Batliboi Limited — Q3 FY26

Batliboi Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=t4Onox8AO0g Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to Bartley Boy Limited Q3 and FY26 earnings conference call hosted by 0:10 10 seconds Go India Advisers LLP. As a reminder, all participant lines will be in the listenon mode and there will be an 0:18 18 seconds opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an 0:27 27 seconds operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. 0:35 35 seconds Before we begin, a brief disclaimer. 0:37 37 seconds This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on the date of this call. 0:48 48 seconds These statements are not the guarantees of the future performance and it may involve risk and uncertainties that are difficult to predict. I now hand the 0:57 57 seconds conference over to Miss Salony from Go India Advisers LLP. Thank you and over to you ma'am. 1:05 1 minute, 5 seconds Good afternoon everyone. On behalf of Bartley Boy Limited, I would like to welcome you to our earnings call to discuss the operational and financial 1:13 1 minute, 13 seconds performance for the third quarter and 9 months of fiscal year 26. The session is being hosted by Go India Advisors. 1:21 1 minute, 21 seconds Joining us from the management team today are Mr. Mimal Bogilal Chairman, Mr. Sanjiv Jooshi, managing director, 1:28 1 minute, 28 seconds Mr. Capil Aurora, CFO and Mrs. Puja Sadan, company secretary. Please note that today's discussion may include 1:36 1 minute, 36 seconds forward-looking statements which are subject to risk and uncertaintities. I encourage participants to consider these factors when interrupting company developments. I now hand over to Mr. 1:47 1 minute, 47 seconds Bodilal to provide an overview of the company's business outlook and performance for the quarter. After his remarks, we'll open the floor for the Q&A. Thank you and over to you sir. 2:00 2 minutes I think good afternoon uh everyone and thank you for joining us today for Battleboy Limited's earnings call for the third quarter of FY26. 2:11 2 minutes, 11 seconds We appreciate your interest and support and I trust you have had the chance to review our investor presentation as well 2:18 2 minutes, 18 seconds as the financial results which are available on the stock exchange. 2:24 2 minutes, 24 seconds This year's union budget centers on three core kavas. One, enhance enhancing productivity. 2:32 2 minutes, 32 seconds Two, fulfilling aspirations and ensuring inclusive access to opportunities to advance India towards its vision of exit 2:41 2 minutes, 41 seconds bar. The union budgets proposed capital expenditure of rupees 12.2 2 lakh cr 2:50 2 minutes, 50 seconds or FY27 reflecting an 11 and a half% growth aligned with the nominal GDP underscores 2:58 2 minutes, 58 seconds the government's unwavering commitment to infrastructure modernization and enduring capacity creation in vital sectors. 3:08 3 minutes, 8 seconds This balanced overthinking road map solidifies India's trajectory as it develops and resilient economy with 3:17 3 minutes, 17 seconds continued capex emphasis delivering tangible benefits for industrial machinery companies like ours. Our 3:26 3 minutes, 26 seconds company had a challenging quarter mostly as a result of the issues concerning the 3:33 3 minutes, 33 seconds textile industry which is largely resulted of the tariff issues with the US and the problems in the EU. 3:42 3 minutes, 42 seconds Over and above we had the issues of labor code which impacted our results on but however those are on a non-cash basis. 3:52 3 minutes, 52 seconds However, in spite of these issues, our PBT before these exceptional items of the labor code impact increased to 4:01 4 minutes, 1 second rupees 4.8 crores from rupees 85 lakhs in the same quarter last year, reflecting nearly a five times multiple. 4:13 4 minutes, 13 seconds Now with the Indo-E trade agreement signed 4:20 4 minutes, 20 seconds and the issues of US tariff having been resolved, the above challenges have been overcome and we should expect much 4:28 4 minutes, 28 seconds better performance from the textile industry as we go forward especially in the next financial year. Our union 4:36 4 minutes, 36 seconds budget as explained earlier has been extremely positive from the perspective of our capital goods industry with 4:43 4 minutes, 43 seconds increasing spending on infrastructure, defense and increasing focus on domestic manufacturing. 4:51 4 minutes, 51 seconds Our GDP2 is growing at a 6 and a half% plus and the forecast to for this growth is will be to continue. 5:01 5 minutes, 1 second This augers extremely well for the capital goods industry in which our company is predominantly present. 5:10 5 minutes, 10 seconds A Canadian subsidiary too has been insulated from the US tariff issues on account of the US Mexican Canadian treaty. 5:19 5 minutes, 19 seconds Our new subsidiary Bio Conserve Renewable Envirotech Private Limited continues its focus on the zero liquid 5:28 5 minutes, 28 seconds discharge solutions especially for the textile industry. 5:32 5 minutes, 32 seconds This requirement for the textile industry will be a key requirement to fulfill the Indo-EU trade agreement for textiles. 5:41 5 minutes, 41 seconds Therefore, this this business too has very interesting prospects. 5:47 5 minutes, 47 seconds We plan also in future to also focus on the non-extile applications in other process industries 5:55 5 minutes, 55 seconds with our planned capital expenditure in our machine tool and foundry division as soon as having been completed. We expect 6:03 6 minutes, 3 seconds improved performance both in terms of revenue and profitability from Q4. In in 6:10 6 minutes, 10 seconds fact in Q3 some effect has already been felt. 6:15 6 minutes, 15 seconds In conclusion, going ahead in 2026 with the opportunities created as a 6:21 6 minutes, 21 seconds result of the union budget, Indo EU FDA and the Indo US trade agreement, we are optimistic for improvement and profitability. 6:31 6 minutes, 31 seconds I now hand over to Mr. Sanjiv Jooshi, managing director to share the operational and financial update for the quarter. Thank you. 6:43 6 minutes, 43 seconds Good afternoon everyone. and thank you for joining us today and showing continued trust in Bach. 6:50 6 minutes, 50 seconds I will now quickly walk you through the Bach's financial performance for the quarter ending December 25. 6:58 6 minutes, 58 seconds In the quarter, our revenue from operations increased from rupes 124 cr from 96 crores to 124 cr in quarter 3 7:07 7 minutes, 7 seconds F25 reflecting a 30% year-on-year growth in the core business that we operate. 7:13 7 minutes, 13 seconds Our data rose to rupees 8 rose from rupees 3 cr in Q3 FI25 while profit before tax before 7:21 7 minutes, 21 seconds exceptional charges which was primarily the effect of labor code registered a sharp turnaround rising nearly 54 to 7:28 7 minutes, 28 seconds rupees 5 cr. Our profit after tax also improved by about 3.5 times though it was affected by the provisioning as 7:37 7 minutes, 37 seconds stated above for the new labor code that we had to take into account. We would otherwise have delivered a profitability 7:44 7 minutes, 44 seconds as per our guidance. This robust performance was driven by improvement across all our business segments despite challenges faced in the textile sector. 7:55 7 minutes, 55 seconds As initated by our chairman earlier, our effort continue to drive strong order inflows. As a December as on December 8:03 8 minutes, 3 seconds 2025 we have order backlog stood at approximately 586 crores and we record an order inflow of about 222 crores. 8:13 8 minutes, 13 seconds Over the last three quarters, we have incurred a community capex of 27 crores in our factory and we plan to close FI20 8:20 8 minutes, 20 seconds with an additional capex of around 10 crores including a roof toll of top solar installation of approximately 1 8:27 8 minutes, 27 seconds megawatt or less which will more or less make us revenue neutral on the energy cost that we have in our factory in the 8:35 8 minutes, 35 seconds machine tool division recorded order into 63 crores in Q3 of FY26 with a total order backlog divisions now 8:44 8 minutes, 44 seconds reaching about 142 crores as of December 2025 accounting for almost 24% of the company's overall backlog order 8:53 8 minutes, 53 seconds position. We also successfully installed 112 machines of the machine to migration division during the same period. Our 9:01 9 minutes, 1 second subsidiary in Canada fit me recorded a return of 44 cr in Q3 FY26 with a profit of 6 crores while achieving a revenue of 9:10 9 minutes, 10 seconds 91 cr for for the month for for the 9 months ended 26 demonstrating 9:18 9 minutes, 18 seconds a solid performance and operational strength. 9:21 9 minutes, 21 seconds The area group reported a revenue of 10 crores in the quarter and for the 9 month ended 26 the revenues stood at 40 9:28 9 minutes, 28 seconds crores accompanied by order in 22 crores in the quarter. The textile machinery 9:34 9 minutes, 34 seconds group had an order in 48 crores. In Q3 and 9 month end 26 the order info 2 at 396 crores in spite of the challenges 9:44 9 minutes, 44 seconds faced by the textile industry as eliminated ahead. The environment ranging group reported order inflow of 9:51 9 minutes, 51 seconds 34 crores and revenue of about 29 cr in the quarter with LD order back of about 19 crores. This division 2 expects an improved performance for the full year. 10:03 10 minutes, 3 seconds I'm confident that BA will deliver improved and stronger performance going ahead in the coming quarters basing on the moment we have already established. 10:11 10 minutes, 11 seconds I once again like to betray and stick to the target of uh our target and are confident of an improved result in top line of FY26. 10:21 10 minutes, 21 seconds With our strategic initiatives, robust order book and focus extension, we are well positioned for sustained 10:28 10 minutes, 28 seconds growth. I now open the floor for question and answers please. 10:35 10 minutes, 35 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please 10:43 10 minutes, 43 seconds press star and one on your touchstone telephone. If you wish to remove yourself from the question queue, you 10:49 10 minutes, 49 seconds may press star and two. Participants are requested to use handsets while asking a question. 10:57 10 minutes, 57 seconds Ladies and gentlemen, we will wait for a moment while the question cue assembles. 11:13 11 minutes, 13 seconds The first question is from the line of Deep Sanche from Mana Finance. Please go ahead. 11:20 11 minutes, 20 seconds Hi. Am I audible? Yes sir, please go ahead. 11:24 11 minutes, 24 seconds Okay. Uh could you share some date on the company's land bank in Surat and any plan of monetization or development plans? 11:32 11 minutes, 32 seconds Well, you know, as we we had explained earlier, uh we have 4 acres of land which are for sale. Uh we are still 11:42 11 minutes, 42 seconds looking at the right uh customer to give us the right price. Uh we are not in a clearing hurry. We are awaiting the 11:51 11 minutes, 51 seconds right price to sell this land. We also have surplus land further surplus land for development which long-term we will 12:00 12 minutes develop ourselves. Uh this primarily would be interesting especially to the 12:06 12 minutes, 6 seconds IT and the BO sector. Unfortunately, Surat still has not developed as a 12:14 12 minutes, 14 seconds center for either it or BO whereas Barona or Hyderabad, Bangalore the way 12:21 12 minutes, 21 seconds it has developed, Surat has yet to develop but we are confident this will happen because there is enough talent 12:29 12 minutes, 29 seconds available in Surat in terms of availability of the kind of manpower that is required for this kind of 12:35 12 minutes, 35 seconds industry. So as this develops we will develop our land bank but this 12:42 12 minutes, 42 seconds development will be done by us so that we have a continuous stream of income for the future. 12:50 12 minutes, 50 seconds I hope that answers your question. 12:52 12 minutes, 52 seconds Yes. And uh can you also comment on the current debt levels especially because we were anticipating decline in debt post the merger. 13:02 13 minutes, 2 seconds Well, at the moment we only have a cash credit level of debt which is 13:10 13 minutes, 10 seconds interest bearing. Uh as far as uh the uh non-interest bearing debt is concerned 13:17 13 minutes, 17 seconds which is primarily the promoter's debt which will be repaired once we sell the 4 acres of land and the promoters have 13:25 13 minutes, 25 seconds been kind enough not to charge us interest on it. 13:29 13 minutes, 29 seconds So primarily if you look at our debt equity ratio it is negligible and going forward uh the kind of debt 13:39 13 minutes, 39 seconds that we would take on will be very marginal uh primarily primarily it will 13:46 13 minutes, 46 seconds be non-cash or non non-fund based limits primarily to grow our environmental 13:54 13 minutes, 54 seconds engineering business which relies more and more on non fund based limits. 14:02 14 minutes, 2 seconds So how much is the promoter's debt if you can just uh mention that? The promoter's debt is about 40 crores. 40 crores. 14:10 14 minutes, 10 seconds Okay. So going ahead and our cash credit is about 9 odd crores. Uh so and don't forget 14:19 14 minutes, 19 seconds that we still have about 15 crores available from our fund raise which which we have earmarked for acquisitions. 14:29 14 minutes, 29 seconds Right. So how are we building uh I mean going ahead as the tension of uh the 14:36 14 minutes, 36 seconds entire uh US trade has uh reduced it to so so to say. Uh how do you think that you know how is a company uh planning to 14:45 14 minutes, 45 seconds go ahead for FI27? What are your plans and how are you preparing uh your watches? 14:52 14 minutes, 52 seconds You see the the point is that as far as the Indo US treaty trade agreement is concerned, we still have to see the fine 14:59 14 minutes, 59 seconds print. Uh the fine print is not uh not has not come out as yet. What we what we 15:06 15 minutes, 6 seconds have been only told is that uh the duty on Indian goods into the US will be down to 18%. 15:14 15 minutes, 14 seconds And there are some products which which will come in from the US will be at zero duty. And then we have given some or 15:22 15 minutes, 22 seconds supposedly given some commitment on less reliance on Russian oil. Now let's see what the fine print is. But going 15:30 15 minutes, 30 seconds forward the textile industry is extremely bullish because at 18% duty we 15:39 15 minutes, 39 seconds would be amongst the lowest tariff for textiles into the US. Even 15:46 15 minutes, 46 seconds Bangladesh is at 19%. and Bangladesh have been granted 0% duty on certain 15:53 15 minutes, 53 seconds areas of textile provided only they buy either US yarn or US cotton 16:01 16 minutes, 1 second okay and US cotton prices are much higher than our domestic Indian cotton prices so I think going forward 16:10 16 minutes, 10 seconds anyone you talk to in the textile industry is extremely bullish and the same with the Indo EU treaty uh 16:19 16 minutes, 19 seconds and there it also augers very well for our bio our zero liquid discharge business because uh there is a 16:28 16 minutes, 28 seconds requirement in the EU for anything that enters to be green so energy 16:38 16 minutes, 38 seconds the energy cost has to be from non-renewable your water consumption level say for producing textiles has to be at a 16:47 16 minutes, 47 seconds minimum imum level etc. So I think it all goes well and then of course for our Canadian 16:55 16 minutes, 55 seconds company as long as the Indo as long as that treaty the the the 17:03 17 minutes, 3 seconds US Canadian Mexican treaty is there we have no issue of tariff at all for our Canadian equipment to be sold in the US. 17:12 17 minutes, 12 seconds In any case, the Canadian company is derisking uh d-risking itself by focusing more and more on the Middle East, especially Saudi Arabia. 17:24 17 minutes, 24 seconds Are we exporting anything to Bangladesh? 17:27 17 minutes, 27 seconds Yes, our textile air engineering business has a strong focus of exports in Bangladesh. 17:34 17 minutes, 34 seconds And uh while we have very good order inflow uh from Bangladesh, 17:42 17 minutes, 42 seconds the problem today is of getting the LC's from Bangladesh which hopefully will get resolved with the uh election that is taking place currently in Bangladesh. 17:55 17 minutes, 55 seconds So you we are hopeful to have a better margin as well as a better roe going forward in FI27 looking at most of these 18:03 18 minutes, 3 seconds problems getting resolved of FI26. Is that a fair ass? 18:08 18 minutes, 8 seconds Absolutely. This is a very fair assumption and also especially when the the results of a capital expenditure and 18:16 18 minutes, 16 seconds a sur plan kicks in fully from the uh from next financial year. 18:24 18 minutes, 24 seconds Right. Right. Great. Thank you so much. 18:29 18 minutes, 29 seconds Also solar will help us in reducing our energy cost to more or less negligible amount. 18:35 18 minutes, 35 seconds What is the solar capacity if you can just add it? 1 megawatt of solar roughly 1 megawatt of solar and we already have roughly 1 megawatt of wind. 18:46 18 minutes, 46 seconds So we are not putting any more capex on the solar or the wind right? 18:51 18 minutes, 51 seconds Oh solar we are putting in it it will come into effect I think the work is going on and we expect the plant to be commissioned by end of March. 19:01 19 minutes, 1 second So what is the payback period for that? 19:06 19 minutes, 6 seconds I think uh if we get if we get some subsidy on it as well which we expecting the payback will be very very good. 19:15 19 minutes, 15 seconds Generally it is around four years that's the reason I asked that. 19:19 19 minutes, 19 seconds Yeah it's about four years but it can improve also slightly with some uh benefits that we hope to get from uh the um from the government of Gujarat. 19:30 19 minutes, 30 seconds Okay. Can you quantify it if you can? uh I think when we get it we'll quantify it. Let me not let me not give some uh 19:39 19 minutes, 39 seconds some uh some figures that may not happen. But the fact is that we will be more or less um energy self-sufficient. 19:47 19 minutes, 47 seconds The energy cost will come down dramatically. Right. Great. All the very best. Thank you. 19:55 19 minutes, 55 seconds Thank you. Thank you. 19:57 19 minutes, 57 seconds Thank you sir. Ladies and gentlemen to ask a question please press star and one. Now 20:05 20 minutes, 5 seconds participants who wish to ask questions may please press star and one at this time. 20:11 20 minutes, 11 seconds The next question is from the line of Duf Maheshwari from Perpet Ventures LLP. Please go ahead. 20:20 20 minutes, 20 seconds Hello. Hi sir. Uh good afternoon. Congratulations on this set of results. 20:26 20 minutes, 26 seconds I had a couple of questions. Uh first uh are there any impeding or proposed equity delusions? 20:36 20 minutes, 36 seconds Coming ahead uh I I think I'll answer this question as the chairman as well as the promoter. 20:44 20 minutes, 44 seconds Uh but u you know there is no plan at the moment to uh to have any further dilution of 20:51 20 minutes, 51 seconds equity unless we get some very interesting acquisition proposals. 20:56 20 minutes, 56 seconds Yes sir. If we get some very interesting acquisition proposals which are uh aligned to our business and which will 21:05 21 minutes, 5 seconds add value to our company definitely we will look at it and the promoters u uh 21:12 21 minutes, 12 seconds today are holding roughly 73% equity in the company um and I'm sure I can 21:19 21 minutes, 19 seconds convince um the other member promoters that we could go and for some dilution if it makes sense. 21:28 21 minutes, 28 seconds Okay. So, but currently there are no acquisitions that you are planning. 21:33 21 minutes, 33 seconds Is that Well, we are looking at things but there is at the moment no concrete proposal as yet but it'll but we are very active on it. 21:43 21 minutes, 43 seconds So, uh I mean are you looking at things just to expand your product base also or would you look at different uh areas to 21:50 21 minutes, 50 seconds enter in also through inorganic? So we are looking at what what our business. Yeah. Which complements our business. 21:57 21 minutes, 57 seconds Which complement our business? That's the activity we are looking at. 22:01 22 minutes, 1 second Okay. Okay. And uh so I mean uh sir uh manufacturing has been a uh theme this 22:10 22 minutes, 10 seconds year right and it should continue for the next 3 to four years also with metals and everything uh spiking up and 22:18 22 minutes, 18 seconds investor sentiments finally changing after uh a decade long of down cycles. 22:25 22 minutes, 25 seconds uh what do you how do you think how is Bartley Boy as a company positioned to capture this uh sentiment change and the 22:33 22 minutes, 33 seconds future growth and the inflows of monies which will come in. 22:38 22 minutes, 38 seconds See basically it's like this as far as the machine tool manufacturing concerned the area to grow is vast because the kind of investment that we are not 22:46 22 minutes, 46 seconds putting into the factory we are wrapping our production and there's enough business in the market that we can look at capturing. So next three four years 22:54 22 minutes, 54 seconds would be a robust growth as far manufacturing is concerned. As far as the textile engineering management is concerned, we are looking at non-extile 23:03 23 minutes, 3 seconds business in a very big way. Our focus is on a non-fixel business as well to grow and hopefully this financial year we may 23:10 23 minutes, 10 seconds get a breakthrough order and if that happens next year we are going to have more focus on that business along with 23:17 23 minutes, 17 seconds as our chairman said with the EU treaty and Indo-U trade agreement goes through the way it looks like you know the 23:26 23 minutes, 26 seconds textile business will then continue to grow which we are not doing for last two three quarters. So both the divisions the textile as well as machine tool is 23:34 23 minutes, 34 seconds going to look at a very future good prospects. Coming to our machine tool trading division that also is going to look quite uh impressive because the 23:42 23 minutes, 42 seconds kind of investment that is going into defense and aerospace that's where our that division basically looks at machines that we represent lot of our 23:50 23 minutes, 50 seconds principles across the globe. uh lot of exciting inquiries that are coming in and we are already working on some of 23:58 23 minutes, 58 seconds the very potential inquiries which we hope we'll be considering in the next financial year. So overall I think bashin tools and textile is looking up quite big. 24:08 24 minutes, 8 seconds Okay. 24:09 24 minutes, 9 seconds And not reflect these plans though. I mean why are we taking a cautious stance right now if we know that we have uh 24:18 24 minutes, 18 seconds good plans ahead and good I guess it's the mental makeup of our company that we are cautious in what we project 24:26 24 minutes, 26 seconds okay uh but sir the projections uh I mean so when would you say that you would be comfortable to revise your guidance in the future? 24:36 24 minutes, 36 seconds I think once this effects of the Indo uh US trade agreement we see the fine print 24:44 24 minutes, 44 seconds and um and we see some positive side on the EU side uh we will revise our guidance. So hopefully we will revise 24:53 24 minutes, 53 seconds our guidance when we uh end the year for giving you a better uh idea of what is going to happen in the next financial 25:00 25 minutes year. So probably around Q3 of next uh so Q3 FI27 is something that we can expect a revision in guidance right? 25:10 25 minutes, 10 seconds No no we will we will revise our guidance once this year is over. 25:15 25 minutes, 15 seconds Okay. Okay. Understood. We'll be looking forward to that. 25:18 25 minutes, 18 seconds We look at the 26 27 financial year when we give you some idea towards the end of 25:25 25 minutes, 25 seconds our uh Q4 results. uh we will give you a better idea of how how robust we see the 25:33 25 minutes, 33 seconds business exactly because this is quite cautionary so I'll be looking forward for that and thank you so much for your time. Yeah, sure. Sure. Thank you. 25:44 25 minutes, 44 seconds Thank you, sir. A reminder to all the participants to ask a question, please press star and one. The next question is 25:53 25 minutes, 53 seconds from the line of NIK Mata from Sequent Investments. Please go ahead. 26:00 26 minutes Uh good afternoon sir and thank you for the opportunity. So my question is towards the margin profile. So we have multiple division the machine tool and 26:09 26 minutes, 9 seconds food division air engineering textile machinery environmental engineering. So uh if you would like to uh seek out or 26:18 26 minutes, 18 seconds you know rank between these divisions like what kind of margin profile does each of these division have that would be very helpful. 26:26 26 minutes, 26 seconds I think it's very difficult to to to give you because it all depends on the mix. It all depends on you know how the 26:36 26 minutes, 36 seconds uh you know how the where where the opportunities are. So it difficult to give you a a good idea in terms of what 26:45 26 minutes, 45 seconds would be the average margin because it keeps on shifting quarter to quarter 26:52 26 minutes, 52 seconds right if you could say that our margins are no different than industry margins. 27:00 27 minutes Okay. Okay. But sir uh if not quantifying the margins can you just you know rank in terms of orders like which 27:08 27 minutes, 8 seconds division would be most margin accrative to us. 27:12 27 minutes, 12 seconds you know that for example uh I I think I think still it would be difficult for us to answer this question 27:20 27 minutes, 20 seconds because there are some businesses where your working capital requirements are also lower where margin may be low but 27:28 27 minutes, 28 seconds at the same time the working capital requirements are low. There are businesses where margin is high but working capital requirements are higher. 27:37 27 minutes, 37 seconds So it's it's difficult. Maybe one day if you're really very keen on probing this further maybe you have a sitting with our CFO one day. 27:49 27 minutes, 49 seconds Sure sir. Sure. Thank you. Uh so my second question would be so uh you know uh adding on to previous participants 27:58 27 minutes, 58 seconds concerns the given our guidance because we started with the the year with like 10 12% of revenue growth guidance. Now 28:06 28 minutes, 6 seconds we have come down to 7 8%. And seeing such a robust order book and such a robust order inflow like I think our top 28:13 28 minutes, 13 seconds line is around 400 to 500 crores and our order book is uh we are planning to end 28:20 28 minutes, 20 seconds about 1,000 crores right so given that the should the uh revenue trajectory or the growth trajectory should be much 28:27 28 minutes, 27 seconds more aggressive for us in the coming years in FI 27 or 28. 28:34 28 minutes, 34 seconds As I mentioned FY27 will be a new ball game altogether. Why we have given a 7 28:40 28 minutes, 40 seconds to 9% guidance or 7 to 8 9% guidance for the current year is primarily because of the challenges of the textile industry. 28:49 28 minutes, 49 seconds Mandi said the challenges and the opportunities for because of these new treaties and agreements. uh definitely 28:57 28 minutes, 57 seconds the guidance for the textile industry uh with for next financial year will be totally different. So we should expect 29:05 29 minutes, 5 seconds that our guidance for FY27 will be better than what we are projected currently for 26. 29:16 29 minutes, 16 seconds Okay. Sure sir. And so lastly, these orders that we are talking about, these 800 to 1,000 crores of orders, are these confirmed orders or are these LOAs of 29:25 29 minutes, 25 seconds some kind? If you could shed some on a conservative basis, we take orders 29:32 29 minutes, 32 seconds only when they are confirmed and especially where uh and if you look at our business, most orders are with 29:40 29 minutes, 40 seconds advances or with uh or LC's have been opened. So we only take that into account once we have either a confirmed 29:48 29 minutes, 48 seconds LC or we have some kind of an advance. We don't recognize LOIs. 29:58 29 minutes, 58 seconds Perfect. Perfect. Thank you. Thank you. I'll get back in the queue. 30:03 30 minutes, 3 seconds Thank you sir. Ladies and gentlemen, to ask a question, please press star and one. Now 30:11 30 minutes, 11 seconds participants who wish to ask questions may please press star and one at this time. The next question is from the line 30:19 30 minutes, 19 seconds of Prashant Kumar Utam Lal an individual investor. Please go ahead. 30:27 30 minutes, 27 seconds Hello. Good afternoon sir. Okay. Hello. Yeah. Good afternoon. 30:33 30 minutes, 33 seconds So my question is related to the margins right? uh last since I have seen like like last since uh 10 years we have not moved above 6% of 5% of kind of margin. 30:45 30 minutes, 45 seconds So how do we see margins going ahead like uh whatever steps we are going to take to improve and what are the steps we are going to take to improve our margins. 30:57 30 minutes, 57 seconds I think margin is also a a function of the volume. So as volumes go 31:06 31 minutes, 6 seconds up the margins will improve right. But what kind of margins we are targeting? At the moment 31:14 31 minutes, 14 seconds at the moment at the moment our margins have been impacted by the slowdown in the textile industry. 31:21 31 minutes, 21 seconds So we expect that with this uh with the change the margins will improve. 31:28 31 minutes, 28 seconds So right but current currently we are doing 4 450 kind of like turnover right and uh we are we are doing 5% of margin 31:37 31 minutes, 37 seconds right so maybe maybe we'll get some like one or two% kind of leverage on on operating margin uh it's it or improve 31:45 31 minutes, 45 seconds improvement in our turnover right but how what what what else we are doing to improve our margin to to take it to double digit is there any chance to get 31:54 31 minutes, 54 seconds to the double digit margin uh with in something and how long it will take. 32:03 32 minutes, 3 seconds Double digit margins will only happen if all our businesses operate at double digit. But that's not so there are 32:11 32 minutes, 11 seconds certain businesses which operate at lower margins because of competitive pressures. 32:18 32 minutes, 18 seconds So I would say that don't expect don't expect dramatic change in margins. 32:23 32 minutes, 23 seconds There'll be marginal improvement in margin but it will not be dramatic. 32:28 32 minutes, 28 seconds the what change will take place right? So we are talking about hydrogen 32:36 32 minutes, 36 seconds uh equipment and all this environment uh uh environment related uh plants and all this but or this this kind of I I can 32:45 32 minutes, 45 seconds understand the textile industriile industry will have lower margins but other other of our our segments are are 32:53 32 minutes, 53 seconds having good margins in in the in the market right so how come it is like 5% or 6% and you are not even confident to 33:02 33 minutes, 2 seconds uh uh get two or 3% margin improvement like kind of thing and we all 33:11 33 minutes, 11 seconds possible improvement margins I said I said don't expect dramatic increase in margins and don't forget that whichever 33:19 33 minutes, 19 seconds business we are in we don't run monopolies we are in a very competitive uh business the capital goods industry 33:27 33 minutes, 27 seconds in general is highly competitive right but I'm talking I'm I'm just talking about capital goods 33:36 33 minutes, 36 seconds industry only right so they are also even they are lower double digit margin but they are in double dual digit margins uh so that is what I have found 33:45 33 minutes, 45 seconds like and we are struggling to do 5% 6% kind of margin that is what my concern and yeah I'm not talking about dramatic 33:53 33 minutes, 53 seconds change like within one quart or two part I'm talking about two years like after two years how do we see our margins if everything goes well 34:02 34 minutes, 2 seconds it should improve should improve substantially because uh the more we manufacture in house our margins 34:09 34 minutes, 9 seconds automatically improve. So with the capital expenditure that we expect which we have done the margins will definitely 34:16 34 minutes, 16 seconds improve right. So and how how do we how do we uh 34:23 34 minutes, 23 seconds hedge our our metal seat requirement like uh because most of the that is material we need raw material it's a 34:32 34 minutes, 32 seconds metal seat right so how do we h it you know basically raw material prices 34:39 34 minutes, 39 seconds in general are pretty stable we are not into using aluminium 34:46 34 minutes, 46 seconds or copper or uh other metals which have great volatility. 34:53 34 minutes, 53 seconds All right. 34:55 34 minutes, 55 seconds All right. So, uh can you expect like next year margin our operating margin will be around 7.5 kind of thing? 35:03 35 minutes, 3 seconds I think we'll we'll give you some guidance once Q4 is over and once we see the full impact of the uh these Indo-EU or the Indo US trade agreements. 35:17 35 minutes, 17 seconds Right. But uh my concern is like we we already have a have a order book for next year kind of thing. We have more 35:24 35 minutes, 24 seconds than 500 pairs of order books. Right. So it it it it will go grow 10% from here 35:31 35 minutes, 31 seconds from FI26 turnover. Still we we can cover 75% of our uh our our turnover for 35:37 35 minutes, 37 seconds next year. So with this order book are you confident or not? That is what I'm I'm my question because we have good 35:44 35 minutes, 44 seconds order but on the margin when when it comes I think margin that we we expect margins to improve next year. 35:58 35 minutes, 58 seconds We give you we'll give you towards the end of this financial year. 36:04 36 minutes, 4 seconds All right. All right. No problem. Thank you. All the best. Thank you. 36:08 36 minutes, 8 seconds Thank you sir. Ladies and gentlemen to ask a question please press star and one. Now 36:16 36 minutes, 16 seconds participants who wish to ask questions may please press star and one at this time. 36:23 36 minutes, 23 seconds The next question is from the line of shwa tibari an individual investor. Please go ahead. 36:30 36 minutes, 30 seconds Hi uh thanks for the opportunity. Uh my question is that uh uh first we see in the recent presentation that there has 36:38 36 minutes, 38 seconds been uh something about barley boy foring into zero liquid discharge right so um can you please elaborate and give 36:45 36 minutes, 45 seconds more details on the same and what what exactly are we doing there and what are the plans see basically there's a new subsidy that 36:54 36 minutes, 54 seconds we have now opened up or into the zero liquid discharge primarily you know as earlier said this is a business that is 37:03 37 minutes, 3 seconds complimenting our textile engineing business because nowadays it is becoming more and more important to see that 37:09 37 minutes, 9 seconds environmental free uh industry is the need of the art. So all the text industries are consuming water very 37:16 37 minutes, 16 seconds heavily and they required to be treated before any consent to operate is given and it's also almost 90 to and because 37:24 37 minutes, 24 seconds water is going to be scarce recycling of the water is going to be a very important factor. So this technology that we have in this subsidiary uh will 37:33 37 minutes, 33 seconds uh cater to both the needs of the industry. One is that you recycle the water and we clean the water. So in 37:40 37 minutes, 40 seconds short is basically uh in the requirement of industry and today I understand the government is insisting that unless 37:48 37 minutes, 48 seconds until you have a zero liquid discharge the consent to operate is not given to any textile big large industry. So this 37:55 37 minutes, 55 seconds becomes a necessity for any new textile business that is coming up and for the existing textile business who are not having this system it is necessary that 38:04 38 minutes, 4 seconds this is done. So we are looking at a large opportunity to start with with our base contacts in textile. We are contacting our main customers and we are 38:14 38 minutes, 14 seconds getting a good response and we believe going forward that this subsidiary can add more value to our business in the next couple of years. 38:25 38 minutes, 25 seconds Got it. Thank you, sir. Thank you, ma'am. 38:31 38 minutes, 31 seconds As there are no further questions from the participants, I now hand the conference over to management for closing comments. 38:40 38 minutes, 40 seconds Well, ladies and gentlemen, thank you for uh spending your time with us and um all of you have asked very pertinent 38:49 38 minutes, 49 seconds questions and hope that we've satisfied by giving you reasonably 38:57 38 minutes, 57 seconds satisfactory uh response and we look forward to meeting all of you once again 39:04 39 minutes, 4 seconds uh at the end of Q4 uh when we give you some idea uh give you a uh some 39:10 39 minutes, 10 seconds performance evaluation of Q4 as well as some guidance for next year. Thank you very much and good afternoon. Thank you so much. 39:19 39 minutes, 19 seconds Thank you. 39:20 39 minutes, 20 seconds Thank you. Thank you sir. On behalf of Go India Advisor LLP that concludes this conference call. Thank you for joining 39:28 39 minutes, 28 seconds us and you may now disconnect your lines. Thank you.