EPack Prefab Technologies Limited — Q2 FY26

EPack Prefab Technologies Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=FmQ09S1krTg Published: 6 months ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the 1Q FI26 and H1 FI26 earnings conference call of EPAC Pag 0:11 11 seconds Technologies Limited hosted by Motira Lowal. As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to 0:19 19 seconds ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:29 29 seconds Please note that this conference is being recorded. I now hand the conference over to Mr. Yash Darak from Motila Los. Thank you and over to you sir. 0:40 40 seconds Thank you. Good evening everyone and a very warm welcome to EPAC Prefab Technology Limited's 1Q FI26 in H1 FI26 0:48 48 seconds earnings call hosted by Motsw. EPAC prefab was listed on 1st of October 2025. In H1 FY26, the company reported a 0:57 57 seconds revenue growth of 36% and an AITA growth of 46% yearon-year. Additionally, its prefab business delivered a robust 46% 1:06 1 minute, 6 seconds KGA over FI22 to FI25 while sustaining healthy ROE and ROC levels. On the call today, we have management team being 1:14 1 minute, 14 seconds represented by Mr. Sundai Singha, MDN CEO, Mr. Nikil Bodhra, executive director and Mr. Rahul Aarwal, CFO. We 1:22 1 minute, 22 seconds will begin the call with key thoughts from the management team. Thereafter, we will open the floor for Q&A session. I would now like to request the management 1:30 1 minute, 30 seconds to share their perspective on the performance of the company. Thank you and over to you sir. 1:36 1 minute, 36 seconds Yeah, good evening and uh welcome to the first investor call of EA Pread Technologies Limited after our listing 1:44 1 minute, 44 seconds uh on 1st of October. So uh we are very happy uh to present our uh first half uh 1:53 1 minute, 53 seconds of the year uh figures and you know like it is it is a matter of great pride for us that we have been able to live up to 2:00 2 minutes the expectation and the commitment made by us uh to the market and to the investors during the road shows. So as 2:08 2 minutes, 8 seconds as said you know like by us that we have had a strong revenue growth and AITA and pet growth as well. So this is a 2:17 2 minutes, 17 seconds testimony uh to the to the various steps that we have taken in the recent past and also the philosophy of the of the 2:25 2 minutes, 25 seconds company uh to invest in uh great infrastructure to invest in team and digitalization of our processes. So all 2:33 2 minutes, 33 seconds this uh coupled with the strong order book which we had. So in EPAC ref as on 1st of April 25 we had an order book of 2:42 2 minutes, 42 seconds 916 crores and for us uh the order book to revenue ratio is around 1.5. So 2:50 2 minutes, 50 seconds typically uh the order book for us is around 7 to 8 months and because of the strong order book uh you know like we 2:58 2 minutes, 58 seconds worked on uh increasing the monthly uh revenue run rate and you know like uh the the all the three plants which we 3:07 3 minutes, 7 seconds have for the prefab they started delivering a capacity utilization of close to 88 to 90% from uh from the 3:15 3 minutes, 15 seconds month of June onwards. So because of all this you know like capacity first of all capacity utilization secondly order book 3:22 3 minutes, 22 seconds and thirdly and the focus the the focus of the management on the uh streamlining the processes and the execution at the project level led to this growth for us. 3:35 3 minutes, 35 seconds Uh as we as we speak you know like uh the company has an order book of around 920 crores. So in our business the order 3:43 3 minutes, 43 seconds book uh this clear visibility of uh of the revenue for the next 7 to 8 months. 3:50 3 minutes, 50 seconds So this form order book now is mainly coming in from uh some of the market customers. So you know like in the last 3:57 3 minutes, 57 seconds 6 months uh we have we have uh booked orders of around 650 crores coming from 4:04 4 minutes, 4 seconds various sectors. the main main sectors uh has been uh the solar the renewable sector uh the semiconductor 4:14 4 minutes, 14 seconds uh FMCG warehousing and auto. So all these factors have contributed to around 650 crores of auto booking in this uh 4:22 4 minutes, 22 seconds first uh first half of the year and typically in our business when it comes to uh order booking then the quarter 4:30 4 minutes, 30 seconds three and quarter four are the heavy quarters and similarly when it comes to revenue then for us the first half is 4:38 4 minutes, 38 seconds around 45% of the annual revenue and the second half contributes about 55%. 4:43 4 minutes, 43 seconds Examin that in the uh quarter three and quarter four the weather conditions are much better. So the delivery and the 4:51 4 minutes, 51 seconds execution at the site can be done easier and this robust performance which has come you know like it has been backed by 5:00 5 minutes first of all order book then the utilization of the capacity and thirdly uh I'm very happy to say that uh we 5:07 5 minutes, 7 seconds inaugurated our insulated sandwich panel line uh in our physics card in the month of June. So with that part also now we 5:16 5 minutes, 16 seconds have started to uh get orders and also uh UTS capacity. So that was also added 5:23 5 minutes, 23 seconds to the revenue and going forward with the IPO proceeds money which we have got 5:30 5 minutes, 30 seconds uh 160 crores uh for the chat. So again very happy to inform you that uh the 58 5:38 5 minutes, 38 seconds crores which we are putting for the brownfield expansion uh of structural silk fabrication in Mumbai 2. So the work for the expansion has already 5:47 5 minutes, 47 seconds commenced in the last 15 days and uh we are very hopeful to start the commercial production uh from this downfield 5:55 5 minutes, 55 seconds expansion in the fourth quarter of this financial year and also very happy to inform you that the green field expansion uh which we are doing for 6:04 6 minutes, 4 seconds setting up a insulator panel line in Gil Rajasthan. So the work there has also started. Uh we already started the 6:12 6 minutes, 12 seconds construction of the building there and are in the process of ordering the equipments and the target is to start 6:19 6 minutes, 19 seconds the commercial production in that plant as well uh from second quarter of national year. So uh the momentum in our 6:28 6 minutes, 28 seconds industry continues uh to be positive uh and we continue to beat the industry uh 6:35 6 minutes, 35 seconds uh growth. We will continue to focus on the execution and I believe with the kind of delivery 6:41 6 minutes, 41 seconds which we are doing uh very very you know like in the next couple of quarters on three four quarters we are further going 6:49 6 minutes, 49 seconds to consolidate our position as a leader in the prelab industry. So that is a very brief synopsis of what all has 6:56 6 minutes, 56 seconds happened in the last 6 months and uh some visibility on what we can do in the next six months. 7:02 7 minutes, 2 seconds So I'm open to the questions uh from the Thank you very much. We will now begin 7:13 7 minutes, 13 seconds the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove 7:22 7 minutes, 22 seconds yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will 7:30 7 minutes, 30 seconds wait for a moment while the question queue assembles 8:03 8 minutes, 3 seconds Our first question comes from the line of Mr. Bal Subramanyan from Aryant Capital. 8:16 8 minutes, 16 seconds Please go ahead. 8:18 8 minutes, 18 seconds Good evening sir. Congratulations for a good set of numbers. Sir, I think we have grown nearly 46% CGR over FI225 8:28 8 minutes, 28 seconds in that retra business. it's highly outperformed compared to the industries. 8:34 8 minutes, 34 seconds This growth is majorly uh because of uh price aggression or superior technologies or better executions and if 8:42 8 minutes, 42 seconds we could uh uh throw some light on our current implied market share and what kind of uh target uh uh we are having over next 3 to five years. 8:52 8 minutes, 52 seconds My first question. 8:56 8 minutes, 56 seconds Yeah, thank you so much. Uh and thank you for the session. Uh as you rightly see like this growth of 46% over the last four years. 9:11 9 minutes, 11 seconds This revenue growth of CAGR of 46% over the last four years can be attributed to various factors. So first and foremost 9:19 9 minutes, 19 seconds is the team which we have created. So we have you know created a very strong team in design and operations and execution 9:26 9 minutes, 26 seconds in our business execution at the site level which we call as a project management skills are very very important. So I think uh what has 9:34 9 minutes, 34 seconds differentiated us with our peer group is our focus on execution. I think uh you know like our project execution team is 9:43 9 minutes, 43 seconds one of the largest team and we have focused uh on uh deliveries and execution. uh we have disrupted the 9:50 9 minutes, 50 seconds entire 35 industry by the speed of construction and by the speed of delivery. So that has led to the uh trust of the customers on us because one 9:59 9 minutes, 59 seconds of the major problems in our industry was while a lot of companies can code to code design and manufacture but they were struggling with execution at the 10:08 10 minutes, 8 seconds site level. So we have solved this problem and that has you know like benefited the customers and that is why they are giving us repeat orders. 10:18 10 minutes, 18 seconds Okay sir, our like effect turn an hour for existing facilities nearly 4.5 times uh or above that I think we are doing 10:26 10 minutes, 26 seconds 150 crax uh in kilo and top and uh uh what kind of asset turnover we we can expect in those uh upcoming capacities. 10:38 10 minutes, 38 seconds Yes. uh so our assistant right now is around 4.5 to 4.7 and uh in our business in the structural steel segment uh we 10:47 10 minutes, 47 seconds can do about 6.5 to 7 times of uh asset turn. So this you know 58 crores which is going into the brownfield where we 10:55 10 minutes, 55 seconds can expect a revenue of 300 plus crores uh coming in from that function and the second you know function is towards the 11:03 11 minutes, 3 seconds green field project of setting up of insulated sandwich panels. So there the capex is about 102 crores and in 11:11 11 minutes, 11 seconds insulator sandwich panels we can do asset term of 2.5. So maximum 250 cr of 11:18 11 minutes, 18 seconds revenue can come from there as well but 11:26 11 minutes, 26 seconds yes sir please but you know as you see the capacities existing capacities are good enough for 11:33 11 minutes, 33 seconds us to meet the requirement of this financial year. 11:39 11 minutes, 39 seconds Okay sir. s right now our capacity I think we are running in nearly 90% kind of utilizations 11:45 11 minutes, 45 seconds and uh uh uh our revenue will I think this uh mumb will start from Q4 FI26 and 11:53 11 minutes, 53 seconds uh Gilot uh this will start from next year Q2 and uh so what is the comparative uh like ROIC and payback 12:02 12 minutes, 2 seconds period for this green field and brownfield expansion 12:08 12 minutes, 8 seconds typically Our ro has been 12:15 12 minutes, 15 seconds typically our ro and ro is around 23 to 25% it has always been there. So going 12:23 12 minutes, 23 seconds forward also we'll maintain the similar kind of roe and roce and as far as you know like uh service is concerned yes uh 12:30 12 minutes, 30 seconds when when when we sell the sandwich as a product the the payback is around three and a half years uh uh or four four and 12:40 12 minutes, 40 seconds a half years typically uh but you know like uh at this moment we're also planning to develop certain uh solutions 12:47 12 minutes, 47 seconds around the sun panels especially in the clean room and cold room segment so that will affect the are we that will 12:54 12 minutes, 54 seconds actually improve the are of this panel line investments. 13:00 13 minutes Okay sir. So my last question we are expanding into uh like markets like uh Bhutan, Oman and Bangladesh and uh I 13:09 13 minutes, 9 seconds just want to understand uh what's the competitive landscape in these regions and what kind of uh uh specific value 13:17 13 minutes, 17 seconds positions uh uh we have compared to our competitors and what kind of what percentage of revenue we are targeting uh from the international side. 13:29 13 minutes, 29 seconds maybe in three next three to five years time frame I think your question at various parts so I will try to answer whatever I 13:37 13 minutes, 37 seconds remember so first of all you talked about international so at this moment our export sales are minus they're in 13:46 13 minutes, 46 seconds the range of one and a half% 2% of the revenue but with this Mumbatu facility inherit uh there's definitely a geographical 13:54 13 minutes, 54 seconds advantage because the port is only 50 km from away from us So we we are evaluating the possibility of exports to 14:01 14 minutes, 1 second Middle East and Africa at this time but nothing concrete to talk about and uh then you spoke about I think uh the next 14:09 14 minutes, 9 seconds three to five years of visibility. So uh you know like the good part about prefab business is that at this time prefab is 14:17 14 minutes, 17 seconds only about 3 to 5% of the overall construction market building construction market. So it it means that you know like there's a tremendous 14:25 14 minutes, 25 seconds potential there's a tremendous potential for growth in this prefer segment and we have only touched the tip of the 14:33 14 minutes, 33 seconds iceberg. So with that you know like although we are in a traffic cycle right now although there are a lot of new factories coming up but we believe that 14:42 14 minutes, 42 seconds you know even if this cycle slows down a little bit maybe you know in future still there will be enough headroom for 14:49 14 minutes, 49 seconds us for us for us to grow uh because of the technological replacement uh from the conventional construction to the pre construction. 14:58 14 minutes, 58 seconds So we feel that you know while the industry will grow at 10 to 12% as per the official report but uh as has been our track record we have always written 15:06 15 minutes, 6 seconds the industry growth and we'll continue to do them do that as well in the future. 15:13 15 minutes, 13 seconds Thank you sir. Thank you so much for the detailed explanation all the all the 15:21 15 minutes, 21 seconds Thank you. Our next question is uh from the line of Abishek from AB Capital. Please go ahead. 15:28 15 minutes, 28 seconds Hello. Am I audible? Yes. 15:32 15 minutes, 32 seconds Yes, I am audible. First of all, congratulations on great set of numbers. 15:37 15 minutes, 37 seconds Uh I just wanted to know key um this quarter the our uh results were exceptional. Um so just wanted to know 15:44 15 minutes, 44 seconds how much revenue growth run rate are we targeting going forward uh over the next one two years. 15:54 15 minutes, 54 seconds uh for us we know like this uh half as first half is typically about 45% to 47% 16:00 16 minutes of the revenue so uh and the second half will definitely be better than the first half that is all about what all I can say to you right now and as far as you 16:09 16 minutes, 9 seconds know like next two one or two years is concerned we are putting up new facilities we are expanding our existing facilities and also debotating some of 16:18 16 minutes, 18 seconds the processes so with all these initiatives you know uh we are very confident to continue growing and you know like getting the industry growth. 16:31 16 minutes, 31 seconds Okay. Okay. And um just wanted to understand um from a customer's point of view how beneficial is uh pre-engineered 16:40 16 minutes, 40 seconds buildings in comparison to traditional construction constructed buildings. 16:47 16 minutes, 47 seconds Yeah. So that's a great question. First of all, see there are three problems which a pre-engineered building or a pre-fab construction solves with is the 16:56 16 minutes, 56 seconds regular RC construction. So the first one is related to the cost. In terms of cost, pre-engineered buildings are about 17:04 17 minutes, 4 seconds 15 to 20% cheaper than a conventional RC construction. Secondly is the time. So 17:11 17 minutes, 11 seconds the time taken for a prefab is just half of the RCC construction. And third is the uh flexibility in terms of 17:19 17 minutes, 19 seconds modifications. So you know like while RCC is structured so the dismantling or you know further addition becomes very 17:26 17 minutes, 26 seconds difficult but in case of prefab that is very easy and can be done over a few days or few weeks. So all this makes the 17:34 17 minutes, 34 seconds prefab construction the linear construction and you know like uh a much much faster construction where the investment or the ROI can be recovered some at a much faster pace. 17:47 17 minutes, 47 seconds Okay. Okay. Uh and is there any scope for uh margin expansion going forward? 17:56 17 minutes, 56 seconds Yeah. For the margin expansion, we'll continue to maintain a 10.5 to 11.5. 18:02 18 minutes, 2 seconds Reason being that our strategy in the last 3 years and for the next two years as well is going to be market 18:09 18 minutes, 9 seconds penetration strategy. our market share uh is around five five and a half% right now which we want to take it to say 10% 18:18 18 minutes, 18 seconds kind of a level minimum. So unless until we do that you know like we'll continue to focus on the uh on on on deepening 18:26 18 minutes, 26 seconds our market mration on uh we already are present across all the four regions in the country across all the states in the 18:34 18 minutes, 34 seconds country. So uh now you know like the strategy is to focus on the little bigger size project big ticket size 18:40 18 minutes, 40 seconds projects and make our qualification for the last size project as well. So with this strategy we are working right now. 18:50 18 minutes, 50 seconds Okay. 10.5 is a bit margin margin. Yes. 10.5 to 11.5. 18:58 18 minutes, 58 seconds Okay. uh and uh my last question is uh how much of the total revenue may it is government revenue and private revenue 19:06 19 minutes, 6 seconds government order and private order yeah again a great question there but uh for us you know like most of the revenue I 19:12 19 minutes, 12 seconds would say about 95 to 98% of the revenue is coming from the private sector uh for the government we do only very little 19:20 19 minutes, 20 seconds business directly although in the past we have done five airports under the original connectivity scheme but right now we are just focusing focusing on the 19:29 19 minutes, 29 seconds private sector business and the uh government you know business is coming to us but it is coming indirectly through maybe some EPC contractors like 19:38 19 minutes, 38 seconds say LNT or NPP but that is very small for us right now and uh how many days it takes payment to 19:47 19 minutes, 47 seconds come generally like uh is there any delay payment or any problem s uh since we are dealing mostly with the 19:55 19 minutes, 55 seconds travel sector so payment delays you know are not substantial for uh in our business typically what we do is we protect ourselves uh in payments. 20:04 20 minutes, 4 seconds Uh we take payments at various stages. 20:08 20 minutes, 8 seconds So typically for us in the paper sector would uh ask for at least 10 to 20% of advance and then about 10% on G approval 20:18 20 minutes, 18 seconds and then about 60 to 65% on or on or before supply and only 5 to 10% is left for execution and finally handing over. 20:28 20 minutes, 28 seconds So in any project you know like the cash flows are very well protected and in one worst of the situation you know like we 20:35 20 minutes, 35 seconds uh for any given project the maximum exposure we'll have is 5 to 10% of the project value 20:43 20 minutes, 43 seconds thank you sir thank you thank you our next question is from the 20:52 20 minutes, 52 seconds line of sham d from MB investment please go ahead yes hi Am I audible again? 21:01 21 minutes, 1 second Yes. 21:02 21 minutes, 2 seconds Yeah. Uh first of all, congrats on the very strong set this quarter. Uh I just wanted to understand given that your 21:09 21 minutes, 9 seconds plant utilization is at 88%. Uh how do we expect growth to pan out for the next two quarters? I understand that you have new capex coming up in H1 of next year. 21:20 21 minutes, 20 seconds But um how would your growth be for Q3 and Q4? 21:25 21 minutes, 25 seconds Yeah, for the Q3 know like uh we are uh we lacking our certain processes as I said earlier. So that that has been a 21:34 21 minutes, 34 seconds process which has been done in the last two quarters and due to that you know like we have been able to utilize our capacities by 88%. And further you know 21:44 21 minutes, 44 seconds like some bottlenecking activities already going on. So that will be one of the areas uh through which you know the third quarter revenue will either be 21:52 21 minutes, 52 seconds similar kind of revenue little more than this for the fourth quarter as I said you know this Matu expansion brown expansion will be coming in so that 22:01 22 minutes, 1 second would add another 28,000 to 32,000 tons of capac capacity for us capacity okay 22:10 22 minutes, 10 seconds panel yeah and the sandwich panel capacity which we have put up four months back so Now know like we have started to get 22:17 22 minutes, 17 seconds regular orders there. So that is again one capacity which will give more like regular code to maybe 100 course for us in the next uh 5 to 6 months. 22:58 22 minutes, 58 seconds Hello. Uh, Shir, does that answer your question? I think the management is not auditing. 23:08 23 minutes, 8 seconds Uh, no, the management team is on the call. The management team is on the call. 23:13 23 minutes, 13 seconds Okay. Okay. Okay. I'll just go through the recording. Uh, and just uh one more question. Um I think in your PPT you 23:21 23 minutes, 21 seconds have showed a 150 hour project that you had executed uh in Andhra Pradesh. Um so how does this work in the sense that uh 23:30 23 minutes, 30 seconds is this your average time that you take for every order or was this was a was this like a one-off order? 23:37 23 minutes, 37 seconds uh and uh so your employee count higher in in orders where your project uh the time taken to complete is like let's say 150 hours. 23:49 23 minutes, 49 seconds Yes. Uh this was one of this was sorry N you want to take this? Maybe I can take it. 23:56 23 minutes, 56 seconds Yeah. So this was one of uh know like project for us. The idea was to demonstrate the capability of a pre-engineered building and also that of 24:05 24 minutes, 5 seconds EAC. So this was 1.5 lakh square building done in 6 and a half days and you are correct that you know like 24:13 24 minutes, 13 seconds number of headcount is little more. So it it is around 20 to 25% more than the average headcount which we have in any 24:20 24 minutes, 20 seconds given site of the same size and uh post that also you know like although the speed has not been the same at other sites but yes there has been uh at least 24:29 24 minutes, 29 seconds four to five projects where we have you know created again kind of uh records in at least in India by the speed which we have demonstrated in execution of the 24:38 24 minutes, 38 seconds building those buildings were you know like of a much larger size as compared to this one. So you know like we as I 24:45 24 minutes, 45 seconds said earlier we have been you know like uh we have disrupted the entire PB industry with the feed execution speed 24:51 24 minutes, 51 seconds and that is our strength. Anyway great great sir that's that that was my last question. Thank you. 25:02 25 minutes, 2 seconds Thank you. Our next question is from the line of Mayor Patel from 361 Asset Management Company. Please go ahead. 25:10 25 minutes, 10 seconds Hi uh congratulations for excellent set of numbers. Uh so just uh one question 25:17 25 minutes, 17 seconds on the pipeline if you can give some color because the order book is pretty healthy. There's no doubt about it and the execution is also very robust. uh if 25:26 25 minutes, 26 seconds you can just help us how are you seeing the pipeline of new orders and some color on the you have one interesting 25:33 25 minutes, 33 seconds slide talking about sunrise sectors like data centers logistics and uh things like that so are you already seeing some 25:42 25 minutes, 42 seconds inquiries happening in uh data centers and these other sectors yeah n will take up this question so n 25:51 25 minutes, 51 seconds please go ahead yes thank you for this for uh you know congratulations to us and uh I'll you 25:59 25 minutes, 59 seconds know answer it in two parts. So one is the current uh pipeline that we have. 26:04 26 minutes, 4 seconds It's a very robust pipeline that we have currently like Sanji mentioned earlier the you know the new age industries like 26:12 26 minutes, 12 seconds renewable sector or the data centers that is you know uh adding a lot of value to our pipeline because uh know 26:20 26 minutes, 20 seconds the the benefit of these projects are that these has engineered building as well as sandwich panels both as a part of the complete solution package. So 26:28 26 minutes, 28 seconds know there we are getting an upper edge since we have both uh the products inhouse manufacturing we are one of the only players in the country who has you 26:36 26 minutes, 36 seconds know the scale of uh preent building as well as the sandwich panel under one roof. Uh apart from that you know we are 26:44 26 minutes, 44 seconds also seeing a lot of inquiries uh from you know various sectors for site infrastructure uh from bigger giants in the country who 26:53 26 minutes, 53 seconds are you know coming up with huge expansions uh being the tape tech cycle on the high side. So the pipeline is very very robust and uh as you mentioned 27:01 27 minutes, 1 second you know the order booking in H2 is uh much better than the H1. So looking at the pipeline and looking at you know uh 27:09 27 minutes, 9 seconds the current uh uh the you know flow that we have I think the tailwinds are very strong and we'll see a much uh better 27:17 27 minutes, 17 seconds order booking in the coming H2. So that is uh you know one part regarding the order booking flow and second is 27:25 27 minutes, 25 seconds regarding the new age industry you know uh like pre-inate building is widely accepted in the west if you see you know 27:32 27 minutes, 32 seconds multi-story buildings uh and you know residential buildings commercial buildings institutional buildings in the 27:39 27 minutes, 39 seconds west in America US India still you know industrial and warehousing has more or less shifted to Cleveland building but 27:46 27 minutes, 46 seconds there's a huge huge uh scope for multifamily buildings and new you know product products and you know projects 27:54 27 minutes, 54 seconds that are coming in. So I think we see a huge upside of conversion from RTC building to pre building in the coming 28:01 28 minutes, 1 second years and that will add a lot of uh you know uh I mean overall market share to building compared to overall construction in the RTC. 28:12 28 minutes, 12 seconds Got it. And in from uh data centers are you seeing some traction already happening? 28:19 28 minutes, 19 seconds Yes. So you know we are already uh happy to say that we are already working on couple of data center projects wherein 28:26 28 minutes, 26 seconds we are doing uh you know family installation. So the data centers currently we have not executed a pre-generate building uh structure for 28:34 28 minutes, 34 seconds data centers. uh we are we have a pipeline wherein we are discussing and that is on the verge of you know 28:41 28 minutes, 41 seconds commercial and technical uh closures but uh apart from that we are already executing a couple of projects where we are doing uh sandwich panel supply and 28:49 28 minutes, 49 seconds installation. So those are special type of panels which are you know fire rated and insulated as well. So that 28:56 28 minutes, 56 seconds application has already been started and now we are on discussion for the steel structure fabrication and supply as well. Overall data centers is looking a promising market for us in the future. 29:08 29 minutes, 8 seconds Perfect. Thank you Nikil G and all the best. Thank you so much. Thank you. 29:17 29 minutes, 17 seconds Thank you. Our next question is from the line of Shanu Bangal from three head capital. Please go ahead. Hello. 29:25 29 minutes, 25 seconds Hello. Yes. 29:28 29 minutes, 28 seconds Yeah. Uh uh first of all I am very new in this industry. According my understanding this margin talk uh this 29:36 29 minutes, 36 seconds only depend on steel price uh how to mitigate the steeration and maintain this. 29:45 29 minutes, 45 seconds Okay let's so what I what I understand from you is how are we protecting ourself from the uh uh steel price increase commodity price increase. 29:55 29 minutes, 55 seconds That's the question. 29:57 29 minutes, 57 seconds Yeah. Okay. So see you like you are right that our business you know 80 85% of the raw metal cost is a theme and 30:06 30 minutes, 6 seconds also the fact that most of our contracts are fixed price contract but at the same time it is important to note here that 30:14 30 minutes, 14 seconds uh our uh order book is for our orders are for 6 to 8 month period and in this 6 to 8 months typically the initial 3 30:23 30 minutes, 23 seconds months are the period for designing procurement and manufacturing and The banner 3 months are for execution at the 30:30 30 minutes, 30 seconds site level. So it means our exposure is limited to the first 3 months of uh getting the order. So the way we protect 30:38 30 minutes, 38 seconds ourselves here is first of all we have a inventory of raw material of close to 35 to 40 days in our system. So that gives 30:47 30 minutes, 47 seconds us a protection of one one and a half months. Secondly then we issue a purchase order to our steel vendors to steal suppliers. Then typically the 30:56 30 minutes, 56 seconds purchase order is for delivery for the next 8 to 10 weeks. So that gives us the protection for another one and a half 31:02 31 minutes, 2 seconds months or two months. And thirdly uh there's a process of natural hedging that happens in our business because uh 31:10 31 minutes, 10 seconds we book orders almost every week. So if the prices come increase in a particular week then the uh new orders are always 31:18 31 minutes, 18 seconds at a new price. So these are the three ways through which you know like our uh prices our commodity prices are protected and I don't think it has much 31:27 31 minutes, 27 seconds impact on our gross margin 31:37 31 minutes, 37 seconds am I right not that particular day but that 31:46 31 minutes, 46 seconds particular week. So whatever over order auto order booking is done in a particular week the subsequent week will do the ship uh purchase for that particular order. 31:56 31 minutes, 56 seconds Okay. Okay. Uh understood. My second question is uh can I sustain this 50% pay next 2 years? 32:07 32 minutes, 7 seconds It's a very difficult and tricky question for us to pay. You know the comfort in our business come from the order book. So the order book which we 32:16 32 minutes, 16 seconds have right now is 920 crores which gives us the visibility for the next seven months at least and uh with the strong 32:24 32 minutes, 24 seconds pipeline of enquiry as well as the kind of commitment which we have got from the market already so I'm very much sure 32:32 32 minutes, 32 seconds that we can continue this momentum of robust growth and beating the industry at least for the next 18 to 24 months. 32:41 32 minutes, 41 seconds Okay. You are very conservative. Okay. Thank you. 32:50 32 minutes, 50 seconds Thank you. Our next question is from the line of Oman Parik from Ashika India Select Fund. Please go ahead. 32:57 32 minutes, 57 seconds Yeah, thank you for the opportunity and congratulations on a great set of numbers. Uh so my only question is uh uh 33:04 33 minutes, 4 seconds this uh the cash flow has turned positive uh as compared to last year. So what are the factors which have led to the 33:12 33 minutes, 12 seconds improvement and how do you see the cash flows going forward? Gi can you answer this please? 33:20 33 minutes, 20 seconds Yeah thank you so much uh for the congratulations. Look I mean uh you know last year was a one-off uh year 33:28 33 minutes, 28 seconds generally the ideology of the company has always been to generate cash you know and that is what our MD told in the 33:36 33 minutes, 36 seconds beginning the way we receive our cash at various stages. Uh this year has been really well for us in terms of you know 33:44 33 minutes, 44 seconds managing our working capital as well and that has been the primary reason why we were able to generate cash flow from 33:51 33 minutes, 51 seconds operation positive and the idea uh from a management side will always be to maintain a healthy cash flow from operation uh going forward as well. 34:03 34 minutes, 3 seconds Sure. Thanks. That was my obligation. 34:09 34 minutes, 9 seconds Thank you. Uh, next question is from the line of Nikl Purohit from Fidant Asset Management. Please go ahead. 34:17 34 minutes, 17 seconds Hi. 34:19 34 minutes, 19 seconds Yeah. Yeah. Thanks for the opportunity sir and congrats on a great set of numbers. Uh, sir firstly u I realize 34:26 34 minutes, 26 seconds you've given the guidance of 30 35% but what volume growth do we see coming in uh in FI26 FI27 in the three divisions? 34:35 34 minutes, 35 seconds So the PE the EPS packaging and the sandwich fabrication. 34:41 34 minutes, 41 seconds Yeah. So uh in terms of volume growth the uh the capacity for the structural fabrication for us right now is around 1 34:50 34 minutes, 50 seconds lakh 33,000 tons which is increasing to 1 lakh 70,000 tons post the utilization of the IP proceeds for the structural fe 34:58 34 minutes, 58 seconds at this time in this financial year you know like uh we uh we assume that you'll be able to utilize at least 80% of the 35:05 35 minutes, 5 seconds capacity overall on an annualized basis for structural based application for the sandwich panel. You know like we have 35:12 35 minutes, 12 seconds two facilities the earlier facility which we have in ganon that is already equalized by 80 85%. 35:20 35 minutes, 20 seconds And almost running at full capacity so that we continue to run at capacity. The new sandwich panel line which we 35:26 35 minutes, 26 seconds installed in our Mumbai plant that is fairly new and that market is also new for us in terms of sandwich panels and that is picked up that is picking up 35:35 35 minutes, 35 seconds slowly at this time but again you know like as Nikl says we are in discussion uh with uh few large corporates to set 35:44 35 minutes, 44 seconds up modular housing for them for their upcoming projects and once we get this project so I I understand that we'll be 35:51 35 minutes, 51 seconds able to utilize that capacity on annual basis by about 50 50 55%. 35:57 35 minutes, 57 seconds And thirdly on the packaging side um the the first half of the year has not been good because we know of the uh 36:06 36 minutes, 6 seconds unseasonal range all across north and south of India and that is affected the consumer durable for us in the packaging 36:13 36 minutes, 13 seconds most of the customers are consumer customers although we rely on LG electronics and LG electronics is around 36:21 36 minutes, 21 seconds 50 to 60% of the revenue of that particular uh of the particular division So uh it depends on the how the 36:29 36 minutes, 29 seconds consumable market stays uh over the next two quarters. If the consumer and global market you know comes up strong then I 36:36 36 minutes, 36 seconds think we'll be able to make up for this uh loss of revenue of around 20% here in the next six months but uh on like as a 36:45 36 minutes, 45 seconds company as a management we have decided to focus on the pizza business for now because there are strong tailwinds and 36:52 36 minutes, 52 seconds we have been able to uh place our company you know very differently uh in this business. 36:59 36 minutes, 59 seconds Got it. Got it. And on on that on that not so sandwich the that division is not reported separately it is included in 37:08 37 minutes, 8 seconds which division that is reported in the prefab division. 37:12 37 minutes, 12 seconds Reason being you know like sandwich panels are a products are a separate set of product but lot of projects are there in which you know like it goes as a uh 37:20 37 minutes, 20 seconds package. So there would be some structural there would be panels doors and windows and things like that. So because of that it is not possible for us to report it separately. 37:31 37 minutes, 31 seconds Okay. Okay. And the 133 uh K the 133,000 that is reported as PB this is not 37:37 37 minutes, 37 seconds included by 8,400 metric per uh the standard for the for the tech. Yeah. 37:46 37 minutes, 46 seconds No included. 37:48 37 minutes, 48 seconds Okay. And just last question. So our net working capital stands at around uh 40 days if I'm not wrong. uh uh going 37:57 37 minutes, 57 seconds forward where do we see this uh going considering higher inventories for meeting the demand and I mean on the 38:05 38 minutes, 5 seconds same lines we are repaying 70 K of debt as well so our short-term borrowings will also naturally lies to cater to the demand accordingly where do we see our 38:13 38 minutes, 13 seconds interest expense going as well going forward see I think uh I think there's some correction uh there working capital last 38:21 38 minutes, 21 seconds year was around 24 days net working capital and for the first half of this here as a whole you know like we have focused a lot on uh payment collections 38:29 38 minutes, 29 seconds and and also there has been some you know leave we have got in terms of account payable so our net working 38:37 38 minutes, 37 seconds capital is 21 days not 40 days we have given a guidance to the market of around 35 days 38:45 38 minutes, 45 seconds got okay we are comfortable with the working capital of around 35 days but this time it has been exceptionally good 38:54 38 minutes, 54 seconds understood and What about the interest expense? 38:57 38 minutes, 57 seconds So for the interest expense how can you explain what will be? Yeah. 39:01 39 minutes, 1 second Yeah. So uh look what we have done is we have repaid 70 cr loan uh which was 39:08 39 minutes, 8 seconds about 122 cr at the beginning of the month. So we have paid back. So we are remaining with about 50 odd cr of term 39:15 39 minutes, 15 seconds loan. And uh WCDL at the moment as I speak is in the range of 60 cr. uh but 39:23 39 minutes, 23 seconds depending on you know business scenario it can go up and down uh according to situation. So uh however let me also tell you that the interest cost that we have is one of the best in the industry. 39:34 39 minutes, 34 seconds So you know uh it should be in the range of about uh you know couple of uh 1 1.5% 39:43 39 minutes, 43 seconds uh going forward as well the finance cost 1 to 1.5%. However, uh there is a substantial income that we also 39:50 39 minutes, 50 seconds generating from the FD that we have in currently in hand. Uh in H1, we generated about 73% uh out of the total 39:59 39 minutes, 59 seconds interest going forward for the next half it will be a little better. So that should square off uh the interest cost should almost square off the interest income in the next H2. 40:11 40 minutes, 11 seconds Understood. Understood. And u you've mentioned 58 kores uh kex and 102 k uh 102 kores in the green field facility. 40:22 40 minutes, 22 seconds Uh what will be our cex for the full year? Uh and do we have uh like do we hold any more land apart from this on our books? 40:31 40 minutes, 31 seconds Uh nothing at the moment. So apart from the land that is uh mentioned in the prospectors, we do not hold any other 40:38 40 minutes, 38 seconds land. uh and the capex uh that we said earlier as well. The idea is to first start Mumbatu uh end of quarter 4 and 40:48 40 minutes, 48 seconds then uh we will we'll definitely have some capeex CWIP for the Galot unit as well because the work has started there 40:56 40 minutes, 56 seconds but it will ideally start uh operating at the end of FQ2 F27. 41:05 41 minutes, 5 seconds Got it. Got it. Thank you so much. 41:11 41 minutes, 11 seconds Thank you. Our next question is from the line of Pam Mura from Grenetra Asset Managers. Please go ahead. 41:18 41 minutes, 18 seconds Hello. Thank you for the opportunity and congratulations on the great set of numbers. So what I wanted to ask was uh 41:26 41 minutes, 26 seconds geographically where do you see the highest growth? Is it South India? Is it the west or the exports? 41:34 41 minutes, 34 seconds Yes. for us you know like uh the maximum growth is coming right now from south of India because I feel most of the bigger 41:42 41 minutes, 42 seconds industries are uh are being set up either in the states of Tamil Nadu, Karnataka or Andhra Pradesh compared to the north of 41:50 41 minutes, 50 seconds India and since you know like our capacity is the highest uh our largest capacity is in south of India so we are 41:58 41 minutes, 58 seconds able to take advantage of that and looking at this you know auto booking strong order booking from the south we have decided to do our groundfield expansion also in the south. 42:09 42 minutes, 9 seconds Okay. And the next question is that uh is there any you know uh packaging business complementing or interacts with the building business? 42:21 42 minutes, 21 seconds Uh yes there is you know the styrofoam we basically do styrofoam packaging. So the technical name of styrofoam is EPS 42:29 42 minutes, 29 seconds expandable polyarin. So we started as a manufacturer of expandable poly sandwich panel because the styrofoam which we 42:39 42 minutes, 39 seconds produce. So the same styrofoam block uh we cut into sheets and we use it for the sandwich panels. So that is how we got 42:46 42 minutes, 46 seconds into the building business and still till still till still till still till 42:49 42 minutes, 49 seconds still till still till still till still 42:59 42 minutes, 59 seconds Okay. Okay. Thank you. 43:05 43 minutes, 5 seconds Thank you. Our next question is from the line of Raman KV from Sequent Investment. Please go ahead. 43:13 43 minutes, 13 seconds Uh hello sir. Can you hear me? Yes. 43:18 43 minutes, 18 seconds So uh out of the current order book of around 900 how what's the execution timeline for this? 43:27 43 minutes, 27 seconds So as I said earlier for us know the audible book to revenue cycle is around 1.5. So for us you know like it may be 7 to 8 months of uh uh revenue. 43:40 43 minutes, 40 seconds answered uh what is the current utilization of the PE capacity and uh with respect to the uh the green field 43:49 43 minutes, 49 seconds and the brownfield expansion how much capacity will be added in this year and how much of the remaining capacity will be added next year. 43:59 43 minutes, 59 seconds So I think I covered this uh but you know for polio state again I will tell that you know like at this moment in the in the second quarter we could utilize 44:06 44 minutes, 6 seconds about 88% of the builtup section capacity. So builtup section is something which defines the overall capacity although besides builtup 44:14 44 minutes, 14 seconds sections we have certain coal for section which are kind of tag along. So they depend from project to project. 44:21 44 minutes, 21 seconds There are certain projects in which uh the tag along capacity of co form sections is less. So it depends on quarter to quarter and building to 44:28 44 minutes, 28 seconds building but for second quarter of this FY we could utilize 88% of our overall buildup capacity in terms of overall 44:37 44 minutes, 37 seconds capacity including the cold form and the roofing and everything else I think it was around 74 to 78%. 44:45 44 minutes, 45 seconds And you know like when you talk of expansion then with 32,000 uh rather 37,000 tons of structural 44:53 44 minutes, 53 seconds field segregation capacity uh which we are putting up as a brownfield expansion coming up in our Mumbai to praise plant. 45:00 45 minutes So this should uh start commercial production uh from the fourth quarter onwards. 45:06 45 minutes, 6 seconds Okay. And what about the green field? It will be starting in this year or it will will it start next year? Next FY 45:15 45 minutes, 15 seconds starting from the second quarter of next FY. 45:18 45 minutes, 18 seconds Okay sir. And so my uh final question is with respect to the EPC packaging business. Uh this business has been 45:26 45 minutes, 26 seconds stagnated. If I look at the past 3 years it has been around 180 170 crores business and it hasn't grown. Whereas uh 45:35 45 minutes, 35 seconds so can you give any uh going forward uh can you give any guidance with respect to the growth? That's the first part of this question. 45:43 45 minutes, 43 seconds And second part of the question, although the EPS packaging business didn't grow, there has been significant 45:50 45 minutes, 50 seconds margin expansion of this business. It was in the FI23, it was around 6.5% 45:56 45 minutes, 56 seconds margin and now in the recent uh FI25 uh financial year it was around 11.5%. So 46:04 46 minutes, 4 seconds is this margin maintainable or is it a commodity product which and the margins will fluctuate? uh due to the cycling. 46:15 46 minutes, 15 seconds Yes, you're correct that the EP package business has not grown substantially in the last 3 years and going forward also 46:23 46 minutes, 23 seconds we believe that it will continue to grow at 67%. 46:27 46 minutes, 27 seconds Because uh as I said you know like uh uh this this packaging business about uh 50% of the revenue is coming from one single customer that is IG electronics. 46:37 46 minutes, 37 seconds So organically with the growth of IG in general order it grow and uh when you talk of the margin expansion in 23 46:45 46 minutes, 45 seconds versus know the growth in 25 so it has been attributed to the change in the fuel technology. So in the year 2004 uh 46:55 46 minutes, 55 seconds 2024 25 we invested in a turbine so that uh that is a multifuel uh turbine in 47:02 47 minutes, 2 seconds which now we are running a bofuel. So because of that we were able to you know reduce our uh fuel power and fuel cost 47:09 47 minutes, 9 seconds in that particular business and because of which there's a margin expansion and this margin expansion is sustainable and will continue to you know remain in that category remain in that range. 47:23 47 minutes, 23 seconds Thank you sir. 47:29 47 minutes, 29 seconds Thank you. Our next question is from the line of Dwang Patel from Tamika Capital. Please go ahead. 47:36 47 minutes, 36 seconds Aisha, congratulations on good set of numbers. Uh if I look at the Q1 uh revenue growth and the Q2 revenue growth, there's a stark difference. Is 47:45 47 minutes, 45 seconds that uh due to range impacting execution or is that just you know function of uh order book and execution that I think Q2? 47:55 47 minutes, 55 seconds Yeah, you're correct that you know like uh the quarter one was little subdued for us. I think the main major reason 48:02 48 minutes, 2 seconds there was that uh uh what happens is typically at the start of the quarter uh most of the companies they they are in 48:10 48 minutes, 10 seconds the process of you know like uh finalizing the contract or the focus is more towards getting the civil works done before the rainfall and the idea is 48:19 48 minutes, 19 seconds that you know like they want to uh postpone the pre-engineered building supplies to second part of the second to second quarter so that you know like uh 48:27 48 minutes, 27 seconds the pre- building doesn't get hindered much to be destined by the monsoons. So that is one reason where you know like uh although we try to push the customers 48:36 48 minutes, 36 seconds to pick the delivery but they focus a lot on civil work execution and I think that helped us rather in the second quarter because lot of our projects they 48:45 48 minutes, 45 seconds were not affected by the monsoon because the civil work was already completed and we could just apply and do the erection without any effect of the monsoons. 48:55 48 minutes, 55 seconds Okay. Uh sir and on the orders in the presentation you mentioned three large orders if you can highlight what are the 49:03 49 minutes, 3 seconds uh you know sizes of these uh large vestigages orders that you mentioned uh and if you've got a semiconductor order also what is the size of that order. 49:13 49 minutes, 13 seconds Yeah in this presentation we have given you three names. So those are just sample names but doesn't mean that you know those three are the only orders. 49:20 49 minutes, 20 seconds Typically for us uh average order size is around six crores and uh but these three are the large orders which we have 49:28 49 minutes, 28 seconds received in this uh after first half of the year. Mainly they have come from premier energies for their upcoming uh 49:35 49 minutes, 35 seconds solar cell manufacturing plant in Nigeta. 49:39 49 minutes, 39 seconds The second one is from Raison Solar again for a solar model manufacturing plant in Gujarat and uh similarly you 49:47 49 minutes, 47 seconds know like from other place as well uh from the manufacturing side and also for the warehousing we have received orders 49:54 49 minutes, 54 seconds from this Horizon Industry Park NDR which is India group company and Raja Pushpa again India group company. So 50:03 50 minutes, 3 seconds similarly you know like uh we have been getting repeat orders from lot of our clients and as well as the new customers. 50:10 50 minutes, 10 seconds Okay. And typically uh if we are booking large industrial orders is that margin accative or margin dilutive for us? 50:20 50 minutes, 20 seconds Uh it depends you know like because you know see it depends on the strategy of the company at that particular point of time. uh normally larger orders are 50:28 50 minutes, 28 seconds margin accurate because we believe that uh on a on overall basis we are able to save on the uh operational expenses and 50:36 50 minutes, 36 seconds the design expenses and the project management expenses in the large project. So accordingly uh we do our pricing strategies for the larger 50:44 50 minutes, 44 seconds projects but here going forward you will hear you know like lot of big ticket type projects coming to us. Uh earlier we did have the required qualifications 50:53 50 minutes, 53 seconds but now uh we have proven our capabilities time and again and uh we have started to get some big inquiries 51:01 51 minutes, 1 second uh which will result into good size for us. 51:05 51 minutes, 5 seconds Okay. Uh so on the margin side uh uh the gross margins have been somewhat similar 51:11 51 minutes, 11 seconds to last year. Uh the H margins are better than what we've done last year. 51:17 51 minutes, 17 seconds Maybe it's operating leverage mostly. Do we expect more of benefit to continue going forward? 51:24 51 minutes, 24 seconds Definitely. Yes. The endeavor of the management is always to you know like uh work on the growth and uh if we are able 51:32 51 minutes, 32 seconds to continue the momentum then I'm quite hopeful that we'll continue to uh operate at this margin of 10.5 to 11.5%. 51:42 51 minutes, 42 seconds You mentioned uh uh you know expensing of the share issue expenses. Is that something which will impact you in the future? 51:50 51 minutes, 50 seconds Can you pick up this question? 51:51 51 minutes, 51 seconds Sorry. Uh Dewan, can you repeat that question? 51:55 51 minutes, 55 seconds We are looking to expense out the uh IP expenses. Uh but share issue. 52:02 52 minutes, 2 seconds Yeah. So share issue expenses are pretty much adjusted to security premium and are not through the PNN. So we have made 52:11 52 minutes, 11 seconds adequate provision as on 30th September for our IP expenses in the company's book and some of which have been paid already some of which uh has been paid 52:20 52 minutes, 20 seconds in October and some of which will get paid over November December as well. So it does not impact the P&L is a is a is 52:29 52 minutes, 29 seconds a point that I try to make. It will be adjusted to the security premium. 52:34 52 minutes, 34 seconds Okay. Uh mention earlier we got some delay on payments. I went to ask that is that uh something that we took ahead of 52:42 52 minutes, 42 seconds the IP of coming in or requested from our suppliers or is that what the suppliers are willingly giving across the industry? 52:51 52 minutes, 51 seconds See you know like uh our uh we we typically engage into enter contracts with our suppliers who are mostly you know like suppliers. So depends from 52:59 52 minutes, 59 seconds time to time you know like uh since uh I think our volumes are quite considerable now in the industry so they are prepared 53:07 53 minutes, 7 seconds to offer us better payment terms and uh we have been beneficial of that but it is not like you know this working 53:14 53 minutes, 14 seconds capital of 21 days is entirely depend on account payable although there has been an increase of 5 seven days in the account payable but that's the only that 53:22 53 minutes, 22 seconds is not the only story somewhere. 53:28 53 minutes, 28 seconds Yeah, sorry Dean. I just wanted to add here. 53:32 53 minutes, 32 seconds Uh, look, I mean the AR days and the inventory days for us has been uh great as well in the H1. If you look at that 53:40 53 minutes, 40 seconds those numbers in spite of uh a decent growth on the revenue side, the ER has not grown significantly at that scale. 53:47 53 minutes, 47 seconds So we have been able to manage our ER as well uh for H1 and the inventory as well in spite of the massive growth. 53:58 53 minutes, 58 seconds Okay. So when you are guiding for a little higher working capital cycle at 35 days it's mostly the trade pay that will uh you know reverse from current levels. 54:11 54 minutes, 11 seconds Yes. Yes. Okay, that's all for myself. Thank you. 54:18 54 minutes, 18 seconds Thank you. Uh, next question is from the line of Sha from Billion Securities. Please go ahead. 54:36 54 minutes, 36 seconds Miss Sha, your line is unmuted. Please uh proceed with the question. 54:58 54 minutes, 58 seconds As there is no response from the line of the participant, we'll move on to the next question. The next question is from the line of Mr. Weber Gupta from AIA Advisor. 55:12 55 minutes, 12 seconds Please go ahead. 55:13 55 minutes, 13 seconds Yeah. So, first of all, congratulation on the strong performance this quarter. 55:18 55 minutes, 18 seconds So you have mentioned that one of the reason for this growth is that you have outperformed the industry average right. 55:24 55 minutes, 24 seconds So I just wanted to understand do you believe you will be able to sustain this outperformance going forward as well? U in the other words uh can we expect you 55:32 55 minutes, 32 seconds uh to continue growing faster than the broader industry? 55:37 55 minutes, 37 seconds Definitely yes definitely yes because you know the kind of uh software uh and uh we have on the execution uh 55:45 55 minutes, 45 seconds especially on the purchase execution side. So you know like we have become uh a preference for most our customers. 55:52 55 minutes, 52 seconds They want to do business with with us and that is one of the reason of our robust growth and repeat orders from our customers. 56:02 56 minutes, 2 seconds So we have disrupted this entire industry because of our execution speed. 56:07 56 minutes, 7 seconds So most of the new age industries you know like Nik was talking of solar. So when the technology or machine is you 56:14 56 minutes, 14 seconds know like getting uh redundant in the next 3 years. So they want the buildings to be ready in 3 to 6 months and in fact 56:22 56 minutes, 22 seconds you know like effect is the only company which has been able to satisfy this requirement and that is the reason we have become the preferred player at 56:29 56 minutes, 29 seconds least in this industry and lot of other industries. Similarly, if you talk of warehousing, you know, like for them, if they can keep on the construction of the 56:37 56 minutes, 37 seconds warehouse by say two months or three months, so they can keep on the revenue and the ROI improve substantially. So these are the reasons why you know like 56:45 56 minutes, 45 seconds we are preferred over the existing larger part vendors or the smaller ones. 56:53 56 minutes, 53 seconds Okay. And uh second the second question is could you share some lights on your country and I think is a really 57:00 57 minutes interesting thing in this test and uh how sorry we are unable to we unable to hear you clearly. Yeah 57:08 57 minutes, 8 seconds sorry we unable to hear you clearly the second part uh am I audible right now? Yes it is better. 57:16 57 minutes, 16 seconds Yeah. So could you share some light on how the overall PEBB industry has performed in the first half of this year 57:23 57 minutes, 23 seconds and how do you see it evolving over the next couple of years in terms of the demand drivers uh sectoral trends and overall growth potential like uh the overall uh TV growth for this half year? 57:35 57 minutes, 35 seconds How was the growth in this industry? 57:39 57 minutes, 39 seconds See uh this first half of the year was a little challenging in terms that in the first quarter there was this India 57:46 57 minutes, 46 seconds Pakistan uh know like uh situation and then in second quarter this you know like a US tariff created little 57:54 57 minutes, 54 seconds nervousness in the tech capital uh you know like capital uh investment decisions but still I would say the 58:01 58 minutes, 1 second industry has done around 10 to 12% of growth in the in the first six months 58:08 58 minutes, 8 seconds And uh uh most of the growth is coming right now from renewables and from auto 58:15 58 minutes, 15 seconds and FMTG you know like uh say uh company like uh Reliance Consumer Product which is Canacola they are setting up you know bottling plants across the country. 58:26 58 minutes, 26 seconds Similarly you know like a lot of other companies are doing it as well. So those are the opportunities which we have in 58:31 58 minutes, 31 seconds this industry and going forward also uh I think the momentum will continue in favor of us. Uh there are there are you 58:41 58 minutes, 41 seconds know like uh inquiries coming in from EV. So a lot of EV manufacturing plants coming up lot of this battery plants 58:47 58 minutes, 47 seconds coming up this uh battery energy storage plants coming up in the country and now even this renewable sector they are 58:55 58 minutes, 55 seconds going back into the glass into the wafer. So these all are the opportunities you know for us 59:03 59 minutes, 3 seconds and also one of the one of the opportunities for our sector is the data center already few data centers in this 59:10 59 minutes, 10 seconds country has been done using this pre building technology and uh it has been a great success. So going forward data 59:18 59 minutes, 18 seconds center is something you know which is the industry is I in a big way and everyone is developing everyone including us is developing the 59:26 59 minutes, 26 seconds capability u related to design and manufacturing and execution in this space. 59:32 59 minutes, 32 seconds Okay so like data filter can be a a better play right? Yeah. Yes. 59:40 59 minutes, 40 seconds And the last question is in terms of the export as you like in your prep mentioned that you wanted to become a key player in the global pe industry. So 59:49 59 minutes, 49 seconds how do you feel the export business in the PE? 59:55 59 minutes, 55 seconds Yeah, export is something you know like which we have studied we have you know dig down into the details of the export numbers from this country and what we 1:00:02 1 hour, 2 seconds have found out is most of the export market is either in the Middle East or in Africa. while you know they our peers groups have been talking about the 1:00:10 1 hour, 10 seconds possibility of export to the United States but we don't see that coming immediately we don't see that coming immediately yes in the long term there's 1:00:18 1 hour, 18 seconds a possibility so uh uh we we we have started to work on you know like getting export inquiries from middle east and 1:00:27 1 hour, 27 seconds Africa but nothing you know considerable is coming up for us export constitute around one and a half% 2% of the revenue 1:00:35 1 hour, 35 seconds and that two is coming from most of nations like Bhutan, Sri Lanka, Bangladesh and Nepal. 1:00:43 1 hour, 43 seconds Okay. 1:00:44 1 hour, 44 seconds Okay, sir. That's all from my side and best of luck for the future. Thank you so much. 1:00:51 1 hour, 51 seconds Thank you. Uh, next question is from the line of Akash Sha from Toro Wealth Managers LLP. Please go ahead. 1:01:01 1 hour, 1 minute, 1 second Congratulation sir for listing and for good set of numbers. Sir uh I have three question sir uh what is the time taken 1:01:09 1 hour, 1 minute, 9 seconds for order conversion once the quote is received and sir uh for order book pipeline is there trend that 45% of 1:01:16 1 hour, 1 minute, 16 seconds order book will be received in H1 and 55% is in H2 and what is the Y growth 1:01:23 1 hour, 1 minute, 23 seconds for half year in order book yeah so you have three set of questions 1:01:29 1 hour, 1 minute, 29 seconds first is uh whether the uh order book uh is 45 55 in terms of order book also 1:01:37 1 hour, 1 minute, 37 seconds it's very difficult to say you know like whether it would be 45 55 or not uh because it depends on the I think uh on 1:01:44 1 hour, 1 minute, 44 seconds the customer a lot depending on his agency to do a capex but yes you know like typically what we have seen in the 1:01:51 1 hour, 1 minute, 51 seconds last 3 years is the quarter three and quarter four are very very heavy quarter three being that you know like people want to place the order for the building 1:01:59 1 hour, 1 minute, 59 seconds and do the start the civil work and quarter four because you know like they want to utilize the uh money proceeds 1:02:06 1 hour, 2 minutes, 6 seconds and you know start planning for the next year. So yes, quarter three and quarter four are heavy quarters when it comes to all the booking for us. And uh the 1:02:14 1 hour, 2 minutes, 14 seconds second part of the question, can you please repeat? 1:02:17 1 hour, 2 minutes, 17 seconds Yeah. Uh sir, what is the time taken for order conversion once we initiate the quad with the customers? 1:02:24 1 hour, 2 minutes, 24 seconds Yeah. So it it is around uh I would say 6 to 8 weeks maximum. 6 to 8 weeks. Okay. 1:02:32 1 hour, 2 minutes, 32 seconds Yeah. And sir, our execution is the fastest in the industry and we have done commendable work that but why can't 1:02:39 1 hour, 2 minutes, 39 seconds others do the same. It's a risk in our business. 1:02:46 1 hour, 2 minutes, 46 seconds Uh yes you know like see there's no process in this universe now which cannot be copied or replicated by any other company be it technology 1:02:54 1 hour, 2 minutes, 54 seconds manufacturing process or for that matter execution. So there's a possibility that you know competitors will sooner than later try to catch up. But you know what 1:03:02 1 hour, 3 minutes, 2 seconds we have differentiate how we how different is this piece is in our DNA. 1:03:07 1 hour, 3 minutes, 7 seconds So you know like it has taken us quite some quite some time to be able to create this kind of culture in the company wherein it is not only in the 1:03:15 1 hour, 3 minutes, 15 seconds execution but it is it is you know in the entire decision making as well. So right from you know like uh getting the 1:03:22 1 hour, 3 minutes, 22 seconds order to it designing to it manufacturing and then finally execution I think uh our turnaround time is the lowest in the industry and uh this we 1:03:31 1 hour, 3 minutes, 31 seconds can attribute this to the lot of hard work which we put in uh in getting the automation and the digitization of the 1:03:38 1 hour, 3 minutes, 38 seconds entire processes because you know in this business uh we do the designing and that is also customized for each of the 1:03:46 1 hour, 3 minutes, 46 seconds buildings. So designing, manufacturing, execution and final handing over. So that requires a lot of nitty-gritty and 1:03:54 1 hour, 3 minutes, 54 seconds uh you know like microlevel detailing which is only possible through uh exceptionally strong and clear processes and digitalization. So we have spent a 1:04:03 1 hour, 4 minutes, 3 seconds lot of time myself and you know we spent around two years just defining each of the processes in detail. So if any company can do it you know like they 1:04:11 1 hour, 4 minutes, 11 seconds would be able to uh again you know like be successful in in this industry. 1:04:17 1 hour, 4 minutes, 17 seconds Okay, thank you so much sir and once again the congratulations. Thank you. Thank you so much. 1:04:28 1 hour, 4 minutes, 28 seconds Thank you. Uh next question is from the line of Yash Parik who is an investor. Please go ahead. 1:04:35 1 hour, 4 minutes, 35 seconds Um uh congratulations on the great size of number sir. So my first question is uh what fueled the 1% gross margin? I 1:04:43 1 hour, 4 minutes, 43 seconds know you have already answered that the the range will be 10.5 to 11.5 but my uh question is what uh fueled the 1% and is it sustainable? 1:04:56 1 hour, 4 minutes, 56 seconds This one if you see it just come from reduction in the employee cost um if you look at quarter two and quarter one so 1:05:05 1 hour, 5 minutes, 5 seconds it was around 11.2 something at in quarter 1 it is 9 something 9.8 eight. 1:05:11 1 hour, 5 minutes, 11 seconds So it is because 11.4. Yeah. 1:05:15 1 hour, 5 minutes, 15 seconds Yeah. So yeah, it is economy of scale that is benefiting us. 1:05:20 1 hour, 5 minutes, 20 seconds And so you uh already like talked about the export market that is currently 1 one and a half% inquiries are there from 1:05:28 1 hour, 5 minutes, 28 seconds other countries as well but uh you are currently focusing on uh the domestic market but still uh my question would be 1:05:36 1 hour, 5 minutes, 36 seconds that uh are the margins different from the domestic uh in in the export market? 1:05:45 1 hour, 5 minutes, 45 seconds uh would be very difficult for us to say you know whether they are different or not and because for us it is only very very small quantities. Uh so I would not 1:05:54 1 hour, 5 minutes, 54 seconds like to comment on you know how the margins would be for the US market because we are not operating in that market. So are like in the current near 1:06:01 1 hour, 6 minutes, 1 second future like say next two to three quarter u the the percentage of the export will remain same right or are you 1:06:08 1 hour, 6 minutes, 8 seconds like in u kind of trying very hard to get into the export market also like aggressively are you trying that or you 1:06:16 1 hour, 6 minutes, 16 seconds are you currently focusing on domestic only for us the focus is on domestic but we are building team as you see we are 1:06:25 1 hour, 6 minutes, 25 seconds building team for exports and uh but what feel is you know like the if it is the same effort in the domestic market 1:06:34 1 hour, 6 minutes, 34 seconds then we will be much more successful in getting the model. 1:06:39 1 hour, 6 minutes, 39 seconds Okay. Thank you. Thank you very much sir. 1:06:44 1 hour, 6 minutes, 44 seconds Thank you. Our next question is from the line of Santos Kumar Singh who is an investor. Please go ahead. 1:06:50 1 hour, 6 minutes, 50 seconds Hello. Good afternoon. Am I a audible? Yes. 1:06:57 1 hour, 6 minutes, 57 seconds Okay. Uh so the my uh my question is basically uh like what is the size of the pipeline and what is our hit ratio? 1:07:06 1 hour, 7 minutes, 6 seconds Uh I mean conversion of that pipeline that is one the question number one. 1:07:12 1 hour, 7 minutes, 12 seconds Yeah you can answer that and then I can give them ask another question. Yeah please you can answer it. 1:07:22 1 hour, 7 minutes, 22 seconds Yeah. So you know uh like in as we mentioned earlier that H2 is generally a better uh you know order booking uh 1:07:30 1 hour, 7 minutes, 30 seconds segment for us H2. So uh you know we are seeing a lot of huge uh inquiries with us. Uh similarly in the solar business 1:07:39 1 hour, 7 minutes, 39 seconds as well as uh you know from the FMCG from warehousing sector uh we are also seeing huge inquiries that we have in 1:07:47 1 hour, 7 minutes, 47 seconds the pipeline which is almost convert or some of them are also you know uh like uh confirmed but we are yet to receive 1:07:54 1 hour, 7 minutes, 54 seconds the written uh purchase orders from big giants for modular kota cabins and modular uh you know site offices and 1:08:03 1 hour, 8 minutes, 3 seconds accommodation buildings which uses steel structure as well as sandwich balance. 1:08:07 1 hour, 8 minutes, 7 seconds So you know typically if you see our conversion ratio would be around uh 15% of the number of inquiries that we 1:08:16 1 hour, 8 minutes, 16 seconds handle or depending on the size of inquiries the bigger inquiries our percentage of hit ratio is much uh 1:08:22 1 hour, 8 minutes, 22 seconds better because you know we focus uh on we are focusing on getting bigger orders so that you know our overall growth is 1:08:30 1 hour, 8 minutes, 30 seconds fueled by bigger orders. So convertation bigger orders is much better and smaller orders uh is around 10 to 15%. uh 1:08:38 1 hour, 8 minutes, 38 seconds looking at the pipelines I I mean I can say the projection that we are you know having for the next year uh targets at 1:08:46 1 hour, 8 minutes, 46 seconds the closure of order book that we want to close that is looking very very positive and I don't see any challenge 1:08:54 1 hour, 8 minutes, 54 seconds you know in terms of uh any reduction in growth due to uh lack of orders because that is not has been a challenge as a 1:09:02 1 hour, 9 minutes, 2 seconds fund that will not be a challenge in the future as well Okay. Okay. Uh my second question is around the capacity utilization. Uh I 1:09:11 1 hour, 9 minutes, 11 seconds think we are doing some deep bottlenecking you mentioned. So do we see any uh near-term uh you know uh 1:09:18 1 hour, 9 minutes, 18 seconds capacity constraint or could you put more color on that like how much we are going to free uh from this debottle making and all. 1:09:28 1 hour, 9 minutes, 28 seconds See this is a regular uh manufacturing exercise where they do lot of you know GDR activities tear down and engineering activities and it gives us uh efficiency 1:09:37 1 hour, 9 minutes, 37 seconds to the level of 5 to 10% improvement so that will happen in this quarter as well but uh you know like uh more or less it 1:09:46 1 hour, 9 minutes, 46 seconds depends on on the capacity utilization and also see last quarter uh what happens is the second quarter is the 1:09:53 1 hour, 9 minutes, 53 seconds minimum number of holidays. So if you look at you know July, August and September there are hardly any festivals which impact the production. So that way 1:10:01 1 hour, 10 minutes, 1 second also you know like we have benefited from this quarter but going forward we are we are improving our capacities. Uh 1:10:07 1 hour, 10 minutes, 7 seconds we are improving our efficiency and I'm very much sure that you know like we'll continue to you know gain momentum from 1:10:14 1 hour, 10 minutes, 14 seconds this particularation. At the same time what we are doing is you know like although we foresee that there may be some uh production constraint uh and so 1:10:23 1 hour, 10 minutes, 23 seconds you know like what we are doing is we are creating a vendor base which can do uh some outsourcing job work for us for some time. So that is also in the 1:10:32 1 hour, 10 minutes, 32 seconds process you know like we have been doing it in the past but we have not done it in the last three four quarters because we have already had some capacity but there's always a possibility to get outsourcing. 1:10:43 1 hour, 10 minutes, 43 seconds Okay. Okay. And my last question is around the export. Is it viable to serve our uh I mean global customer from 1:10:51 1 hour, 10 minutes, 51 seconds India? Uh uh how do you see that? Are you have any plan to put in the future? 1:10:56 1 hour, 10 minutes, 56 seconds Uh see as you know like serving the market of middle age and ethics is quite 1:11:04 1 hour, 11 minutes, 4 seconds possible from India. There are few companies who have been doing it very very well. Uh there are these companies are you know like located in Hyderabad 1:11:12 1 hour, 11 minutes, 12 seconds and Mumbai. there are two companies and which have been doing it very well and uh as far as US market is concerned you know like I don't think that it makes 1:11:20 1 hour, 11 minutes, 20 seconds sense because P by nature is supposed to be delivered very fast and the logistics time itself is 6 to 7 weeks there uh in 1:11:28 1 hour, 11 minutes, 28 seconds India so I'm not sure know how much viable that will be that is not our market and uh you know like when it comes to uh expanding our horizon beyond 1:11:38 1 hour, 11 minutes, 38 seconds India yes we are looking at markets like medalist we feel that the kind of growth uh which which you know like people talk 1:11:45 1 hour, 11 minutes, 45 seconds about in Saudi Arabia and the GCC countries this is quite exciting. We are studying the possibilities of getting 1:11:53 1 hour, 11 minutes, 53 seconds into this market and uh as you know some opportunities come up we will definitely like to get into this market. 1:12:02 1 hour, 12 minutes, 2 seconds Okay. Okay. I think that's uh all from my side and all the best for the future results. Yeah. Right. 1:12:09 1 hour, 12 minutes, 9 seconds Thank you so much. 1:12:12 1 hour, 12 minutes, 12 seconds Thank you. Our next question is from the line of Shraan who is an investor. Please go ahead. 1:12:19 1 hour, 12 minutes, 19 seconds Hello good evening. Uh thank you for taking up the questions. Congratulations on a good set of numbers and listing. So 1:12:26 1 hour, 12 minutes, 26 seconds my first question is around the the timeline that you have mentioned for building the the the preack structure 1:12:34 1 hour, 12 minutes, 34 seconds that is around 3 to 6 months and it is much faster compared to the peers. So what is the average uh timelines that the PS are taking and what is the 1:12:42 1 hour, 12 minutes, 42 seconds advantage we have in terms of timeline project one year or two years I don't know and then uh uh part of the IPO 1:12:49 1 hour, 12 minutes, 49 seconds proceeds you are you have reduced the debt of around half of your short-term borrowings are reduced is there any impact on the the bottom line do we can 1:12:58 1 hour, 12 minutes, 58 seconds we expect uh some expansion in the bottom line that's it yes the first half of the question I will address and the second half data. 1:13:08 1 hour, 13 minutes, 8 seconds So I think you talked about the speed of execution for us and how how much is the speed for the PA group. So while you 1:13:15 1 hour, 13 minutes, 15 seconds know I can talk about our speed and sometimes what happens is you know in a particular time uh we'll be doing one building and our PA group our competitor 1:13:23 1 hour, 13 minutes, 23 seconds will be doing the other building. So there has been instances in the past uh 6 to 8 months or I would say in the last one one half years where we have 1:13:32 1 hour, 13 minutes, 32 seconds completed the building of the same size in the same location at least 2 to 3 months before our peer group. So that 1:13:39 1 hour, 13 minutes, 39 seconds has happened not once but now it has happened at least you know like four or five times. Uh so that is what I can tell you and for the second half of the 1:13:47 1 hour, 13 minutes, 47 seconds question Rahu G can you please pick it up? Yeah. So look, I mean uh you rightly mentioned that uh we repeat the loan and 1:13:55 1 hour, 13 minutes, 55 seconds there will be margin expansion because of that. Uh you know the loan that we repeat goes to the tune of 70 cr at even 1:14:02 1 hour, 14 minutes, 2 seconds an 88.25%age kind of a interest rate that we were offering on a yearly basis that's about 1:14:09 1 hour, 14 minutes, 9 seconds 6 cr on a revenue cycle of let's say 1500 cr this translates to about4%. 1:14:16 1 hour, 14 minutes, 16 seconds So yeah I mean uh that's the kind of expansion preida prebt level will happen 1:14:22 1 hour, 14 minutes, 22 seconds and post tax another uh 75% will get added that's about.3% expansion should happen 1:14:30 1 hour, 14 minutes, 30 seconds on account of that okay thank you 1:14:38 1 hour, 14 minutes, 38 seconds thank you as there are no further questions I would like to now hand the conference over to the management for closing comments 1:14:48 1 hour, 14 minutes, 48 seconds Yeah, thank you so much gentlemen for getting into the call and you know like giving us uh your best fees and asking 1:14:55 1 hour, 14 minutes, 55 seconds some very valuable questions. So it was great interacting with you all. Thank you so much. 1:15:05 1 hour, 15 minutes, 5 seconds On behalf of Motila Los that concludes this conference. Thank you for joining us and you may now disconnect your lines. 1:15:14 1 hour, 15 minutes, 14 seconds Thank you everyone. Thank you.