Kirloskar Oil Engines Ltd — Q4 FY26

Kirloskar Oil Engines Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=9ZdQVDXiV3g Published: 14 hours ago

0:00 Ladies and gentlemen, good day and welcome to Kiloskal Oil Engines Limited 4Q FY26 awnings conference call. As a 0:09 9 seconds reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:18 18 seconds Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchstone phone. Please note that this conference is being recorded. 0:30 30 seconds I now hand the conference over to Mr. 0:33 33 seconds Amit Sha from Antique Stock Broking Limited. Thank you and over to you sir. 0:39 39 seconds Thank you Saga. Uh good evening everyone. On behalf of Antique Stock Broking Limited, I welcome you all to 4Q 0:47 47 seconds FI26 post earnings call of Kilosia Oil Engines Limited. To discuss the results we have the senior management team of 0:55 55 seconds the company represented by Mr. Gori Gori Kiloskar managing director of the company Mr. Rahul Sahai CEO of the 1:03 1 minute, 3 seconds company and Mr. Sachin Kijal CFO of the company. Uh I would hand over the call to Miss Gori Kirloskar for her opening 1:10 1 minute, 10 seconds remarks post to which we can open the floor for Q&A. Over to you ma'am. 1:16 1 minute, 16 seconds Yeah thanks very much. Good evening ladies and gentlemen. Thank you for joining us today. On the call today we have Rahul Sahai CEO at Cowell, Sachin 1:25 1 minute, 25 seconds the CFO at CO, Kiran CHRO and Farah Irani company secretary. Joining us from 1:32 1 minute, 32 seconds Ara we have Rzi Gangar CFO. I would like to start this year-end investor call with a thank you to all our investors 1:39 1 minute, 39 seconds especially those who have placed their trust and confidence in us over the last four years or more. I remember discussing growth, specifically 1:47 1 minute, 47 seconds sustainable growth when we began this journey. As business cycles fluctuate between favorable and challenging, there 1:55 1 minute, 55 seconds will always be spurts of growth followed by periods of lull. What matters most is how we build an organization capable of 2:02 2 minutes, 2 seconds leveraging favorable circumstances while remaining resilient during a downturn. 2:07 2 minutes, 7 seconds Such an approach is not a quarterly race. It is a multi-year marathon. It requires managing various cycles and building for the future all while 2:16 2 minutes, 16 seconds overseeing day-to-day operations. I have always believed that growth must be sustainable. It cannot come at the cost 2:23 2 minutes, 23 seconds of profitability or for the sake of short-term benefits. 2:27 2 minutes, 27 seconds At a consolidated level, we achieved 22% growth in revenue. We are now amongst the top 10 manufacturers in the world by 2:37 2 minutes, 37 seconds volume in the industrial and power gen space. 2:41 2 minutes, 41 seconds We sold over a million pumps last year and our inter international business crossed 1,000 crores uh 1,00 cr rupees 2:49 2 minutes, 49 seconds in gross sales. Our domestic business grew 21% year-on-year while international business grew 37% in gross 2:58 2 minutes, 58 seconds sales. While various factors influence our monthly and quarterly movements, our focus remains steadfast on long-term 3:06 3 minutes, 6 seconds sustained growth. At a standalone level, the company achieved its highest ever quarterly sales in Q4, reaching 1,522 cr rupees, a 24% year-on-year growth. 3:20 3 minutes, 20 seconds This resulted in fullear net sales of 5,64 cr rupees, representing a 25% 3:27 3 minutes, 27 seconds year-on-year increase. In Q4, the domestic business grew 26% while the international business grew 3:35 3 minutes, 35 seconds 10% compared to the same quarter last year. Our Power Gen segment grew 32% over the previous year. On a quarterly 3:44 3 minutes, 44 seconds basis, PowerGen grew 30% yearonear. To put this in context, Q4 is traditionally 3:51 3 minutes, 51 seconds a strong quarter for us. So delivering this level of growth is a significant achievement. 3:58 3 minutes, 58 seconds Our market share has improved significantly across all nodes. In our high horsepower segment, where our market share was negligible a couple of 4:07 4 minutes, 7 seconds years ago, we are now approaching double digits. While the overall annual diesel generator market grew 18% to 4:16 4 minutes, 16 seconds approximately uh 1 lak 79,000 units including telecom. 4:22 4 minutes, 22 seconds Coell grew by 41% selling upwards of 50,000 units in FY26. 4:30 4 minutes, 30 seconds Our industrial segment grew 22% annually generating revenues of 1,444 crore rupees. Construction, mining and 4:39 4 minutes, 39 seconds railways have been our primary growth drivers. The growth in our construction segment tells an interesting story. 4:47 4 minutes, 47 seconds As you all know, in January of 2025, there was a mandatory emission standard shift from CVBS4 to CVBS5. 4:57 4 minutes, 57 seconds Um, is that right? Yeah. 5:00 5 minutes So, emission changes represent both an opportunity to acquire customers and a risk of losing them. In this segment, 5:08 5 minutes, 8 seconds customer acquisition is a longdrawn process involving technical alignment, product fit assessments, and often 5:16 5 minutes, 16 seconds engineering tweaks to ensure our products integrate seamlessly with the customer's equipment. 5:22 5 minutes, 22 seconds This involves type approvals and prototesting, a joint effort that typically takes 18 months or more. 5:28 5 minutes, 28 seconds Despite these complexities, we grew 24% in the segment in Q4 compared to the same quarter last year. Our construction 5:35 5 minutes, 35 seconds segment specifically grew 44% year-on-year, validating the strength of our products under the new emission standards and the capability of our engineering teams. 5:46 5 minutes, 46 seconds We have incorporated a new subsidiary called Kerroskar Advanced Systems Private Limited. We believe there's significant potential in advanced 5:54 5 minutes, 54 seconds technology particularly to serve key accounts in sectors like defense. Beyond our traditional engine business, we see 6:01 6 minutes, 1 second a systems integration opportunity where we can leverage our engineering capabilities. This requires focus 6:09 6 minutes, 9 seconds focused effort which is the rationale behind this new entity. On the aftermarket side, we grew 15% annually 6:17 6 minutes, 17 seconds and 20% quarterly. As mentioned in previous calls, our journey over the last four years has been to transition 6:24 6 minutes, 24 seconds from a parts provider to a complete ecosystem manager. We are improving our share of annual maintenance contract or 6:32 6 minutes, 32 seconds AMC customers and leveraging our service channels to offer allied products and whole goods. This shift in perspective is yielding clear results. 6:43 6 minutes, 43 seconds Your fluid dynamics uh grew 10% domestically and 13% internationally this quarter. On an annual basis, the 6:52 6 minutes, 52 seconds business grew 6% domestically and 36% internationally. As this is the first full quarter for the consolidated 7:01 7 minutes, 1 second entity, we saw reasonable growth with exports outperforming. However, I believe there's still significant headroom for growth. 7:09 7 minutes, 9 seconds Regarding our international business, I have always maintained that growth must be built sustainably sustainably to become a strong brand globally. Our 7:18 7 minutes, 18 seconds products, channels and service processes must be fit for the market. There is a fundamental difference between exports and being international. 7:28 7 minutes, 28 seconds Exports involves manufacturing locally and shi shipping to a country to sell through an agent. Being international 7:35 7 minutes, 35 seconds means building a genuine business in that geography, hiring locally, setting up comprehensive offices, and evaluating 7:43 7 minutes, 43 seconds local manufacturing or assembly where it's viable. Our gross international business grew 33% in Q4 over the 7:50 7 minutes, 50 seconds previous year's quarter and 37% over the last fiscal year. We remain committed to 7:57 7 minutes, 57 seconds our strategy of focusing on specific regions to build this business with patience and sustained effort. 8:05 8 minutes, 5 seconds At ARA, our five-year strategy centers on a deliberate pivot towards retailizing our book to ensure sustainable growth. We prioritize 8:14 8 minutes, 14 seconds building the right foundational structure ranging from onboarding the right talent and selecting markets to building seamless digital journeys and 8:22 8 minutes, 22 seconds prudent risk guardrails. We scaled from 34 to 137 branches in fiscal year 26. 8:33 8 minutes, 33 seconds Our strategy focuses on local market depth operating only in regions where we have the established infrastructure to 8:41 8 minutes, 41 seconds provide direct hightouch service to our customers. Our AUM grew 10% to 7,947 8:49 8 minutes, 49 seconds cr rupees with net interest income rising 11% to 266 cr rupees. Even with 8:57 8 minutes, 57 seconds significant investments in the secured retail business, FY26 profit after tax 9:03 9 minutes, 3 seconds remains stable at 69 cr rupees similar to FY25 profit after tax before extraordinary 9:11 9 minutes, 11 seconds items. While we are in full execution mode, asset quality remains robust along with prudent leverage and capital ratios. 9:21 9 minutes, 21 seconds In summary, we are progressing well against our goal to be a $2 billion company by fiscal year 30 and our 9:28 9 minutes, 28 seconds numbers indicate that progress. We are very excited about our future. We believe that there is much more that we 9:34 9 minutes, 34 seconds can do and the opportunity is real. Our last year's performance is a reflection of the inherent strengths that we have at Coell. our leadership, our 9:43 9 minutes, 43 seconds engineering, our people and the strength of our partners, meaning our suppliers, our channel partners and most importantly our customers. I will stop 9:52 9 minutes, 52 seconds here and request Sachin to give an update on Q4 and the full year numbers. Thank you. 9:58 9 minutes, 58 seconds Hi, good evening everyone. Thanks for the update. I will give a quick overview of the financial performance for standalone and consolidated business. 10:08 10 minutes, 8 seconds The results and the presentation for today's call has already been uploaded on exchange and our website. 10:15 10 minutes, 15 seconds Q4 FI26 was a period of remarkable growth setting a new benchmark for quarterly sales. The strong performance 10:23 10 minutes, 23 seconds was broad-based with significant double-digit growth in both domestic and international markets. 10:29 10 minutes, 29 seconds The fourth quarter of fiscal year 26 was record setting period for Kroska oil engines achieving the highest ever 10:37 10 minutes, 37 seconds quarterly sales of 1522 crores for the standalone operations registering 24% growth year on year 10:46 10 minutes, 46 seconds with this strong performance we closed the full year with standalone net sales of 5,64 crores that is 25% growth year 10:55 10 minutes, 55 seconds on year coming to the financial performance Overview I will start with standalone 11:01 11 minutes, 1 second performance funds for the quarter. Net sales at 1522 crores for Q4 FI26 versus 1,225 crores for Q4 FI25. 11:14 11 minutes, 14 seconds 24% increase yearonear. 11:17 11 minutes, 17 seconds AITA at 193 crores for Q4 FI26 versus 152 crores for Q4 FI25. 11:26 11 minutes, 26 seconds That is 27% increase yearonearita margin at 12.6% for Q4 FI26 versus 12.3% 11:35 11 minutes, 35 seconds for Q4 FI25. There has been improvement by 30 basis point net profit from 11:42 11 minutes, 42 seconds continuing operation at 118 crores for Q4 FI26 versus 92 crores for Q4 FI25. 11:51 11 minutes, 51 seconds 28% increase yearonear. 11:54 11 minutes, 54 seconds Now moving to the full year performance net sales at 5,64 crores for FI26 versus 4,481 crores for FI25. 12:05 12 minutes, 5 seconds That is 25% increase yearonearat 737 crores for FI26 versus 552 crores for FI25. 12:16 12 minutes, 16 seconds 33% increase year on year AITA margin at 13.1% for FI26 versus 12.2% for FI25. 12:27 12 minutes, 27 seconds So there's a growth of 90 basis point in EITA margin. Net profit from continuing operation at 464 crores for FI26 versus 343 crores for FI25. 12:39 12 minutes, 39 seconds 35% increase year on year. Net cash position net of debt and including treasury investment stand 552 crores. 12:48 12 minutes, 48 seconds Please note numbers reported here are for continuing operations only and excluding exceptional items. 12:57 12 minutes, 57 seconds Moving to working capital, our working capital position continues to remain healthy with payables at approximately 60 days and receivables at around 41 13:06 13 minutes, 6 seconds days. Inventory level stood at uh approximately 48 days which improved from 66 days last quarter. 13:15 13 minutes, 15 seconds Supported by disciplined working capital management led by improved inventory and receivables efficiency. The overall cash 13:23 13 minutes, 23 seconds conversion cycle has continued to be maintained within a disciplined range supporting overall liquidity and operating flexibility. 13:32 13 minutes, 32 seconds In the interest of time, I will break down this performance for the quarterly numbers. You can refer to our earning presentations portfolio performance 13:39 13 minutes, 39 seconds number. So coming to the further breakdown of the standalone sales for the quarter coil oil coil standalone sales post the restructuring were at 1522 crores that is 24% cronyear. 13:52 13 minutes, 52 seconds This strong momentum was backed by double digit growth across all business units. So within B2B power gen was at 13:59 13 minutes, 59 seconds 708 crores that is 30% increase yearon year. Industrial was at 371 crores 24% 14:07 14 minutes, 7 seconds increase yearon year distribution and after market was at 281 crores which is 20% increase year on year and 14:16 14 minutes, 16 seconds international business of B2B was at 162 crores that is 10% increase yearon year now looking at consolidated performance 14:24 14 minutes, 24 seconds for the quarter revenue from operation at 2116 crores for Q4 FI26 14:31 14 minutes, 31 seconds versus 1,700 149 cr for Q4 FI25 that is 21% increase yearonear 14:41 14 minutes, 41 seconds net profit from continuing operations at 162 crores for Q4 FI26 versus 111 crores for Q4 FI25 that is 14:51 14 minutes, 51 seconds 47% increase yearon year let us have a look at consolidated segment performance for the quarter now 14:59 14 minutes, 59 seconds B2B segment revenue for the quarter was at 1557 7 crores which is 25% growth 15:05 15 minutes, 5 seconds year on year. The segment PBIT was at 152 crores reflecting 35% increase 15:13 15 minutes, 13 seconds yearon year. B2C segment revenue for the quarter was at 339 crores which is 11% 15:20 15 minutes, 20 seconds growth year on year. The segment PBIT was at appro 42 crores that is 16% increase yearon year. 15:29 15 minutes, 29 seconds Financial service segment revenue for the quarter is at 221 crores reflecting 8% year-on-year growth. The segment PBT 15:38 15 minutes, 38 seconds was at 28 crores that is 157% increase year-on-year. Please note number discussed here represent containing 15:45 15 minutes, 45 seconds operations only and before exceptional items to conclude I would like to sincerely congratulate the entire qu team for 15:53 15 minutes, 53 seconds their contribution to this strong performance. The progress we have achieved this year is a reflection of the collective commitment, resilience 16:01 16 minutes, 1 second and execution capability across the organization. 16:05 16 minutes, 5 seconds As we close this financially, we are now preparing ourselves for the next set of milestones in our 2B2B journey. 16:13 16 minutes, 13 seconds Our approach will continue to be steady and disciplined, staying focused on our long-term goals, taking one step at a 16:20 16 minutes, 20 seconds time and remaining agile as we navigate the evolving business environment. 16:25 16 minutes, 25 seconds Now I would like to open the floor for a Q&A. Thank you. 16:31 16 minutes, 31 seconds Thank you very much. We will now begin with the question and answer session. 16:36 16 minutes, 36 seconds Anyone who wishes to ask a question may press star and then one on their touchstone phone. 16:42 16 minutes, 42 seconds If you wish to remove yourselves from the question cube, you may press star and two. 16:48 16 minutes, 48 seconds Participants are requested to use handsets while asking a question. 16:53 16 minutes, 53 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 17:04 17 minutes, 4 seconds Your first question comes from the line of J2 Punjabi with M Investco Capital Advisors Private Limited. Please go ahead. 17:13 17 minutes, 13 seconds Hey Gowi, Rahul and team I think tremendous performance and uh very satisfying to see the way you guys have 17:21 17 minutes, 21 seconds scaled up and managed to get to this place. So congratulations on that. My first question really is that you know 17:29 17 minutes, 29 seconds the export side numbers seem very strong. question is can you give some level of attribution 17:37 17 minutes, 37 seconds to help us understand where's that growth coming from and two your thoughts on sustainability of that I've got a second question I'll answer I'll ask 17:45 17 minutes, 45 seconds after I after we talk about the first one uh hi Ju u so thank you for the you know 17:54 17 minutes, 54 seconds for the inputs and really appreciate that uh on the international side um so 18:01 18 minutes, 1 second our flu dynamic mix business has uh done extremely well last year. Uh so seen 18:08 18 minutes, 8 seconds tremendous growth. Um as we've been explaining over the quarters uh our game plan is deeply structural for each 18:17 18 minutes, 17 seconds region. So we take a deep look on uh you know where should we play, how do we succeed in those markets, what is what 18:24 18 minutes, 24 seconds is the regulatory environment. So there is a lot of ponderance before we make decisions to commit to a market and uh 18:33 18 minutes, 33 seconds once we do then uh the entrenchment is fairly sustainable. So uh the way I would answer the question is uh do we 18:41 18 minutes, 41 seconds think this is sustainable? We would believe that this is sustainable. In fact there is a lot more work uh that is 18:48 18 minutes, 48 seconds still underway. U and uh if I look at the split uh power gen continues to be a very big opportunity on the 18:56 18 minutes, 56 seconds international side we continue to be focused on that uh this time around uh we've seen uh significant success on the 19:05 19 minutes, 5 seconds pump side as well as on the power gen side in the thousand plus cres and cross sales. 19:12 19 minutes, 12 seconds U thank you so much I really appreciate that. The second question is really can you uh talk a little little bit about 19:21 19 minutes, 21 seconds the the market share gains in the high horsepower segment. I I don't specifically ask for numbers but I'm 19:28 19 minutes, 28 seconds just more color on what's happening there and and and especially Octipine. 19:34 19 minutes, 34 seconds How is that shaping up and what does the order book look like? And one more linked question broadly is uh with the 19:41 19 minutes, 41 seconds war and potential fuel price hikes and all the other stuff. Can you just again tell us what do you think are the uh any 19:50 19 minutes, 50 seconds any of the challenges that you expect in the environment for our business uh over the next 69 months. 19:58 19 minutes, 58 seconds Right. Right. Uh uh so G2 just on uh Optip Prime and uh our HHP focus um if I 20:06 20 minutes, 6 seconds look at uh the way we've progressed over the last one year um we are already making uh strides uh I would say 20:15 20 minutes, 15 seconds significant strides uh whether it is Optip Prime or HHP. So we have sold 20:22 20 minutes, 22 seconds units up to 3,000 KVA now. So uh all of that is already underway and uh we have 20:30 20 minutes, 30 seconds uh actually sold a few hundred optims last year. So uh that has been extremely encouraging for uh for us as a 20:38 20 minutes, 38 seconds management team as well as uh the teams uh in within the organization and uh uh we do believe that uh you know 20:47 20 minutes, 47 seconds the moment we enter a particular node or market and definitely domestic first uh we have a you know we have a opportunity 20:56 20 minutes, 56 seconds to succeed there and uh the HP uh segment in power gen has been not very 21:04 21 minutes, 4 seconds different. So, uh we do believe that we will uh continue to grow stronger there. 21:09 21 minutes, 9 seconds Uh as far as the current geopolitical situation is concerned. Uh we may see short to medium-term uh you know 21:17 21 minutes, 17 seconds structural changes play out. Uh I think we are keenly watching out for uh the macro environment. Uh but uh what I can 21:24 21 minutes, 24 seconds assure you is whatever happens won't be specific or unique to us. I think if there is a larger macro play that 21:32 21 minutes, 32 seconds happens or if uh there is uh you know there's something that happens then we will we may face some headwinds but we 21:40 21 minutes, 40 seconds may also see tailwinds in the form of you know rebuilding of infrastructure in those respective regions. Uh the the 21:48 21 minutes, 48 seconds good news for us is that look uh we committed to the Middle East market a few years ago and we are present. So 21:56 21 minutes, 56 seconds each time I mean if there once the rebuilding process starts and as and when it starts uh we are present there to uh to address that uh growth in the market. 22:06 22 minutes, 6 seconds Thank you very much and good wishes as always. Thank you. Thank you. Thank you Ju. Thank you. 22:15 22 minutes, 15 seconds The next question comes from the line of Ankur Perial from Access Capital. Please go ahead. 22:21 22 minutes, 21 seconds Uh yeah. Hi team. Thanks for the opportunity and congratulations on a on a strong set of numbers. Uh my first question uh is on the the R&D and the 22:30 22 minutes, 30 seconds overall product development side. Uh now you know glad to hear uh your earlier comment on uh you know Optip Prime uh 22:37 22 minutes, 37 seconds you know picking up very well. Uh but just on that bit uh are there any more products that we are working on over the 22:45 22 minutes, 45 seconds next let's say you know one to three years which can uh drive the growth further up or maybe even variants of the 22:52 22 minutes, 52 seconds existing ones uh which can see a ramp up uh you know over the coming years. 23:04 23 minutes, 4 seconds Yeah. Uh so uh I may not be able to give out information about the product launches and the engineering development. Uh but what I can say is 23:11 23 minutes, 11 seconds that we are deeply focused on uh key customer segments and their requirements and we are fully geared and equipped to 23:20 23 minutes, 20 seconds uh develop the products that the market requires. Okay, let let me rephrase my question. 23:25 23 minutes, 25 seconds So uh you you did mention we are selling units up to 3,000 KVA. So uh the incremental focus is on going beyond 3,000 KVA as well or within 3,000 KVA. 23:35 23 minutes, 35 seconds Our portfolio is reasonably placed and we believe uh you know there is no further uh new product investment required there. 23:44 23 minutes, 44 seconds Um so we have the capability to address nodes even beyond 3,000. Uh what I did mention was uh where we have actively 23:53 23 minutes, 53 seconds sold uh units. uh we have capability as you're aware uh we are executing order 24:00 24 minutes of nuclear power corporation uh 10 units each unit is 6.3 megawatt gen set so we 24:07 24 minutes, 7 seconds do have the capability to address larger units uh I was just talking about the uh routine products 24:15 24 minutes, 15 seconds okay sure uh that's helpful uh second bit uh on uh you know very strong growth on the industrial side uh for for us uh 24:23 24 minutes, 23 seconds how is your uh what is the growth outlook across industrial as well as distribution revenue going ahead while till now the growth uh you know as in 24:32 24 minutes, 32 seconds the initial comments we highlighted were less by was led by construction uh but are these the key segments which will drive the growth further ahead as well 24:40 24 minutes, 40 seconds or there could be uh you know more uh subsegments that we will look to ramp up. 24:46 24 minutes, 46 seconds So uh our guidance overall we remain committed to the 2 billion guidance and uh industrial and aftermarket have an 24:56 24 minutes, 56 seconds important role to play uh as we move and progress towards the 2 billion uh milestone. Um the as you're aware on the 25:05 25 minutes, 5 seconds industrial side we have multiple segments uh there is a game plan in place for each of those segments. uh depending on the year and the cycle we 25:13 25 minutes, 13 seconds are in some of those segments will do better than others but uh uh I wouldn't be able to call out anything more than that at this point. 25:24 25 minutes, 24 seconds Uh okay fair enough. And just last question uh from you know the co the company's investments uh into the sub 25:31 25 minutes, 31 seconds segments in terms of you know having the people the teams uh the network in place uh are most of the investments there uh 25:40 25 minutes, 40 seconds we have already invested there and now we just need to see the ramp up and the execution part or there could be some more uh you know investments which are required. 25:50 25 minutes, 50 seconds Um as you're aware the I mean situation does change quite a bit. So we may make decisions to hire more people depending 25:59 25 minutes, 59 seconds on the circumstance. Uh so it's hard to really comment on that but yes there is a significant amount of infrastructure 26:07 26 minutes, 7 seconds as well as network already established uh that we are fully leveraging at this point. 26:15 26 minutes, 15 seconds Okay thank you for all the answers and all the best. Thank you. 26:24 26 minutes, 24 seconds The next question comes from the line of JS Swans with IDBI Capital. Please go ahead. 26:31 26 minutes, 31 seconds Yeah, thank you so much for taking my questions. First just had a clarification. I just joined the call a bit late. Uh ma'am Gory ma'am did 26:40 26 minutes, 40 seconds mention that uh the whole how much the industry grew and the volumes. Could you just repeat that? I mean just for uh uh 26:48 26 minutes, 48 seconds you know Yeah sure. So you want me to that bit of the commentary? 26:58 26 minutes, 58 seconds I Yeah. While the overall annual diesel generator market grew 18% to approximately 1 lak 79,000 units including telecom. 27:10 27 minutes, 10 seconds uh we grew by 41% selling upwards of 50,000 units in this fiscal year. 27:17 27 minutes, 17 seconds Sure. Thank you so much ma'am for that. 27:20 27 minutes, 20 seconds Yeah that's very helpful. Now I just also uh my next question just pertains to I mean we we saw good growth on the 27:26 27 minutes, 26 seconds power gen side 32% and 22% on the industrial side. Just wanted to know if you could just help help us with the volume growth as well for both these 27:34 27 minutes, 34 seconds segments for I I can just do for the entire year. 27:39 27 minutes, 39 seconds Uh I think uh uh Gori's kind of answered the volume part of it. Uh so what exactly is the question? 27:49 27 minutes, 49 seconds Yeah, I just wanted to know I mean uh so power gen segment grew by 32% for 26 and 27:55 27 minutes, 55 seconds industrial grew by 22%. Now I and there's a CPCB element and all those things. So I just wanted to you know have a break up with the volume and the price growth if possible. 28:06 28 minutes, 6 seconds Yeah, we won't be giving that here. 28:10 28 minutes, 10 seconds Oh, sure, sure. Okay. And uh actually last time around in the last annual call, you did mention the HHP sales 28:17 28 minutes, 17 seconds numbers. Would that be pos I mean uh would it be possible to have that number for 26? 28:26 28 minutes, 26 seconds Um so yeah, that that number we don't usually give out. So I'm sorry we won't be able to share. 28:35 28 minutes, 35 seconds I think the qualitative on HP we did share right at the beginning of the call. Yeah. Yeah. 28:42 28 minutes, 42 seconds Okay. And I also saw the uh announcement with regarding to the capacity augmentation at the Kagal plant. Now uh 28:50 28 minutes, 50 seconds you mentioned uh some capeex as well for that. Now uh considering that uh could I you know uh basically what cexard for 27 and 28 going ahead. 29:07 29 minutes, 7 seconds So uh you must have read this uh stock exchange disclosure. So uh we are investing uh close to 1,400 crores on that. 29:15 29 minutes, 15 seconds So that will be our capital allocation for this uh next two years about this. Okay. And just 29:22 29 minutes, 22 seconds yeah okay okay and just lastly just wanted to understand this time uh around you know there have been uh you know the Middle East crisis and things like that 29:31 29 minutes, 31 seconds there the gas crisis as well any short-term disruptions during the quarter did the company face any short-term disruptions during the quarter 29:40 29 minutes, 40 seconds no nothing specific okay okay sure I'll join back for 29:47 29 minutes, 47 seconds further questions thank you so Thank you. The next question comes from 29:54 29 minutes, 54 seconds the line of Mahir Manohar with Trust Mutual Fund. Please go ahead. 30:00 30 minutes Uh yeah. Hi, thanks for giving the opportunity uh and congratulations on great set of numbers uh very strong numbers. Uh wanted to understand the 30:07 30 minutes, 7 seconds capacity addition side with the 50,000 engines uh that we are expanding for Kakal. uh so I mean uh should one consider that coming operational on 30:15 30 minutes, 15 seconds second half F28 uh because in 2024 we had mentioned it to coming within three years so when should we expected 50,000 30:22 30 minutes, 22 seconds engines uh to come on on stream and second question was on the 20,000 engines capacity expansion that we are announcing now here we are mentioning 30:31 30 minutes, 31 seconds about 1400 crores of cex versus for 50,000 machines it was 700 crores capex uh so are this on the HP side I mean why 30:39 30 minutes, 39 seconds a higher number for for a machine capex per machine. So, we just want to send Yeah. So, um uh that's a good question. 30:50 30 minutes, 50 seconds Uh so, we announced the uh 700 like you mentioned and that's coming online by April of next year. Um and it's 50,000 30:59 30 minutes, 59 seconds engines. That was about uh you know uh enhancing our lines uh and um adding new 31:06 31 minutes, 6 seconds lines in the existing plant. Uh so that's why you saw that kind of investment. Now for this 1,400 cr investment that we're taking on over the 31:14 31 minutes, 14 seconds next two years uh for 20,000 is because it's also includes it includes a new building of course at the same site. Uh 31:23 31 minutes, 23 seconds so there's no land acquisition involved still at our plant but includes a new building and um of course completely new lines and equipment. 31:36 31 minutes, 36 seconds Okay. That's because of the building which is involved. Sorry. Sorry. Does that answer your question? 31:43 31 minutes, 43 seconds Am I audible? Yeah. 31:46 31 minutes, 46 seconds Yeah. Okay. So that's because of the building involved. It's not the case. 31:48 31 minutes, 48 seconds It's for a higher HSP machine or a typical higher category of machine. That's not the case. 31:53 31 minutes, 53 seconds It is also for higher uh machines. It is also for higher machines. But uh it involves all of this all of these things. So um you know we're seeing uh 32:02 32 minutes, 2 seconds as you can see from the results we are seeing traction in international markets. We are seeing traction in the high horsepower segment as well as opt 32:12 32 minutes, 12 seconds prime. So it is for those uh kinds of engines. 32:16 32 minutes, 16 seconds That's for sure. Uh second question was just on the wise side. I mean you know lot of data center capacities uh coming at location. Uh if you can provide some 32:24 32 minutes, 24 seconds clarity as to are we getting inquiries specifically pertaining to this location uh and how strong are these inquiries? 32:29 32 minutes, 29 seconds come along that um so look we are engaged with different 32:38 32 minutes, 38 seconds kind of customers and uh there are uh inquiries from all over uh I wouldn't say visak is any different from that uh 32:47 32 minutes, 47 seconds at this point in time however it's hard to comment on that understood sure yeah that is thank you 32:55 32 minutes, 55 seconds very Thank you. 33:02 33 minutes, 2 seconds The next question comes from the line of Dina Virmani from Motila Los Financial Services. Please go ahead. 33:11 33 minutes, 11 seconds Hi, thanks for taking my question and uh congrats Gori Rahul and the team for a great set of numbers once again in the 33:18 33 minutes, 18 seconds quarter. Uh my uh first question is related to uh the uh margins. So we have 33:25 33 minutes, 25 seconds seen very good growth and very good growth of in revenues across divisions. 33:31 33 minutes, 31 seconds So I wanted to understand uh when can we start witnessing the operating leverage gains because you had mentioned in the past that you were investing in the 33:39 33 minutes, 39 seconds sales channel network educating uh your distribution network and everyone on the new uh and the higher HP products. So 33:48 33 minutes, 48 seconds are these investments done um uh or um uh which is leading to let's say the higher other expenses which we have seen 33:57 33 minutes, 57 seconds in this year. So are these investments done or um there are more to be done in the coming quarters? Uh and when can we 34:05 34 minutes, 5 seconds see actually the reduction in these other expenses which can drive your operating leverage gains. So that's my first question. 34:17 34 minutes, 17 seconds Uh hi Tina. So uh look see each of the 34:25 34 minutes, 25 seconds nodes the KVA nodes have their own uh associated margin profile. So overall 34:31 34 minutes, 31 seconds what we share is a composite number. Now uh what you would see is that there is uh 34:39 34 minutes, 39 seconds absolutely no margin deterioration and we we have seen in certain nodes we've seen operating leverage also kick in um 34:49 34 minutes, 49 seconds what the way I can answer that question uh right now is a lot of the investments are made but uh as you're aware we've 34:57 34 minutes, 57 seconds kicked off this uh new capacity enhancement investment so there is a lot of traction that we also are receiving 35:05 35 minutes, 5 seconds on the international side for which we are uh gearing up for and uh we probably will see larger operating leverages kick in soon. 35:17 35 minutes, 17 seconds Okay. So that can start panning out maybe from FI27 onwards. 35:23 35 minutes, 23 seconds Yeah. I mean that is our our full intention is to have to maximize operating leverage. Yes. 35:29 35 minutes, 29 seconds Understood. And my second question is related to your coverage business. Uh you have mentioned that you are growing 35:36 35 minutes, 36 seconds very well in the HP side with growth in your op prime and the other uh HHP ranges. Uh how do you see the growth in 35:44 35 minutes, 44 seconds uh the nonHP portfolio uh for um uh FI27 and going ahead? uh like how do we uh 35:52 35 minutes, 52 seconds see uh this segment to grow going forward given that we already have a very high base for the industry also as well as for coal also. 36:03 36 minutes, 3 seconds I mean it's going to be hard for me to give an outlook but uh what I can certainly say is that look we will continue to strive our best and focus on 36:12 36 minutes, 12 seconds uh our core bread and butter business which is LHP. uh so that certainly will remain a a big focus area as we look to 36:20 36 minutes, 20 seconds unlock new avenues uh especially on the projects and HHP side. So we're very committed to the LHP business. 36:29 36 minutes, 29 seconds Understood. So this will grow in line in line or maybe a little better than the industry growth for uh this year also FI27. 36:38 36 minutes, 38 seconds We will certainly try for that. 36:41 36 minutes, 41 seconds Okay. Okay. Just lastly on uh the cost side uh like we have seen higher RM prices across the board for the entire 36:49 36 minutes, 49 seconds industry. Uh do you see that the uh market is strong enough for absorbing any kind of price hike if industry participants were to take any kind of price hike for uh RM pressures. 37:02 37 minutes, 2 seconds Um look uh I think uh each company has its own uh you know strategy so it's hard for me to comment but uh I think uh 37:10 37 minutes, 10 seconds some of the material cost inflation is such that uh it's going to be hard for players to absorb all of it themselves. 37:19 37 minutes, 19 seconds So some of it will certainly get passed on to the market. 37:23 37 minutes, 23 seconds Understood. I'll come back with following questions. Thank you so much. 37:30 37 minutes, 30 seconds Thank you. The next question comes from the line of Suraj Malu with Katamaran. Please go ahead. 37:37 37 minutes, 37 seconds Hi, thank you very much for this opportunity. Uh ma'am, uh of these 1400 cr uh uh capex that we have announced, 37:46 37 minutes, 46 seconds is it fully new or is there any replacement amount involved in this? 37:55 37 minutes, 55 seconds Yeah. So this is fully new capex nothing replacement. 38:01 38 minutes, 1 second Got it. And uh the 700 cr capex that is underway. So the current gross block I assume would be around 2,000 crores. So 38:09 38 minutes, 9 seconds uh is this understanding correct that this 2,000 cr gross block would become plus 700 and plus400. So roughly like 4,000 crores after 2 three years. 38:20 38 minutes, 20 seconds Yes. Once we complete the cap. 38:25 38 minutes, 25 seconds Got it. So that 700 crores uh nothing is included in the current gloss log right? No no no nothing. 38:31 38 minutes, 31 seconds Got it. And uh if you look at the amount like uh is the new capacity of this current 20,000 engines that is announced 38:39 38 minutes, 39 seconds is this primarily uh HHP because the amount is huge if you look at the current capacity of 1 lakh 35,000 and 38:47 38 minutes, 47 seconds the current gross plot the proportions don't add up like the increase in engine capacity is just 15%. 38:56 38 minutes, 56 seconds So Bori has already answered that. So it's a combination of both. So we are investing in the building in existing Kaggle facility plus in larger capex 39:05 39 minutes, 5 seconds will go towards the building the HHP capacity enhancement. 39:11 39 minutes, 11 seconds Uh sorry sir the line for the current participant has dropped from the queue. 39:16 39 minutes, 16 seconds We'll move on to our next question. The next question comes from the line of Amit Anwani from PL Capital. Please go ahead. 39:26 39 minutes, 26 seconds I uh thanks for taking my question. I uh uh just saw the press uh release on the Netherlands subsidiary. So if you could 39:34 39 minutes, 34 seconds elaborate more I I think you have highlighted about some heat engines and ice engines as a product plus some energy transition products. Just wanted 39:43 39 minutes, 43 seconds to understand uh what we're trying to achieve with this subsidiary in Netherlands. 39:49 39 minutes, 49 seconds Yeah, sure. Um so uh you know given international is a very big component of our five-year goal uh it's just 39:58 39 minutes, 58 seconds important for us to structure ourselves efficiently as we're growing uh to create uh value for our stakeholders. So 40:05 40 minutes, 5 seconds it's in line with that right. So uh a second question on on on 40:14 40 minutes, 14 seconds the data center uh uh just wanted to understand in terms of a capability and 40:21 40 minutes, 21 seconds uh $2 billion coal how much we are factoring in in terms of uh the data center growth addressible market uh in 40:29 40 minutes, 29 seconds terms of higher nodes in in the data center some color uh definitely would help and how has been at least the 40:37 40 minutes, 37 seconds growth uh uh in in the past the targets uh for growth uh from the data center piece that will help. 40:48 40 minutes, 48 seconds Um sure. So uh uh look I cannot give out how much we are factoring in the 2 billion uh from a data center segment 40:57 40 minutes, 57 seconds contribution standpoint but uh the response that we've received is quite encouraging. Uh we remain committed to the segment. We do believe that we have 41:05 41 minutes, 5 seconds a unique proposition for the data center segment and uh we're hoping that we uh you know we get more traction as we move 41:14 41 minutes, 14 seconds along but uh we've seen uh successes even in the last year. 41:21 41 minutes, 21 seconds All right. Lastly on on you they did highlighted about the capex and uh the international lag will also uh uh is 41:29 41 minutes, 29 seconds something which you're considering while doing this capex. Could you would uh uh elaborate more which markets and nodes 41:36 41 minutes, 36 seconds you're actually uh trying to address uh uh uh with uh this capex uh anything 41:43 41 minutes, 43 seconds which is uh there to understand in terms of any particular markets or nodes you're looking for 41:51 41 minutes, 51 seconds uh it's focused on HP markets in uh power gen mostly so that will be the key 41:59 41 minutes, 59 seconds theme of the capital deployment uh which any particular geographies we're looking at initially. 42:08 42 minutes, 8 seconds Um so at this point we can't give that out but uh uh but of course the capacity is being set up for uh you know whole of coil to use. Yeah. For across the board. 42:18 42 minutes, 18 seconds It's it's for across the board. So it's not that we're only setting up the capacity for a specific geography. It would be for any uh demand that we'd see across our markets. 42:28 42 minutes, 28 seconds All right. Thank you. Thank you so much for asking. Thank you. Thank you. 42:34 42 minutes, 34 seconds Thank you. We will take our next question from the line of Mr. Sureshwalu from Katamaran. Please go ahead. 42:42 42 minutes, 42 seconds Uh yeah, thank you very much. Sorry I got dropped off. Uh so my question was on the proportion like the capeex that we have announced like roughly double of 42:51 42 minutes, 51 seconds the current gross block including the 700 and 1400. Uh so uh what is the asset turn that we can expect on this gross block? 43:01 43 minutes, 1 second Uh so Suraj uh Sachin will answer the uh the the question on asset turns but I think you dropped off uh and what he was 43:10 43 minutes, 10 seconds saying is and and what we had mentioned before as well was that uh the difference in 700 and400 even though one is 50,000 engines 43:19 43 minutes, 19 seconds and one is 20,000 because this one includes a new building as well at our existing Kaga land and it's for 43:26 43 minutes, 26 seconds the high horsepower engine. So I just wanted to make sure that you heard that and Sachin will answer the second part of your question. 43:33 43 minutes, 33 seconds So SA turn will in the range of four to five depending upon the nodes understood on the total wide including 43:42 43 minutes, 42 seconds the land and everything. So 2100 this okay yeah thank you very much. 43:51 43 minutes, 51 seconds Thank you. 43:53 43 minutes, 53 seconds Your next question comes from the line of Palak from MI. Please go ahead. 44:00 44 minutes Hi, am I audible? Yes ma'am. 44:05 44 minutes, 5 seconds Yeah. Okay. Uh so my first question is on the short-term margin. So with all the commodity inflation situation uh are 44:13 44 minutes, 13 seconds we comfortable that we will be able to sustain this level of gross margin? And second question is that uh uh I think 44:22 44 minutes, 22 seconds that a lot of I think approximately 40 to 50% of our export revenue is from the Middle East market. So what was the 44:31 44 minutes, 31 seconds impact on this quarter and the next quarter what we are expecting and the last question is that can you give us 44:38 44 minutes, 38 seconds the proportion or the contribution of HHP it to our power gen segment? 44:46 44 minutes, 46 seconds Uh so on the last uh question has been asked before on the call as well uh but I'm sorry we're not going to uh share 44:52 44 minutes, 52 seconds that break up uh palak uh on the HHP um uh bit uh on your first question on raw 45:00 45 minutes material inflation. I think we're in a pretty sort of turbulent period or perhaps going to be entering a pretty turbulent period. uh and I think every 45:09 45 minutes, 9 seconds effort will be made for us to focus on um our long-term growth and u maintaining our margins and keeping them 45:16 45 minutes, 16 seconds sustainable. So um but you know as we know it's a turbulent period and uh hopefully that only remains for the 45:23 45 minutes, 23 seconds short term. I think uh you know in terms of the demand drivers in our industries uh we do feel that they are remaining 45:30 45 minutes, 30 seconds strong. Uh so we feel uh we're in a good position and it's not anything that you know we're going to go through in an 45:37 45 minutes, 37 seconds isolated way. Uh on your second question which was on Middle East. Yeah. Middle East. 45:45 45 minutes, 45 seconds Could you repeat the question? Middle East you saying oh I think what you said was 40 to 50% of our international revenues are from Middle East and have you seen any impact? Right. 45:53 45 minutes, 53 seconds Yeah correct. Yeah. My question. 46:00 46 minutes Yeah. So in the in the last quarter we've not really seen any impact. Uh it's going to be hard to comment on uh you know this quarter the subsequent 46:07 46 minutes, 7 seconds quarters but uh in the last quarter we haven't really seen impact. 46:12 46 minutes, 12 seconds Okay. Uh so just last question. So considering the current uh energy crisis situation are we seeing the demand on 46:21 46 minutes, 21 seconds the gas powered power generators or do we have a strong portfolio in that segment? 46:30 46 minutes, 30 seconds Um look uh we have a pretty strong portfolio across the board. Uh something that we would back and uh uh every 46:39 46 minutes, 39 seconds demand that and every opportunity that comes up we will uh go out and strive to meet that demand. 46:45 46 minutes, 45 seconds And I think what I would add to Ral's comments is we've developed um engines that run on different fuels. Um uh and 46:54 46 minutes, 54 seconds it was defined in our technology tracks about three years ago. with in our investor materials where we've talked about um developing internal combustion 47:04 47 minutes, 4 seconds engines that run on gas or ethanol, methanol or blends of hydrogen etc. So if there's demand that picks up for any 47:12 47 minutes, 12 seconds of these alternative fuels then we are ready to address that. So have you seen any pickup in the inquiry for this specific segment? 47:23 47 minutes, 23 seconds Um which market are you talking about? 47:25 47 minutes, 25 seconds uh I mean the alternate engine power generator I I would say that there's nothing 47:33 47 minutes, 33 seconds meaningful to talk about uh as far as this conversation is concerned we obviously hopeful but nothing meaningful at this point 47:41 47 minutes, 41 seconds okay thank you thank you thank you before we take the next question a reminder to all the 47:50 47 minutes, 50 seconds participants you may press star and then one to ask a question next question comes from the line of Pakistan from HDFC securities. Please go ahead. 48:00 48 minutes Yeah. Hi Dory and Rahul. Congratulations on a great quarter. Four time audible. Yeah, you're audible. Hi. 48:08 48 minutes, 8 seconds So my first question is on I mean this year we have seen a substantial increase in copper prices and now this last quarter we have seen almost 15% increase 48:16 48 minutes, 16 seconds in pig prices. So have you taken any price hikes already uh for this correction? Uh so if you can basicate 48:23 48 minutes, 23 seconds between the copper and the pig iron because pig iron is a recent phenomena. So just your views on that. 48:30 48 minutes, 30 seconds Uh we won't be able to comment on that because it pertains to this quarter we're in. 48:37 48 minutes, 37 seconds But but about copper because copper has been rising throughout the year. So last financial year have you taken any clients? So when as and when there's raw 48:45 48 minutes, 45 seconds material prices I mean we we continuously uh evaluate our pricing policy and we take price increases uh at 48:52 48 minutes, 52 seconds regular uh uh periods. Um yeah yeah that's that's where we are. 49:00 49 minutes Can you quantify how much I have taken in a chemical? Uh no we can't. 49:08 49 minutes, 8 seconds Okay sure. Second question is on HHP size. So is this engine totally localized? I mean early manufacturing it in house uh especially on the 50 portfolio. 49:18 49 minutes, 18 seconds So it's entirely done in it's developed by our own um engineering teams and it's um it's completely local 49:26 49 minutes, 26 seconds like okay just one question on the end investments which are doing I think you mentioned about uh gasines transformers 49:34 49 minutes, 34 seconds and storage solutions. So is it the research which will go into and the product rollouts will happen in some 49:42 49 minutes, 42 seconds years. So, so how does one look at this uh which comments which you have given on the background of the research we're going to undertake on this? 49:53 49 minutes, 53 seconds uh we couldn't hear your question very clearly sorry could you just speak a little slower more clearly yeah so in the announcements on the 50:01 50 minutes, 1 second incorporation of the new entity Netherlands you have given a brief background uh about the businesses which will happen in this so there's a mention 50:09 50 minutes, 9 seconds of gas turbines transformers energy storage solutions including batteries so just wanted to understand a little bit 50:17 50 minutes, 17 seconds more and is this a new business line will they do manufacturing here so or is it in a very initial stage If you can give some more color on these new uh verticals. 50:28 50 minutes, 28 seconds Uh yeah. So uh look uh we have we had outlined our technology paths and uh 50:35 50 minutes, 35 seconds there is a focus on you know different combustion technologies also. Uh but there's nothing significant to speak 50:42 50 minutes, 42 seconds about at this point in time. And I think uh you know uh you're also referring to uh the format which is uh disclosed uh 50:50 50 minutes, 50 seconds and that's the incorporation of a company usually when we define that it includes everything uh that we could possibly do doesn't necessarily mean that we will do it. 51:00 51 minutes Okay. Sure. 51:01 51 minutes, 1 second If you're looking at international and looking at the power system space it can involve a range of technologies over time uh which is what we're trying to 51:09 51 minutes, 9 seconds address in the description. It may not be where we are today. Does that make sense? Yeah, understood. So it's transpiration. 51:17 51 minutes, 17 seconds So it may happen may not happen. What you're saying exactly exactly this last question on the power revenue. 51:24 51 minutes, 24 seconds So if you can give us some color on what was the data center contribution on and how are you looking at the journey from 51:31 51 minutes, 31 seconds colo to so what's the presence in colo right now edge and how are you looking to get into the hypers scale hyperscalers? 51:39 51 minutes, 39 seconds Um yeah so uh I think in some sense that question is leading uh but but yeah so we are 51:47 51 minutes, 47 seconds present in uh edge and coloss um and we are slowly also making our presence in 51:54 51 minutes, 54 seconds hyperscalers too. Uh it would be premature to give out those contributions at this point in time. Uh 52:00 52 minutes so I would reserve my comment there. But will it be single digit, double digit, early double digit, any color uh at least on the contribution of everything on the power generates? 52:12 52 minutes, 12 seconds I mean we certainly strive for double digit as far as contribution is concerned. But uh yeah, 52:18 52 minutes, 18 seconds thank you. Thank you. I think that's Thank you. The next question comes from the line of Sara with Oakland Capital. 52:28 52 minutes, 28 seconds Please go ahead. Yeah. Hi. Am I audible? Yes. Yeah. Go ahead. 52:35 52 minutes, 35 seconds Yeah. Perfect. Yeah. Uh congratulations Gori, Rahul, Sachin and to the whole team. Uh see my question is uh actually 52:44 52 minutes, 44 seconds so of course you have not commented on the new products etc. But I want to understand from you like in terms of R&D 52:53 52 minutes, 53 seconds uh you know how as a percentage of sales it is going up for us or if you could talk about you know any patents etc in 53:01 53 minutes, 1 second terms of number of patents uh you know which are increasing for the company or not and why I'm asking this is I came across this you know latest patent which 53:10 53 minutes, 10 seconds was on maybe hybrid generators and of course Rahul's name was there so it's quite encouraging to see you know CEO of 53:17 53 minutes, 17 seconds the company and is is is there on the pit end. So, so maybe some thoughts on how R&D and new products will come 53:26 53 minutes, 26 seconds together. If you could throw some light there um so maybe we'll talk about R&D as a percentage of sales maybe Sachin. 53:38 53 minutes, 38 seconds So S R&D as a percentage of sales is roughly 2% on the revenue side and 2% on the capex. 53:46 53 minutes, 46 seconds So is there any increase there? I mean to say year on year are you are you putting more efforts there? 53:52 53 minutes, 52 seconds Yeah. Yeah. So it's steady uh at 2% uh uh but with our sales uh quantum is going up. So R&D expense is also going 54:01 54 minutes, 1 second up because we are getting the same rate of two and two and a half%. 54:06 54 minutes, 6 seconds Okay. And second uh I think uh Gori at the start of the call commented that you know international is now more than 54:12 54 minutes, 12 seconds export. So does it mean uh kilosar America's uh uh portion of business is 54:20 54 minutes, 20 seconds doing well if you could comment on that because we've been in uh you know Americas for uh quite a long time and uh 54:26 54 minutes, 26 seconds and and after of course Middle East uh how the traction is happening there. No, no, so uh I didn't say international was 54:35 54 minutes, 35 seconds more than export. I was just saying that the way we look at our business outside of India is what I call international 54:43 54 minutes, 43 seconds rather than export. Just the difference between the two say business models. 54:47 54 minutes, 47 seconds Exports is when you make locally and when you ship out to like an agent or a distributor and you just you know you have no presence there yourself versus 54:56 54 minutes, 56 seconds an international business which is what we are trying to build which is we first understand each market very deeply before we decide how we're going to 55:04 55 minutes, 4 seconds enter and then we actually have to invest in capability and people um and 55:12 55 minutes, 12 seconds possibly uh set up uh you know some sort of manufacturing there perhaps uh and then we're deeply entrenched in that 55:20 55 minutes, 20 seconds geography. So that's what uh that's what my commentary was about. So I'm I'm not sure I understood your question. No, I 55:28 55 minutes, 28 seconds was trying to understand uh I mean to say how kilos America is doing now like in this year has it done well then 55:38 55 minutes, 38 seconds then you know other regions because of course we'll have to wait for annual report for it to come but but but if you could give some qualitative color how 55:45 55 minutes, 45 seconds how that is done for you uh I think uh this past year Kiloscar Americas has been I mean there's a lot 55:54 55 minutes, 54 seconds of effort that we are putting into the Americas region uh but at this point in time you may not I mean there's nothing meaningful or 56:02 56 minutes, 2 seconds significant to discuss at this point in time. 56:06 56 minutes, 6 seconds Sure. Very lastly, yeah. Okay. I'm think and very lastly uh in terms of single engine, can you tell 56:15 56 minutes, 15 seconds us uh like what is uh the exact uh size of single engine you are selling right now? Like I know Opti Prime series is 56:24 56 minutes, 24 seconds there which can take you to you know 3,000 and all but in terms of single engine what is the maximum capacity you are selling? 56:32 56 minutes, 32 seconds So uh like our nuclear power uh execution is uh single engine 6.3 like basically around 8 8,000 KVA uh 6.3 56:42 56 minutes, 42 seconds megawatt okay and and and but let's say 56:48 56 minutes, 48 seconds sure and then for data centers etc for uh data centers right now uh we go 56:56 56 minutes, 56 seconds up to 1650 in single engine and uh obviously we are on track to uh increase that as well. 57:05 57 minutes, 5 seconds Perfect. Thank you very much. All the best to the team. Yeah. Thank you. Thank you. 57:13 57 minutes, 13 seconds Thank you. 57:15 57 minutes, 15 seconds We take our next question comes from the line of Pratik Shivasa with Nesh Wisdom. Please go ahead. 57:22 57 minutes, 22 seconds Uh yeah, thank you Sam for the opportunity for taking my call and uh again wish you uh you know 57:30 57 minutes, 30 seconds congratulations again on the very great set of numbers. Uh I you know today there is some problem with this conference line. I'm not sure the multit 57:39 57 minutes, 39 seconds is seeing that but calls are getting disconnected. So I'm not sure if uh you know any question on Ara's asset quality was taken. 57:48 57 minutes, 48 seconds uh but in Q3 call uh the G&P numbers were 1.2 2 and uh the NNPS was 003.3 57:59 57 minutes, 59 seconds correct uh can you please provide what are the updated numbers uh as of today 58:05 58 minutes, 5 seconds for G&P and NP on ARA Riy are you there can you answer 58:13 58 minutes, 13 seconds there so yeah so the uh G&P number for ARA as of 31st March 26 is 1.2 2 so it 58:21 58 minutes, 21 seconds remains at the same levels and NNCA also remains at the same levels of December which is.3%. 58:29 58 minutes, 29 seconds And in absolute terms the G&P has actually come down. 58:34 58 minutes, 34 seconds Oh great great to hear that. Uh the other question was on the order value. I 58:40 58 minutes, 40 seconds guess Rahul uh mentioned that in last Q3 call. uh this was the order uh around the nuclear NPCIL and the marine order. 58:51 58 minutes, 51 seconds I guess the combined order at that point was 798 cr. The execution was 2-year timeline. Uh any update on the execution 59:00 59 minutes of this order and are we on track? 59:06 59 minutes, 6 seconds Uh the NPC order uh execution is by 2029. 59:13 59 minutes, 13 seconds Okay. Okay. And uh is there any update? 59:17 59 minutes, 17 seconds Are we is there like any u are we actively working on it or we've got to start 59:25 59 minutes, 25 seconds kind of you have uh color you can show on the execution timeline. 59:29 59 minutes, 29 seconds Yeah. Yeah. Uh all the teams are active working very actively working very hard on it because the execution is absolutely critical for 59:37 59 minutes, 37 seconds us to uh you know do on time and it gets tracked um uh on a regular cadence. It's um you know project managed and uh we 59:46 59 minutes, 46 seconds are on track to deliver it by the timelines that we have committed to. 59:53 59 minutes, 53 seconds Got it. Got it. And do we have any like quarterly revenue recognition in this order? 1:00:04 1 hour, 4 seconds I mean as the billing happens we will recognize revenue. 1:00:09 1 hour, 9 seconds Okay. But that hasn't started happening yet. No. 1:00:14 1 hour, 14 seconds Yeah. Okay. Okay. Okay. Thank you. Thank you, ma'am, for the Thank you. 1:00:19 1 hour, 19 seconds And again, all the best uh you know for for your continued future. Thank you. 1:00:26 1 hour, 26 seconds Thank you for your wishes. Thank you. Thank you. 1:00:32 1 hour, 32 seconds Next followup comes from the line of Jason Swans with IDBI Capital. Please go ahead. 1:00:38 1 hour, 38 seconds Since it's 8 p.m., could we request that this is the last question, please? Sure. 1:00:43 1 hour, 43 seconds Yeah. Yeah. I'm just finding two questions. Uh just uh you did highlight some segments which are uh which have contributed to the growth in industrial. 1:00:52 1 hour, 52 seconds Now for the same thing I just wondered which are the areas of strength uh for PG for power gen and some areas of strength any any weakness in certain 1:01:00 1 hour, 1 minute areas just some qualitative color on demand from for the PG segment. 1:01:08 1 hour, 1 minute, 8 seconds Um so look uh we take a lot of pride uh in the fact that we can offer solutions that are 1:01:16 1 hour, 1 minute, 16 seconds practical uh to our customers. So I mean if there were weaknesses we would 1:01:24 1 hour, 1 minute, 24 seconds certainly try and plug those weaknesses over a period of time. Uh we are focused on uh you know focusing on our high 1:01:33 1 hour, 1 minute, 33 seconds horsepower customers. uh that remains a consistent focus. So uh I think I won't be able to comment more on than that right now. 1:01:42 1 hour, 1 minute, 42 seconds No actually I wanted to see in terms of segments it's not that the portfolio I meant in terms of let's say residential or hospitality or certain segments. 1:01:51 1 hour, 1 minute, 51 seconds That's that's that's how I wanted to approach the question in terms of industry verticals. 1:01:58 1 hour, 1 minute, 58 seconds Yeah. I mean so it's actually uh I mean it's actually pretty broad-based. So uh it becomes pretty hard to uh you know 1:02:06 1 hour, 2 minutes, 6 seconds answer it like that but uh it's pretty broad-based. 1:02:10 1 hour, 2 minutes, 10 seconds Okay. Okay. Sure. And just finally uh the 14 billion KEX uh the peak revenue potential what can it be and uh in how 1:02:18 1 hour, 2 minutes, 18 seconds many years can it be some broad color on that? So 14 billion what's the peak revenue potential and how many years you uh aspire to eventually reach it. 1:02:30 1 hour, 2 minutes, 30 seconds So the capeex which we have announced is 1,400 crores uh and what we 1:02:37 1 hour, 2 minutes, 37 seconds are targeting to complete the capation in next two years. So from there in uh 1:02:42 1 hour, 2 minutes, 42 seconds the revenue will start again in RPM right? Yeah. So what could the peak revenue be for that? 1:02:51 1 hour, 2 minutes, 51 seconds So at the asset turn of four uh you can calculate it will be close to 5,000 6,000 crores. 1:02:58 1 hour, 2 minutes, 58 seconds Sure. Sure. So I said 10 or four. Sure. 1:03:00 1 hour, 3 minutes Thank you so much for answering my question. Thank you. 1:03:04 1 hour, 3 minutes, 4 seconds Thank you ladies and gentlemen. We will take that as a last question for today. 1:03:09 1 hour, 3 minutes, 9 seconds I now hand the conference over to the management for closing comments. 1:03:13 1 hour, 3 minutes, 13 seconds Yeah. Thank you very much uh for all your compliments to the team and um and thank you for your interest in the company. 1:03:22 1 hour, 3 minutes, 22 seconds Thank you. Good night. 1:03:26 1 hour, 3 minutes, 26 seconds On behalf of Antique Stock Broking Limited, that concludes this conference.