kindly elaborate on the same thing? U thank you ma'am. Nitesh vandari here. 45:03 45 minutes, 3 seconds uh this these are these are five employed trusts and the impact is primarily because of the mark to market 45:10 45 minutes, 10 seconds that we have done uh as a part of the trust accounting and 31st March the 45:16 45 minutes, 16 seconds equity markets were were quite low um and as we as they improve as the share prices come back we should be able to uh 45:25 45 minutes, 25 seconds I mean we should be able to you know bring back those numbers back on track the the real impact of the share of 45:32 45 minutes, 32 seconds profit and loss is uh is 6.68 and 1.57 for the quarter ended 31st March 2026. 45:41 45 minutes, 41 seconds Okay. Thank you sir. Thank you so much. Thank you. 45:46 45 minutes, 46 seconds Thank you. A reminder to all the participants. You may press R and one to ask a question. 45:58 45 minutes, 58 seconds Next question is from the line of Van from Choice AMC. Please go ahead. Yeah. Hello. Am I audible? 46:06 46 minutes, 6 seconds Yes sir. Go ahead. 46:07 46 minutes, 7 seconds Yeah. Yes sir. So my question was regarding working capital and receivables. So we have seen a uh increase in data days and receivables 46:16 46 minutes, 16 seconds meaningfully during FY26 alongside with rise in the borrowing. So could you help us understand whether this is largely 46:23 46 minutes, 23 seconds linked to uh some execution timings or milestone these be the links in the current order book or whether payment 46:31 46 minutes, 31 seconds cycles across PSUs and transmission projects uh there are being structurally structurally elongated right and 46:39 46 minutes, 39 seconds additionally uh how should we think about normalizing that of normalization of working capital and and cash 46:46 46 minutes, 46 seconds conversion so higher margin orders started getting executed Thank you Vidang. Uh Vidang the datas 46:55 46 minutes, 55 seconds have increased by around 590 crores from 1258 crores to 1849 crores. Uh this is primarily on account of higher last 47:04 47 minutes, 4 seconds quarter billing. The billings have increased on a year-on-year basis compared to previous year that is an impact of around 194 crores. Also one 47:13 47 minutes, 13 seconds marquee customer held back payments in the last fortnight of March of around 225 crores. Both of this most part of 47:21 47 minutes, 21 seconds both of these have been collected by us in the in in in this part of I mean in this year uh so till date we have collected most part of it. The 47:30 47 minutes, 30 seconds other increase is as a part of the EPC cycle wherein as you do the projects the retention the final retention amount keeps increasing on a for for every project. That's the contractual terms. 47:40 47 minutes, 40 seconds So that increase of that's an increase of around 100 crores and uh yeah so this this is a one time thing which which we as we talked of and 47:49 47 minutes, 49 seconds both the things I mean as we said have been collected back. Does that answer your question? 47:56 47 minutes, 56 seconds Yes sir. Yes it did. Thank you. Thank you. Thank you. 48:10 48 minutes, 10 seconds Next question is from the line of Rahul. 48:11 48 minutes, 11 seconds M Rahul Romantic stock broking. Please go ahead. Hi uh my questions have been answered. 48:19 48 minutes, 19 seconds Thanks. Thanks a lot. 48:21 48 minutes, 21 seconds Thank you very much. There are no further questions. I'll now hand the conference to Darinda Diwari for closing comments. 48:30 48 minutes, 30 seconds Thank you very much. Uh let me take this opportunity to thank the entire management of BI project. uh 48:39 48 minutes, 39 seconds uh Mr. Baj uh Mr. Rajesh Nitesh G and uh Mr. 48:45 48 minutes, 45 seconds Hershel for uh giving us the opportunity to host them looking forward to uh you know continued strong performance from 48:53 48 minutes, 53 seconds the company in the future. Uh so before I close uh any final remarks uh Mr. 49:00 49 minutes Rajes you would like to give and then we can uh close the call over. None none from me Mr. Dari I'm I'm good. 49:07 49 minutes, 7 seconds Thank you. Thank you. All right. All right. So, we can close the call now. I uh operator and uh you know have a great 49:15 49 minutes, 15 seconds evening and uh best wishes to all of you and uh thank you all participants for attending the conference call. 49:23 49 minutes, 23 seconds Thank you very much. Thank you on behalf of Stock Broking. 49:29 49 minutes, 29 seconds That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you. Thank you.