Interarch Building Solutions Ltd — Q4 FY26

Interarch Building Solutions Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=JVkvJ2rdTT8 Published: 15 hours ago

0:00 Ladies and gentlemen, good day and welcome to the interact building solutions Q4 FI26 earnings conference call hosted by Ambit Kapati. 0:11 11 seconds As a reminder, all participant lines will be in the lecton mode and there will be an opportunity for you to ask question after the presentation concludes. 0:21 21 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on 0:28 28 seconds your touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Sepa 0:36 36 seconds from Ambit Capital. Thank you and over to you sir. 0:42 42 seconds Good evening everyone. On behalf of Ambbit Capital, I thank the management of Interact Building Solutions Limited 0:48 48 seconds for the opportunity to host the Q4 FY26 earnings conference call to discuss the results. I'm pleased to welcome Mr. 0:57 57 seconds Arvind Nanda, managing director, Mr. 1:00 1 minute Pushpendra Kumar Banchil, Chief Financial Officer, Mr. Anil Kumar Chandrani, resident corporate finance and strategy and Mr. Vira Nandanda, executive director. Now I invite Mr. 1:11 1 minute, 11 seconds Arvind Nanda to take us through the key highlights of the quarter post which we will open up for Q&A. Thank you and over to you sir. 1:20 1 minute, 20 seconds Uh thank you very much. Uh thank you everybody for joining the call. Uh I'm Arvan Mandanda my new director of the 1:27 1 minute, 27 seconds company. Uh like usually I will take you a little bit through uh what three unit building is and what interarch is. Uh so 1:35 1 minute, 35 seconds that we all have an idea what this segment is all about. I'm sure most of you already know. Uh just to refresh so premium buildings are primarily steel 1:44 1 minute, 44 seconds buildings. Uh primary focus of interarch has been till now mainly on industrial buildings and warehouses and uh such 1:53 1 minute, 53 seconds like industrial construction but steel buildings can be used for any kind of building that exists. So clean building 2:03 2 minutes, 3 seconds how they differ is in how the steel building is actually ordered and made and delivered to a customer. In a normal 2:11 2 minutes, 11 seconds case a steel building uh for industry has been the norm for many decades I would say centuries since steel was 2:18 2 minutes, 18 seconds invented because steel is a very uh easy to use material structurally very strong flexible and does lend itself to a lot 2:26 2 minutes, 26 seconds of offsite work uh before it comes to the site. 2:30 2 minutes, 30 seconds Traditional method of a steel building would be that the industrial client or a warehousing client or any client would hire a consultant who would be the 2:39 2 minutes, 39 seconds industry consultant for that. If it's a paint plant or a lithium battery plant or a FMCG plant, automobile, they would 2:47 2 minutes, 47 seconds go and hire an industry consultant. The industry consultant would make a requirement and also make a a method how 2:55 2 minutes, 55 seconds to make that building. So he would design everything, engineer the whole building, make a complete BOQ in tonnage 3:02 3 minutes, 2 seconds and columns and beams, roofing, cladding, everything. A B bill of quantity would be made and tended out to a client uh contractors. So the 3:11 3 minutes, 11 seconds contractor would bid for it on a ton basis, square foot basis, etc., etc. And then the uh contract would be awarded by 3:19 3 minutes, 19 seconds the client or the consultant to the contractor. 3:23 3 minutes, 23 seconds So the contractor then or the client with the client or separately when the steel building part comes into uh play 3:30 3 minutes, 30 seconds would go to the steel company and order the readymade items as per the BOQ. The 3:38 3 minutes, 38 seconds consultant would have normally or or always put in those items which are easily available in the market in terms 3:45 3 minutes, 45 seconds of edge sections, eye sections, leg sections, roofing sheets, wall cladding, nuts and bolt everything which has to be available, ready made in the market. The 3:54 3 minutes, 54 seconds contractor would then pay the steel company buy all these readymade items in a standard form bring it to the site 4:01 4 minutes, 1 second once it is ready for uh erection and then start fabricating the building at site. So all cutting, welding, drilling, 4:09 4 minutes, 9 seconds uh painting, everything would be done by welders and drillers and fitters at the site itself after the basic groundwork 4:17 4 minutes, 17 seconds has been done. And then of course the building would get completed. Sometimes the roofing and wall cladding contractor would be the same one, sometimes 4:25 4 minutes, 25 seconds different one. So in this case the problem that most people faced was that there was no one company or one body responsible for the whole building. 4:36 4 minutes, 36 seconds There was a client who had to hire a consultant, then a contractor and then a supplier of material. The minimum would 4:43 4 minutes, 43 seconds be three different companies and none of them would hold responsibility for the building. Consultant if he did do the design wrong or some problem happened, 4:52 4 minutes, 52 seconds he would just put a hands up and say nothing, I can't do anything. Contractor would go by the design or the requirement as put by the consultant. If 5:00 5 minutes there's any change or any changes in price, any changes in design or any defects in design, it would be the 5:07 5 minutes, 7 seconds responsibility of the uh client. And then again the steel companies of course had no responsibility at all because 5:15 5 minutes, 15 seconds they were only a supplier and they would supply what is available when it is available at whatever price it is available. The contractor might have to 5:22 5 minutes, 22 seconds go to many steel companies to collect that material at that time. So this meant that there was nobody responsible for neither the price nor for uh the 5:32 5 minutes, 32 seconds completion nor schedule nor the quality at the end of the day customer always suffered. So that was the only way that they could do it. So how clean building 5:40 5 minutes, 40 seconds changes this whole system is that now consultant still hires the client still hires the consultant for as an industry 5:50 5 minutes, 50 seconds specialist. He designs the building. He gives the requirement that this is what I need. length, width, height, loadings, 5:58 5 minutes, 58 seconds cranes, mezanines, earthquakes, whatever the area is, zones, lighting that I need, air transformations that I need. 6:06 6 minutes, 6 seconds He will just give a requirement. He doesn't tell you how to design or engineer the building. The pre-minent 6:13 6 minutes, 13 seconds buildings companies are given this requirement. And now the pre-minent building company like Interact would first design and engineer the whole building. We have two three advantages. 6:24 6 minutes, 24 seconds One is that we manufacture every item ourselves. Our raw material being a plate or a coil. So that gives us a big advantage that we don't have to rely on what is readily available in the market. 6:34 6 minutes, 34 seconds We can make it actually whatever is required for that building requirement. 6:40 6 minutes, 40 seconds So that saves of course a lot of steel because it is designed just for that particular requirement. One column can have three different thicknesses. Uh you 6:48 6 minutes, 48 seconds know different column beams of different thicknesses, flanges and uh you know the the beam everything can be designed to 6:56 6 minutes, 56 seconds that structural requirement. Uh so therefore uh our design engineering department has the flexibility to design the building to the best of their 7:04 7 minutes, 4 seconds ability. Then the design engineering company department will calculate the total cost of the materials. There'll be three four different types of materials. 7:14 7 minutes, 14 seconds Hot hot roll plates uh coil galvanized coils some rods and bracings roof and wall cladding uh coils hardware nuts and 7:23 7 minutes, 23 seconds bolts etc. They will calculate the total cost total requirement of all these materials and then at a certain predecided uh cost which the company 7:32 7 minutes, 32 seconds will decide internally we will cost the whole building for the manufacturing material requirement. Then how much will 7:39 7 minutes, 39 seconds it cost us to manufacture it in our plants, paint it, take it to site, freight it and actually erect the whole 7:47 7 minutes, 47 seconds building for the client. So we will give the client a a lumpsum bid for the building which include design, engineering, manufacturing, taking it to 7:56 7 minutes, 56 seconds site and erecting it as a complete building as a product. So the client now gets one price for the whole building. 8:05 8 minutes, 5 seconds The design, engineering, uh the steel prices, the cost, the manufacturing, the delivery at site and erection is now all 8:13 8 minutes, 13 seconds the responsibility of one pre-owned building company instead of as in the earlier case multiple uh companies were responsible. Now he gets one building as 8:22 8 minutes, 22 seconds we say on one date and at one price. So that is a big advantage the customer gets. Besides that, he also now gets a 8:31 8 minutes, 31 seconds very high quality product because the whole building is actually manufactured in our plant. Nothing is actually done at site. 8:38 8 minutes, 38 seconds Everything from drilling, cutting, welding uh to the exactly to the right size, painting even is done in the plant in very controlled conditions using 8:47 8 minutes, 47 seconds highly automatized build uh machines and of course very skilled people at site. 8:52 8 minutes, 52 seconds It is only a nut andbolt assembly uh which happen. So he gets a very high quality building. Then also because the building being manufactured in the plant 9:01 9 minutes, 1 second at the same time as the contractor is doing a lot of the civil work including foundations etc at site. So speed is 9:09 9 minutes, 9 seconds very fast because we have made the building ready for delivery at site the day his foundations are ready. Normally 9:16 9 minutes, 16 seconds the contractor would have bought uh standard materials from the uh steel companies and then started fabricating as on that date. But right now our 9:24 9 minutes, 24 seconds material arrives ready to be erected in a nut and bolt assembly. So not only does he get high quality but he gets very fast speed. In most cases we have 9:33 9 minutes, 33 seconds seen he can the client can save up to 50% of the time compared to a traditional steel building. So that is 9:40 9 minutes, 40 seconds these are the advantages. uh then how does interarch uh become a good player in that is by developing relationships with companies because we are now more 9:49 9 minutes, 49 seconds or less treated like a capital goods partner of the company because like in capital goods like the machinery that in Asian paints or an HQL or excite battery 9:58 9 minutes, 58 seconds would order they give us a requirement and they said now you fulfill it so they have to rely on a company like us to 10:05 10 minutes, 5 seconds meet their full requirement so we say that we are actually the first capital goods requirement company of the client. 10:13 10 minutes, 13 seconds So therefore relationships what is our past work past history with the client with the industry with those kind of buildings becomes a very critical factor 10:22 10 minutes, 22 seconds in the customer's decision as to who should we give the work to. Price is secondary in these cases because the 10:29 10 minutes, 29 seconds design engineering ability to manufacture supply on schedule erect it at site is a more of a key factor and 10:37 10 minutes, 37 seconds not only do we do tasks like design engineering manufacturing and supplying and erecting but we have to do it in a very very controlled and a very 10:46 10 minutes, 46 seconds sequential and the delivery has to be very very perfectly done because the building will start from one end and 10:53 10 minutes, 53 seconds carry on. So for from that side every item has to be supplied whether it's a nut, a bolt, a clip, even the smallest 11:00 11 minutes item has to be supplied in a proper sequential erection sequential form. Every item becomes very critical. 11:08 11 minutes, 8 seconds Therefore, not only do we have to do all these things, but we have to ensure that the whole building is supplied in a proper format so that the building can 11:16 11 minutes, 16 seconds be erected at site by the certified builders that we have in a proper manner and they are also fully equipped with 11:24 11 minutes, 24 seconds proper equipment, proper tools, properly trained people, cranes, resources, everything is already organized at site. 11:32 11 minutes, 32 seconds So it's a very complex system to supply that whole building in terms of engineering making a BOQ buying all the 11:40 11 minutes, 40 seconds raw material specifically for that building manufacturing each item in a sequential form and supplying it in a 11:47 11 minutes, 47 seconds sequential form and then of course erecting it. relationships, your past history, your ability to design and 11:55 11 minutes, 55 seconds engineer and deliver building are the most critical factors when the customer considers a company for using a 12:02 12 minutes, 2 seconds pre-ioned building. So, Interact has of course built itself shelf a very good position in the market for last 25 26 years. We have dealt with nearly every 12:10 12 minutes, 10 seconds company, every kind of building, every geography. uh so therefore we always say that we are completely building agnostic 12:17 12 minutes, 17 seconds industry agnostic geography agnostic but we also have to erect so whether it is in Assam or cobat or uh in Orisa or 12:26 12 minutes, 26 seconds Bihar the projects have to be also erected so it's not a matter of just delivering but we have to go and erect the project also so our ability to work 12:36 12 minutes, 36 seconds in certain geographies becomes as critical as the ability to supply so that is the abilities which interact has built up and therefore for we are 12:44 12 minutes, 44 seconds considered a preferred partner for many of the larger companies, many of the specialized companies and many of the new age companies as we call them uh 12:53 12 minutes, 53 seconds like lithium battery, EV, data centers, uh you know the solar industry, renewables, these companies have very 13:01 13 minutes, 1 second large uh requirement uh very tight schedule requirements. Therefore, they go by our history. What have we done in 13:10 13 minutes, 10 seconds the past? With most of these companies, we've already done some projects in the past. Uh similar buildings or similar size buildings we have done in the past 13:18 13 minutes, 18 seconds and supplied very well. So we become a preferred partner with these companies and therefore a chance of our getting 13:26 13 minutes, 26 seconds the order becomes a little higher. So that is how we have developed interarch and the uh pre-minent building and today of course pre-minent buildings are 13:34 13 minutes, 34 seconds getting more and more popular because people want to do more and more off-site work. They don't want any work to be done at site. More and more structures 13:43 13 minutes, 43 seconds whether it is high-rise, whether it is data centers, whether it is stadiums, malls, airports, everybody wants that 13:50 13 minutes, 50 seconds material comes ready made from the plant and just done a nut and bolt kind of assembly at site. So there can be pre-in buildings and they can also be 13:58 13 minutes, 58 seconds pre-engineered structures. So as we have seen all over the world that the only way the company countries can develop fast is by using steel and in steel most 14:07 14 minutes, 7 seconds of the countries have only managed to develop at a speed by using pre-engineered steel readymade ready to 14:14 14 minutes, 14 seconds supply erect and it comes at site because most of the sites don't even have much space or don't have uh they 14:21 14 minutes, 21 seconds have constraints of uh how much material they can store or want to store and they just want immediate direction with the 14:29 14 minutes, 29 seconds least number of people, skilled people, right resources and the least number of people. So that is basically how the 14:36 14 minutes, 36 seconds premium building industry works and we have seen that gradually now more and more uh you know buildings like data 14:43 14 minutes, 43 seconds centers uh your high-rise building commercial are more becoming more and more popular to use steel as labor 14:51 14 minutes, 51 seconds environmental reasons uh you know customer speed requirements requirements uh the value of speed the value of 14:59 14 minutes, 59 seconds quality is also coming in other areas besides the manua facturing and logistics. So therefore we have of 15:07 15 minutes, 7 seconds course been gearing up and we have done a lot of buildings which are non-industrial like hospitals, hotels, data centers, uh you know airport, Delhi 15:16 15 minutes, 16 seconds T3 terminal was done by us many years ago. So we have uh you know done all these kind of buildings. So we have become like a preferred partner with all 15:25 15 minutes, 25 seconds these areas all these customers and also we do a lot of marketing and business development as a company that has been 15:31 15 minutes, 31 seconds the base of our group that constantly we are doing business development marketing going to new companies going to 15:38 15 minutes, 38 seconds companies which are not using premium building right now. um showing them what we can do. New companies coming into 15:45 15 minutes, 45 seconds India first time consultant constantly we are having seminars and presentations and in in-house seminars to show to them 15:54 15 minutes, 54 seconds how preminut building and interact or steel structures and interact can add value to them. So it's not that we wait 16:02 16 minutes, 2 seconds for inquiries to come to us and bid but we do a lot of marketing and business development and that also happens a lot 16:09 16 minutes, 9 seconds of like R&D in the house because unless we are prepared and unless we have the capacity and skill to do design 16:17 16 minutes, 17 seconds engineering and manufacturing and erection of a high-rise building or a data center or a lithium battery plant I 16:24 16 minutes, 24 seconds cannot go and offer it to a client. So first I have to prepare myself. In-house capabilities are very critical in 16:32 16 minutes, 32 seconds premium building. I can't go and take an order and then hope for the best. I have to be fully prepared. My customer will go through every single point as to how 16:41 16 minutes, 41 seconds will I do that building, how will I manufacture it, how will I engineer it and then only will I be able to bid for 16:48 16 minutes, 48 seconds these new kind of new age buildings. So we always are constantly preparing with better engineering, better software, 16:55 16 minutes, 55 seconds better hardware, better skills, better manufacturing skills, better erection skills. Uh therefore staying ahead of 17:03 17 minutes, 3 seconds the curve as far as these buildings are concerned. 17:07 17 minutes, 7 seconds Over the last one year, uh I will give you financial details also. But over the last one year, as promised, uh we have 17:15 17 minutes, 15 seconds uh started two new plants. one in Andhra Pradesh which is fully geared towards heavy structures. Heavy structures what 17:23 17 minutes, 23 seconds we call are more used in data centers in high-rise buildings. In some of the very large structures a certain percentage in 17:30 17 minutes, 30 seconds lithium battery plants and solar plants uh some structures are required which are heavier than each piece of a pre-in 17:38 17 minutes, 38 seconds building. So that plant will specifically cater to that segment of the market which is growing very fast in India. And the other plant which we have 17:47 17 minutes, 47 seconds started last year is in Gujarat. Uh as promised both the pre-engineered building plant in Gujarat will be in play by July this year and the heavy 17:56 17 minutes, 56 seconds structure plant also in two phases in July and August. The first phase of that plant will be done. Seeing the growth 18:03 18 minutes, 3 seconds that is happening in this area. They're also planning the phase two and three uh which we had earlier planned to do at a later stage of the heavy structures more 18:12 18 minutes, 12 seconds or less starting one after the other. So that hopefully by maybe end of next year we have three phases of the heavy 18:19 18 minutes, 19 seconds structure plant ready in Andra because we are seeing that kind of demand and growth happening in India at a very fast 18:27 18 minutes, 27 seconds pace and if we this past set of capacity I think our scope of getting more orders and from these kind of clients is far 18:36 18 minutes, 36 seconds higher. Gujarat will be a PEB plant which will be in two phases. first phase in July, the second phase where only the 18:43 18 minutes, 43 seconds machinery and people have to be order uh added will be probably by end of this year in a phased manner because of the 18:51 18 minutes, 51 seconds uh way we get the people train them and put them into place. So with the Gujarat plant that will be our fifth fully 18:58 18 minutes, 58 seconds integrated plant and that will give us capacity of about 2500 kes in pre-let buildings and heavy structure will add 19:06 19 minutes, 6 seconds uh in this year maybe by next March we will have about 40,000 tons 20 is already going in line uh by August and 19:14 19 minutes, 14 seconds 20 more hopefully by March April next year that will make it 40 and the plan currently is to add it to 60 by uh next 19:23 19 minutes, 23 seconds November December So that will be uh another uh uh area that we are adding in Gujarat. We also bought some more land 19:32 19 minutes, 32 seconds uh which we could use for heavy structure or for pre-inent building. 19:36 19 minutes, 36 seconds we've already bought that uh as we had notified uh earlier on the other areas uh I think uh we have 19:46 19 minutes, 46 seconds uh exports as we had mentioned earlier exports are picking up uh we've got good export orders we have got good tie up uh 19:55 19 minutes, 55 seconds with our partner in Canada who will promote our green buildings in Canada and US and other parts of the world 20:01 20 minutes, 1 second where they deal uh with the same uh company we are also Alo planning to set up a joint venture as a 100% export unit 20:10 20 minutes, 10 seconds in uh India to supply to them what we call open web joy system which is a item which is primarily used in the North 20:19 20 minutes, 19 seconds American continent. It is not uh usable in India. Nobody uses it right now but there's a great shortage and our 20:26 20 minutes, 26 seconds partners there feel that their requirement and what is they can sell in the market. uh we can certainly set up a 20:33 20 minutes, 33 seconds plan with a 50/50 joint venture. The MOU we have signed yesterday. Uh it will take us a few months to formalize that 20:41 20 minutes, 41 seconds and sort of decide on the process but I think within a year by maybe next August September hopefully we should have the 20:48 20 minutes, 48 seconds plans for this and then in a phased manner we will pick up the uh uh sort of production and start exporting it. uh 20:57 20 minutes, 57 seconds the joint venture will be full from production till sale but our responsibility as interact will be the responsibility in India to manufacture 21:05 21 minutes, 5 seconds the item and ship it out and the joint venture partner responsibility will be to import it and sell it over there or 21:12 21 minutes, 12 seconds erection if required will be done by them. to exports and that partnership is also uh as we promised uh earlier is uh 21:21 21 minutes, 21 seconds on on online on online now and picking up uh this JB will be for 100% export uh 21:28 21 minutes, 28 seconds like I said heavy structure we are already now planning that we should go for phase two and three uh so I will 21:35 21 minutes, 35 seconds just give you a little bit of brief on our uh growth our financials for the last quarter and the last year so I 21:43 21 minutes, 43 seconds think last quarter we have had a revenue of about 500 crores. Uh which is uh for a full year we have done 1898 crores uh 21:52 21 minutes, 52 seconds which is a 30% uh plus increase from the previous year. 21:57 21 minutes, 57 seconds Uh we had predict projected earlier about 1720 kores. Then we raised the projection to 1850 but actually we have 22:06 22 minutes, 6 seconds managed to achieve 1900 1898 kores. uh the capacities that we have are more or 22:14 22 minutes, 14 seconds less fully utilized. So going forward next year we will also have the Gujarat line and the Andra second phase of the 22:21 22 minutes, 21 seconds PEBB plant will also be there for the full year. So that will give us the additional sales that we are projecting for uh 26 27 which is also online. I 22:30 22 minutes, 30 seconds think we have projected 15% but I think we should be somewhere between 2150 to 2200 K which is very good and 2500 K for 22:40 22 minutes, 40 seconds 2728 as projected some years ago. So we are very happy with our results that from a projected 1720 we have managed to 22:48 22 minutes, 48 seconds do nearly 1900 uh a bida and profitability has been online with the sale uh there has not been uh much drop 22:58 22 minutes, 58 seconds a little bit uh lower a bida etc because of certain reasons like uh because of heavy structures and American exports 23:06 23 minutes, 6 seconds and Canadian exports we had to get our company certified for many of the certifications uh required uh some 23:13 23 minutes, 13 seconds professional charges which are the requirement for bidding for heavy steel structure comp buildings which we had to do in the last one year. Orders will now 23:22 23 minutes, 22 seconds come in this year. Uh and a one-time uh uh sort of a requirement we had to do 23:29 23 minutes, 29 seconds for the uh the application of the labor codes. So that has taken away about five to five and a half crores of uh sort of 23:38 23 minutes, 38 seconds profitability away from our current profit. Otherwise our EIDA would have been higher than last year and so we are 23:46 23 minutes, 46 seconds very excited and very happy to see that what we projected we have crossed it and the future projections are online our uh 23:55 23 minutes, 55 seconds order book uh is over 1,700 kores uh right now compared to what it was in 24:01 24 minutes, 1 second April it's uh 40 50 kores higher than what it was uh last time we declared it after that as you know we have announced 24:09 24 minutes, 9 seconds another 102 cr order that we have received but that will go into the next quarter and we are expecting the order 24:16 24 minutes, 16 seconds flow to remain uh solid and robust for us to be able to deliver our full capacity because in 3D building we have 24:24 24 minutes, 24 seconds to go by our capacity to deliver and then only take an order so I think with an order book of 1700 k which should be 24:33 24 minutes, 33 seconds fulfilled in the next 9 months I think uh we have a nearly a full order book as far as we are concerned which means 24:40 24 minutes, 40 seconds about uh you know 550 to 600 KS per quarter uh we will be executing going forward and hopefully a little bit 24:49 24 minutes, 49 seconds higher to achieve our target of 2150 2200 KES uh going forward. Uh so 24:55 24 minutes, 55 seconds capacity addition is online, exports are online, heavy structure is online, all our sales projections, a bit projections, profitability projections 25:05 25 minutes, 5 seconds are all online, order book is very robust and uh so we are very very happy 25:12 25 minutes, 12 seconds to see that our plans to increase capacity whether it is a Gujarat phase two for which we already bought land uh 25:20 25 minutes, 20 seconds heavy structure which we are now planning that the phase two and three for next year and the year after. 25:29 25 minutes, 29 seconds Lot of uh traction happening in the steel buildings. Uh a lot of uh customers coming to us and wanting to 25:37 25 minutes, 37 seconds sort of buy from us in the longer term because these large high-rise buildings do require a longer term order book uh 25:45 25 minutes, 45 seconds in the last uh 12 months or so also which is a big improvement. They 25:53 25 minutes, 53 seconds have come from Africa, from Canada, uh from Myanmar, uh you know from uh Nairobi. We have got a hospital, a 26:00 26 minutes high-rise building. So we are very happy with what we have done. Uh I think uh we are well on track. We have got a lot of 26:07 26 minutes, 7 seconds new clients also uh in this year. Uh we have got a new uh solar plant from CSV green power. Then uh we have added a new 26:16 26 minutes, 16 seconds industrial uh logistic company LOA industrial. Uh we of course deal with indospace and uh you know loss and a lot 26:26 26 minutes, 26 seconds of these companies already horizon also uh we are doing a lot of work for horizon. So we are happy to add load 26:32 26 minutes, 32 seconds logistics also to our uh you know uh sort of order book. L&T we are working with them on the project for hero 26:41 26 minutes, 41 seconds scooters which is a EV. Uh Suraj Buildcon we are doing a project for them. Jakar writing food we are doing another project for 26:50 26 minutes, 50 seconds them for campercola uh India auto techs India new order craftsman automation our existing client we are doing a lot of uh 26:59 26 minutes, 59 seconds business with them so the way forward looks very good uh the figures as you have seen I think uh if I were to go 27:08 27 minutes, 8 seconds take you through the figures I think we are saying that quarter 3 to quarter four the growth has been 8.7% and maybe 27:15 27 minutes, 15 seconds that has led to a a disappointment but we had mentioned this last time that we have already achieved a full capacity in 27:22 27 minutes, 22 seconds the third quarter much faster than we expected so the fourth quarter will be not higher as usual before so we had 27:29 27 minutes, 29 seconds predicted a lesser turnover but I think we have still achieved an 8.7% growth for the quarter and a 30.6% 6% growth for the whole year. 27:40 27 minutes, 40 seconds Uh private sector is growing very fast as far as we are concerned. A lot of foreign companies coming in which automatically prefer companies like us. 27:48 27 minutes, 48 seconds Private investment, semiconductor plants, data centers are numerous. Uh renewables are being greatly encouraged 27:56 27 minutes, 56 seconds by the government. Semiconductor again greatly encouraged by the government. As you know we have already been involved 28:03 28 minutes, 3 seconds in the semiconductor plant in Sanan uh for Micron and for Tata electronics and Assam uh and I think many more are going 28:12 28 minutes, 12 seconds to come up. So I think we are well on our track uh to achieve our projection targets. uh we might revise them uh 28:21 28 minutes, 21 seconds after the second quarter once the PL plants infrastructure plants are in uh play but that we will only do once they are actually in play and uh we are 28:30 28 minutes, 30 seconds delivering and we see what the market is like the revenue has grown for the quarter is 53 crores instead of in place 28:38 28 minutes, 38 seconds of 49 in the earlier quarter margin remains at 10.5 after even these adjustments like uh I mentioned the 28:47 28 minutes, 47 seconds labor core and uh uh these professional charges that we had to pay for uh export certification as well as the high-rise 28:56 28 minutes, 56 seconds uh uh you know engineering which we had to outsource the total revenue for FY26 29:03 29 minutes, 3 seconds is 1898 crores compared to 1453 a growth of what 31% aida 176 from 136 29% growth 29:13 29 minutes, 13 seconds very healthy Aida margin steady at 9.3 in spite of these uh provisions that we had to make and 29:20 29 minutes, 20 seconds the extra costs we had to incur. Profit after tax 135 instead of 108 a 25% 29:27 29 minutes, 27 seconds growth because a little bit extra tax we had to pay uh because in the earlier year we had paid about 10 crores in gradu uh which was outstanding. 29:37 29 minutes, 37 seconds Therefore we got a tax concession on that. This year of course it was not there. So tax has become a little bit higher uh compared to uh earlier year. 29:46 29 minutes, 46 seconds uh and also we have changed our tax system a little bit. So that has resulted in a 3 to 4 cr uh tax increase 29:53 29 minutes, 53 seconds for this year. A bida has increased uh as I mentioned margin is the same uh 29:59 29 minutes, 59 seconds profit after tax is 135 instead of 108 and the directors have recommended a final dividend as of last year 12 and a 30:08 30 minutes, 8 seconds half% of the share value. 30:12 30 minutes, 12 seconds uh I think uh balanced questions can come and we will try to answer and cover more points as we go on. Thank you very much. 30:21 30 minutes, 21 seconds I think we can move on to the questions. 30:26 30 minutes, 26 seconds Thank you very much. We will now begin with a question and answer session. 30:30 30 minutes, 30 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. 30:38 30 minutes, 38 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants, you are requested to use answers while asking a question. 30:48 30 minutes, 48 seconds Ladies and gentlemen, we will wait for a moment while the question to assemble. 30:55 30 minutes, 55 seconds A reminder to all you may press star and one to ask a question. 31:04 31 minutes, 4 seconds We will take the first question from the line of Shabbanker Gupta from Equitry Capital. Please go ahead. 31:11 31 minutes, 11 seconds Hello. Am I audible? Yes. 31:14 31 minutes, 14 seconds Yes sir. You're a Yeah. Hi. I sir. So uh first question is around so one of our competitors who also declared results recently mentioned 31:23 31 minutes, 23 seconds that steel prices have increased substantially in Q4 due to MIT increases and uh they have faced major disruption 31:31 31 minutes, 31 seconds with two or three out of uh their steel suppliers shutting down in March. So what is interups uh steel supplier 31:39 31 minutes, 39 seconds concentrations and uh did you also face similar disruptions is part on this question. 31:46 31 minutes, 46 seconds uh steel companies did have a lot of disruption. Uh they had lot of export orders and uh they had some disruption in maintenance of the plants and because 31:55 31 minutes, 55 seconds of earlier very low prices in the previous quarter uh lot of them have shut down their lines rather than run them at a loss. But you know Interra has 32:04 32 minutes, 4 seconds had very old relationships with these companies whether it is steel authority whether it is GSP GSW whether it is AMNS. So these kind of relationships 32:12 32 minutes, 12 seconds that we have developed over last 25 26 years come in handy when these issues come up. So we didn't face any disruption. There were some minor 32:21 32 minutes, 21 seconds disruptions uh but didn't affect any of our projects as you can even make out from our tails. Uh the little minor 32:28 32 minutes, 28 seconds disruption that we suffered was more in March when there was a little bit of LPG crisis and a lot of the workers left. So the site clearances didn't come as fast 32:37 32 minutes, 37 seconds as uh as we expected but otherwise there were no disruption as far as steel uh supplies or steel uh you know prices are concerned as far as we are concerned. 32:49 32 minutes, 49 seconds Okay, got it sir. So actually second question was a kind of a buildup to this only right. Uh so you said that uh we suffer because of LPG crisis and workers 32:58 32 minutes, 58 seconds leaving right like of course this does not have a you know clear correlation with site not getting clearances. So just want to understand like uh I think 33:07 33 minutes, 7 seconds you are bought very off of off from the sales target which we had in mind right I think results are fairly good in my view. Uh so like what has led to the 33:16 33 minutes, 16 seconds sales being like tad bit low other than like if if you can allocate probably the top two or three reasons the pack being 33:24 33 minutes, 24 seconds low uh the sales being a tad bit like it is not very low 89% is still a good number but like uh I think expectation 33:32 33 minutes, 32 seconds you know because see like last time we had mentioned that we had see the question is really of having a capacity 33:39 33 minutes, 39 seconds to deliver the orders. So normally in a year as we build capacity naturally every quarter becomes higher 33:47 33 minutes, 47 seconds you know uh second third but in the third quarter uh we had done a very good uh sales because we had utilized our capacity very well and so we had 33:56 33 minutes, 56 seconds actually said in the last investor call that the fourth quarter will be very similar to the third quarter because the capacity which we have and 34:04 34 minutes, 4 seconds what we can deliver in that only. So the growth which we normally have in fourth quarter compared to third quarter didn't happen because the third quarter was 34:12 34 minutes, 12 seconds better not because the fourth quarter was bad. 34:15 34 minutes, 15 seconds Got it. Got it. Got it sir. And I'm sure uh given that we not faced many disruptions so far on this front right 34:22 34 minutes, 22 seconds from the Asia war. Uh is is it something like going forward also we should be ideally not very impacted. Is that something which we can say right now or there is lack of visibility? 34:33 34 minutes, 33 seconds No from steel point of view no I don't think we have any uh predicted impact we deal with like I've said all the five or 34:40 34 minutes, 40 seconds six majors that we have in India steel and we deal with everybody public sector as well as private sector and have excellent relationship with all of them 34:49 34 minutes, 49 seconds so you know if individual company does have a periodic or that month it has a problem it doesn't impact us because the 34:56 34 minutes, 56 seconds other companies have uh and actually as a company to protect ourselves we then try to have informal long-term arrangements with them. 35:05 35 minutes, 5 seconds You look we will give you X quantity every month and you hold the price or while officially they can't do it but they do give us because we have been a 35:14 35 minutes, 14 seconds regular buyer. So I mean if I have a visibility for next three to four months I feel the prices will move down as they 35:21 35 minutes, 21 seconds always do during monsoons from May June they start moving downwards. So when the prices are going to move down uh I think 35:28 35 minutes, 28 seconds the disruption to supply has also been covered because a lot of the lines of these companies have come up. So disruption I don't see any problem going 35:36 35 minutes, 36 seconds forward. Uh prices also I feel a little softening going forward but as it is always in a cycle. It's nothing new. I 35:44 35 minutes, 44 seconds don't see any disruption in steel steel at all. 35:47 35 minutes, 47 seconds That's fair sir. And uh I think my question was more to do with the current like sort of smaller issues we had like workers leaving. Are we seeing workers 35:54 35 minutes, 54 seconds migrating back again? That's one country and PG. Yeah. 35:58 35 minutes, 58 seconds Yeah. See, it was a multiple factor because election elections were also happening and a lot of people got scared of that sir their vote getting deleted 36:06 36 minutes, 6 seconds you know. So that was a multiple thing but yeah of course now they're coming back and you know uh the clearances are there and the sales have started and all 36:14 36 minutes, 14 seconds the sites have started working full steam. uh so that that way I think uh by first week of May uh uh we were pretty 36:23 36 minutes, 23 seconds well covered. I think end of April elections got over and Bengal is of course a big supplier of labor for the sites. Uh so that started coming in by 36:32 36 minutes, 32 seconds first week of May and I think uh today we would say that we are pretty much back to normal. 36:38 36 minutes, 38 seconds Got it sir. I'll ask a quick uh second question as well sir. So you mentioned that uh we are you know progressing well on the non-industrial bit uh but the 36:46 36 minutes, 46 seconds from the PPD I gauge that the industrial segment of our order book has gone of the of the total sales has gone from 77% 36:53 36 minutes, 53 seconds to 87% in FI26 right so I just want to understand a little deeper on how well the non-industrial space is coming along 37:02 37 minutes, 2 seconds see non-industrial uh in our case lot depends on the heavy structure that that is why we wanted to to set up the heavy structure plant because non-industrial 37:11 37 minutes, 11 seconds segment always takes a major chunk of the structure is heavy structure. So I think going forward you will see an 37:18 37 minutes, 18 seconds improvement. Uh some of the orders we have started getting now uh including this 102 crore order which we announced uh just 2 three days ago. These are more 37:27 37 minutes, 27 seconds of non-industrial buildings but non-industrial buildings go hand inhand with our heavy structure plant also 37:34 37 minutes, 34 seconds being in play. So while we are seeing a lot of traction on that lot of demand coming up on that area but we were little careful of taking orders because 37:42 37 minutes, 42 seconds till the plant is there uh we will not be able to deliver but we are seeing a very large fraction in the non-industrial segment in which we also 37:50 37 minutes, 50 seconds take data centers for example high-rise commercial buildings uh for example uh this order that we have got recently is 37:59 37 minutes, 59 seconds for the you know one of these government buildings on Rajput in Delhi uh where all these government buildings are changing 38:06 38 minutes, 6 seconds Uh so they were always in steel but we were never going able to take it because our plant was not there. So now the order that we have got the because our 38:15 38 minutes, 15 seconds plant will be in operation by July and this the supply starts only in September. So we have taken the order but we are seeing a lot of traction on 38:23 38 minutes, 23 seconds that but you not in the past but you'll see it in the future. Any other places except data centers highest commercials on the knowledge industrial that is good traction. 38:32 38 minutes, 32 seconds Yes very good traction. 38:36 38 minutes, 36 seconds All right, perfect. Thank you. Thank you so much. 38:39 38 minutes, 39 seconds Thank you. Before we take the next question, ladies and gentlemen, in order to ensure that the management will be 38:46 38 minutes, 46 seconds able to address all the questions from the participants in the question queue, we request you to kindly limit your questions to two poor participants. If 38:55 38 minutes, 55 seconds you have a follow-up question, please rejoin the queue. Again, we will take the next question from the line of Rahul Kumar from Varia Pant. 39:04 39 minutes, 4 seconds Please go ahead. 39:06 39 minutes, 6 seconds Yeah. Hi. Uh sir, you mentioned about uh you know some revenue loss because of the site now being clear. So would you 39:15 39 minutes, 15 seconds be able to quantify how much how much you lose this cottage? 39:19 39 minutes, 19 seconds Very little. I think I would say 25 maybe 20 25 K because you know see sometimes we only hold it. So the sites 39:27 39 minutes, 27 seconds are ongoing. So if the utilizations are not very uh high at the PL site because of the things so we only hold back a 39:35 39 minutes, 35 seconds little bit so that uh the material doesn't get spoiled at site we wanted to get there uh so it was very little uh it 39:42 39 minutes, 42 seconds is not substantial but because everybody was asking what was the challenge that you faced that is why I mentioned it otherwise it is negligible uh in the 39:51 39 minutes, 51 seconds whole sense you know okay okay I mean in terms of uh demand environment uh At this point of time, do 39:59 39 minutes, 59 seconds you see any uh you know adverse uh environment versus let's say what it was 3 months back? 40:08 40 minutes, 8 seconds And uh if you can also help us you know the big bid big pipeline which you used to mention the calls uh what is it now 40:15 40 minutes, 15 seconds versus what what was it three three months back bid sorry I don't get that bid by big pipeline I think you mentioned you 40:24 40 minutes, 24 seconds know pipeline you have a pipeline yeah no see we are not seeing any uh lower growth in fact we are still fighting to build up capacity faster 40:32 40 minutes, 32 seconds because uh we can't take orders which we can't deliver uh you know and there is still more in the market that we could take if uh we had the capacity to 40:41 40 minutes, 41 seconds deliver. That's why we are trying to add capacity faster. So we are not seeing any slowdown uh at least as far as interact is concerned we are not seeing 40:48 40 minutes, 48 seconds any slowdown from our you know sort of customers or would be customers uh pipeline is growing. I think I would say 40:57 40 minutes, 57 seconds that today what we normally say pipeline one would be about 7 to 800 crores where order would get finalized within the 41:04 41 minutes, 4 seconds next 60 days. uh you know uh that would be approximately 8 to 900 crores uh currently. So those are very serious uh 41:12 41 minutes, 12 seconds at a serious stage and pipeline two where we have already bid for jobs and we think it'll be between 2 months to 41:19 41 minutes, 19 seconds six 7 months decision that would be about 3 and a half thousand crores. So the pipeline is very tight and because 41:26 41 minutes, 26 seconds don't forget that all these pipelines I'm talking about are jobs which are jobs which we've estimated calculated and bid for them. So it is not just a 41:35 41 minutes, 35 seconds inquiry we have got it could be even more. So we don't see any change. In fact as we get into more 41:43 41 minutes, 43 seconds in the heavy structure segment and more into these non-industrial building we are seeing that the pipeline is only getting bigger. 41:50 41 minutes, 50 seconds Right now we don't see any adverse effect. 41:53 41 minutes, 53 seconds Okay. And just last question uh given the sharp increase in the steel prices uh do you see any uh margin pressure at least in the short term? 42:05 42 minutes, 5 seconds The steel prices are always very cyclical. Uh you know over a year they will come back to where they were. Now in some quarters they go up a little bit 42:13 42 minutes, 13 seconds more than they should have. In some quarters they come down a little bit more than they should have but otherwise they're pretty cyclical. And because we 42:21 42 minutes, 21 seconds are not uh forced to take the order at one steel price, we keep a daily check okay if the steel prices are going up. 42:29 42 minutes, 29 seconds uh so like any other raw material we have to manage the prices you know so we if suddenly something happens it's a 42:36 42 minutes, 36 seconds little different but normally in steel suddenly something doesn't happen you know it's pretty predictable going forward that next 2 3 months uh like 42:44 42 minutes, 44 seconds February March April prices went up which they always do every year but they were little bit more than normal going 42:51 42 minutes, 51 seconds up so I suppose now they stabilize and start coming up but over a period of 12 months we find that uh it always zeros 42:58 42 minutes, 58 seconds down to well you know zero uh but it's cyclical so that peak or that sudden uh thing which happened after the Ukraine 43:07 43 minutes, 7 seconds war that kind of a thing is very unexpected but doesn't happen uh you know so we right now that's not the case 43:14 43 minutes, 14 seconds I think steel prices have moved up but it's predictable in December we knew that January February March when prices always go up it will be little bit more 43:23 43 minutes, 23 seconds than it was previously right because they had also dropped a lot in October, November, December they were lower than the previous year's low. 43:33 43 minutes, 33 seconds So I think it's more of a managing a thing rather than the steel prices only don't go one way and neither do my my prices are not fixed at one rate and 43:41 43 minutes, 41 seconds saying that whatever may happen in the steel market I have to not increase my price because I'm bidding all the time. 43:48 43 minutes, 48 seconds So when I'm bidding all the time then I'm bidding at the prices that I expect to be there when I buy the steel for that job. So that is a part of my 43:57 43 minutes, 57 seconds management. If I am bidding today, let us say I know that if the order comes by end of May, I will not be able to buy this material before July. So I have to 44:07 44 minutes, 7 seconds have a prediction. Talking to steel companies, everybody okay what whether the steel prices will be higher, lower or same and then I bid accordingly. 44:16 44 minutes, 16 seconds So steel prices are very much a like a managing of raw material like for anybody else. 44:22 44 minutes, 22 seconds I I don't think there's any difference between high industry and other industries in that sense. 44:27 44 minutes, 27 seconds Okay. Okay. Okay. Okay. Thank you. Thank you. 44:35 44 minutes, 35 seconds Thank you. We will take the next question from the line of Sudep Bora from Ambit Capital Private Limited. 44:42 44 minutes, 42 seconds Please go ahead. 44:48 44 minutes, 48 seconds volume uh in terms of metric tons for Q4 uh how much volumes did we uh do 44:56 44 minutes, 56 seconds uh how much uh volume did we do do I think uh Mr. Do you have the figure? Uh 41,000 Q4 sir. 45:05 45 minutes, 5 seconds 41,000. Yes sir. 45:06 45 minutes, 6 seconds Oh compared to Yeah. 45:09 45 minutes, 9 seconds Okay. And uh what like how much would be the capacity utilization like uh for this quarter Q4? 45:17 45 minutes, 17 seconds See our total capacity right now utilizable with four full plants and coming in later in the year but fully 45:26 45 minutes, 26 seconds working in the in the January to March quarter is about 160,000 tons you know 45:33 45 minutes, 33 seconds plus a little bit up and down uh and also we use a little bit outside so I would say our capacity would be about 180,000 tons and we are currently doing 45:43 45 minutes, 43 seconds about 40,000 tons of water and it will gradually move up So currently I would say our capacity to supply buildings 45:50 45 minutes, 50 seconds would be about 180,000 tons a year but with Gujarat coming in I think it'll go up a bit. 45:59 45 minutes, 59 seconds Okay got it. And uh so my next question was on the uh on the working capital 46:06 46 minutes, 6 seconds side. So your cash flow from operations are uh have turned negative for this particular year. So like are we 46:14 46 minutes, 14 seconds experiencing any kind of difficulties in uh uh working capital receivables getting stretched uh on account of the 46:22 46 minutes, 22 seconds geopolitics or whatever reasons see geopolitics doesn't affect us so much because we are all working in India 46:30 46 minutes, 30 seconds only we don't really do much very little outside uh so you see what happens is that in our business as we get larger uh 46:38 46 minutes, 38 seconds we do take a lot of larger orders so today we could be doing maybe five seven orders which are 100 cr plus you know so 46:47 46 minutes, 47 seconds uh in those orders the payments are little milestone driven unlike small and medium orders where our payments are 46:54 46 minutes, 54 seconds much faster uh say with Tata projects or with excite or with the larger area larger projects they are little 47:01 47 minutes, 1 second milestone driven so as we get into larger project values our dattors tend to go up because a lot of the dues will 47:09 47 minutes, 9 seconds come but they are they are like you know uh platinum uh uh clients. So there will be like TADA projects, excite uh you know uh 47:19 47 minutes, 19 seconds your uh these uh micron uh Agra task. So they are I mean the clients are very safe. We don't have any bad decks as 47:28 47 minutes, 28 seconds you've noticed even in the last two three years if you notice but the betas tend to go up whenever we do these larger orders. So now the only way you 47:36 47 minutes, 36 seconds can grow faster after a certain amount once we are doing 1,1200 crores a year uh we had one or two large orders now in 47:44 47 minutes, 44 seconds 2,000 K we have five or seven large orders so the datas tend to go up but they are 100% safe uh that is an issue 47:53 47 minutes, 53 seconds but not because of geopolitical or not because of any strain or stress from the client side. Uh second is that also our 48:01 48 minutes, 1 second stocks have gone up uh primarily not as a percentage so much of this thing but we have built them up because the price 48:08 48 minutes, 8 seconds rise in January, February, March was expected to move up a little bit uh till you know maybe it'll flatten out. So we 48:16 48 minutes, 16 seconds did buy some extra material to be able to cover that price increase uh by safeguarding ourselves. So both these 48:25 48 minutes, 25 seconds things actually cause a little bit of stress on the uh you know cash flow but I think it'll come back to normal pretty fast no stress 48:33 48 minutes, 33 seconds right thank you sir uh so then uh next question is on the on the margins front 48:40 48 minutes, 40 seconds so basically like the export orders that we are talking about so are they better in margins as compared to the local 48:47 48 minutes, 47 seconds domestic orders or is it in line see what we have seen is that the which 48:54 48 minutes, 54 seconds we get from more competitive countries like Africa, Myanmar, near nearby countries that we have got they are pretty competitive but you know the 49:03 49 minutes, 3 seconds costs are less because we don't have to do any erection. Our payments come against LC or against advance. Uh so 49:10 49 minutes, 10 seconds that therefore less risk but the margins I would say are pretty similar to what we make in India for these competitive 49:17 49 minutes, 17 seconds markets. The better margins will come from the North American market. 49:23 49 minutes, 23 seconds So there the margins are better and again the risk is less because we are neither selling nor marketing nor doing the erection over there. Uh and the 49:32 49 minutes, 32 seconds payments are either advanced or against LC. So I would say that as we build up more and more in the North American market that will give us extra margin in 49:40 49 minutes, 40 seconds the exports but the nearby markets like uh Africa and neighboring countries etc are pretty competitive but it is not 49:50 49 minutes, 50 seconds less than the Indian market but the risk is less. And I think uh so that way you might land up making a higher gross 49:56 49 minutes, 56 seconds margin in these orders. But our pricing is based on very similar to Indian pricing for these countries. North America is a higher market. 50:06 50 minutes, 6 seconds Okay. Sure. Thank you sir. 50:11 50 minutes, 11 seconds Thank you. We will take the next question from the line of Pirra Kumar Patru from Spark PMS. Please go ahead. 50:22 50 minutes, 22 seconds Uh hello sir. Uh am I audible little bit louder? 50:27 50 minutes, 27 seconds Sorry for interrupting the screen. Uh did uh can you go on the handset mode and speak? 50:35 50 minutes, 35 seconds Yeah. Uh just a minute. 50:37 50 minutes, 37 seconds Yeah. So my uh question was on the uh tax side. So you said the tax rate for Q4 was bit higher because of some uh tax 50:46 50 minutes, 46 seconds calculation change that we have done. Uh can you elaborate on that? uh will that be uh a new normal or will it come down to normal uh of 25% uh going forward? 50:58 50 minutes, 58 seconds uh I will let my I think there is some uh extra tax because like I said we had earlier paid graduity this year we 51:07 51 minutes, 7 seconds haven't paid but there's also some change in section 145A as I got a note 51:14 51 minutes, 14 seconds uh which means that if inventory keeps going up every year we were paying a little bit extra tax so we have decided 51:22 51 minutes, 22 seconds to change that method to not take that into account but in that case we have lost got 3 crores of tax that we had 51:29 51 minutes, 29 seconds already paid earlier but going forward it will be back to normal. So instead of the 25% tax as we should have paid or 51:37 51 minutes, 37 seconds 24% we paid last year I think it went up to what 27 am I right uh Mr. uh Bunson? Yes sir, you right. 51:46 51 minutes, 46 seconds But it's only a one-time hit uh that we have taken uh because we felt that going forward it is much more advantageous for 51:53 51 minutes, 53 seconds a growing company like ours not to lose that one one and a half crores every year to take the hit for last three 52:01 52 minutes, 1 second years and then bring it back to normal going forward. So going forward there will be no hit. 52:07 52 minutes, 7 seconds Okay. Uh so my second question would be on the uh guidance side. you have for 25 crores of 2500 crores of uh revenue for 52:16 52 minutes, 16 seconds FI28. Uh is that including the HSS uh segment? 52:22 52 minutes, 22 seconds you know uh see HSS segment we were not going to give a very major figure in anything because till we get into the 52:29 52 minutes, 29 seconds market and till we start selling until we see you know the like they say the taste of the pudding is in the eating so 52:36 52 minutes, 36 seconds we can plan whatever we want but since it's a little newer we have assumed that the HSS that we do will be a part of 52:43 52 minutes, 43 seconds that but I think we will have a much better idea by let's say uh the third quarter or the fourth quarter of this year by that time we would be in the 52:52 52 minutes, 52 seconds market we will have the capacity we'll be selling uh that how much does it add to our turnover uh otherwise what we had 52:59 52 minutes, 59 seconds given earlier two years ago was without uh heavy structures but let us see how much heavy structure we can add and change our guidance but I think it would 53:08 53 minutes, 8 seconds take us till end of the year to uh come to a sort of a conclusion on that yeah uh those are my two questions thank 53:17 53 minutes, 17 seconds you thank Thank you. We will take the next question from the line of Nikl Purit 53:25 53 minutes, 25 seconds from Fightent Asset Management. Please go ahead. 53:29 53 minutes, 29 seconds Hi, thanks for the opportunity. Uh am I available? Yeah. 53:34 53 minutes, 34 seconds Yeah. Uh so firstly for the Gujarat plant uh we earlier expected it to come by FI26 then we delayed it to phase one 53:41 53 minutes, 41 seconds the phase one to April or May. Now we're saying it it will come in July. Uh I mean why the delay again and are we on 53:48 53 minutes, 48 seconds track for phase two? Uh earlier we had said September October are there any delays here as well? Uh see the plant is 53:58 53 minutes, 58 seconds uh coming phase one and phase two the full building is coming up together just the machinery we will phase it out. Uh 54:05 54 minutes, 5 seconds the basic delay was in the beginning there was some problem when we started uh doing the foundation we realized that the water level is very high there. So 54:14 54 minutes, 14 seconds we had to change all our foundation drawing and that in that we lost about a month month and a half otherwise there was no other reason. Uh the building is up the machinery will start getting 54:22 54 minutes, 22 seconds delivered this month and normally we say about a month or two to get into commercial production because of the people but otherwise we have started 54:30 54 minutes, 30 seconds hiring people. The machinery will start getting installed by I would say first half of June. Uh trial production will 54:37 54 minutes, 37 seconds start in June and commercial production by uh July. We are very much on track except that we lost that one month in the beginning and the phase two as soon 54:46 54 minutes, 46 seconds as we have got the people the phase two can start because the building is the longest lead time. So this time we made the building complete for phase one and 54:54 54 minutes, 54 seconds two uh you know building electrical cranes everything is done for both the phases only the machine needs to be added as soon as the first phase is in production. 55:04 55 minutes, 4 seconds Got it sir. Got it. Okay. So earlier you had also indicated that you you've not included any heavier seed structure 55:10 55 minutes, 10 seconds revenue in the 15% uh guidance for FI25 FI27 uh and you would revise this once 55:17 55 minutes, 17 seconds there's more clarity on AP uh phase one coming on since we are pretty close could you throw some more light on what what kind of contribution can happen 55:25 55 minutes, 25 seconds this year uh or in FY28 you see uh if everything goes in order see we are I think this year we should 55:33 55 minutes, 33 seconds be able to sell about 10 to 12,000 tons because the production will happen in July uh you know by the time we get into commercial production supply. So 10 55:41 55 minutes, 41 seconds 12,000 kores could add at 120 130 kores to the business but I would only like to commit once the plant into is into 55:50 55 minutes, 50 seconds production maybe by our next investor call I'll have a clearer picture. Uh and if it keeps going well then ultimately the plant capacity is 18 to 20,000 tons. 56:01 56 minutes, 1 second So in a full year it should add 200 210 kores uh to our uh sale but I think the 56:09 56 minutes, 9 seconds uh actual figures and commitment I would like to give once we have started selling heavy structures. 56:14 56 minutes, 14 seconds So this is in terms of revenue potential right? Yeah. Yeah. 56:18 56 minutes, 18 seconds Okay. So any so on the same topic any update on the sixth uh PB plant uh the Gujarat plant that we talked about in last quarter we were exploring a QIP for 56:27 56 minutes, 27 seconds this and just to understand in case this comes on our peak revenue capacity will go to around 3500 kores right from the 56:34 56 minutes, 34 seconds planned 3,000 kores yeah with the that means six peed plants we have bought the land recently uh for 56:43 56 minutes, 43 seconds the second PEBB plant if we want to have it we bought the land last month uh next to our existing land uh and about 500 56:51 56 minutes, 51 seconds kes uh uh had two phases of premium of heavy structure if we get two phases on by next say August September or July 57:00 57 minutes August so that will give us a capacity of 3,000 crores for premate building and 500 crores for heavy structures but 57:08 57 minutes, 8 seconds probably by 2728 end we should have that good got it and the QIP for this any update on this 57:17 57 minutes, 17 seconds uh we are going to raise funds. Uh as we said we are exploring while we did take approval for QIP we are exploring as to 57:25 57 minutes, 25 seconds what is the best way to raise the funds right when we require it. But yes we'll be raising fund primarily for the heavy 57:32 57 minutes, 32 seconds structure plant and a little bit for the new Gujarat plant but primarily for the heavy structure plant that we need to 57:39 57 minutes, 39 seconds speeden up. So phase two and three we want to speeden up that. So I think uh timelines would be maybe in the next two 57:48 57 minutes, 48 seconds or three months we will finalize uh the fund raise. Okay. 57:51 57 minutes, 51 seconds Okay. Just just last question from my end with 41,000 tons for this quarter our realizations have increased to about 57:58 57 minutes, 58 seconds uh 1 lakh 20 to 23,000. Uh yeah am I am I right there? 58:05 58 minutes, 5 seconds Yes about. So for FI. 58:10 58 minutes, 10 seconds Yeah. So for FI27, uh where do we see C see the sustaining at? If you could throw some light there. 58:17 58 minutes, 17 seconds And per Yeah. Yeah. Please go on. Please go on. Sorry. No. No. Tell me. 58:24 58 minutes, 24 seconds The AITA per kg for the heaviest structure as well. Are they in a similar range or just just some light on these 58:31 58 minutes, 31 seconds two topics? Yeah. See the data on the heavier structure is very much similar uh in that sense because the structure 58:39 58 minutes, 39 seconds which we sell uh probably the costs are less so hopefully we should make a better margin on that even though we are 58:47 58 minutes, 47 seconds aiming for uh the gross margin to be similar to the structures on PEBB but again that's hope and we will see what 58:54 58 minutes, 54 seconds happens in reality because here the uh you know the selling and marketing expenses don't go up with the same team as selling uh the product a lot of the 59:03 59 minutes, 3 seconds design part is done by the customer not by us. So there's a bit of saving on that and erection and the the sale price is on a completely pass through basis. 59:14 59 minutes, 14 seconds Uh in this business uh you get a delta and the steel price variation is to the customer's account. So therefore we might land up making a little better net 59:23 59 minutes, 23 seconds margin but aim is to make the similar aid uh going forward on the heavy structure also. uh and uh I think uh 59:33 59 minutes, 33 seconds realization the realization uh I think uh right now 59:39 59 minutes, 39 seconds I think on uh the start 120 rupees a kg is the realization on pebb which I think 59:46 59 minutes, 46 seconds over a period of one year will remain the same uh last quarter was a little higher in price it might come down by four or five rupees in the next quarter 59:54 59 minutes, 54 seconds or next when the prices go down but average we have seen 120 rupees per year per kg is a pretty standard pre-minent 1:00:03 1 hour, 3 seconds building but in uh any structure because it's only the structure we are selling therefore the price remains around about 1:00:12 1 hour, 12 seconds 95 to 100 rupees a kg it it is 15 20 rupees less because we are not supplying any secondaries or any roofing cladding 1:00:20 1 hour, 20 seconds in that so less planning but less cost yes yeah got it those don't go with the heavy 1:00:28 1 hour, 28 seconds structure Got it sir. Thank you so much. 1:00:35 1 hour, 35 seconds Thank you. We will take the next question from the line of Deepanker best from CBV I am. Please go ahead. 1:00:44 1 hour, 44 seconds Thank you for the opportunity sir. So as the company order book stands at 1700 K as of April 26 with the exhibition 1:00:50 1 hour, 50 seconds timeline of 9 months as we have told. So can you provide a split between the PEBB and the new heavy structure segment in 1:00:58 1 hour, 58 seconds that in this I would say it's all PEBB in fact the first heavy structure order we got was after that which we just 1:01:06 1 hour, 1 minute, 6 seconds announced the 102 cr order uh uh but uh and we have got some more orders in the pipeline to heavy 1:01:13 1 hour, 1 minute, 13 seconds structure but this is primarily PE okay sir so then second question uh like you have mentioned that we can see the 1:01:21 1 hour, 1 minute, 21 seconds door up to 4% in the revenue and the company's already looking for an expansion of 2,000 metric 10. So what 1:01:29 1 hour, 1 minute, 29 seconds kind of tax margin can we expect in 20 saving? 1:01:34 1 hour, 1 minute, 34 seconds See we are right now giving the fame that you know whatever we are making I think we will make uh because you know 1:01:40 1 hour, 1 minute, 40 seconds in a growing company uh the operational leverage should be there but it is little bit defeated because there are lot of new items like heavy structures 1:01:49 1 hour, 1 minute, 49 seconds and exports which add more to the expense in the beginning till they take off. So we are basically saying that 1:01:57 1 hour, 1 minute, 57 seconds whatever margin we are making currently uh that margin we should maintain uh that is present 7 to 7 to 7.2% Yeah. Yeah. Net net. 1:02:08 1 hour, 2 minutes, 8 seconds Okay. 1:02:10 1 hour, 2 minutes, 10 seconds But sorry the last question that I had. Uh so you mentioned that the bars in North America 1:02:18 1 hour, 2 minutes, 18 seconds was much higher. So what was the contribution from there in Q4 and 26? 1:02:26 1 hour, 2 minutes, 26 seconds No, there is no American business in Q4. 1:02:28 1 hour, 2 minutes, 28 seconds We have just got the orders uh this month and last month and now we will be exporting to North America. Otherwise it was very small 1 cr 2 crores. So now the 1:02:37 1 hour, 2 minutes, 37 seconds export business has picked up we've got two good orders from Canada uh going forward and the tie up that we have made 1:02:45 1 hour, 2 minutes, 45 seconds with this er steel for exports now uh they will bid jointly with us for a lot of the project in pebb that they will do 1:02:53 1 hour, 2 minutes, 53 seconds there. So we are expecting a good pick up in the orders going forward. uh till now it was a little bit of experimentation and building up stage 1:03:02 1 hour, 3 minutes, 2 seconds but now then the orders two orders have come and we are hoping that good orders will come in the coming year from the North American continent the JB will of 1:03:10 1 hour, 3 minutes, 10 seconds course take a year year and a half to come into play for the 100% export to uh you know North America 1:03:19 1 hour, 3 minutes, 19 seconds okay sir thank you that's all for thank you thank you we will take the next question 1:03:27 1 hour, 3 minutes, 27 seconds from the line of Nicl Gupta from Vayu Capital. Please go ahead. 1:03:39 1 hour, 3 minutes, 39 seconds Yeah, I hope I'm loud and clear. Yes. Yes. 1:03:44 1 hour, 3 minutes, 44 seconds Uh Arjun, my question is on beta margins. I think last in the last corn call you also echo the fact that the 1:03:53 1 hour, 3 minutes, 53 seconds type of complex work we do, right? and it's very very complex and and 10% a bit margins for that type of work uh doesn't 1:04:02 1 hour, 4 minutes, 2 seconds make much sense and so what do you I just want to know your perspective on that so we are already 1:04:11 1 hour, 4 minutes, 11 seconds constrained by the capacity right so so right now we are building capacity a couple of years later we will be we we 1:04:19 1 hour, 4 minutes, 19 seconds will be again constrained by the capacity right so do you think let's say for 100 K order if we just bid 3% higher 1:04:29 1 hour, 4 minutes, 29 seconds I'm not sure like I know there is competition but these orders are very complex uh the the profile is also 1:04:37 1 hour, 4 minutes, 37 seconds matter everything matters right you al already mentioned the quality of work we do so do you think this should sustain 1:04:45 1 hour, 4 minutes, 45 seconds going going forward as well or do you see some change like some something should happen to to change the bits 1:04:53 1 hour, 4 minutes, 53 seconds you see I think the bigger margin should change for the better. Uh there's no doubt. uh as we see we are also moving 1:05:00 1 hour, 5 minutes up on in the say value chain uh where we are dealing with the larger players where their uh requirement is more of 1:05:08 1 hour, 5 minutes, 8 seconds quality and delivery and schedule rather than just price because pre-in building is not a very large part of their capex 1:05:16 1 hour, 5 minutes, 16 seconds you know in that sense but a very essential part of their capex to be able to deliver but I think uh we have to 1:05:22 1 hour, 5 minutes, 22 seconds also see that we build up capacity uh we also have to see how much inhouse how uh production uh productivity increase we 1:05:31 1 hour, 5 minutes, 31 seconds can do how much better our purchasing can be as we become a bigger player there there's a lot of uh uh you know sort of costsaving improvement in 1:05:39 1 hour, 5 minutes, 39 seconds productivity that we should be able to do inhouse including whether it is wastage or scrap or productivity improvements or automation which we are 1:05:47 1 hour, 5 minutes, 47 seconds uh trying to do. So there is in-house saving as we get little bigger we will have a little bit more strength in negot 1:05:54 1 hour, 5 minutes, 54 seconds negotiating with our partners also on the supply side and also I think a little better on the larger uh order when we go to deal with the customers. 1:06:04 1 hour, 6 minutes, 4 seconds So I think the chances of being on the upside is very high that we should grow and that is the target. I mean 9 9 and a 1:06:12 1 hour, 6 minutes, 12 seconds half 10% I don't think is a very good margin for a company which does all that we we do but I think it is a race and a 1:06:21 1 hour, 6 minutes, 21 seconds struggle that we have to cope up and go gradually step by step but with a very clear vision that yes uh we should be 1:06:29 1 hour, 6 minutes, 29 seconds able to increase our margin we should be able to save cost we need to get to better customers who see more value in our as interact and and our product make 1:06:39 1 hour, 6 minutes, 39 seconds make sure that the delivery And the customer satisfaction is also very high so that they are ready to pay you 1 or 2% more. You can also have savings but 1:06:48 1 hour, 6 minutes, 48 seconds also in the you must remember that in case of a growing company a lot of the expenses in premium building and heavy structures and exports are being made at 1:06:57 1 hour, 6 minutes, 57 seconds a time when there is no income from them and that will keep happening as we grow. 1:07:03 1 hour, 7 minutes, 3 seconds When we are not growing one or two% can come by operational leverage also. So right now like last year we have spent 1:07:10 1 hour, 7 minutes, 10 seconds uh you know three and a half crores on labor code uh sort of provision. The government wanted us to have it or 1:07:17 1 hour, 7 minutes, 17 seconds auditors wanted us to have it. Then we have spent about 2 and a half crores on certifications for American market uh 1:07:25 1 hour, 7 minutes, 25 seconds for one one and a half crores or maybe more uh for uh bidding for high high-rise jobs which we have got no 1:07:33 1 hour, 7 minutes, 33 seconds orders in the last year. So these costs like five six crores and of course there are hidden costs everywhere because 1:07:40 1 hour, 7 minutes, 40 seconds everybody's trying to promote this. Uh so there are these hidden costs which come up before the revenue from that area comes in. 1:07:50 1 hour, 7 minutes, 50 seconds So I think there are as a 9 and a half% marida margin or 10% which we hope that we will achieve. uh I think it's a very 1:07:58 1 hour, 7 minutes, 58 seconds good margin if we can sustain it because already we are spending money on building up the future business also and capacity we'll have to constantly build 1:08:06 1 hour, 8 minutes, 6 seconds up I think we'll have to do a pre- internet building new internet building plant every year because every year if I want to grow by four or 500 crores I 1:08:14 1 hour, 8 minutes, 14 seconds have to build a new pre-inet building plant every year so I think all these things taken into consideration but no doubt what you are saying and what we 1:08:22 1 hour, 8 minutes, 22 seconds also want is a better margin going forward from our clients. But this will happen once we move up the value chain. 1:08:30 1 hour, 8 minutes, 30 seconds Uh we become more perfect in delivery. 1:08:32 1 hour, 8 minutes, 32 seconds Uh the client feels that yes, it is worthwhile paying us more. Uh you know right now a lot of people are adding capacity. Uh a lot of people don't see 1:08:41 1 hour, 8 minutes, 41 seconds the difference between one player and the other just accept the price. So that also gets clarified as you move on. A lot of people realize that paying a 1:08:49 1 hour, 8 minutes, 49 seconds lower price was not a great idea. Uh you know when you deliveries don't come or quality doesn't happen. But this is a struggle. It's a constant struggle to 1:08:58 1 hour, 8 minutes, 58 seconds make it happen in India. But I think there are now enough value based clients in India. Certainly with a lot of these 1:09:06 1 hour, 9 minutes, 6 seconds foreign companies coming in and microchips and lithium battery and data centers who are more centered around uh 1:09:13 1 hour, 9 minutes, 13 seconds what they are getting are they getting it in time they're getting it in quality. So there are other cost of not of late delivery or not getting in time 1:09:21 1 hour, 9 minutes, 21 seconds is very high. let's say a commercial building if we get delayed by a few months the renters or the sale or data 1:09:29 1 hour, 9 minutes, 29 seconds center you can imagine I think we are moving up the value chain and a lot depends on us how we go forward how we 1:09:36 1 hour, 9 minutes, 36 seconds create more capacities how we can bid for larger projects uh you know right now a lot of the large projects get divided between two or three players 1:09:44 1 hour, 9 minutes, 44 seconds because the client feel that one person cannot do it one party cannot do it so I think lot depends on us but the scope is tremendous going forward 1:09:53 1 hour, 9 minutes, 53 seconds So the move towards steel building will keep moving uh you know irrespective of the global situation. I think there's a huge market in India. There's a huge 1:10:01 1 hour, 10 minutes, 1 second market which is moving towards steel and pre-engineered and pre-fabricated steel. 1:10:07 1 hour, 10 minutes, 7 seconds So I think the scope is definitely there but I can't make any promises because you know I have to deal in the real market on a day-to-day basis. I have to 1:10:14 1 hour, 10 minutes, 14 seconds make run the company as well. But that is the aim. That is the aim and we are always gearing towards that. give better 1:10:21 1 hour, 10 minutes, 21 seconds companies, get better relationships, build up the in-house capacities of engineering, design, project delivery so 1:10:29 1 hour, 10 minutes, 29 seconds that the customer will be okay giving you a higher margin. We have to show it to I don't think if the customer is already 1:10:38 1 hour, 10 minutes, 38 seconds ready to give us high margin and we see that we are the only player, we should definitely bid for higher margin. We should not of course 1:10:45 1 hour, 10 minutes, 45 seconds should not sustain. Yeah. No no no we always start at a higher I mean it's not that we ask for a lower price if we 1:10:52 1 hour, 10 minutes, 52 seconds don't ask we will never get so we always ask higher and that is how we move up the value chain you know so we are 1:10:59 1 hour, 10 minutes, 59 seconds constantly doing that but like I said that we also try and go and look for high value customers who appreciate companies like us that also doesn't end 1:11:07 1 hour, 11 minutes, 7 seconds you know so both cases we do that more companies we will find the more bigger our pipeline will be the better our 1:11:14 1 hour, 11 minutes, 14 seconds choice will be we can use some orders which are not so uh giving us a better margin and go for the better margin orders if our pipeline is bigger. So we 1:11:23 1 hour, 11 minutes, 23 seconds are working at all angles including internal costs including improving internal productivity and costs as well. 1:11:30 1 hour, 11 minutes, 30 seconds So certainly we aim our aim is always to get a much higher margin. We don't aim for 10%. We aim for much higher but yeah in the end overall that is what we are 1:11:39 1 hour, 11 minutes, 39 seconds left with but constant aim is to aim higher. 1:11:44 1 hour, 11 minutes, 44 seconds Thank you for the detailed answer. My last question would be uh have we explored uh human robots in our plants 1:11:51 1 hour, 11 minutes, 51 seconds just to increase efficiency just and do some additional automations which other players are not doing. 1:11:58 1 hour, 11 minutes, 58 seconds Yes, we are seriously looking at robotics uh especially for welding uh which speed up the qual and the work and 1:12:06 1 hour, 12 minutes, 6 seconds the quality and also it's a very highly trained job. So in the heavy structure plant we have imported most of our 1:12:12 1 hour, 12 minutes, 12 seconds machinery from Germany and compared to uh pre-mun building plant machinery which was coming from India or in some 1:12:19 1 hour, 12 minutes, 19 seconds cases China uh because they are highly automated uh but for all our plants now 1:12:26 1 hour, 12 minutes, 26 seconds uh in fact I don't know whether you already knew or not your question is very apt because last three four months we are looking at a lot of companies to 1:12:34 1 hour, 12 minutes, 34 seconds do robotics uh and automation at a very high level and all our operation uh going forwards because that is the only 1:12:42 1 hour, 12 minutes, 42 seconds way we'll improve our productivity uh get better productivity out of people. 1:12:47 1 hour, 12 minutes, 47 seconds So automation is definitely on our anvil uh going forward. Yeah. Thank you so much for example. 1:12:55 1 hour, 12 minutes, 55 seconds Thank you. 1:12:59 1 hour, 12 minutes, 59 seconds Thank you. We will take the next question from the line of Van Sarda from Nimal Bank Securities Private Limited. 1:13:06 1 hour, 13 minutes, 6 seconds Please go ahead. Hello. Am I audible? Yes. 1:13:15 1 hour, 13 minutes, 15 seconds Thank you for the opportunity sir. Congratulation for a good year. 1:13:19 1 hour, 13 minutes, 19 seconds So I listen to your answer about managing inventory. So the point is well 1:13:26 1 hour, 13 minutes, 26 seconds taken that there is a good management from your end but like steel prices have went up steep as you said. So how it 1:13:34 1 hour, 13 minutes, 34 seconds will impact us? How how should we as an investor look at it? 1:13:41 1 hour, 13 minutes, 41 seconds Uh steel prices the steel prices what we have seen is a little cyclical. Uh you know in December, January, February, 1:13:48 1 hour, 13 minutes, 48 seconds March they always go up. Uh April, May, June they are pretty flat. Uh starting moving downward. July, August, September, October they are coming down. 1:13:58 1 hour, 13 minutes, 58 seconds November they are again flat. And this is how the cycle keeps moving. Last year the cycle moved down a little bit extra in October, November, December and moved 1:14:08 1 hour, 14 minutes, 8 seconds up a little higher in January, February, March then comparatively but otherwise this is a cycle. So at the end of the year or end of the cycle we are back to 1:14:17 1 hour, 14 minutes, 17 seconds square one. So when we do take orders we do take a certain element in our costing depending on when the orders will get 1:14:25 1 hour, 14 minutes, 25 seconds executed. So when we are bidding we take that into consideration. We don't have an automatic formula that just price everything at 60 rupees or 70 rupees. 1:14:34 1 hour, 14 minutes, 34 seconds No, we price every job as a unique individual job where we see what are the materials required, when will we have to 1:14:42 1 hour, 14 minutes, 42 seconds buy this material, what are the likely prices, what are the average price that we should take for this job, what will 1:14:49 1 hour, 14 minutes, 49 seconds be average freight price. So we each job is uniquely priced by us. There's no automatic pricing in our in our case. 1:15:00 1 hour, 15 minutes So we can expect Okay. So we can expect a 10% margin in Q1 also. 1:15:08 1 hour, 15 minutes, 8 seconds Yeah. I think you know I I think what we have got is 9.3 uh% margin that we should have you know sometimes it can 1:15:16 1 hour, 15 minutes, 16 seconds become 9.2 the next quarter can become 9.4. In our business we have seen that while quarterly is very important for 1:15:23 1 hour, 15 minutes, 23 seconds the investor but we look at it more like a annual over a period of one year because sometimes in monsoons come and they are very bad and the sales drop because 1:15:31 1 hour, 15 minutes, 31 seconds sites are not cleared. Sometimes the sites you are running there's not that much problem in monsoons. 1:15:37 1 hour, 15 minutes, 37 seconds So we try to look at it on an overall annual basis but yes it could drop by.1 point 2 then it'll go up by 0.12 in the 1:15:45 1 hour, 15 minutes, 45 seconds next quarter. So average I think it remains at this 9.3 9.4 for the last two 1:15:52 1 hour, 15 minutes, 52 seconds years I think we've had very similar I I would be more easy to uh give an answer on an annual basis rather than every 1:16:00 1 hour, 16 minutes month or every quarter but on a annual basis I think we would be pretty much around this figure. 1:16:07 1 hour, 16 minutes, 7 seconds Okay, thank you for the clear explanation sir. And can you just tell your order book as on 30th April 2026 if you have the figure? 1:16:16 1 hour, 16 minutes, 16 seconds 1 1700 K. Yeah. Uh as of 30th April 2026, 1700. 1:16:23 1 hour, 16 minutes, 23 seconds Yes. So we about 9 months. Yeah. 1:16:29 1 hour, 16 minutes, 29 seconds So as compared to previous year it is it has increased 3.2%. Why? 1:16:37 1 hour, 16 minutes, 37 seconds No compared to I think it was 1,650 or something or you see the order book is moving up as per capacity and our 1:16:45 1 hour, 16 minutes, 45 seconds delivery capacity that what do the customers want and we take an order so that we have to deliver it also 8 9 months is still a very long delivery 1:16:54 1 hour, 16 minutes, 54 seconds even in three unit buildings but because we are doing some large order therefore we have that kind of time uh so I think 1:17:01 1 hour, 17 minutes, 1 second as the capacities move up our order book will taking the market is not an issue. 1:17:06 1 hour, 17 minutes, 6 seconds I think the issue is not that uh there are no orders in the market. The issue is more we have to take what we can deliver. So that is how we figure you 1:17:16 1 hour, 17 minutes, 16 seconds know that trying the ability get the ability to take more orders as we build up the capacity to deliver. 1:17:24 1 hour, 17 minutes, 24 seconds Okay. Thank you so much. 1:17:30 1 hour, 17 minutes, 30 seconds Thank you. We will take the next question from the line of Anish Diwari from Vicario. Please go ahead. 1:17:42 1 hour, 17 minutes, 42 seconds Anish please proceed with the question. 1:17:45 1 hour, 17 minutes, 45 seconds Hi uh my question was regarding order booking. Uh did I uh get it correct that uh you are order booking has been sort 1:17:55 1 hour, 17 minutes, 55 seconds of in a rangebound manner because of the capacity constraint you are and as you get new capacity online then uh the the 1:18:04 1 hour, 18 minutes, 4 seconds demand conditions for you are uh quite conducive to increase your order flow. Yes, absolutely. 1:18:13 1 hour, 18 minutes, 13 seconds And second part, I sort of understood that this whole steel price uh volatility of movement which goes 1:18:21 1 hour, 18 minutes, 21 seconds through every year uh as such this year is slightly more accentuated but uh not 1:18:28 1 hour, 18 minutes, 28 seconds much uh trouble for your margin structure you are looking at next year margin. 1:18:35 1 hour, 18 minutes, 35 seconds Yeah know like I mentioned earlier I think it is if we take it over a year no that there doesn't make much difference uh sometimes it is too high or too low 1:18:44 1 hour, 18 minutes, 44 seconds in some quarters it can make a difference uh you know depending on which order we are executing or when did we take that order or what price did we 1:18:52 1 hour, 18 minutes, 52 seconds take it but otherwise over a period of four quarters it all balances out uh and I think it'll be the same in this next 1:18:59 1 hour, 18 minutes, 59 seconds year also I don't see any difference okay it can impact the quarter but not necessarily where what we see today in 1:19:06 1 hour, 19 minutes, 6 seconds terms of price change but you don't expect it to be on no thank you very much 1:19:15 1 hour, 19 minutes, 15 seconds thank you thank you we will take the next question 1:19:23 1 hour, 19 minutes, 23 seconds from the line of Ragav Mahwari from Kamaya Kia wealth management please go ahead 1:19:31 1 hour, 19 minutes, 31 seconds yeah uh hi thanks for the opportunity first of all sir uh congratulations on achieving what you uh promised to. So uh 1:19:40 1 hour, 19 minutes, 40 seconds my first question my first question would be around the uh the export uh revenue that is you know starting to 1:19:47 1 hour, 19 minutes, 47 seconds pick up with all the NUS that we have signed. Uh right now sir I think uh the export revenue is around three three and a half% as a percentage of total 1:19:56 1 hour, 19 minutes, 56 seconds revenue. So by the end of this year I mean uh with all the MUS being signed and every uh uh capacities coming up and 1:20:04 1 hour, 20 minutes, 4 seconds you know order starting to uh flow. So what percentage do we expire uh by the end of FI27 as a to part of total 1:20:13 1 hour, 20 minutes, 13 seconds revenue? You see F S F S F S F S F S F S F S F S F S F S by 27 uh of course the joint venture will not come into play because that is a thing we have to still 1:20:21 1 hour, 20 minutes, 21 seconds set up our plant and everything but export orders like right now we have got about 30 35 KES of export orders in 1:20:27 1 hour, 20 minutes, 27 seconds hand. Uh so we expect that will be executed this year. So we expect that these orders from other countries also 1:20:34 1 hour, 20 minutes, 34 seconds besides North America uh we should be able to get going forward. If I were to make a very wild guess I would say that 1:20:42 1 hour, 20 minutes, 42 seconds our aim should be to get at least 100 kores of orders uh you know in export that would be our aim but let us see 1:20:50 1 hour, 20 minutes, 50 seconds what happens you know because these are unknown markets for us so we can't predict because this is the first year we have started getting any decent size 1:20:58 1 hour, 20 minutes, 58 seconds orders from there otherwise they were pretty small 1 cr 2 cr this market that market so now we seem to have some kind 1:21:05 1 hour, 21 minutes, 5 seconds of a track especially in the North American market uh which we were trying to build up that we have a good partner then the reliability of orders and the 1:21:14 1 hour, 21 minutes, 14 seconds ability to bid and get orders uh you know together will increase. So I think we should be aiming for you know if we 1:21:23 1 hour, 21 minutes, 23 seconds have got already 30 35 crores of orders I think we should aim that we should at least get 50 to 60 cr of orders more in the coming year but I think we'll have 1:21:32 1 hour, 21 minutes, 32 seconds more clarity as we go forward because these are very new streams for us so to be able to predict and we Yeah right sir and the execution 1:21:41 1 hour, 21 minutes, 41 seconds timeline of these export orders is also around 9 months no uh you see average of these export 1:21:48 1 hour, 21 minutes, 48 seconds orders right now is about uh thousand tons so these orders are more or less finished as soon as we get the approval I would say between three to four or 1:21:57 1 hour, 21 minutes, 57 seconds five months the orders are executed because the supply the erection is not in our scope we have to do the engineering design and manufacture and 1:22:05 1 hour, 22 minutes, 5 seconds supply so I would say three to five months is a normal period for an export order. 1:22:11 1 hour, 22 minutes, 11 seconds Perfect sir. And so my next question is around the OCF sir. Uh like you clearly mentioned that uh you uh are now you 1:22:18 1 hour, 22 minutes, 18 seconds know as you are becoming a bigger business you are also bidding for bigger projects like you recently won a 100 1:22:24 1 hour, 22 minutes, 24 seconds crores uh order. So sir uh because of that I mean I I do understand you have to uh and also you had to pile up the 1:22:33 1 hour, 22 minutes, 33 seconds inventory because of the rising raw material prices but sir uh like we aspire on growing you know year on year 1:22:40 1 hour, 22 minutes, 40 seconds quarter on quarter this growth will keep on coming and we will also obviously go for bigger fishes bigger orders so sir 1:22:50 1 hour, 22 minutes, 50 seconds when like what was the reason reasons for this negative OCF and second secondly sir when Do we when do we plan 1:22:57 1 hour, 22 minutes, 57 seconds to when when when will it get stabilized? 1:23:01 1 hour, 23 minutes, 1 second You know, I see the real reason when it goes forward is that if suddenly uh we have more larger orders, then the 1:23:09 1 hour, 23 minutes, 9 seconds difference from one year to the next uh is more apparent. But once we have regular uh larger orders uh coming in, 1:23:16 1 hour, 23 minutes, 16 seconds you see if you look at it in the last two years, we have grown by over 50%. If not more, you know, from 1200 something 1:23:22 1 hour, 23 minutes, 22 seconds to now, 1900. So naturally the intake of larger orders is more. So it is more apparent that uh the datas have risen. 1:23:31 1 hour, 23 minutes, 31 seconds But I think going forward our idea of course is that uh we get our payments faster. Uh we are also learning that okay if you're doing a large order uh to 1:23:40 1 hour, 23 minutes, 40 seconds get payments not at the convenience of the customer but you have to tighten your payment terms and uh you know get 1:23:47 1 hour, 23 minutes, 47 seconds the money faster. We are also doing a little bit of a learning in that sense that we must make sure that the orders 1:23:53 1 hour, 23 minutes, 53 seconds give us faster cash flows. Stocks should of course come down a little bit uh as the year goes on but we are also 1:24:01 1 hour, 24 minutes, 1 second learning as to how are we going to do these large orders and get the payments faster but the difference you will see is less. So I think it should turn 1:24:09 1 hour, 24 minutes, 9 seconds positive. I I would feel that uh that the reason for being negative I think will change pretty fast. I can't 1:24:17 1 hour, 24 minutes, 17 seconds give a timeline but I think they will change pretty fast and uh then the difference will become less and less once we come into the bigger orders 1:24:26 1 hour, 24 minutes, 26 seconds being a norm. I think last year we got you know that 300 cr order we had got last year and some other orders we had 1:24:32 1 hour, 24 minutes, 32 seconds got. So that sort of uh pushed the large order level and the data level higher but I think we should be back into 1:24:40 1 hour, 24 minutes, 40 seconds positive space very fast. Understood sir. And sir, just last question sir, you talked about AIDA margins uh being 1:24:47 1 hour, 24 minutes, 47 seconds 10.5% this year and uh it it was because of some one-off items like the the labor 1:24:55 1 hour, 24 minutes, 55 seconds codes revision that you had to make plus some new certification cost that you had to in uh to get those certification. So 1:25:03 1 hour, 25 minutes, 3 seconds sir adjusting for these one-offs what would have been the aida margins? Yes, we have written 9.3%. 1:25:12 1 hour, 25 minutes, 12 seconds uh for this year I would say maybe uh see we say five to six crores so maybe 0.25 more 1:25:20 1 hour, 25 minutes, 20 seconds 9.7% sir huh our margin could have been 9.7%. 9.7 instead of 9.3. 1:25:29 1 hour, 25 minutes, 29 seconds But you know in a growing company something or the other will keep happening. I'm sure next year we will have something else because you have to plan for the future and you have to 1:25:37 1 hour, 25 minutes, 37 seconds build some expenses for the future as well in a very costing situation. But I'm saying that that is how we can look 1:25:44 1 hour, 25 minutes, 44 seconds at it because there are certain direct expenses for something that these are very direct uh you know expenses for which there is no revenue generated at all in that year. 1:25:55 1 hour, 25 minutes, 55 seconds Yeah. Right sir. And so lastly sir, what hindrances do you see in FI27? Like practically. 1:26:03 1 hour, 26 minutes, 3 seconds So the only hindrance when we go forward is like the earlier questions which were asked whether it is labor crisis or 1:26:10 1 hour, 26 minutes, 10 seconds whether it is geopolitical or gas or uh you know automation. I think the biggest challenge that India will face and then 1:26:17 1 hour, 26 minutes, 17 seconds of course everybody will face is the manpower. 1:26:20 1 hour, 26 minutes, 20 seconds So I think how well prepared we are to pick up that challenge. Uh so challenge as in shortage. 1:26:28 1 hour, 26 minutes, 28 seconds Yeah, I think there will be shortage of people going forward. Uh people ready to work at construction sites uh will 1:26:35 1 hour, 26 minutes, 35 seconds become lesser and lesser you know as people become most prosperous in their areas as they getting more grants a lot 1:26:42 1 hour, 26 minutes, 42 seconds of free rations free money by sitting at home. So I think less people. So we are trying to make sure that our certified 1:26:49 1 hour, 26 minutes, 49 seconds builders are looking after our people better, give them better money, look after them better at sites, uh you know 1:26:57 1 hour, 26 minutes, 57 seconds uh make sure that they have more uh tools and more uh uh you know equipment to become more productive. So how to 1:27:06 1 hour, 27 minutes, 6 seconds improve that and same in the plant as somebody asked earlier about automation and robotics. So I think that is the way 1:27:13 1 hour, 27 minutes, 13 seconds that we can tackle it. We can't hope that one day it'll go away. It won't go away. So I think the challenge is that how fast or how quickly and how 1:27:23 1 hour, 27 minutes, 23 seconds competitively uh we can change that. We are very focused on that right now. That is the big focus point for us. 1:27:31 1 hour, 27 minutes, 31 seconds Right. Thank you so much sir. All the best for FI27. Hope to talk to you in the next quarter. Thank you for your good wishes. 1:27:40 1 hour, 27 minutes, 40 seconds Thank you. We will take the next question from the line of Omanderkar from 361 capital. Please go ahead. 1:27:49 1 hour, 27 minutes, 49 seconds Hi sir. Uh I wanted to ask about our new order book uh info is not growing. 1:27:58 1 hour, 27 minutes, 58 seconds Please tell this. 1:28:01 1 hour, 28 minutes, 1 second So you see like I mentioned earlier our order book has to sort of reflect what we can deliver because premium building 1:28:08 1 hour, 28 minutes, 8 seconds orders are not a long-term business that between 4 months to 9 months in a very long delivery order I have to deliver. 1:28:17 1 hour, 28 minutes, 17 seconds So if my average order book is already 9 months I can't take more orders or increase my order intake unless I have 1:28:26 1 hour, 28 minutes, 26 seconds built up more capacity. So 1 1700 if I'm predicting 2150 or 2200 K max for next 1:28:33 1 hour, 28 minutes, 33 seconds year. So my order book is full for that because nobody's able to give me an order for a 12 month later delivery. 1:28:42 1 hour, 28 minutes, 42 seconds So it is not growing slowly but our capacities what we added last year are already being met with the order book that we have. 1:28:50 1 hour, 28 minutes, 50 seconds So orders in the market are not in short supply. It's not that there are no orders available. Orders are there but because we have to deliver so we have to 1:28:59 1 hour, 28 minutes, 59 seconds be careful that we only take orders which we can deliver. As we keep adding to capacity our ability to take more 1:29:06 1 hour, 29 minutes, 6 seconds orders will increase in the market. We are not seeing uh a problem. I hope that answers your question. 1:29:15 1 hour, 29 minutes, 15 seconds Okay. Not satisfied. also left the team. 1:29:23 1 hour, 29 minutes, 23 seconds Okay, thank you very much. We will take the next question from the line of Dwang particip from Samra Capital. Please go ahead. 1:29:34 1 hour, 29 minutes, 34 seconds First question was from the uh the area of the overview that we've done. What is the size of our partner in terms of 1:29:40 1 hour, 29 minutes, 40 seconds current delivery capability? Uh and secondly is the reason for J because we have uh taken certifications they have 1:29:48 1 hour, 29 minutes, 48 seconds their own certifications. So to build up our portfolies 1:30:04 1 hour, 30 minutes, 4 seconds which we will get from the North America not so much Canada but US. So we are getting inquiries through them and getting some hopefully we'll finalize 1:30:12 1 hour, 30 minutes, 12 seconds some few small orders also. Their MOU was more they get clients for design engineering and detailing and they will 1:30:20 1 hour, 30 minutes, 20 seconds ask them if they have any requirement of the building and they'll pass them on to us. But the newou that we have signed with a Canadian company that company is 1:30:28 1 hour, 30 minutes, 28 seconds in the business of steel buildings already. Uh so their own financials because they are private company are still with they don't want to disclose 1:30:36 1 hour, 30 minutes, 36 seconds them publicly. uh but at some point when we have a JB I think we'll have uh more figure but they are a very large player 1:30:43 1 hour, 30 minutes, 43 seconds in Canada and more than 20 countries in the world in mining business. So in mining a lot of steel structures are 1:30:50 1 hour, 30 minutes, 50 seconds used and in Canada they are also doing a lot of steel pre-inered buildings. Uh so they they are a player who are going to 1:30:57 1 hour, 30 minutes, 57 seconds use this item for themselves and also once if they are uh they are confident on our engineering design and 1:31:06 1 hour, 31 minutes, 6 seconds capabilities they will also bid with our buildings to other clients. The joint venture for the other 50/50 joint 1:31:14 1 hour, 31 minutes, 14 seconds venture for manufacturing 100% export unit that is a different item. So this company is very well positioned uh in 1:31:22 1 hour, 31 minutes, 22 seconds Canada right now. uh they want to expand into US with our items and with this joint venture uh item but they are very 1:31:31 1 hour, 31 minutes, 31 seconds well positioned in Canada to give us good business. So they themselves are a reasonably large company spread all over 1:31:38 1 hour, 31 minutes, 38 seconds the world uh you know uh doing these kind of steel structures and steel buildings. So we are very hopeful that 1:31:44 1 hour, 31 minutes, 44 seconds with them the growth in exports uh uh will be should be quite good going forward. 1:31:53 1 hour, 31 minutes, 53 seconds And partially we also benefit from their certifications because we also procured certifications recently. Sorry can you repeat that again? 1:32:02 1 hour, 32 minutes, 2 seconds Uh the the certificates to operate in US and Canada market. Uh this is also impact uh 1:32:09 1 hour, 32 minutes, 9 seconds yes so US and Canada are very strict about the uh certification process of the plant from where the manufacturing will happen. So we have to get our 1:32:18 1 hour, 32 minutes, 18 seconds plants and our welding processes and fabrication processes certified by their bodies we certify. So nobody can export 1:32:27 1 hour, 32 minutes, 27 seconds larger orders to US and Canada till you have those certifications. 1:32:31 1 hour, 32 minutes, 31 seconds So that certifications are done by interact and we have got them done in America you cannot export just from any plant. 1:32:41 1 hour, 32 minutes, 41 seconds Okay. Uh so and to carry forward the working capital uh point you made earlier just like margins can directionally improve as you get larger 1:32:48 1 hour, 32 minutes, 48 seconds projects is that scope to improve working capital uh with you know higher advances or payment terms directionally you know is that improvement possibly? 1:32:58 1 hour, 32 minutes, 58 seconds Yeah. Yeah it is you know like I said that in the larger project sometimes the milestones you know get delayed and they are very large companies and you know uh 1:33:07 1 hour, 33 minutes, 7 seconds sometimes you cannot argue with them too much if their payments are delayed. uh you know but I think we are tightening up the whole process because as you do 1:33:15 1 hour, 33 minutes, 15 seconds larger orders you can't go into negative cash flows and you cannot go into delays by the customer. So we are also tightening up the processes at the time 1:33:24 1 hour, 33 minutes, 24 seconds we are taking orders uh you know to make sure that the payments come faster and the customers do meet their milestones 1:33:32 1 hour, 33 minutes, 32 seconds maybe give higher advances maybe give more payments against supply rather than more payments against completion. So we 1:33:40 1 hour, 33 minutes, 40 seconds are doing a lot of uh uh you know sort of taking a lot of uh actions to ensure that this problem goes away because we 1:33:48 1 hour, 33 minutes, 48 seconds are going to be doing a lot of large orders and therefore we cannot keep going into negative cash flow but I think uh we will improve the situation 1:33:56 1 hour, 33 minutes, 56 seconds uh quite soon we have taken a lot of quite a few steps in that direction and our customers like I said they are like 1:34:03 1 hour, 34 minutes, 3 seconds goldplated customers so they also understand that it's a steel building and they need to clean the payments etc. 1:34:10 1 hour, 34 minutes, 10 seconds So they also understand that but we have to take the steps to ensure that it happens. 1:34:17 1 hour, 34 minutes, 17 seconds So lastly on the registructure plan that is coming up will there be a mix of supply orders uh and the own contract that we take up for structure buildings 1:34:26 1 hour, 34 minutes, 26 seconds you earlier mentioned uh you know uh outsourcing the design part for a multi-story. So how are we building those capabilities in house? 1:34:35 1 hour, 34 minutes, 35 seconds See restructures work in two different ways. If the client wants you to design and engineer and then supply then 1:34:43 1 hour, 34 minutes, 43 seconds currently we are outsourcing the design uh for that heavy structure because we don't have in-house capacity capabilities to do it very efficiently 1:34:51 1 hour, 34 minutes, 51 seconds but we are building it up uh but if it's heavy structure where the customers only wants the structure then they give you the design and you only do the detailing 1:35:01 1 hour, 35 minutes, 1 second uh which is very simple I mean is much simpler than doing a design estimation and the the what is quantity to be 1:35:08 1 hour, 35 minutes, 8 seconds supplied and what is the weight etc is all based on the customer's design we are not responsible for that so there are two ways that the heavy structure 1:35:16 1 hour, 35 minutes, 16 seconds will work and in installation also it could be that the customer will take it but if it's a structure of a complete 1:35:23 1 hour, 35 minutes, 23 seconds building uh like it has happened in many cases then he will also want you to install or install only the structure the balance is to be done by him because 1:35:32 1 hour, 35 minutes, 32 seconds we are not involved in the rest of the building but if it's a very large project where we are supplying part then chances are that he will do the installation himself. 1:35:43 1 hour, 35 minutes, 43 seconds So it's a little bit of a mix of all. Yeah. 1:35:48 1 hour, 35 minutes, 48 seconds Okay. And when you are mentioning the pipeline mod is the pipeline from data centers and multi highrises is that 1:35:58 1 hour, 35 minutes, 58 seconds uh some of them but very little what we are talking about three three and a half thousand K is mainly re-engineered buildings I would say. Right. 1:36:09 1 hour, 36 minutes, 9 seconds That's all I want to say. Thank you so much. Okay. Thank you. 1:36:15 1 hour, 36 minutes, 15 seconds Thank you very much ladies and gentlemen. We will take that as a last question and with that concludes the question and answer session and I hand 1:36:24 1 hour, 36 minutes, 24 seconds the conference back to the management for the closing comments. Thank you and over to you sir. 1:36:30 1 hour, 36 minutes, 30 seconds Thank you everybody. Thank you and thank you uh for organizing the you know meeting for us and I would be 1:36:37 1 hour, 36 minutes, 37 seconds I'm very grateful to everybody who joined uh the conference and I hope I 1:36:45 1 hour, 36 minutes, 45 seconds managed to give satisfactory answers uh to everybody. Uh thank you SGA. uh if you want any more questions one-to-one 1:36:53 1 hour, 36 minutes, 53 seconds meetings site visits plant visits SGA or ambit or us directly you can contact and we'll be very happy to arrange uh Mr. 1:37:03 1 hour, 37 minutes, 3 seconds Sanit Chandani is always available. Uh so we are open for anything you know you want to have onetoone meetings uh zoom 1:37:11 1 hour, 37 minutes, 11 seconds calls site visits factory visits we are always happy to explain our industry our 1:37:18 1 hour, 37 minutes, 18 seconds company and you know ensure that you know as much as we do about this business. Thank you again. Thank you 1:37:26 1 hour, 37 minutes, 26 seconds very much. Thank you Ambit. Thank you SGA for organizing the meeting. Thank you everyone. Thank you. 1:37:33 1 hour, 37 minutes, 33 seconds Thank you members of Thank you members of the management. On behalf of Ambid Capital Private Limited, we conclude 1:37:41 1 hour, 37 minutes, 41 seconds this conference. Thank you all for joining with us today and Luminina Disconnects. Thank you.