John Cockerill India Ltd — Q3 FY26

John Cockerill India Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=jW-80acTW1A Published: 2 months ago

0:01 1 second Ladies, ladies and gentlemen, we apologize for the delay and appreciate your patience. Good day and welcome to 0:09 9 seconds the Q4 and full year 2025 earning conference call of John Cochril India Limited. As a reminder, all participant 0:18 18 seconds line will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation conclude. Should you need assistance 0:26 26 seconds during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being 0:34 34 seconds recorded. Before we begin, I would like to point out that this conference call may contain forward-looking statements 0:42 42 seconds about the company which are based on the beliefs, opinions and expectation of the company as on date of this call. These 0:49 49 seconds statement are not the guarantee of future performance and involve risk and uncertainties that are difficult to predict. I now hand the conference over 0:57 57 seconds to Mr. Francoa David Martino, chairman of John Cochril India Limited. Thank you and over to you sir. 1:07 1 minute, 7 seconds Good afternoon everyone and thank you for joining us. I am joined today by Frederick Masan our managing director 1:14 1 minute, 14 seconds and Mimo our chief financial officer. I want to use today's call differently from a typical results briefing and yes 1:22 1 minute, 22 seconds we will cover the fiscal year 2025 financials and they they will generally positive story of turnaround and 1:30 1 minute, 30 seconds recovery but what I really want to focus on is what comes next. 1:37 1 minute, 37 seconds GCI has spent the last 12 months restructuring, repositioning and rebuilding. That work is done. What you 1:45 1 minute, 45 seconds are investing in today is not the company we were. It is the company we have become. And the growth potential 1:52 1 minute, 52 seconds ahead of us is the most competing it has been in a decade. 1:57 1 minute, 57 seconds Let me take you through the story beginning with where we are then turning to where we are going on and how we intend to get there. 2:08 2 minutes, 8 seconds Fiscal year 2025 was the turnaround being delivered. The number the numbers matter. So let me cover them briefly. 2:18 2 minutes, 18 seconds First the order book fiscal year 2025 order entries reached 862 2:27 2 minutes, 27 seconds crores versus last year 300 crores orders. 2:33 2 minutes, 33 seconds Ending the year with the backlog close to 11.9 billion rupees after a sharp acceleration in the second half. This is 2:40 2 minutes, 40 seconds 74% compared to previous year increase. This not only a record level, it is the 2:48 2 minutes, 48 seconds strongest forward revenue visibility we have had in many years. 2:53 2 minutes, 53 seconds Second, value services growth. Revamped spare parts and services expanded materially and importantly with 3:01 3 minutes, 1 second structurally better economics, higher margin, faster cash cycles and more recurring demand versus one off project cycles. 3:10 3 minutes, 10 seconds This segment is becoming a stabilizing pillar of the CL. 3:15 3 minutes, 15 seconds Revenue reached a 357 crores level. Profit after tax 10 cr and 3:25 3 minutes, 25 seconds this is a full return to profitability after the loss of 5 crores in 2024. 3:31 3 minutes, 31 seconds And critically in revenue terms every quart of 2025 was better than the one before. Our balance sheet was 3:39 3 minutes, 39 seconds transformed. Cash and balance grew from 62 cr to 226 crores nearly four times in 3:49 3 minutes, 49 seconds a single year. Totally equity no sense at 210 crores and we enter 2026 with 3:55 3 minutes, 55 seconds financial firepower not financial constraint. 4:00 4 minutes And behind these headlines numbers, the improvement of 24 to 25 is visible across every K driver in a very deliberate sequence. 4:12 4 minutes, 12 seconds EBIT operating profitability recovered meaningfully year on year with an 4:18 4 minutes, 18 seconds improving to around 6% in 2025 from around minus 3% the previous year. 4:26 4 minutes, 26 seconds This is supported by an execution discipline and the growing contribution of value services. 4:34 4 minutes, 34 seconds Both fixed cost and overhead control. 4:37 4 minutes, 37 seconds While we restructured, we did not allow structural cost to drift. Cost discipline remained tight. Overheads 4:44 4 minutes, 44 seconds were controlled and the operating base is now linear and more scalable. 4:50 4 minutes, 50 seconds Fifth, cash position. Cash and equivalent strengthened sharply year on year with operating cash generation 4:59 4 minutes, 59 seconds improving by over 2.2 billion versus 2024 and an overall cash improvement of roughly 750 million rupees. 5:10 5 minutes, 10 seconds Fix the working capital. We improve building and collections. reduce and build revenue as project move towards 5:18 5 minutes, 18 seconds building milestones and strengthen advanced receipts on new projects out of which materially improve the quality of our operating cash conversion. 5:30 5 minutes, 30 seconds two non-recurring items in the financial deserve brief context. A one-time non-cash charge of 11 C from revised 5:40 5 minutes, 40 seconds labor code regulations effective November 2025 industrywide regulatory entirely non-recurring 5:49 5 minutes, 49 seconds provisioning normalizes from 2026 an arbitration notice from Santandere 5:55 5 minutes, 55 seconds received in February 2026 disclosed to the stock exchange and under active legal review we will provide a full 6:04 6 minutes, 4 seconds update once Once the review is completed, excluding these items, our underlying operating performance is stronger still 6:12 6 minutes, 12 seconds and provides a clean solid base for the growth ahead. One more signal that speaks louder than any number. The board 6:20 6 minutes, 20 seconds is recommending a dividend for 2025 after a year in which no dividend was 6:27 6 minutes, 27 seconds paid. This is a deliberate statement of restored financial confidence and the beginning of a progressive approach to shareholder returns. 6:39 6 minutes, 39 seconds What we built the restructuring and what it means. Before I talk about where we are going, I want you to understand what 6:46 6 minutes, 46 seconds we have built because the restructuring is the foundation for everything that follows. Over the past 12 months, the 6:53 6 minutes, 53 seconds John Krill Group executed a fundamental transformation of its global methods business. The international methods 7:00 7 minutes activity acquired from John SA spanning India, Europe and China and with the United States to be added in 7:08 7 minutes, 8 seconds the future phase has been integrated and consolidated into a single focused business anchor in GTIL. 7:17 7 minutes, 17 seconds This was not a cosmetic reorientation. 7:19 7 minutes, 19 seconds It was a groundup rebuilding of how this business is structured and governed and run. Europe and USA will primarily be the center of technology competence. 7:31 7 minutes, 31 seconds Whereas India and China will function as a manufacturing hub which will lead to consolidated operations, 7:38 7 minutes, 38 seconds consolidated results in removal of duplication, clarifying accountability and accelerating decision making. 7:48 7 minutes, 48 seconds Technology government centralized a single pipeline for R&D product development and technology transfer from 7:54 7 minutes, 54 seconds group to India procurement unified consolidated buying power across geographies reducing lead times and 8:02 8 minutes, 2 seconds improving cost competitiveness project governance strengthen tighter controls cleaner microns management and 8:10 8 minutes, 10 seconds faster client bill established as the group's global metal hub the listed Indiabased platforms to 8:18 8 minutes, 18 seconds reach the entire method business will be grown. 8:23 8 minutes, 23 seconds The restriction cost us time and complexity in 2025. But we have solved that. What we have built in return is an 8:30 8 minutes, 30 seconds organization that is cleaner, faster, more integrated and structurally positioned to capture value at a scale we could not reach before. 8:42 8 minutes, 42 seconds Third point, the broad road map. We have identified five engines one direction. 8:49 8 minutes, 49 seconds So what those growth looks like from here from here? Let me walk you through our five growth engines. Each one a 8:56 8 minutes, 56 seconds direct product of the restructuring and each one with clear near same visibility. 9:02 9 minutes, 2 seconds Before I move into our five growth engines, let me frame the steel industry context for 2026. 9:09 9 minutes, 9 seconds In 2026, the global steel landscape remains uneven. Europe continues to face structural pressure from energy cost and 9:18 9 minutes, 18 seconds trade dynamics while investment momentum in India and increasingly across China and border APAC remains focused on value 9:26 9 minutes, 26 seconds added downstream capacity efficiency upgrades and decarbonization linked modernization that is exactly where GCIL 9:35 9 minutes, 35 seconds is positioned engine number one India's skill boom our home advantage India is the world's 9:43 9 minutes, 43 seconds second largest and fastest growing major steel markets. Infrastructure investment is surging under Prime Minister Gati 9:51 9 minutes, 51 seconds Shakti and the national infrastructure pipeline. Automative demand is expanding. Renewable energy buildout is accelerating. 10:01 10 minutes, 1 second The national steel policy is driving capacity upgradation across the value chain. And every one of these trends 10:08 10 minutes, 8 seconds directly drives demand for the processing lines, equipment and life cycle services that GCL supplies. We are not selling into a commodity market. We 10:17 10 minutes, 17 seconds are the technology and engineering partner that India steel producers need to compete in a more sophisticated, more 10:24 10 minutes, 24 seconds sustainable and more demanding global market. 10:28 10 minutes, 28 seconds While Europe and China face structural headwinds, our customers in India are investing confidently at scale and with 10:36 10 minutes, 36 seconds increasingly technical ambitions. That is our home market. That is our structural advantage and the resting has 10:45 10 minutes, 45 seconds made us sharper and more capable of capturing engine. Number two, record order book. 10:52 10 minutes, 52 seconds Revenue visibility we have not had before. Our order book entering 2026 is at a record high. Other intake 11:02 11 minutes, 2 seconds accelerated sharply through H2 2025 and has continued into early 2026 with major 11:09 11 minutes, 9 seconds wins across India's leading steel producers data steel JSW AM JPI and others. 11:18 11 minutes, 18 seconds Let me be direct about timing. Projects secured in H2 2025 and 2026 are in early engineering. Mobilization and 11:27 11 minutes, 27 seconds procurement phases. Recognition of revenue builds progressively as execution milestones are achieved. So we 11:36 11 minutes, 36 seconds expect Q1 and Q2 of 2026 to represent a subdued start. Not because demand is 11:43 11 minutes, 43 seconds weaker but because the backlog we build takes time to convert into recognized revenue. under our project accounting 11:51 11 minutes, 51 seconds and group policy. From Q3 2026 onwards, we expect improvements to become clearly 11:58 11 minutes, 58 seconds visible as multiple large projects move into active execution and building. The other book we have built is the revenue 12:06 12 minutes, 6 seconds and profitability of the quarters ahead and it is the strongest forward pipeline we have held in a decade. 12:14 12 minutes, 14 seconds The quality of the order book has also shifted. We are building selectively prioritizing technically differentiated 12:22 12 minutes, 22 seconds projects, better margins and long-term partnerships. The new order book is not just larger, it is also better. Engine number three, value services. 12:34 12 minutes, 34 seconds The high margin growth flywheel. Perhaps the most powerful structural change in GCL's business model is the rise of 12:41 12 minutes, 41 seconds value services. Our revamps, pairs and service uh services segments 12:48 12 minutes, 48 seconds is a direct product of the restructuring. 12:52 12 minutes, 52 seconds This is the logic that makes this such a compelling growth story. GCL has been supplying and commissioning steel processing equipment in India for 13:00 13 minutes decades. Every line, every furnace, every meal we have ever installed is a 13:06 13 minutes, 6 seconds potential value services customer. As India steel producer produces modernize, decarbonize and expand, demand for 13:15 13 minutes, 15 seconds revamp, great and genuine OEM spares growth and it is recovering not project dependent value services delivers higher 13:25 13 minutes, 25 seconds gross margins than new projects, faster cash cycles and more predictable revenue. It stabilizes the business and funds growth simultaneously. 13:36 13 minutes, 36 seconds With the restructuring, we now have tighter group technology integration, meaning we can offer more comprehensive 13:42 13 minutes, 42 seconds life cycle solution by the full depth of Jonto's global engineering capability. 13:50 13 minutes, 50 seconds Ru services contributed meaningfully to our improved margin in 2025. We are investing aggressively to accelerate its 13:59 13 minutes, 59 seconds grow, expanding our service teams, deepening customer engagement, and building dedicated facilities. 14:06 14 minutes, 6 seconds The commissioning of our world cutting facility at Taloia in 2026 is the clearest demonstration of this strategy. 14:16 14 minutes, 16 seconds HP HVAF technology, the first of its kind in India in collaboration with advanced cing SAE, a Belgium company. 14:25 14 minutes, 25 seconds European cing quality will be available on the Indian market. A high margin recurring revenue stream from a captive 14:34 14 minutes, 34 seconds customer base. This is a value services at its most powerful phase. 14:40 14 minutes, 40 seconds Engine number four, global consolidation, turning the group into one integrated business. 14:47 14 minutes, 47 seconds The restructuring has created something that did not exist before. a single coherent method of business with India 14:54 14 minutes, 54 seconds as its center, European technology at the core and global rich shook group entities. 15:01 15 minutes, 1 second In 2026, this consolidation advances to its next major step. The proposed acquisition of 15:09 15 minutes, 9 seconds the US space group entity targeted for completion by December 31st, 2026. 15:16 15 minutes, 16 seconds What does the US acquisition means for GCL's growth potential? 15:22 15 minutes, 22 seconds Access to North American engineering expertise and project management capability directly under the GCL platform. 15:31 15 minutes, 31 seconds participation in major North American steel industry projects like Arsenal metal calvette and other like where 15:38 15 minutes, 38 seconds GCL's technology is already deployed export revenue opportunities for Indian manufactured equipment and components 15:46 15 minutes, 46 seconds flowing through the consolidated group a genuinely global GCL able to serve customers from India to Europe to North 15:54 15 minutes, 54 seconds America from a single integrated platform every phase of this consolidation is governed by full board oversight, 16:02 16 minutes, 2 seconds independent due diligence and shareholder transparency. 16:07 16 minutes, 7 seconds We will move deliberately and responsibly but the destination is clear. A listed Indian entity with 16:14 16 minutes, 14 seconds global scale engine number five, green teal technology positioned for the next decade. Steel manufacturing is 16:22 16 minutes, 22 seconds undergoing its deepest structural transformation in generations from carbon intensive high volume production towards precision processing. 16:31 16 minutes, 31 seconds Advanced high strength steel and progressively lower carbon intensity. 16:36 16 minutes, 36 seconds This is not a trend. It is a structural shift that will define capital investment in the steel sector for the next 20 years. 16:46 16 minutes, 46 seconds GCL is not observing to shift. We are positioned to lead it through our own technology portfolio and through the group's broader innovation pipeline. 16:56 16 minutes, 56 seconds Jet B for the position developed in partnership with Dell Metal superior cing quality lower environmental impact 17:05 17 minutes, 5 seconds enabling steel producers to meet tomorrow's sustainability requirements today. 17:10 17 minutes, 10 seconds WAN the group's electrochemical I1 making initiative targeting CO2 reduction at the upstream end of the 17:17 17 minutes, 17 seconds value chain positioning John metals as a partner in the fundamental decarbonization of steel 17:25 17 minutes, 25 seconds electrical steel processing our project for GSW JF electrical steel Nashik m our 17:32 17 minutes, 32 seconds entry into a high growth high technology segment CRTO skill for transformers a 17:40 17 minutes, 40 seconds market previously dominated by imports and know being localized in India for the first time. Our ambition is clear 17:47 17 minutes, 47 seconds and deliberate to evolve from a world-class downstream technology partner into a tier one steel making 17:54 17 minutes, 54 seconds solution company offering our customers the technology they need not just for today's production but for the 18:01 18 minutes, 1 second decarbonized digitally managed steel industry of the next generation. 18:08 18 minutes, 8 seconds The synergy road map was the restructuring unlocked and when. Let me be specific about the synergies from restructuring and when investor should 18:16 18 minutes, 16 seconds expect to see the materialize in our financial revenue step up 18:23 18 minutes, 23 seconds new projects from H2 2025 or the intake move into active execution. Multiple large site buildings simultaneously. 18:32 18 minutes, 32 seconds Q2 2026 is the expected inflection point for revenue acceleration. 18:38 18 minutes, 38 seconds 2026 H1 world cing revenue. As mentioned, Taloa facility is commissioning the current project. 18:50 18 minutes, 50 seconds Third time in recurring coing services revenue begins flowing. A new business line with structural grow potential for 18:57 18 minutes, 57 seconds day one. 2026 year procurement synergies. Consolidated group purchasing 19:04 19 minutes, 4 seconds across India, Europe and China delivers measurable cost savings on materials and components. 19:11 19 minutes, 11 seconds Margin improvement visible in project growth margin in 2026 full year technology transfer velocity faster 19:19 19 minutes, 19 seconds mobilization of group technology into Indian projects reducing engineering lead times improving proposal quality 19:27 19 minutes, 27 seconds and enabling us to build on more technically complex higher margin projects. 19:32 19 minutes, 32 seconds 2026 H2 US entity consolidation proposed acquisition completion by 19:39 19 minutes, 39 seconds December 31st 2026 North American engineering capability under the GCL platform new revenue 19:47 19 minutes, 47 seconds dimensions from crossber project participation 2027 life cycle service scale value services 19:55 19 minutes, 55 seconds grow from a meaningful contributor to a major revenue pillar powered by the growing installed base group engineering 20:03 20 minutes, 3 seconds integration and world coding ramp up 2027 green revenue JBD Volter and 20:12 20 minutes, 12 seconds electrical steel technologies begin contributing to a structurally differentiated premium margin revenue 20:19 20 minutes, 19 seconds stream as the carbonization investment accelerates globally the restructuring has created a platform 20:26 20 minutes, 26 seconds the existing order book has confirmed the demand the technology portfolio has established the differentiation. 20:34 20 minutes, 34 seconds What comes next is execution and that is what we do best. Why GCL? Why no? 20:41 20 minutes, 41 seconds Let me close a substantive part of this call with investment case as I see it clear direct and growing in what we have 20:49 20 minutes, 49 seconds built market timing. India is in a multi- decade steel investment cycle. We 20:57 20 minutes, 57 seconds are in the go-to technology partner for advanced processing lines in the market. The timing could not be more favorable. 21:06 21 minutes, 6 seconds The restructuring is almost complete. 21:08 21 minutes, 8 seconds The complexity and cost of transformation are behind us. The organization is set up to execute and to scale. 21:16 21 minutes, 16 seconds The synergies are now ours to capture. 21:19 21 minutes, 19 seconds Record order book promising revenue visibility at levels we have not had before. Q2 2026 revenue set up is a near-term high confidence milestone. 21:31 21 minutes, 31 seconds Venue services component a recurring high margin business growing from a captive integrating a new dimension in 2026. 21:42 21 minutes, 42 seconds Global platform in the making. GCL is becoming a genuinely global listed entity. India as the hub, group 21:50 21 minutes, 50 seconds technology as the engine and international consiliation as the growth level. Balancing strength from 226 crore in cash and bank balances. 22:02 22 minutes, 2 seconds Financial fire power to invest in growth resource constraint. 22:08 22 minutes, 8 seconds Dividend reinstated a progressive approach to shareholder returns begins in fiscal year 2025 and we intend to 22:16 22 minutes, 16 seconds build on it. safety culture, zero fatalities, zerois in fiscal year 2025, 22:25 22 minutes, 25 seconds 4,500 plus consecutive safe days at Togo. This is an organization that operates with discipline and integrity 22:33 22 minutes, 33 seconds at every level. GCL is not a turnaround story anymore. It is a growth story. The 22:39 22 minutes, 39 seconds turnaround was 2025. The growth is 2026 and beyond. and we are fully committed 22:46 22 minutes, 46 seconds to deliver it. closing to our shareholders. The restructuring you supported, the patient you showed and 22:54 22 minutes, 54 seconds the trust you maintain it has built something real. The dividend we have recommending this year is the first return on that trust. We intend to keep 23:03 23 minutes, 3 seconds delivering to our customers. Thank you for choosing us as your technology and engineering partner. We aim to honor 23:11 23 minutes, 11 seconds that choice on every project at every site every day. To our employees, you executed through transformation without 23:20 23 minutes, 20 seconds missing a bit. The performance we are reporting today and the growth ahead is yours. The best chapter of GCL sorry has 23:28 23 minutes, 28 seconds no has not been written yet. We are writing it now. 23:36 23 minutes, 36 seconds And no Frederick M and I are now ready for your questions. Thank you for your attention. 23:49 23 minutes, 49 seconds Shall we begin with the question and answer session? Yes. 23:55 23 minutes, 55 seconds Thank you. Ladies and gentlemen, we'll begin with the question and answer session. Anyone who wishes to ask a question may press star N1 on your 24:03 24 minutes, 3 seconds touchstone telephone. If you wish to remove yourself from the question queue, you may press star N2. Participants are requested to use handsets while asking a question. 24:14 24 minutes, 14 seconds Ladies and gentlemen, we'll wait for a moment while the question assembles 24:44 24 minutes, 44 seconds Mr. Nayek, you may please proceedate with the question. Sir, thank you. Am I audible, sir? Yes, you are. 24:53 24 minutes, 53 seconds Yes. 24:53 24 minutes, 53 seconds Yeah. Thank you for the opportunity. Uh sir, uh I have a couple of questions. Uh so, what is the current market share of 25:02 25 minutes, 2 seconds the company in the downstream steel capex in India? And uh how do you see in times to come how it is going to be in 25:10 25 minutes, 10 seconds India and what is the market share uh globally uh of the uh you know for the international entity uh in the steel 25:18 25 minutes, 18 seconds capex and um we are we are extremely proud of 25:30 25 minutes, 30 seconds our market share currently in India which I would estimate being between 25:37 25 minutes, 37 seconds 15 to 20% market share in the downstream area. Our company is recognized as uh 25:44 25 minutes, 44 seconds one of the best money uh value for for for money solution provider in India and 25:52 25 minutes, 52 seconds uh the recent successes we we had in the last three years uh customers like Tata 25:58 25 minutes, 58 seconds AMNS JSW show the trust that the steel Indian steel industry has in in in us 26:07 26 minutes, 7 seconds the perspective um is um cautiously positive. We expect 26:14 26 minutes, 14 seconds that the Indian markets will continue to invest and grow and especially in downstream. Downstream processes are supporting and helping customers to 26:23 26 minutes, 23 seconds produce, manufacture and deliver highest uh higher quality products 26:30 26 minutes, 30 seconds and in fast growing markets uh uh industry like automotive, home appliances and construction. These 26:38 26 minutes, 38 seconds industries require higher quality uh uh better finished products and and higher 26:44 26 minutes, 44 seconds uh quality of material in the rest of the world. I would quickly mention that China despite the headwinds 26:54 26 minutes, 54 seconds is expecting to invest as well because a lot of steel need to differentiate themselves from competition and they 27:02 27 minutes, 2 seconds need to offer high aided value products to the market. Europe 27:08 27 minutes, 8 seconds uh is still under I would say a turning point uh which should come end of 2026 27:16 27 minutes, 16 seconds when the Tib which is the crossber adjustment mechanism for decarbonization plus the new tariff which will be 27:25 27 minutes, 25 seconds implemented on 1st of July 206 will bring the the the steel producers 27:32 27 minutes, 32 seconds in Europe to invest again into New line especially downstream to transform hot 27:40 27 minutes, 40 seconds coil which contains low margin to highed value products called walls and caused 27:48 27 minutes, 48 seconds to offer to their final customers in in Europe. And finally, US uh is seeing a 27:56 27 minutes, 56 seconds new wave of investment um and and large groups like Hyundai Steel, like US Steel are reviewing 28:05 28 minutes, 5 seconds largely um in a in a gross way their investments on the market to localize more their productions. 28:15 28 minutes, 15 seconds Okay. Uh sir uh again uh largely you have a presence in the steel capital downstream steel capital in India 28:21 28 minutes, 21 seconds currently and uh uh after the consolidation how do you see the upstream and downstream mix on the 28:30 28 minutes, 30 seconds consolidated entity going ahead beyond you know calendar year 26. 28:39 28 minutes, 39 seconds So the consolidation of the entities uh is um supporting John India Limited to 28:45 28 minutes, 45 seconds have direct access to technologies which the entity was uh was enjoying in a in a 28:53 28 minutes, 53 seconds collaboration way with the other entities of the group but also has access to new technologies 29:02 29 minutes, 2 seconds and uh these technologies are from the upstream upstream side as well as downstream in downstream 29:10 29 minutes, 10 seconds John Jet paper for deposition uh which is a technology which was contained in 29:17 29 minutes, 17 seconds in uh the external entity in Belgium will have full uh um effect on uh the 29:25 29 minutes, 25 seconds order book and the financials of Junko uh India limited onwards. 29:31 29 minutes, 31 seconds In terms of upstream, we will be able and we are already offering electrical art from the market with our Spanish 29:39 29 minutes, 39 seconds partner SA. Um, and this uh agreement or partnership agreement 29:45 29 minutes, 45 seconds was signed between Belgium and Spain and this is also something that John India Limited has full access to. 29:56 29 minutes, 56 seconds Okay. Okay. Last question regard from my side. 29:59 29 minutes, 59 seconds uh correctly. So uh what do how do you see the margins trajectory going and what is the current service and spare 30:06 30 minutes, 6 seconds part business in the total revenue currently and how how it is going to be in future and uh regarding the debt profile is whether when we consolidate 30:15 30 minutes, 15 seconds the there will be some debt will be coming to the consolidated entity from the international side uh because we are raji debtree right now and uh lastly 30:25 30 minutes, 25 seconds what would be the employee base of the company in India and outside. Thank you. 30:43 30 minutes, 43 seconds Can you hear us? Hello. Hello. Hello. 30:47 30 minutes, 47 seconds Hello. So yeah, in terms of value value services, the the revenue portion from 30:53 30 minutes, 53 seconds uh from value services was close to 30% for the entire metals activities which is um to be honest a record year. 31:05 31 minutes, 5 seconds uh we expect that to grow next year in absolute value but in percentage might uh might reach 31:14 31 minutes, 14 seconds rather a level of uh uh 28% uh wonder about that. So the 31:22 31 minutes, 22 seconds contribution in terms of margin of value services is around 40%. 31:29 31 minutes, 29 seconds For 2024 and will represent next year half of the profitability of the group. 31:37 31 minutes, 37 seconds Okay. Regarding the date uh in terms of date profile from sorry to interrupt you but you may 31:45 31 minutes, 45 seconds please rejoin the queue for more questions. Okay. Thank you. Thank you. Thank you. 31:51 31 minutes, 51 seconds Yeah. Just to answer your question um uh on the employees. So we have 378 31:57 31 minutes, 57 seconds employees in India and overall we have more than 700 employees in metals worldwide. 32:07 32 minutes, 7 seconds Thank you so much sir. Our next question come from the line of Anand Sha from J Anurities. Please go ahead. 32:16 32 minutes, 16 seconds Yeah. Uh good sir. Hello, we can hear you. Yes. Yes, we can hear you. Please proceed. 32:25 32 minutes, 25 seconds Sir, firstly congrats on good set of numbers. Uh just wanted to uh check. So can you give an estimate in terms of how 32:34 32 minutes, 34 seconds would the consolidated revenues uh if if uh uh if the comp if the business which 32:42 32 minutes, 42 seconds is going to come to the Indian listed entity if that is consolidated for calendar 25 what would be the revenues 32:49 32 minutes, 49 seconds and ITA for 2025 maybe on a proform basis if you can some 32:59 32 minutes, 59 seconds indication Okay. So, thank you. Thank you for the question and the congratulation. 33:05 33 minutes, 5 seconds In terms of consolidated revenue 2025, if if the business will have been consolidated, 33:13 33 minutes, 13 seconds the revenue will be close to 2,000 CR 33:21 33 minutes, 21 seconds 2,000 CR. And in terms of epicda 33:29 33 minutes, 29 seconds we will be at I would say 33:35 33 minutes, 35 seconds uh level similar to the Indian entity but I cannot disclose any uh any information on that. 33:42 33 minutes, 42 seconds Okay sir this includes the US numbers. This includes the US numbers. 33:50 33 minutes, 50 seconds Okay. Okay sir. Uh sir just uh next question is uh uh uh 33:57 33 minutes, 57 seconds based on the uh news uh which are there on the site uh you had some good 34:03 34 minutes, 3 seconds meetings with Saoong Steel in China. So maybe uh is is there uh any some 34:11 34 minutes, 11 seconds positive news from there for JBD or Walteron now maybe that we can look forward to. 34:20 34 minutes, 20 seconds So the the the the Chinese market is is highly interested in u in uh cutting 34:27 34 minutes, 27 seconds edge technologies and we had uh meetings with Shandong Steel but many other groups uh to discuss JBD and Voltern as 34:36 34 minutes, 36 seconds well. What I can tell you is that uh consciously uh but realistically we expect that 34:44 34 minutes, 44 seconds China will present in 2026 um a very strong field in terms of order entry for new technologies. 34:54 34 minutes, 54 seconds So um in order to um to really accompany our our Chinese customers in the future, 35:02 35 minutes, 2 seconds we have decided to open in in Shanghai a new office which will be inaugurated next week and where we will be able to 35:12 35 minutes, 12 seconds put our center of excellence to execute Chinese projects. 35:16 35 minutes, 16 seconds Our Chinese entity has been uh successful on the local market but on on the international market signing 35:24 35 minutes, 24 seconds contracts uh with Chinese companies like Yong Fong uh but also signing um a large contract with a Kazakhstan company Gmet. 35:38 35 minutes, 38 seconds This project will be executed out of China. 35:45 35 minutes, 45 seconds Thanks sir. Thanks a lot. Wish you all the best. Thank you. 35:54 35 minutes, 54 seconds Our next question come from the line of Ben Watesh Subramanyan from Logic Consultant Private Limited. Please go ahead. 36:02 36 minutes, 2 seconds Yes sir. This is u thank you for the opportunity. Um good afternoon. 36:08 36 minutes, 8 seconds So I have two questions. one is uh can you give me some clarity on the numbers in terms of the present order book and 36:17 36 minutes, 17 seconds what kind of order inflow would you expect during the current year and I'm talking about both uh from India as well 36:25 36 minutes, 25 seconds as overseas uh that's my first question book okay good afternoon and thank you for 36:34 36 minutes, 34 seconds your question so in terms of order book uh Um we have 36:41 36 minutes, 41 seconds mentioned the backlog today uh which is 11.9 billion rupees 36:49 36 minutes, 49 seconds uh and this is the largest backlog um and order book we we ever had in hand. 36:56 36 minutes, 56 seconds So this is uh represented um largely by um uh Indian companies 37:05 37 minutes, 5 seconds and our expectation uh for the order book this year is um hopefully to increase uh um this order book uh over the year. 37:16 37 minutes, 16 seconds So we we expect to end the year with a higher backlog that what we have today. 37:23 37 minutes, 23 seconds So what I can tell you is that we have registered orders for more than 8,600 37:32 37 minutes, 32 seconds um million uh rupees in 2025. Uh can you repeat the last line sir? 37:42 37 minutes, 42 seconds You're saying we have uh bit for orders worth 8,000 million. Is that right sir? 37:48 37 minutes, 48 seconds Yes, let's say 860 crores for 2025 in India and worldwide 2,000 C. 37:59 37 minutes, 59 seconds Okay sir. Great. Okay. 38:01 38 minutes, 1 second That's what and we expect we expect more 38:08 38 minutes, 8 seconds right sir. Okay. And what is the typical order execution time sir for these orders? Could it be two years or three years? 38:17 38 minutes, 17 seconds It is it is let's say two to three years depending on on the customers. Um the revenue for one project is over three years in average. 38:29 38 minutes, 29 seconds Okay. Okay. Great. So the second question is I think uh during the last year uh in one of the uh con calls it 38:38 38 minutes, 38 seconds was mentioned that um we would uh we were also talking to the public sector 38:45 38 minutes, 45 seconds companies steel companies in India um to the to see if some of the old plans 38:51 38 minutes, 51 seconds could be um re revamped and restructured and new technology brought in which was 38:58 38 minutes, 58 seconds a significant order that you're talking about any update on that sir? 39:05 39 minutes, 5 seconds Yes, we have been uh moving significantly u with some of our strong partners in in India. As you may know, 39:12 39 minutes, 12 seconds we have signed a minute of understanding with the sales uh on the Indian market to support them to revamp and upgrade their uh downstream processing lines. 39:25 39 minutes, 25 seconds Okay. So, super. Uh last question. We are in the middle of the we are in the middle of the development of this this partnership. 39:35 39 minutes, 35 seconds Okay sir. Okay, great sir. uh if we complete 2026 reasonably well and uh 39:41 39 minutes, 41 seconds what's a possible um operating margin that one can look forward to in the future sir as an internally what would 39:50 39 minutes, 50 seconds be a benchmark target you will have for John Cochril India say one or two years down the line 39:57 39 minutes, 57 seconds operating margin or aida margin for the entire consolidated entity 40:06 40 minutes, 6 seconds we We are aiming for double digit um uh profits and uh in over five years and 40:16 40 minutes, 16 seconds for sure for the for the consolidated new entity we are looking for um 40:23 40 minutes, 23 seconds increase in in absolute value there we will see a big difference. 40:29 40 minutes, 29 seconds Okay. Thank you very much. Wish you the best. You're welcome. Thank you. 40:36 40 minutes, 36 seconds Thank you so much ladies and gentlemen. 40:39 40 minutes, 39 seconds Due to the time constraint we'll take the last question from Anand Vias from Car Insurance. Please go ahead. 40:46 40 minutes, 46 seconds Yes sir. Thanks for the opportunity. My uh question is what are the orders in pipeline or orders you have for it and what are the states you are? 40:59 40 minutes, 59 seconds Good afternoon. Could you ask your question please? 41:03 41 minutes, 3 seconds is in uh what uh what are the orders in pipeline or orders which you have bidded for it and what are the stage of 41:09 41 minutes, 9 seconds development we are in hello 41:20 41 minutes, 20 seconds what you're saying you're asking what we are bidding what are the product we are bidding that's what you're yeah what is the bidding in pipeline yeah yes what is 41:28 41 minutes, 28 seconds the bidding uh orders bidding in pipeline So the the the order pipeline or or the opportunity pattern are the one of the 41:38 41 minutes, 38 seconds most confidential information of the company and we cannot give any details. 41:42 41 minutes, 42 seconds What I can tell you is that the the market is supporting um a larger opportunity pipeline for us. 41:53 41 minutes, 53 seconds Okay. Thanks. You will you will be able sir to find uh and download on the the 41:59 41 minutes, 59 seconds the stock market uh website a full presentation of 2025 which we have been uploaded today. 42:09 42 minutes, 9 seconds Okay. Okay. Thank you. 42:14 42 minutes, 14 seconds Thank you so much. That was the last question for today. I would like to hand the conference over to the management for the closing comments. Thank you and over to you Tim. 42:24 42 minutes, 24 seconds Thank you very much for your attention. 42:26 42 minutes, 26 seconds Uh we were extremely pleased and proud to share uh this positive result for 2065 and we are looking forward for the 42:33 42 minutes, 33 seconds next next invest investor call after Q1 2026. Have a good day. 42:42 42 minutes, 42 seconds Thank you so much sir. 42:44 42 minutes, 44 seconds Ladies and gentlemen on behalf of John Cochril India Limited that conclude this conference. Thank you for joining us.