Kirloskar Pneumatic Company Ltd — Q4 FY26

Kirloskar Pneumatic Company Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=7PACNe-1ofQ Published: 2 weeks ago

0:03 3 seconds Ladies and gentlemen, good day and welcome to the Kiloska Pneumatic Company Limited Q4 FY26 earning conference call hosted by Anticstroke Broking Limited. 0:16 16 seconds As a reminder, all participant lines will be in a listenon mode and there will be an opportunity for you to ask question after the presentation 0:25 25 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:32 32 seconds zero on a touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. 0:40 40 seconds Direinda Tiwari from Antique Stock Broking Limited. Thank you and to you sir. 0:46 46 seconds Good evening. On behalf of Antique Stock Broking, I welcome you all to 456 0:54 54 seconds conference call. I am pleased to have with us today Mr. Aman Klokar managing director and Mr. [clears throat] Rome 1:02 1 minute, 2 seconds CFO along with the management team. As you are aware the company continues to deliver long-term growth. 1:09 1 minute, 9 seconds Congratulations to Mr. Ammon and team Kloka Pneumatic. All the best for future. Now I invite Mr. Aman Kloska to 1:19 1 minute, 19 seconds discuss results post which we can take uh the Q&A. Over to you Aman. Thank you. 1:27 1 minute, 27 seconds Thank you Nindra. Thank you all for joining the call today. 1:31 1 minute, 31 seconds I have with me Mr. Romesh Biradar the chief financial officer of the company and Mr. Jatendra Sha the company 1:38 1 minute, 38 seconds secretary. Before proceeding with the business updates I kindly ask Mr. 1:43 1 minute, 43 seconds Jatendra Sha our company secretary to read out the disclaimer statement. 1:48 1 minute, 48 seconds Thank you sir and good good evening to all. The presentation uploaded on the website of the company and discussion on 1:55 1 minute, 55 seconds the financial results during the earnings call may contain statements relating to future business development 2:03 2 minutes, 3 seconds and economic performance that could constitute forward-looking statements. 2:07 2 minutes, 7 seconds While these forward-looking statements represent the company judgments and future expectations, a number of factors 2:15 2 minutes, 15 seconds could cause actual developments and results to differ materially from expectations. The company undertakes no obligation to publicly revise any 2:24 2 minutes, 24 seconds forward-looking statements to reflect future events or circumstances. Further, investors are requested to exercise 2:31 2 minutes, 31 seconds their own judgments in assessing various risks associated with the company and also the effectiveness of the measures which taken by the company in tackling them as indicated during the discussion. 2:42 2 minutes, 42 seconds Thank you. Thanks Netra. 2:46 2 minutes, 46 seconds Let me start by wishing all of you a very happy and prosperous new financial year. FY27 has begun and it is a good 2:53 2 minutes, 53 seconds moment to reflect on where we have come from and set the context for where we are going. I would like to highlight a few key points of FY26. 3:03 3 minutes, 3 seconds During the year, we had the highest order booking of more than 2,000 crores. 3:07 3 minutes, 7 seconds We declared the highest total income of 1786 crores and the highest PBT of 356 3:15 3 minutes, 15 seconds crores. We developed a uh a couple of new products including the Zephros air conditioning package providing a 3:23 3 minutes, 23 seconds competitive edge in a new business segment. We also declared the highest dividend of rupees 12 per share which is 3:30 3 minutes, 30 seconds 600% on face value of rupees 2. During the last financial year, we made meaningful progress on our long-term goals despite external uncertainties. 3:41 3 minutes, 41 seconds The domestic market remained strong with significant performance in the food, dairy, chemicals, fertilizers, and general engineering sectors. While oil 3:50 3 minutes, 50 seconds and gas lag due to slower order finalization, we saw momentum begin to pick up in the last quarter. 3:57 3 minutes, 57 seconds Additionally, products such as the Tescati poka centrifugal compressor and the Kon refrigeration compressor continued to gain market share. 4:06 4 minutes, 6 seconds Coming to innovation, we have made significant progress on development of several cutting edge compression solutions represented by our highest 4:14 4 minutes, 14 seconds ever IP filings of 57 for the year, taking us to over 128 IPS filed. In 4:21 4 minutes, 21 seconds recognition of this, KPCCL has been awarded a top 30 IPdriven organization by CI. 4:28 4 minutes, 28 seconds We launched our oil-free air compressor Hydrino and we are quite happy to note that we have even booked a few orders 4:35 4 minutes, 35 seconds for these for the year. We also launched our Taichi semihomatic compressors which we have also sold. 4:43 4 minutes, 43 seconds Our Zephro air conditioning package will be commercialized in the market in the first quarter of FY27. 4:50 4 minutes, 50 seconds As we are still doing some finetuning to compact the design and reduce the cost. 4:55 4 minutes, 55 seconds However, the units that we have installed in our HABs office at SAS factory are running very well. 5:03 5 minutes, 3 seconds Our enablers remain robust and well aligned with our values and culture. In recognition of our best-in-class HR practices and policies, we were honored 5:12 5 minutes, 12 seconds with the HR excellence award from the Institute of Directors. 5:16 5 minutes, 16 seconds Our PBT last quarter was also significantly elevated. This was made possible by all the enablers we've been working hard on for the last few years. 5:25 5 minutes, 25 seconds Our in-house capabilities which allowed us to offset inflation to some extent and al and resulted in higher margins. 5:32 5 minutes, 32 seconds We also took a measured approach in markets with lower margins like boosters and screw compressors and did not get into any price walls here. If you could 5:41 5 minutes, 41 seconds get an order with the margins we wanted, we took it and if not, we let it go. 5:45 5 minutes, 45 seconds Lastly, we focused on less contested spaces based on our own IP and import substitution which al which also helped 5:52 5 minutes, 52 seconds push up margins. While this quarter and year has been good on the margin front, we would like to caution that this year would be a bit of an exception, a margin 6:01 6 minutes, 1 second expectation of 18 to 20% ebita would be more sustainable. While we always strive for higher margins, we must also 6:08 6 minutes, 8 seconds consider the impact on growth and find a balance. Now coming to our business units, 6:15 6 minutes, 15 seconds the air compressor division. The year was good for the Tescatly Poka centrifugal compressors which continue to take market share. Aside from our key 6:23 6 minutes, 23 seconds sectors of metals and power plants, we have also managed to get some orders from sectors like farmer, tire manufacturing and textiles during the 6:30 6 minutes, 30 seconds last financial year. Our range of reciprocating compressors also did well with orders for gas compressors hitting 6:37 6 minutes, 37 seconds record highs. Screw compressors were a lagard. The last year ACD remains to be 6:43 6 minutes, 43 seconds roughly 18 to 20% of our business. On the refrigeration side, the business delivered a strong performance during the year, achieving record high volumes 6:52 6 minutes, 52 seconds for our KC KCX compressor range. Kown sales also continue to pick up and gain more acceptance in the market. We 7:00 7 minutes executed several large packages this year, some of which went out in Q4. The business is roughly 40 to 45% of our total business. 7:09 7 minutes, 9 seconds Coming to processed gas systems, as we had previously mentioned, our decreased dependence on PGS has derised our reliance on large oil and gas orders in 7:18 7 minutes, 18 seconds the Middle East. However, our O andM business is expanding. We currently manage over a thousand CG stations across India, reflecting an increasing 7:27 7 minutes, 27 seconds trend in this segment. While current gas shortages have not yet impacted the CNG market and autobooking remains active, 7:34 7 minutes, 34 seconds we continue to monitor potential future effects. The gas system division performed well this year and the outlook 7:41 7 minutes, 41 seconds remains positive. We expect the geopolitical situation in the Middle East to drive demand for domestic exploration and upstream gas projects. 7:50 7 minutes, 50 seconds Furthermore, there's a renewed interest in alternative fuels and KPCL is well positioned to capitalize on opportunities across various sectors 7:59 7 minutes, 59 seconds including bio gas, hydrogen and coal gasification. 8:03 8 minutes, 3 seconds EGS contributes roughly 35 to 40% of our business. 8:08 8 minutes, 8 seconds We have also established a new business unit in the last financial year which is precision engineering division. We have established this division to leverage 8:16 8 minutes, 16 seconds our manufacturing capacities and capabilities including forgings, castings and precision machine components at our NASC and had cells 8:24 8 minutes, 24 seconds facilities. Please note that this is a non-reportable segment for FY26. 8:29 8 minutes, 29 seconds Given the renewed interest in specialized manufactured products, we believe our unique capabilities are well positioned to drive growth. While we 8:37 8 minutes, 37 seconds have secured several orders in the segment and we are currently in the execution phase, we would avoid talking too much about this business until we are clear that this is sustainable and not one-time in nature. 8:48 8 minutes, 48 seconds Coming to the outlook, despite the challenges of the past year, including delayed package orders and late finalization of large contracts, we 8:57 8 minutes, 57 seconds believe we remain well positioned to deliver strong growth ahead. The current geopolitical climate has increased demand for exploration and upstream 9:05 9 minutes, 5 seconds packages alongside rising interests in alternative fuels like bio gas and hydrogen. We offer established solutions 9:12 9 minutes, 12 seconds for all of these segments. Furthermore, our core revenue generating sectors including oil and gas, food, dairy, chemicals and power are all expected to 9:21 9 minutes, 21 seconds grow. Our localized supply chain and focus on make in India import substitutes insulate us from many geopolitical risks and provide a 9:30 9 minutes, 30 seconds competitive advantage. We continue to invest in unique in-house manufacturing capabilities that will further strengthen our market position. 9:40 9 minutes, 40 seconds With our strong order board and a substantial volume of active proposals entering the new financial year, we are confident in achieving our growth 9:47 9 minutes, 47 seconds objective of 20% plus. Now I will request Mr. Romesh Biradar, CFO to take you through the financials. 9:56 9 minutes, 56 seconds Good evening. The presentation outlining key trends observed in Q4 and FI26 10:03 10 minutes, 3 seconds results has been uploaded to the investor section of our company's website. Additionally, following today's board meeting, the financial results 10:11 10 minutes, 11 seconds have been duly filed with the BSC and NSE. These disclosure provides comprehensive details on the company's 10:18 10 minutes, 18 seconds performance. Quickly I will run through the business result for Q4 and the year ended on 31st March 2026. 10:26 10 minutes, 26 seconds Sales for the Q4 FIR 26 were rupees 76 cr against 53 cr of Q4 FIR 25. 10:36 10 minutes, 36 seconds Sales for Q4 also showed a growth by 21% over the previous year Q4 FI25. 10:43 10 minutes, 43 seconds Other income per Q4 is almost same for both years. Rupees 6 cr in FI26 against rupees 5.7 cr in FI25. 10:53 10 minutes, 53 seconds Total income for Q4 FI26 was at 712 cr compared to rups 588 cr in the previous 11:01 11 minutes, 1 second year. There is major reduction in the percentage of raw material to sales for Q4 Api 26 compared to Q4 Api 25.06% 11:12 11 minutes, 12 seconds 06% in Q4 FI26 against 56.35% in Q4 FI25. 11:19 11 minutes, 19 seconds However, the YTD percentage of raw material to sales has improved by 3.1% in FI26 11:27 11 minutes, 27 seconds due to better product mix, better selection of orders, execution of large packages and overall costsaving efforts 11:35 11 minutes, 35 seconds on account of backward integration of manufacturing in NASIC as well as in SAS plant. 11:42 11 minutes, 42 seconds Stop cost that is ER stands at 53.1 cr in Q4 FIR 26 that is 7.5% of total 11:50 11 minutes, 50 seconds income against rupees 45.5 cr in Q4 FIR 25 that is 7.7% of total income employee 11:59 11 minutes, 59 seconds related expenses for the year to date rupees 200 cr representing 11.2% 2% of 12:06 12 minutes, 6 seconds total income as against 177 cr that is 10.7% in FY25 12:13 12 minutes, 13 seconds this rise in driven by salary increment and increased headcount company has incurred rupees over 165 cr 12:22 12 minutes, 22 seconds in last two years leading to increase in the depreciation to 31.1 cr in fi 26 as 12:30 12 minutes, 30 seconds against rups 28.9 cr in fi25 we continue to invest in capex to support growth and to meet our 12:39 12 minutes, 39 seconds commitment towards new product development under the pls scheme. YTD other expenses are mix of fixed and 12:46 12 minutes, 46 seconds variable cost and are at 326 cr in FI26 against rupees 308 cr in previous year 12:55 12 minutes, 55 seconds increase in these expenses are mainly search in execution of large packages enhanced level of after sales business 13:03 13 minutes, 3 seconds growing on business and expanding activities and on Nashik and assert plant the year-to- date performance for 13:10 13 minutes, 10 seconds the current year shows an improvement in the IBIDA margin reaching 21.7% 13:16 13 minutes, 16 seconds of total income to rupes 388 cr compared to 19% of total income to rupees 313 cr 13:25 13 minutes, 25 seconds in the previous year. The ydt profit before tax has reached rupes 356 crstituting 13:34 13 minutes, 34 seconds 19.6% 6% of total income against 17% to rupes 284 cr in the FI25 13:42 13 minutes, 42 seconds net profit after tax for FI26 is rupes 258 cr that is 1450% of total income in 13:51 13 minutes, 51 seconds comparison to previous years rupes 211 cr that is 12.8% 8% of total income. 13:58 13 minutes, 58 seconds Company has maintained the status as a dur company and I would like to state that company has still net cash position 14:06 14 minutes, 6 seconds of cash and cash equivalent of about rupees to 460 cr as on 1st April 2026. 14:14 14 minutes, 14 seconds The board of director has approved subdivision of equity shares of face value of rupees 2 into face value of rupee 1 subject to approval by the shareholders. 14:25 14 minutes, 25 seconds The company issued 60,800 equity shares during the year FI26. 14:31 14 minutes, 31 seconds Previous year 1 lakh 24,300 shares issued under the employee stock option program. As a result, there is marginal 14:40 14 minutes, 40 seconds increase in the paid of share capital to rupees 12.99 cr against last year of 14:46 14 minutes, 46 seconds 12.98 cr. YTD earnings per share that is EPS for FI26 has shown growth by 22% 14:56 14 minutes, 56 seconds reaching to 39.80 80 per se per share while 32 rupees 50 per se per share was earning in the previous year FY25. 15:06 15 minutes, 6 seconds In line with our dividend policy, the board of directors has approved a final dividend at the rate of 425 and the face 15:15 15 minutes, 15 seconds value of rupees 2 per share that is rupees 8 rupees 50 per share per share. 15:20 15 minutes, 20 seconds This is in addition to payment of interim dividend which is already paid at the rate of 175% that is rupees 3 15:27 15 minutes, 27 seconds rupees 50 pesa. So the total dividend for fi 26 is 600% which is highest in 15:35 15 minutes, 35 seconds the history of the company. Final dividend is subject to approval by shareholders 15:41 15 minutes, 41 seconds with about 93.4% of total income coming from the compression segment. It remains 15:48 15 minutes, 48 seconds only reportable segment and segment earned operating profit of 24.9% in FI 15:55 15 minutes, 55 seconds 26 higher than the previous year when it was 21.7%. 16:01 16 minutes, 1 second The compression segment showed a higher profitability this is being a one-time for Q4. However, as indicated from time 16:08 16 minutes, 8 seconds to time, a compression business margins are sustainable in the range of 18 to 20%. 16:15 16 minutes, 15 seconds As of 1st April 2026, the company's unexecuted order board amounting to rups 1,863 16:24 16 minutes, 24 seconds cr and increased by 15% from 1,624 cr recorded on April 1st 25. 16:33 16 minutes, 33 seconds Net unallocable assets are including corporate assets and assets of a precision company business division to the tune of 834 cr. 16:42 16 minutes, 42 seconds Exception regarding the implementation of the new labor code that become effectively on November 1st 21st 2025. 16:51 16 minutes, 51 seconds We have completed our current assessment. The estimated return on provision has been reduced by rupees 4.2 16:58 16 minutes, 58 seconds 2 cr in Q4 resulting in total provision of rupees 14 cr for fi26 17:05 17 minutes, 5 seconds which is pertaining to the prior period while the impact of fi26 is recorded in year cost. Comparative statement of 17:14 17 minutes, 14 seconds consolidated business for Q4 as well as for the full year are also published. We are working on reorganizing the 17:23 17 minutes, 23 seconds restructuring of our subsidiary to get the results expected projected while accuring the company. This will take 17:30 17 minutes, 30 seconds some time to get positive results from our subsidiary company. Before I conclude, I would like to place on 17:38 17 minutes, 38 seconds record my sincere appreciation for our teams across operational, finance, supply chain and sales and marketing 17:45 17 minutes, 45 seconds whose relentless focus and disciplined execution continue to drive our performance. I would like to al I would 17:53 17 minutes, 53 seconds also like to extend my appreciation to our chairman Mr. Rahul Kiloskar, the board members and our investors for 18:01 18 minutes, 1 second their continued trust and support as we work towards building a stronger, more resilient and future ready organization. 18:10 18 minutes, 10 seconds I would also like to acknowledge Mr. 18:13 18 minutes, 13 seconds case former managing director for his constant encouragement 18:20 18 minutes, 20 seconds and for shaping the company's mindset to impress challenges and pursue ambitious growth. Thank you so much for joining 18:28 18 minutes, 28 seconds today and we'll now open the floor for questions from our investor. 18:36 18 minutes, 36 seconds Thank you. We'll now begin the question and answer session. Anyone who wishes to ask question may press star and one on 18:44 18 minutes, 44 seconds their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. 18:51 18 minutes, 51 seconds Participants are requested to use handset while asking a question. 18:56 18 minutes, 56 seconds Ladies and gentlemen, we'll wait for a moment while the question Q assemble. 19:03 19 minutes, 3 seconds The first question is from the line of Priyang Cher from Valium Capital. Please go ahead. 19:11 19 minutes, 11 seconds Yeah. Hi team. Uh so I have just two questions. Uh first on the order book. 19:16 19 minutes, 16 seconds Uh would you want to call out the book to bill or say execution cycle uh which has shortened significantly versus past 19:24 19 minutes, 24 seconds few years. Just trying to match and map what would be the executable order from the opening order book that we have from 19:32 19 minutes, 32 seconds as on 1st April. And uh Romesh just a clarification in this order book have we included the precision engineering 19:40 19 minutes, 40 seconds orders? Uh if yes then would it be able to quantify that? 19:46 19 minutes, 46 seconds Okay. And second question we can I I'll ask that question after this question is answered. 19:54 19 minutes, 54 seconds Okay. uh this 1,863 cr order board as on 1st April is inclusive of precision component 20:04 20 minutes, 4 seconds business and out of this roughly 500 cr is executable beyond FI27 20:11 20 minutes, 11 seconds and remaining it is executable in this year and continuously focusing on the equipment business where it is a touch 20:20 20 minutes, 20 seconds and go where roughly the 600 to 700 business we get it during the year we 20:28 20 minutes, 28 seconds execute it and we dispatch for the sales. 20:34 20 minutes, 34 seconds Okay. So which means that out of 1860 crores executable order book 500 cr order book is beyond one year and the 20:42 20 minutes, 42 seconds balance 1300 crores is minimum executable within say less than one year. 20:47 20 minutes, 47 seconds Yes. This is what a similar trend what we have in last so many years. 20:53 20 minutes, 53 seconds Understood. Uh my second question on the products and uh high hope products that we had to you know as a strategy to 21:01 21 minutes, 1 second scale up the revenues. Uh first first is uh Zephros. Uh what would be our GTM 21:08 21 minutes, 8 seconds strategy? Uh because I understand that FI27 would be Cape here and FI28 is where the full-fledg sales 21:16 21 minutes, 16 seconds starts. So if you can just touch upon the the sales strategy that we plan to deploy to scale up this and what what 21:25 21 minutes, 25 seconds are our ambitions in terms of scaling up the sales and second would be on the centrifugal uh Tesla Piki Poka uh 21:33 21 minutes, 33 seconds compressors if you can just call out FI26 how much is the sales units that we have achieved what are the sales targets 21:40 21 minutes, 40 seconds for FI27 and uh maybe Ammon can touch upon just uh any other products that we would uh 21:47 21 minutes, 47 seconds hope to achieve a large sales numbers uh and uh become a uh and have a larger sales contributions coming from any 21:55 21 minutes, 55 seconds other new innovations that we are planning to launch. Thank you. 22:01 22 minutes, 1 second Yeah, thank you. Uh so I'll start with the uh Zephros. So just to reiterate, Zephros is a fairly innovative air 22:09 22 minutes, 9 seconds conditioning package which uses a green refrigerant and is significantly more efficient than uh let's say traditional 22:17 22 minutes, 17 seconds uh chiller systems. Um our go-to market strategy here would u would really be engaging with all the stakeholders that 22:25 22 minutes, 25 seconds is consultants, architects, installers and uh probably before that in this financial year we do have a target for 22:33 22 minutes, 33 seconds how much we wish to sell. Um and this would be done uh largely by interfacing with uh builders and finding the right 22:42 22 minutes, 42 seconds target markets for this. So probably the ideal markets as of now with our current range would be smaller uh machine shops 22:49 22 minutes, 49 seconds and u you know small restaurants, banquet halls etc. Uh there is quite a large potential for Zephros and we will 22:57 22 minutes, 57 seconds slowly build out a channel as we get more volumes on the test catalya. uh we have about 130 uh machines in the field 23:06 23 minutes, 6 seconds uh sorry 130 machines in the field of which 85 have been commissioned. I hope that answers your question. 23:13 23 minutes, 13 seconds And any other product which you think should be focused going ahead as a large part of sales. 23:20 23 minutes, 20 seconds uh if you remember Pyank last many meetings the indication is we are switching towards the equipment business 23:28 23 minutes, 28 seconds where the execution cycle is very shorter period and our target is to take out something 20 to 25% business coming 23:35 23 minutes, 35 seconds out of this equipment business where this execution cycle is very short the same trend will continue because the 23:42 23 minutes, 42 seconds taste catalya kon the tai chi then again it is JROS all this is part of equipment 23:50 23 minutes, 50 seconds business and the equipment business we just touch in we just get the order execute and we dispatch that focus we 23:57 23 minutes, 57 seconds are increasing and that increasing focus will sustainable over the period of next few years 24:05 24 minutes, 5 seconds thank you thank you next question is from the line 24:13 24 minutes, 13 seconds of Balasramanyam from Aryan capital please go ahead Uh good evening sir. Uh thank you so 24:20 24 minutes, 20 seconds much for the opportunities. Uh sir on the pro side if I mentioned ideal market smaller machine shops and restaurant. So I'm trying to understand uh in this 24:29 24 minutes, 29 seconds business uh like uh like how we I think our current uh uh uh uh PP is around 357 24:37 24 minutes, 37 seconds cr we have committed kix of 320 cr and I'm I'm trying to understand uh uh 24:44 24 minutes, 44 seconds whether these are the small small orders we can get across uh how do you look at OC and payback period of these uh 320 24:53 24 minutes, 53 seconds crores investment and uh uh whether we can that substantial contribution from FI27 or FI28 onwards. 25:04 25 minutes, 4 seconds Okay. Uh the 320 cr is a commitment for the PLS scheme what we did and we 25:11 25 minutes, 11 seconds developed the product. Uh one is JROS that is air conditioning package and the second is the motor again it is 25:18 25 minutes, 18 seconds developed. The JROS two packages we already installed one is of sort canteen 25:25 25 minutes, 25 seconds and one office in Harford both are absolutely running very fine there is no issue in the air conditioning package 25:33 25 minutes, 33 seconds and this Japra system is giving another opening for our new business segment. 25:40 25 minutes, 40 seconds So far we are into the refrigeration business with the KCKX and all other products and now we are entering into 25:47 25 minutes, 47 seconds the air conditioning and that is the comfort and that business will grow and that is why focusing on that and for the 25:55 25 minutes, 55 seconds Jabbras the backward integration are doing in the form of motor in the form of heat exchanger and in the form of sheet metal components. Some of the 26:04 26 minutes, 4 seconds activities we planned in the password plant and some of the activities planned in the Nasi plant and out of the 320 26:13 26 minutes, 13 seconds roughly 60 cr we already incurred for this and remaining we are targeting to incur in another 2 years time. The 26:19 26 minutes, 19 seconds commercial of this will happen in Q1. We have a separate team for this working along with appointment of the dealers, 26:28 26 minutes, 28 seconds appointment of the team and the express team we already on the uh board and the team is working to execute the job now. 26:41 26 minutes, 41 seconds Uh sir on that payback period on RC side whether we can expect 25 to 30% kind of margins since it's a uh uh like small orders. 26:53 26 minutes, 53 seconds So in this yeah sorry uh in this segment uh considering that it is a highly competitive segment we probably will not be targeting those kind of margins. 27:05 27 minutes, 5 seconds However we will try and target very high volumes. These are volumes which KPCL generally has not done. So uh so on the 27:14 27 minutes, 14 seconds margin side it may not be as high but uh on the uh volume side it should make up for it. 27:21 27 minutes, 21 seconds Okay sir. Sir my second screen uh I think earlier we have mentioned incremental capacity for uh uh test poka 27:29 27 minutes, 29 seconds will be available from Q1 whether all the machines we have installed uh uh uh for this uh segment and secondly what is 27:38 27 minutes, 38 seconds the current order pipeline for the new A800 uh uh smallest centrifugal frame. 27:48 27 minutes, 48 seconds So uh in terms of the installed capacity uh this has been done and it is now available. The machine has been commissioned as well. Uh coming to the 27:56 27 minutes, 56 seconds A800 frame I think we still need uh maybe 1 month or so to really get uh the product launched. Uh but I think there 28:05 28 minutes, 5 seconds is quite a bit of demand for uh a smaller centrifugal. This is this will be the most efficient offering for an 800 CFM compressor. 28:14 28 minutes, 14 seconds Yes sir. So my last question on the export sales 140 cr out of this how much percentage is coming from Nana regions 28:22 28 minutes, 22 seconds because it's majorly significant part from uh Nana regions for CNC packages so I'm trying to understand how much 28:30 28 minutes, 30 seconds percentage uh comes from in those areas and s another secondly I just want to confirm that non-traditional orders are 28:38 28 minutes, 38 seconds leveraging vertical in integrations like forging machines and sample whether I just want to confirm whether It will be 28:45 28 minutes, 45 seconds reportable segment from Q1 onwards. Q1 FI27 onwards. 28:50 28 minutes, 50 seconds Uh for that you have to wait up to Q1 will definitely disclose as we achieve but definitely there is a good progress 28:58 28 minutes, 58 seconds on that part and definitely it will come under the reportable segment from Q1 outwards. Regarding the export we are 29:06 29 minutes, 6 seconds not fully depend on the Mina region. We are focus on the Southeast Asia. We focus on the African region and Mina 29:14 29 minutes, 14 seconds region we little bit less because uh we uh right now uh the situation is uh 29:22 29 minutes, 22 seconds different. So otherwise we focus on different and low niche area for the export. 29:27 29 minutes, 27 seconds Yeah. So so the Mina region uh was definitely a fairly large part of uh our export sale. However, uh considering the 29:36 29 minutes, 36 seconds current geopolitical environment, we have uh shifted our focus to different regions like Southeast Asia and the North Africa part of Nenina. Uh we are 29:45 29 minutes, 45 seconds still in active discussions for several orders in in the Middle East. uh however you know considering the current 29:52 29 minutes, 52 seconds situation uh these are going quite slowly and I suspect that once the uh geopolitical situation in the Middle 30:00 30 minutes East cools off we will start to see some rapid movement in this segment. 30:06 30 minutes, 6 seconds Uh thank you so much for detailed explanation sir. Thank you. 30:13 30 minutes, 13 seconds Thank you. The next question is from the line of Samir Takur from Ambit Capital. Please go ahead. 30:21 30 minutes, 21 seconds Thanks. Uh just to carry on with the previous question. So in this uh Middle East exposure, can you just uh get into 30:29 30 minutes, 29 seconds details of what kind of products you have or whether do you have approvals from let's say Aramco or Qatar Energy or any certifications which kind of at the 30:38 30 minutes, 38 seconds end of the war whether that can help you to if they start rebuilding their capacities or would that help you? 30:45 30 minutes, 45 seconds Yeah. So so let me put it like this. Um so with regards to the geopolitical situation in the Middle East there is a 30:53 30 minutes, 53 seconds near-term pressure as I had mentioned previously it is difficult to dispatch packages for orders we already have over there and uh it is also uh difficult to 31:03 31 minutes, 3 seconds book new orders. However longterm uh this will augur well for us on two fronts. One is on the uh international 31:11 31 minutes, 11 seconds side as you rightly pointed out there will be a demand for uh let's say gas packages going into uh some of these 31:18 31 minutes, 18 seconds countries. Um and there is also a renewed interest in the domestic market in uh let's say alternative fuels like 31:27 31 minutes, 27 seconds bio gas, coal gasification, hydrogen etc. on top of a real push which is uh 31:34 31 minutes, 34 seconds quite visible today in the upstream segment of the domestic market. I hope that answers your question. 31:42 31 minutes, 42 seconds Uh yeah, that was helpful. And there's one more uh just going to the backlog mix. Is it possible to get a separate 31:50 31 minutes, 50 seconds mix by division? I think there is a lot of backlog from the other division from precision components. So I just trying to make sense and what is the margin in 31:58 31 minutes, 58 seconds this precision components? Is that marginality business? 32:03 32 minutes, 3 seconds uh in in sorry I was not able to hear uh you're asking for the margin of uh systems and components 32:11 32 minutes, 11 seconds uh no there's a backlog mix uh by separate divisions if that is possible to give so generally 32:19 32 minutes, 19 seconds okay sorry go ahead no my sense is the the backlog is driven by uh maybe the other segment which is precision components and uh just want to 32:28 32 minutes, 28 seconds take a sense whether this precision engineering division components division whether it has lower margin than your core business. 32:36 32 minutes, 36 seconds Um so we generally don't give a breakup of uh of segments. However, as we had pointed out last year, we did have to go 32:45 32 minutes, 45 seconds to non-traditional segments to get orders. Uh in terms of margins, u I would say that from a company standpoint, we will be around uh 32:54 32 minutes, 54 seconds directionally 18 to 20% as we have guided in the past. 32:59 32 minutes, 59 seconds Rich that was all from the say. Thank you. Thank you. 33:04 33 minutes, 4 seconds Thank you ladies and gentlemen. In order to ensure that the management is able to address question from all the 33:11 33 minutes, 11 seconds participants in conference, please limit yourself to two questions. Should you have a question to follow up, we request 33:19 33 minutes, 19 seconds you to rejoin the question queue. The next question is from the line of Amit Anwani from PL Capital. Please go ahead. 33:30 33 minutes, 30 seconds I thank you for the opportunity. So [clears throat] first question about uh about the boil free compressor you talked about in your opening remarks. 33:40 33 minutes, 40 seconds Just wanted to understand uh is it uh a completely new product and do did we got 33:47 33 minutes, 47 seconds uh some uh sales from this and what is the if you could highlight more about this oil free compressor uh which you highlighted. 33:57 33 minutes, 57 seconds Yeah. 33:58 33 minutes, 58 seconds Yeah. So the compressor which we are referring to is is branded as hydrino. It is a water injected screw compressor. 34:06 34 minutes, 6 seconds Uh largely used in applications in food processing and pharmaceuticals. 34:11 34 minutes, 11 seconds Uh in terms of uh is there uh let's say a similar category in the market? Yes, there is. Uh we do have uh some 34:19 34 minutes, 19 seconds competition uh who have similar products. However, we have several unique uh USPS in this product. So uh 34:27 34 minutes, 27 seconds one is that you know we have no oil in this machine at all. Uh competitors may have oil in their bearings etc. And u 34:36 34 minutes, 36 seconds you know we are also domestically produced which means that not only are we generally more cost competitive but we are also able to offer service and 34:45 34 minutes, 45 seconds spares to customers much faster than uh imported uh machines. 34:51 34 minutes, 51 seconds Uh so is this the completely new product launch or this was there and uh uh now we this is this is a new product this is a new product for KPC. 35:01 35 minutes, 1 second Understood and wanted to understand uh so we have been talking about uh Tesli poker ta chi and now froze and I think 35:11 35 minutes, 11 seconds few other products like un uh over past uh 24 months. Just wanted to understand 35:18 35 minutes, 18 seconds uh now since these products have been kind of there in the market uh what kind of sustainable growth you're targeting 35:26 35 minutes, 26 seconds from these products obviously category wise within air refrigeration and all these new launches which are there in the markets. If we take let's say two 35:35 35 minutes, 35 seconds three years of perspective uh what is our standing currently in terms of market share or revenue for each of these product and what kind of 35:44 35 minutes, 44 seconds growth we can look for in these products. 35:49 35 minutes, 49 seconds Yeah. So u so you know in our segment in terms of capital goods especially uh compressors these are really uh products 35:57 35 minutes, 57 seconds which are designed to uh to run and u you know they have to prove themselves before they gain broader market 36:04 36 minutes, 4 seconds acceptance. So it's usually the case where getting the first few orders is uh hard and then it gets progressively 36:11 36 minutes, 11 seconds easier from there. Um all these products you mentioned with the exception of um Zephros are now in the market and we 36:20 36 minutes, 20 seconds will start to see we are already growing Tescati Poka quite aggressively. Uh Kon as well we are seeing good growth. Uh 36:28 36 minutes, 28 seconds Taichi we did launch last year so we la we you know we we did grow but it was from zero. And uh so I think generally 36:37 36 minutes, 37 seconds from new products we we target that we should have at least 10 to 15% of sales and as a company we want to grow at 20%. 36:45 36 minutes, 45 seconds These products depending on how old or how how recently they were launched would grow at a slightly higher pace. 36:55 36 minutes, 55 seconds Right. Lastly on the precision engineering division um uh what exactly we looking as a strategy? So I think you 37:02 37 minutes, 2 seconds explained about 500 cr order there and probably it's a short cycle order. So uh can we expect F27 also getting order 37:12 37 minutes, 12 seconds inflows uh as high as uh you know 500 upward again for the precision engineering or this is just a one-off case this year. 37:22 37 minutes, 22 seconds Yeah. So the reason which we are uh the reason why we are being uh quite opaque on this is because we don't really know 37:28 37 minutes, 28 seconds whether it is uh sustainable. U so I think for that we'll have to uh really go forward and see. But certainly in 37:36 37 minutes, 36 seconds terms of precision engineering, we have many unique capabilities with us. Um whether that is in forgings, castings, 37:43 37 minutes, 43 seconds machinings etc. So there will be a stable uh demand but I cannot uh really foresee whether it will be to the same extent. 37:53 37 minutes, 53 seconds Right. Finally uh in terms of uh the current geopolitical uh situation which you're sensing anywhere you feel that 38:02 38 minutes, 2 seconds this could be a key risk in terms of business whether it is increase in cost or the conversions with their key industries any uh sort of challenges 38:11 38 minutes, 11 seconds because we saw F26 we had different kind of challenges in terms of delays in packages so anything which uh in near 38:19 38 minutes, 19 seconds term you might feeling that could impact uh the business because of the geopolitics politics getting stretched 38:27 38 minutes, 27 seconds from more than two months. Now the order board last year beginning it was 1,624 38:36 38 minutes, 36 seconds cr and now for the beginning of this year it is 1,863 cr. So despite all this situation 38:45 38 minutes, 45 seconds uncertainties geopolitical all all uncertainties still we are higher order mode compared to the 38:52 38 minutes, 52 seconds last year. Regarding the price increase uh we always focus on that and whenever 39:00 39 minutes it is a short period of the execution we pass on to our customer and we don't take into our account and as far as the 39:08 39 minutes, 8 seconds large package is concerned we already negotiated we already finalize the order with our vendors. So there is no directly impacting our profitability. 39:19 39 minutes, 19 seconds Right? So this year are we also focusing back again on the large packages to uh as a part of inflow or now we'll be 39:27 39 minutes, 27 seconds keeping this uh lesser package orders and more equipment order as a norm for F2728. 39:36 39 minutes, 36 seconds Yeah. So as a strategy uh we always want more uh products versus packages simply because it makes the uh the business uh less lumpy and uh and more predictable. 39:48 39 minutes, 48 seconds Uh that being said, the demand environment uh for packages does seem to be uh seem to be higher on the back of 39:56 39 minutes, 56 seconds uh let's say lower uh orders getting finalized last year. So even though directionally we do want to have more 40:04 40 minutes, 4 seconds products versus packages, uh this year as of now we do have quite a few inquiries out there for packages. 40:12 40 minutes, 12 seconds Understood. Thank you. Thank you so much. All the best. Thank you. 40:18 40 minutes, 18 seconds Thank you. The next question is from the line of Pavia Doshi from Chris. Please go ahead. 40:26 40 minutes, 26 seconds Uh uh yeah. So like are we seeing uh uh like which segments are contributing more to the stronger order inflow which 40:35 40 minutes, 35 seconds we have experienced in FI26 and uh is there a strong traction in the CNG stations like are we again bidding 40:43 40 minutes, 43 seconds for the mother stations which uh saw a higher competition earlier? 40:52 40 minutes, 52 seconds Yeah. So um in terms of orders for uh for the last financial year they would broadly be in line with uh the numbers 41:01 41 minutes, 1 second which I which I had mentioned in terms of the uh business contribution. Uh however this year we did have uh good numbers coming from the precision 41:10 41 minutes, 10 seconds engineering division. Uh we generally don't like to give a a break up but uh it would largely be uh you know ACR and 41:18 41 minutes, 18 seconds precision engineering then gas etc. Um on the CNG we are actively bidding and there is a a renewed interest as I was 41:27 41 minutes, 27 seconds uh stating earlier to increase the amount of uh uh CNG stations. So there is a a push from various customers to 41:35 41 minutes, 35 seconds close more orders and we have been uh actually uh closing more orders in the CG space in the last quarter and uh even carrying on into this year. 41:47 41 minutes, 47 seconds Got it. Got it. And uh as we had mentioned like we are targeting around 10 to 5% 15% of the sales of the company going ahead from the newly launched 41:56 41 minutes, 56 seconds products. So given the strong IP filing which we have done in the last few years how does the launch pipeline looks like 42:03 42 minutes, 3 seconds for the new products and uh like how's the pathway ahead? 42:09 42 minutes, 9 seconds Yeah. So we have a number of products which uh which we are uh actively developing. That being said, uh you know 42:17 42 minutes, 17 seconds a lot of them vary in terms of levels of complexity. So the more complex it is uh it generally takes longer with more 42:23 42 minutes, 23 seconds testing etc. Um we also have a couple of products where we are expanding the range. This is something which will 42:30 42 minutes, 30 seconds definitely come uh faster. So we do have quite a uh so it's very difficult for me to commit at this stage uh what products 42:38 42 minutes, 38 seconds we will launch this year. I think I already did mention uh the A800 uh which is an extension of our centrifugal range. Uh but we do have 42:47 42 minutes, 47 seconds quite a few products uh in the pipeline which you will start to see some launches in Q1 itself. 42:54 42 minutes, 54 seconds Got it. Got it. And one last thing is like how much cost savings uh does a Zephros package offer as compared to the conventional systems for the end users? 43:04 43 minutes, 4 seconds Just just a broader perspective on it like Yeah. So the Zephros package is uh actually uh significantly more efficient 43:12 43 minutes, 12 seconds than a traditional water chilling system. Uh it would be in the range of uh let's say 10 to 15% plus. 43:24 43 minutes, 24 seconds Thank you. Thank you. Thank you so much. 43:28 43 minutes, 28 seconds Thank you. The next question is from the line of Mihir Manohar from Trust Mutual Fund. Please go ahead. 43:37 43 minutes, 37 seconds Yeah. Hi, thanks for giving the opportunity and congratulations to the entire Blossomatic team for great set of numbers. Uh my question was on the uh 43:45 43 minutes, 45 seconds CNG and PNG and CG side. Once again focus because of the disruption just with air. Uh if you can throw some light 43:52 43 minutes, 52 seconds as to when does the demand for compressor actually kick in? uh I mean is the laying of large transmission pipelines against gas transmission 44:00 44 minutes pipelines necessary for the demand of other compressors to actually kick in or is it going to the booster compressor only some over here 44:09 44 minutes, 9 seconds may we could not hear properly uh will you try again there is some disturbance from your side will you audible now yeah 44:18 44 minutes, 18 seconds is this audible now yeah yeah it's okay now yeah yeah sure so first of all congratulations for a great set of numbers uh to the entire team a quite 44:27 44 minutes, 27 seconds good set of numbers on revenue and backlog both. Uh mainly wanted to understand on the CGD and PNG side I mean government has put a renewed focus over here because of the disruption 44:36 44 minutes, 36 seconds which has happened. Now I wanted to understand when does the demand for [clears throat] mother compressor actually kick in? Uh is laying of large transmission pipelines gas transmission 44:44 44 minutes, 44 seconds pipelines necessary for the demand of mother compressors actually to kick in? 44:48 44 minutes, 48 seconds Uh I mean is the demand going ahead for the next let's say one one to two years now government has put a focus again. uh will it be mother compressors or will it be booster compressors? 44:58 44 minutes, 58 seconds Okay, so let me uh let me try and answer your question. You do need pipelines for uh mother stations and generally the 45:05 45 minutes, 5 seconds trend that we see is that um uh 70% of new stations at least 70% are generally 45:14 45 minutes, 14 seconds daughter stations because these are lower in capex. But the disadvantage with the daughter station is that they are higher in opex because you need a 45:22 45 minutes, 22 seconds mother station to first um compress the gas, fill it into a cascade and take it uh to a place which has a daughter 45:30 45 minutes, 30 seconds station. So there is also a trend of uh over time daughter stations being converted into mother stations. 45:38 45 minutes, 38 seconds There are there is a certain market where you know it's very difficult to put pipelines like in a hilly area etc. 45:44 45 minutes, 44 seconds So there that would be a daughter station. I hope that answers your question. 45:51 45 minutes, 51 seconds Yeah. Yes. But I mean with now a full infrastructure roll out going to happen uh at least on the framework and on the policy it seems uh it will result into 45:58 45 minutes, 58 seconds higher demand for mother compressors or for booster compressors. 46:02 46 minutes, 2 seconds Yeah, it will be higher demand for both but it would in the short term be skewed more towards daughter stations but long term a lot of them will start getting converted into mother stations. 46:14 46 minutes, 14 seconds Okay, understood. Sure. Second question was on the good order info. I mean you know quite good number 650 crores broadly over the last two quarters. Uh if you can throw some light as to you 46:22 46 minutes, 22 seconds know what value is contributed by the new products I mean texti this new range of compressors that we have introduced uh some color over there 46:31 46 minutes, 31 seconds and you know what number are these new products contributing over the last two quarters. 46:38 46 minutes, 38 seconds Yeah. So generally we don't uh we don't really give uh uh such granular information. uh a lot of these products 46:46 46 minutes, 46 seconds which you mentioned are uh newer products and as I had mentioned earlier it's usually uh very difficult to get the first few sales especially in uh you 46:54 46 minutes, 54 seconds know let's say products like taichi hydrino which were just freshly launched tensiply poka is uh certainly higher up 47:01 47 minutes, 1 second in terms of uh the order value and it also continues to grow quite quickly uh 47:09 47 minutes, 9 seconds yeah that's uh that's uh I think uh the most granular that I can Okay. Uh just lastly a question on the precision engineering side. 47:18 47 minutes, 18 seconds Sorry to interrupt. Mr. Manor, Mir Manor, please rejoin the question for more questions. Thank you. 47:25 47 minutes, 25 seconds Okay. Thanks. Thanks. Yeah. Yeah. 47:29 47 minutes, 29 seconds The next question is from the line of Baratsha from BCS Capital Ideas Limited. Please go ahead. 47:37 47 minutes, 37 seconds Yeah. Hi. uh uh ammon uh I think uh this is beginning of new innings with a bank. 47:46 47 minutes, 46 seconds I think uh one couldn't have asked for a better start to the old al all together new innings that you are about to play. 47:56 47 minutes, 56 seconds Uh I've known Shini for more than 25 years and I have seen him to be a very 48:03 48 minutes, 3 seconds meticulous and uh very careful planner of the things. So I I definitely believe 48:10 48 minutes, 10 seconds he uh he would have set up these organization on a uh beautiful 48:17 48 minutes, 17 seconds uh forment for you to play the evenings at a much higher precinct or at least 48:25 48 minutes, 25 seconds that is what my hope is. So uh first and foremost uh best wishes and uh 48:32 48 minutes, 32 seconds congratulations on the lovely note on which the uh uh the picture is started. 48:41 48 minutes, 41 seconds Thank you. Yeah, the uh on the growth aspect 48:49 48 minutes, 49 seconds uh you talked about uh 20% uh uh plus on a sustainable basis. 48:58 48 minutes, 58 seconds So uh you meant for the current year or for more like uh five to uh five years 49:06 49 minutes, 6 seconds and more uh because all along over last few years I've understood that base uh 49:15 49 minutes, 15 seconds uh growth rate for the company could be upwards of 20%. Given the engineering 49:22 49 minutes, 22 seconds strength we have, given the way the overall manufacturing ecosystem is rapidly evolving and uh uh given the 49:32 49 minutes, 32 seconds fact that in many ways uh what Kilosco does is uh touching so many other 49:39 49 minutes, 39 seconds industries and their needs uh and the innovation rate of the new products. So 49:47 49 minutes, 47 seconds uh is the uh are we being kind of more modest and conservative uh or you think 49:56 49 minutes, 56 seconds this is the most uh realistic uh which we should pursue? 50:04 50 minutes, 4 seconds Yeah. So uh so when I had said uh 20% in uh the opening comment u it has always been our aspiration to grow the company 50:13 50 minutes, 13 seconds at 20% plus over a long period of time uh that is uh on top line and bottom line. 50:22 50 minutes, 22 seconds Okay. Uh and uh coming to that part uh now that we have reached a meaningful 50:29 50 minutes, 29 seconds scale and size uh today uh and the overall manufacturing ecosystem 50:35 50 minutes, 35 seconds evolution has been rapidly proliferating plus uh our own innovation rate of the 50:42 50 minutes, 42 seconds new products. uh uh should we should we be more uh ambitious than this or in 50:50 50 minutes, 50 seconds your opinion I think this is uh very realistic and practical and strong uh uh potent uh number that we are talking about. 51:01 51 minutes, 1 second Yeah. So in terms of innovation as I mentioned uh we have been recognized as a top top 30 IP driven organization. 51:09 51 minutes, 9 seconds That being said this is not uh all we want to be. we have our own internal targets to grow the amount of IP 51:16 51 minutes, 16 seconds filings. Um some of the products which we are developing today would be cutting edge not just in India but in the world 51:23 51 minutes, 23 seconds and uh and I think uh you know I'm really excited when I look at uh some of the products under development and I do hope we'll be able to launch a few uh of 51:32 51 minutes, 32 seconds these really cutting edge ones uh this year. 51:37 51 minutes, 37 seconds Barbe I will add something uh relating to this coming to innovation. uh we are giving 51:44 51 minutes, 44 seconds the presentation to FCI for the JROS where they are a PL scheme approval and 51:53 51 minutes, 53 seconds the one of the manager there asked us who is your technology partner for the JROS and we said there is no technology 52:00 52 minutes partner our team is capable to do the innovation do the engineering and we are 52:07 52 minutes, 7 seconds develop this product our own and it was so surprised from them that Indian company is doing such type of innovation 52:15 52 minutes, 15 seconds and the PLA scheme which is approved so easily that one Indian company doing so much of innovation and coming with a 52:23 52 minutes, 23 seconds different products and they appreciated our efforts absolutely delighted to hear that absolutely delighted just one last uh 52:32 52 minutes, 32 seconds small thing if I can raise that um while clearly the margins in the latest 52:40 52 minutes, 40 seconds quarter the fourth quarter of the year gone by at about 26% plus are uh 52:47 52 minutes, 47 seconds dramatically high and uh those can't be sustainable but year in entirety at about 21 uh and 52:57 52 minutes, 57 seconds half or percent that we have delivered for the entire year of 25 26 53:03 53 minutes, 3 seconds isn't this now on a uh decent topline base for creating leverage and 53:11 53 minutes, 11 seconds speciality product offerings and the overall growth opportunity isn't I'm aware that ammon mentioned 18 53:19 53 minutes, 19 seconds to 20% is more sustainable margin but I thought yes in entirely 21 and a half% 53:26 53 minutes, 26 seconds margin uh is that uh not likely to be prevalent for a while or you think 18 to 20% only should be a fair guidance. 53:39 53 minutes, 39 seconds Yeah. Uh so just to uh clarify uh what I meant is you know in a bad quarter we always say don't judge us uh quarter to 53:47 53 minutes, 47 seconds quarter uh that in a in the same vein in a good quarter please don't judge us uh quarter to quarter and uh directionally 53:55 53 minutes, 55 seconds we will be 18 to 20% and if we can we'll be 21%. 54:00 54 minutes Got thank you so much and I'm all the very best. 54:04 54 minutes, 4 seconds Thank you sir and thank you Romesh. Thank you. 54:10 54 minutes, 10 seconds Thank you. The next question is from the line of s of Arya from Oakland Capital. 54:17 54 minutes, 17 seconds Please go ahead. Yeah. Hi sir. Am I audible? Yeah. Yes. Yes. Go ahead. 54:24 54 minutes, 24 seconds Yeah. Congrats on good set of numbers. 54:27 54 minutes, 27 seconds See again if we see last few calls you have said she had also mentioned that export would not be really a big driver 54:36 54 minutes, 36 seconds for us. So does uh things change with the you know this destruction in Middle 54:42 54 minutes, 42 seconds East? So so if you could double click on you know your Middle East export opportunity and export opportunity in in 54:49 54 minutes, 49 seconds general. So first is that maybe and then maybe I have a related question after your comments. 54:59 54 minutes, 59 seconds Yeah. So I think uh export as part of total sale is about 6%. 55:04 55 minutes, 4 seconds uh since our one of our major markets is uh especially for large packages is oil and gas. The Middle East is certainly a 55:13 55 minutes, 13 seconds key market for us. Uh that being said because it is uh not a very large part of our total business it is not uh that 55:22 55 minutes, 22 seconds big of a risk for us uh with the current geopolitical situation and as I said earlier I think in the long term uh the 55:30 55 minutes, 30 seconds implications of the uh geopolitical unrest in the Middle East is uh probably quite good for KPCL. 55:38 55 minutes, 38 seconds Okay. And and so maybe related is so when it comes to you know these approvals etc for these packages because 55:47 55 minutes, 47 seconds you already have you already are using compressor of AIAL or maybe you know how and and and they they are of course 55:55 55 minutes, 55 seconds already approved there. So why uh like so I want to understand have we won any 56:02 56 minutes, 2 seconds passes in past in Middle East and if not why we did not win in past and and what gives us you know confidence that you 56:11 56 minutes, 11 seconds know that now we have a yeah we have won packages in the past 56:18 56 minutes, 18 seconds and u and we have a couple of active inquiries also going on. uh what I will say is that uh you know what what is 56:26 56 minutes, 26 seconds more active u in the Middle East is more on the gas side and uh there on the gas 56:33 56 minutes, 33 seconds side there's a number of uh you know number of approved vendors a lot of them are from lower cost countries and it 56:41 56 minutes, 41 seconds makes it a little bit difficult for us to compete when uh you know everything is specified. So you have to get the compressor from uh a certain vendor, you 56:48 56 minutes, 48 seconds have to get the engine from a certain vendor, the heat exchangers from couple of vendors. So with everything specified, it becomes very difficult to 56:57 56 minutes, 57 seconds kind of innovate on the cost side and the gas packages. That being said, uh you know, we are competitive enough to be able to win and we have won packages from the Middle East in the past. 57:09 57 minutes, 9 seconds Perfect. This is very helpful. Second uh you know just again a clarification bit on other side I know we don't want to 57:16 57 minutes, 16 seconds talk much about it but still like the first number raid sir mentioned about 500 cr order book for next year so I 57:25 57 minutes, 25 seconds want to understand like from execution cycle of success that is going into next year uh so Mr. Rome did mention that in 57:34 57 minutes, 34 seconds past also that has been the case but still uh if one were to see execution cycle of this other segment is it more 57:44 57 minutes, 44 seconds than your base business and and and majority of this 500 cr which is going into next year belongs to others. 57:54 57 minutes, 54 seconds No, no, I think there's uh uh some uh u misunderstanding. The uh as I had mentioned the total order board uh if 58:03 58 minutes, 3 seconds you go into details is actually more skewed towards products this year. Uh what that and products generally have a 58:10 58 minutes, 10 seconds shorter execution cycle. We did uh get a couple of large package orders which uh will spill over into the next financial 58:18 58 minutes, 18 seconds year. But uh the execution cycle this year for the company should actually uh reduce. 58:28 58 minutes, 28 seconds Okay. And and maybe cycle through last. 58:30 58 minutes, 30 seconds So like last year also let's say you know our order book was 1,600 K something book to bill of around one and 58:38 58 minutes, 38 seconds we were pretty confident that you know revenue growth would be 20%. And now again at the start of the this year book 58:45 58 minutes, 45 seconds to bill is around one and we are pretty confident that we we can still do 20% offline growth. So what happened last 58:52 58 minutes, 52 seconds year that it did not come and what gives us confidence that with the similar book to bill we will actually be again delivering 20%. That would be thank you very much. 59:04 59 minutes, 4 seconds Yeah. So uh so I think the past uh few years we've had uh quite a significant reliance on uh our gas business and as 59:13 59 minutes, 13 seconds we have been calling out uh this is a place where uh we have been having some difficulties in terms of growth. Uh we 59:20 59 minutes, 20 seconds will be taking some actions uh this year to uh increase our competitiveness in the segment. Uh and I think all the 59:28 59 minutes, 28 seconds other uh businesses are uh are doing fairly well. equipment in particular uh 59:35 59 minutes, 35 seconds is growing and uh this year with the uh precision engineering division uh really doing a lot of heavy lifting we believe 59:43 59 minutes, 43 seconds that uh we will be back on track to deliver higher than orderboard uh sales and reach this 20% plus number which we are committing for. 59:53 59 minutes, 53 seconds Perfect. Thank you very much all debate. Thank you sir. 59:59 59 minutes, 59 seconds A reminder to all participants, please restrict yourself to one question. Thank you. The next question is from the line 1:00:07 1 hour, 7 seconds of DVM chain from 361 Capital. Please go ahead. 1:00:14 1 hour, 14 seconds Yeah. Hi, I'm a yes please. 1:00:18 1 hour, 18 seconds Yeah. Uh so my question was regarding the gross margin expansion that we've seen. How much of it would be owing to the back integration efforts and how 1:00:26 1 hour, 26 seconds much of it and if is it attributable to the department of orders? I believe it has to say because of test 1:00:35 1 hour, 35 seconds or how would you attribute the expansion? 1:00:41 1 hour, 41 seconds So we are not able to understood what exactly you are asking. 1:00:47 1 hour, 47 seconds So we saw expansion in the gross margins I believe in this quarter. Mhm. 1:00:53 1 hour, 53 seconds How much of it is attributable to the backward integration efforts and how much of it is because of the deferments as we've seen that you reported in the last quarter? 1:01:05 1 hour, 1 minute, 5 seconds Now the backward integration what we did in Masi is coming to Hadafs for the air 1:01:12 1 hour, 1 minute, 12 seconds compressor division as well as for the transmission division that is PE now and uh roughly the total output from the 1:01:21 1 hour, 1 minute, 21 seconds Nashik is directly coming as a input for a harder factory as well some portion is going to the SAS also. So it is exactly 1:01:29 1 hour, 1 minute, 29 seconds we are not calculated how much is going for the compressor division and how much is for the peed. So we need some time to calculate and come back to you for the answer sir. 1:01:41 1 hour, 1 minute, 41 seconds Right. So uh what would be our sustainable gross margin you going ahead? 1:01:46 1 hour, 1 minute, 46 seconds Yeah so as uh we have been saying uh directionally we want to be uh 18 to 20% uh on an ibida level. 1:01:57 1 hour, 1 minute, 57 seconds Last year we also achieved the highest margin in the core business. That time we also said that 18 to 20% is 1:02:04 1 hour, 2 minutes, 4 seconds sustainable. This quarter also we cross almost 23% and still we are saying it is 1:02:11 1 hour, 2 minutes, 11 seconds 18 to 20% is a sustainable for core business that is compression business. 1:02:19 1 hour, 2 minutes, 19 seconds Thank you. 1:02:22 1 hour, 2 minutes, 22 seconds Thank you. The next question is from the line of Sil San Sangi from Monach Network Capital. Please go ahead. 1:02:31 1 hour, 2 minutes, 31 seconds Yeah. Hi, good evening. Am I audible? Yes, please go ahead. 1:02:36 1 hour, 2 minutes, 36 seconds Yeah, congratulations uh for a very good set of numbers and congratulations to Mr. Aman Klokar for the uh new designation. Uh my question is uh more 1:02:45 1 hour, 2 minutes, 45 seconds of to understand u I mean while um Amen has already commented on this but uh this new uh ruling that we have got um 1:02:54 1 hour, 2 minutes, 54 seconds regarding the government's press on um the March 26 order for um you know um fast pacing more PNG and um PGD lines. 1:03:05 1 hour, 3 minutes, 5 seconds Um I just I just wanted to understand what kind of traction are you seeing on ground uh with this uh with this ruling 1:03:12 1 hour, 3 minutes, 12 seconds uh because it says that they want to accelerate pipeline infrastructure development including faster rollouts of CGD and u last line connectivity for 1:03:21 1 hour, 3 minutes, 21 seconds PNG. So what are you seeing on ground and when can you expect uh some bit of u 1:03:29 1 hour, 3 minutes, 29 seconds demand transpiring to our order book uh leading to an improved performance for the gas process process gas division? 1:03:36 1 hour, 3 minutes, 36 seconds Yeah. So um so as I had mentioned uh the uh I think we entered this year with uh 1:03:44 1 hour, 3 minutes, 44 seconds an elevated inquiry level in terms of the domestic gas business and uh we've also been closing some orders in this 1:03:51 1 hour, 3 minutes, 51 seconds segment uh fairly quickly. So I think on ground there does seem to be quite a bit of things happening and I'd also like to 1:03:59 1 hour, 3 minutes, 59 seconds once again mention that there is a lot of interest in alternative fuels uh especially bio gas uh where uh we are 1:04:07 1 hour, 4 minutes, 7 seconds seeing a lot of interest at the moment it has not translated into orders for us yet. 1:04:15 1 hour, 4 minutes, 15 seconds You must have also seen, you must have also seen the release press release by the OMGC. Uh roughly they are targeting 1:04:24 1 hour, 4 minutes, 24 seconds to invest something 200 billion in oil and gas and that two investment they'll come within five to six years and this 1:04:32 1 hour, 4 minutes, 32 seconds 200 billion investment will then they will start investing some portion of this will come to us as a support for 1:04:39 1 hour, 4 minutes, 39 seconds the compressor to their various projects. So we are definitely going to get that because the 200 billion 1:04:46 1 hour, 4 minutes, 46 seconds investment by oil and gas sector by government of India is a huge investment and we are also focusing on that to get that business and to grow our company. 1:04:57 1 hour, 4 minutes, 57 seconds Got it. Got it. And my last question would be u I understand that we will have a shorter execution cycle for the 1:05:05 1 hour, 5 minutes, 5 seconds orders that we have now in our order book. Uh can you define that period? I mean would it be 6 7 months or would it be much much lower? 1:05:13 1 hour, 5 minutes, 13 seconds And then the equipment equipment period is between 4 weeks to something 12 weeks and roughly the large packages ranging 1:05:22 1 hour, 5 minutes, 22 seconds from 6 7 months 8 months. But as we are growing we are being developed the many 1:05:29 1 hour, 5 minutes, 29 seconds products like taste tiboka kon taichi they are having very short execution cycle now not very great 8 months 12 1:05:37 1 hour, 5 minutes, 37 seconds months period that it's not the case we are not focusing on the last package business whatever business we want we want a topline growth as well as the 1:05:46 1 hour, 5 minutes, 46 seconds bottom line growth both thank you due to time constraint. We 1:05:56 1 hour, 5 minutes, 56 seconds take that as a last question. I now hand the conference over to Mr. Tirinda Diwari for closing comments. 1:06:04 1 hour, 6 minutes, 4 seconds Thank you. Uh let me take this opportunity to thank uh the management of Klokar Pneumatic for uh giving us the 1:06:12 1 hour, 6 minutes, 12 seconds opportunity to host. Uh before I close, may I uh invite uh Aman to final comments and then we can close the call. 1:06:23 1 hour, 6 minutes, 23 seconds Yeah. Uh thank you all uh for joining the call today. Uh and uh as Barat uh 1:06:29 1 hour, 6 minutes, 29 seconds Batai had mentioned uh we uh it is a new innings for me and I have uh been blessed to have a great boss and mentor 1:06:37 1 hour, 6 minutes, 37 seconds of Mr. Shinavasan for the past five years. I think we learned a lot. Um he really taught us how to push boundaries, 1:06:45 1 hour, 6 minutes, 45 seconds innovate and uh really be hungry for growing. So uh it is uh we have big shoes to fill and we will do our best uh 1:06:53 1 hour, 6 minutes, 53 seconds to uh to hit our targets of 20% plus growth. Thank you so much. 1:07:00 1 hour, 7 minutes Thank you. Now we can close the call please. 1:07:03 1 hour, 7 minutes, 3 seconds Thank you sir. On behalf of Antich Broking Limited that concludes this conference. Thank you for joining us. 1:07:09 1 hour, 7 minutes, 9 seconds You may now disconnect your lines.