KP Green Engineering Ltd — Q4 FY26

KP Green Engineering Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=UEOU0hw2SZA Published: 15 hours ago

0:01 1 second Ladies and gentlemen, good day and welcome to the KP Green Engineering Limited Q4 FI26 earnings conference call 0:08 8 seconds hosted by Share India Securities Limited. As a reminder, all participant lines will be in the listenonly mode. 0:15 15 seconds There will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during this conference call, 0:22 22 seconds please signal for an operator by pressing star and then zero on your touchtone telephones. I now hand the conference over to Mr. Harsh Patel from 0:31 31 seconds Share India Securities Limited. Thank you and over to you sir. 0:35 35 seconds Uh uh thank you and good morning everyone. I would like to congratulate management on a very good set of numbers of KP Green Engineering. On behalf of 0:43 43 seconds Sharities, I welcome you all to H2FI26 earnings conference call of KP Green Engineering. We are pleased to have with 0:52 52 seconds us the management team represented by Mr. Mo Karwa the whole time director, Dr. Alod group CEO, Mr. Ashwak Khan, 1:00 1 minute Chief Accounts Officer, Mr. Salim Yahu, Group CFO. We will have the opening remarks from the management and followed by question and answer session. Thank you and over to you Venos. 1:11 1 minute, 11 seconds Okay, thank you. Good morning everyone. 1:14 1 minute, 14 seconds It's Vin Jen from investor relation department. On behalf of management, I would like to extend a very warm welcome to all the investor, analysts and other 1:22 1 minute, 22 seconds stakeholders for joining us today for earning call for quarter 4 and FI2526 for KP Green Engineering. Joining on the 1:30 1 minute, 30 seconds call are time director uh group CEO, group CFO and chief account officer. 1:35 1 minute, 35 seconds Please note that our whole time director Mr. Mon Kva is joining from China. So there might be some disturbance. Please bear with us. 1:44 1 minute, 44 seconds FI2526 has been a transformational year for the company marked by strong education capacity expansion and significant financial growth. Our 1:53 1 minute, 53 seconds revenue grown by 78% to 1,250 cr aida by 117% to 249 cr and ped by 85% to 136 cr. 2:01 2 minutes, 1 second Further order books remain strong at approximately 1,831 cr as on 31st March 2026 providing 2:10 2 minutes, 10 seconds healthy revenue visibility going forward. Company continues to extend its manufacturing ecosystem with commissioning of Asia's largest deep dip 2:18 2 minutes, 18 seconds galvanizing plant at MA. During the year, company also received one of the prestigious certification from road for road carrier from Netrax. The company 2:27 2 minutes, 27 seconds remains committed towards the sustainable manufacturing safety accident and technology-led operation aligning itself with the India's long-term renewable and infrastructure 2:36 2 minutes, 36 seconds growth story. With this, I would like to hand over the call to hold time director Mr. Mon Kurva. over to uh Mr. Moto. 2:45 2 minutes, 45 seconds Thank you Enerji. 2:47 2 minutes, 47 seconds Good morning to all our investor, analyst and stakeholder. 2:52 2 minutes, 52 seconds It gives me immense pleasure to address you today at a time when KP Green Engineering Limited is transforming 2:59 2 minutes, 59 seconds rapidly into a diversified engineering powerhouse. Over the year we made several commitment to our investor 3:07 3 minutes, 7 seconds regarding expansion, diversification, approval and execution capability. Today I am proud to say we are delivering 3:16 3 minutes, 16 seconds results to those commitments. At KTZL a product vertical is not just a product. 3:23 3 minutes, 23 seconds It is an independent industry with its own ecosystem approval execution cycle 3:30 3 minutes, 30 seconds and market opportunity. In this business production alone is not enough. The real growth come when you p your product are 3:39 3 minutes, 39 seconds accepted and approved by state utility, PSU, national authority, private companies and global organization. I am 3:48 3 minutes, 48 seconds pleased to share that we have achieved significant progress across most vertical and continue to aggressively 3:55 3 minutes, 55 seconds expand our reach. Our transmission line tower vertical is now approved and active across 16 plus state in India 4:05 4 minutes, 5 seconds while our pole and lightning structure division is rapidly expanding with approval from multiple state authority 4:12 4 minutes, 12 seconds and municipal corporation. In the solar structure vertical, we are proudly associated with almost all major 4:19 4 minutes, 19 seconds renewable energy executing organization in India and are also approved by global tracker leaders next tracker and game 4:28 4 minutes, 28 seconds changanger solar. In heavy engineering operation are progressing strongly and with the successful achievement of RDSO 4:36 4 minutes, 36 seconds approval. We are now strategically position for larger railway and infrastructure opportunities in the pre-engineering building segment. 4:46 4 minutes, 46 seconds Our in-house design engineering and project team have successfully executed two major industrial factory. One 4:53 4 minutes, 53 seconds transformer manufacturing facility and one solar model manufacturing factory. 4:58 4 minutes, 58 seconds showcasing our end to- end execution capability. Another proud achievement has been becoming the first company in 5:06 5 minutes, 6 seconds India to successfully complete all three crash tests car bus 5:14 5 minutes, 14 seconds for both WBN and tribe crash carrier in the very first time itself. 5:20 5 minutes, 20 seconds One of the biggest milestone for the company has been operationalized Asia's largest galvanizing plant with capacity 5:27 5 minutes, 27 seconds of 90,000 metric ton per and with a single dip capacity of 15 metric ton. 5:34 5 minutes, 34 seconds This is major competitive advantage that will significantly improve our distribution speed, quality and 5:41 5 minutes, 41 seconds production efficiency. The company is also strategically focused on strengthening its business through 5:48 5 minutes, 48 seconds backward integration in manufacturing capability and forward integration in execution business. This forward 5:55 5 minutes, 55 seconds integration strategy strategy is already visible through our direct participant in railway crash barrier project and 6:04 6 minutes, 4 seconds large scale BSNL telecom project enabling us to move higher into the value chain. Further, our in-house R&D 6:13 6 minutes, 13 seconds and engineering team is continuously working toward expansion into new vertical including onso tubular tower, 6:21 6 minutes, 21 seconds container manufacturing, magnetal manufacturing, rolling mill, cable and conductor manufacturing and several 6:28 6 minutes, 28 seconds other engineering products. We remain committed to continuously expanding our product portfolio and strengthening our integrated manufacturing ecosystem. 6:39 6 minutes, 39 seconds On the business front, we have secured confirm order worth more than 1,860 6:46 6 minutes, 46 seconds K including a landmark 819 plus K DSNL order marking our 6:53 6 minutes, 53 seconds strategic re-entry into the telecommunication sector with long-term annuity income visibly through O andM 7:01 7 minutes, 1 second service today with expanding capab capacity diversify vertical strong 7:08 7 minutes, 8 seconds approach and robust order visibility. KP Green Engineering Limited is strongly positioned to sustain long-term growth. 7:17 7 minutes, 17 seconds I would like to sincerely thank our respected CNBC Dr. Faruk Patel along with all our investor, stakeholder, 7:26 7 minutes, 26 seconds customer, banker, suppliers, partners and every member of team KPZL for their 7:32 7 minutes, 32 seconds continuous trust and support. The foundation is strong, the exhibition is visible and the future opportunities are 7:42 7 minutes, 42 seconds enormous. We remain fully committed toward creating sustainable growth and long-term shareholder value. Thank you. 7:50 7 minutes, 50 seconds Thank you very much. Yeah, you open the floor. 7:57 7 minutes, 57 seconds No. Uh I think uh Mr. uh Salim Yao our group CFO he will address on the operational on the financial part so 8:06 8 minutes, 6 seconds over to Mr. Salm Yao to give the overview on the financial performance of the company. 8:10 8 minutes, 10 seconds Thank you Mr. J. Uh good morning everybody. Good morning esteemed investors analysts stakeholders participant joining us today for the KTG 8:17 8 minutes, 17 seconds engineering earning call for the halfear H2 and for the full year FY26. On behalf of the company, I Salim Yahoo, group 8:25 8 minutes, 25 seconds CFO, take immense pleasure to present the financial and operational highlights for H2 and FY26 along with the insight into our strategic direction and growth 8:33 8 minutes, 33 seconds trajectory going forward. Over the past 5 years, the company has scaled its business and continues its growth momentum. During this period, our 8:40 8 minutes, 40 seconds compounded annual growth has been remarkable with 100% CAGGR in the revenue and 136% 8:48 8 minutes, 48 seconds CAGGR in net profit adding consistently to shareholders value. 8:52 8 minutes, 52 seconds Speaking about the financial performance, the second half of FY26 and pre-current financial year has seen another landmark achievement for KP 9:00 9 minutes Green Engineering. The team has once against delivered record-breaking all-time high performance in financial parameters like revenue, profitability, 9:07 9 minutes, 7 seconds EPS and other parameters. Our strong resilient business model supported by focused execution strategy continue to 9:13 9 minutes, 13 seconds drive the consistent growth. For FY26 full year, our total income stood at rupees 1,250 9:21 9 minutes, 21 seconds crores as compared to 702 crores in FY25, registering a growth of 78% yearonear. This is first time that the 9:28 9 minutes, 28 seconds company has crossed four-digit mark in the income from operations. Earning before interest, tax and depreciation increased to rupes 249 cr as compared to 9:36 9 minutes, 36 seconds 115 cr in FY25 reflecting a strong growth of 117%. 9:41 9 minutes, 41 seconds Abit margin also expanded from 16% last year to 20% during the current year. 9:48 9 minutes, 48 seconds Profit after tax to at rupes 136 cr as compared to 73 crores in FY25 registering growth of 85% yi for H2 9:57 9 minutes, 57 seconds FY26. Our consolidated total income stood at 714 cringing an impressive 64% year on uh year-on-year growth compared 10:06 10 minutes, 6 seconds to 436 cr in H2FI25. Our EITA grew at 108% reaching 147 cr while our profit 10:13 10 minutes, 13 seconds after tax surged 68% yearonear to 77 cr backed by a strong operational efficiency and economies of scale that continue to enhance our margins. 10:22 10 minutes, 22 seconds Speaking about the business overview on the operation front our current manufacturing capacity has now reached 4 lak 500 metric ton peranom the company's 10:30 10 minutes, 30 seconds robust order book stands at 1,800 plus for FY26. 10:36 10 minutes, 36 seconds During the year we have been empanled with major PSUs ranging from power transmission, telecommunication, roads, highways, public infrastructure and 10:44 10 minutes, 44 seconds railways. This shows our diversification in the various sectors that we served. 10:49 10 minutes, 49 seconds The company has an steady expansion in domestic market presence with increased activity in a number of states during the same period. So to conclude, I would 10:58 10 minutes, 58 seconds like to express my heartfelt gratitude to our CMD sir Dr. Profer for his guidance and motivation as always and also to all our investors, shareholders, 11:06 11 minutes, 6 seconds employees and partners for their continued trust and confidence in the company and assure to maintain the growth trajectory in the coming years. I 11:14 11 minutes, 14 seconds now request the moderator to open the floor for question and ask. 11:19 11 minutes, 19 seconds Thank you very much sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may enter star 11:27 11 minutes, 27 seconds and one on the touchstone telephones. If you wish to remove yourself from the question queue, you may enter star and two. Participants are requested to 11:36 11 minutes, 36 seconds please use only handsets while asking a question. We will wait for a moment while the question Q assembles. 11:43 11 minutes, 43 seconds The first question is from the line of behav from CFM. Please go ahead. 11:50 11 minutes, 50 seconds Oh, hi. Thanks for the opportunity. So I wanted to understand what is the unexecuted order book as of now like there was a another 500 crores order 11:59 11 minutes, 59 seconds which you received recently. So like it is 1,800 plus 500 right? 12:06 12 minutes, 6 seconds So this is total including this 500 orders also 18800 as okay understood. And uh what is the execution time frame for the same? 12:17 12 minutes, 17 seconds Say this entire FI 20 627 this year we'll be executing the entire order. 12:24 12 minutes, 24 seconds Got it. Got it. So uh can we expect a 100% growth this year compared to last year? 12:31 12 minutes, 31 seconds Yeah, I will not commit on anything but I mean what what we have committed last time we have given more than that. So this year also I hope that we'll be able 12:38 12 minutes, 38 seconds to fulfill your expectation this time also. 12:42 12 minutes, 42 seconds And this is and uh I wanted to understand when is the uh second phase of capex what is the planning for the 12:49 12 minutes, 49 seconds second phase of k capex because as of fi 27 if we consider 50 to 60% growth as well it will be a huge revenue then fi 12:58 12 minutes, 58 seconds 28 I think almost maximum utilization will be there for the current capacity so when is the next phase of capex starting and what is the planning for 13:06 13 minutes, 6 seconds that u frankly speaking we will be continuing the capex during the for which the fruits will be visible in the next year and it takes a little bit depation time. 13:17 13 minutes, 17 seconds So this next phase operational activity will happen in FI27. 13:22 13 minutes, 22 seconds Most of the capex will be a backward integration to uh improve further improve our margins and uh you know availability of materials will help us 13:31 13 minutes, 31 seconds for that. So if you see maybe rolling M or something which will be our tail kind of that's major steps that will be going. 13:39 13 minutes, 39 seconds Okay. Okay. Thank you for answering my questions. 13:42 13 minutes, 42 seconds Yeah, thank you. The next question is from the line of Bankage from Access Capital. Please go ahead. 13:49 13 minutes, 49 seconds Yeah, hi. Thank firstly thanks for the opportunity. Secondly, uh lots of congratulations to the entire team for fantastic results. I think it's great to 13:57 13 minutes, 57 seconds see 100% Kagra for last five years on all four financial key parameters. So big big big big congratulations for that. My my quick questions uh are one 14:06 14 minutes, 6 seconds is uh on uh you mentioned four lakh uh MTPA capacity. So what is the capacity utilization we had in FI26 and what is 14:13 14 minutes, 13 seconds the outlook for FI27? Second I think you answered that recently but I'm just recclarifying you mentioned that 1,800 odd cr order book is likely to get 14:22 14 minutes, 22 seconds completed all in FI27 is is my understanding right? uh and and the the last question is uh uh we achieved a uh 14:31 14 minutes, 31 seconds a better margin of around 20 odd% in FI26. Uh what is the guidance we have for FI27? Thank you. 14:39 14 minutes, 39 seconds Okay, I'll answer your first question with the capacity utilization. So out of the four lakh 500 plus metric tons that the entire 14:47 14 minutes, 47 seconds capacity this year the utilization was 1 lakh 24,500 metric tons. 14:54 14 minutes, 54 seconds Fine. So what was your second question was about and within this what is the guidance we have for FI27 15:02 15 minutes, 2 seconds FI27 M andC we have the capacity in hand so I don't think you know but growth trajectory we have already given that we 15:09 15 minutes, 9 seconds know 40 to 50% year-on-year growth in all the KP companies we have given it our CMD sir has given that vision so we are looking towards that that is the 15:17 15 minutes, 17 seconds minimum that we'll be maximum is no limit I mean if you are able to do uh utilize the capacity we'll be able to do uh the your expectation which is way beyond that for 40 to 50 course. 15:28 15 minutes, 28 seconds Okay, great. Uh my second question was more of a confirmatory one which I believe you answered that 1,800 odd crly 15:35 15 minutes, 35 seconds to get completed all in FI27. Is that right? Yes. Yes. 15:39 15 minutes, 39 seconds Okay. And the last question was about the ITA margins. Uh in FI26 we achieved 20%, so what is the guidance we have for FI27? 15:48 15 minutes, 48 seconds See a margin is somewhere depend upon lot of other factors also you know material prices though we try to hedge 15:56 15 minutes, 56 seconds them we try to have the clauses in our uh you know agreement but this margin we'll try to maintain this margin we'll 16:04 16 minutes, 4 seconds try to maintain in the range of 16 to 20% we'll try we always see to it that whenever we take any uh you know orders or anything we have focus on the margins 16:13 16 minutes, 13 seconds we don't want to compromise on the margins okay thank you and any impact we we have seen from this middle east crisis what whatever we are going at currently. 16:22 16 minutes, 22 seconds Yes. See see the impact on the fuel is there because you know manufacturing requires lot of fuel which is coal which is gas. Yes, there's a galvanizing plant 16:30 16 minutes, 30 seconds and also there is an impact. uh but this year uh you know we can say fortunately we are we are able to pull the thing 16:38 16 minutes, 38 seconds next year also we are trying to see that you know if it is a major disruption in the geopolitical condition then we might but also to uh highlight over here that 16:47 16 minutes, 47 seconds we are powering our galvanizing plant along with LPG we are powering with green hydrogen which is one of its kind so that will also help us because it 16:56 16 minutes, 56 seconds gives more power so we are trying to see that how we can manure manure between the geopolitical uh hurdles and achieve our targets which we have committed. 17:06 17 minutes, 6 seconds Okay. Thank you and congrats again. Yeah. Thank you. 17:09 17 minutes, 9 seconds Thank you. The next question is from the line of Spar Akar from Ekamya Capital. Please go ahead. 17:16 17 minutes, 16 seconds Hi, good morning. Yes sir, please go ahead. 17:21 17 minutes, 21 seconds Yes. Congratulations on the great uh numbers. So I have a list of two three questions you know that I would like to go ahead with. The first one uh is with respect to the inventory days, right? 17:32 17 minutes, 32 seconds uh they've increased sharply from around 96 days to 195 days as per some data reports. So I wanted to understand that 17:40 17 minutes, 40 seconds what exactly drove this increase and how should we think about normalized working capital and inventory levels going ahead. 17:48 17 minutes, 48 seconds If you see uh the total order book that I have is 1,800 and we are getting further more orders. So when we have such a big order book my inventory uh 17:57 17 minutes, 57 seconds you know compared to that order book is not substantial. So we need to have this in hand because of the geopolitical conditions. We need to uh stock up uh 18:06 18 minutes, 6 seconds pile up the inventory so that we don't have impact on the margins. We don't have impact on the availability of the raw material and that's the reason we have stock up inventory this time. 18:14 18 minutes, 14 seconds That's why you have seen the inventory days going a little high. 18:18 18 minutes, 18 seconds Understood. So it's it's like a hedging strategy you can say you know basically back up for Yeah. Got it. Got it. 18:24 18 minutes, 24 seconds It's a hedging strategy towards the pricing and also towards the availability because condition goes. 18:30 18 minutes, 30 seconds Yeah, understood. Now the next question is with regards to cash and cash equivalence. I I saw that they've 18:36 18 minutes, 36 seconds declined significantly from 162 CR to 19 CR. Uh just wanted to understand that there was this cash cash actually 18:44 18 minutes, 44 seconds deployed and uh how can we expect the operating cash flows to improve meaningfully uh because I also saw that the debt increase as well in the current 18:53 18 minutes, 53 seconds year u you know the past one. So just wanted to understand the deploying of cash. 18:58 18 minutes, 58 seconds Yeah. Yeah. If if you see you know uh there is a classification which has happened on the balance sheet. So there are uh other financial assets which have 19:06 19 minutes, 6 seconds uh been added on the uh asset sides and also on the so those are the cash and cash equivalent have been bifurcated into other financial assets uh and 19:14 19 minutes, 14 seconds long-term have been put into the financial asset and that's why it has just gone from up to the fixed asset uh kind of audit as per the India calculation. 19:24 19 minutes, 24 seconds Okay. Okay. Got it. So this is majorly the you know the book calculation the it's a classification 19:32 19 minutes, 32 seconds classification okay uh and and uh the last question from mind is that uh any concrete updates on the company's uh 19:40 19 minutes, 40 seconds defense entry plans uh I I'd heard that you know the company had plans to enter into the defense sector basically 19:46 19 minutes, 46 seconds manufacturing for the defense so any uh you know updates on that we I have been I mean uh I cannot 19:55 19 minutes, 55 seconds disclose all the things but we have been uh you know trying to uh get into this different sectors we are looking at 20:02 20 minutes, 2 seconds various tenders we are looking at various uh regions where we you know so as soon as something comes in we 20:10 20 minutes, 10 seconds discloses on the BSE but at present I mean we are at a discussion stages at various uh you know in various vendors 20:17 20 minutes, 17 seconds and various uh orders understood understood and and you just mentioned something about green hydrogen powering the galvanization plant uh uh 20:26 20 minutes, 26 seconds any uh I uh you know I just wanted an idea how much does it power right now and what's the stage uh you know what's the scale of expansion for green 20:33 20 minutes, 33 seconds hydrogen powering the plant as as per the regulations we can blend 20 to 25% 20:40 20 minutes, 40 seconds green hydrogen into the LPG so we are following that uh rules and what happens is that it reduces the cost to a small 20:47 20 minutes, 47 seconds extent only but it is a uniqueness that you know that give us you know that utilization of green hydrogen it you know it some extent it helps me on the 20:54 20 minutes, 54 seconds ESG compliancees also that I'm utilizing green hydrogen. So and it also uh you know gives me a you know a little bit uh 21:02 21 minutes, 2 seconds you know upper hand compared to all the compet because this is one of its kind not no other company has utilized you know green hydrogen for powering the 21:09 21 minutes, 9 seconds galvanizing plant and we are doing and as you are aware that you know green hydrogen has more power compared to other gases and galvanizing plant requires lot of heat for so it will help 21:18 21 minutes, 18 seconds me getting the work done faster that is also a part. Understood. Understood. 21:23 21 minutes, 23 seconds Thank you so much for your time and uh answering the question. Thank you. 21:27 21 minutes, 27 seconds Thank you. Our next question is from the line of Dared Sha from Nirvana Capital. Please go ahead. 21:35 21 minutes, 35 seconds Uh hi sir, thanks for the opportunity. 21:37 21 minutes, 37 seconds Uh sir, you said around 1,800 cr is the uh order book that we have. Uh can you also share what kind of orders do we 21:45 21 minutes, 45 seconds expect in FI27 and what's our bidding pipeline looking like currently? 21:51 21 minutes, 51 seconds Yeah, as I have told in my opening remarks also know we are into various segments. We are into uh telecommunication, we are into power and transmission, we are into highways, 21:59 21 minutes, 59 seconds public infrastructure and railways. So uh you know the company uh what we say the profile or the product profile has 22:06 22 minutes, 6 seconds been diversified substantially. So we bid for all kind of tenders wherever it is available. You need to understand that you know our company has a uniqueness that we has Asia's biggest 22:15 22 minutes, 15 seconds galvanizing plant. we have uh biggest facility that we can uh execute all bigger uh heavy engineering kind of work. So that's the reason you know if 22:23 22 minutes, 23 seconds you see we might get orders from all the bigger client like we also have you know order from Chennai Metro that we have built the uh you know metro bridge also. 22:33 22 minutes, 33 seconds So be assured that you know we'll have some different and it is a very plus point of the company that if any sector has any problem we can ship to other 22:41 22 minutes, 41 seconds sectors and one of the plus point of the company at present what we have in 8 1,800 their biggest order is the BSNL you know 22:50 22 minutes, 50 seconds telecommunication towers which is all across India they're supplying so they might it might come from road it might come from highways it might come from 22:58 22 minutes, 58 seconds public infrastructure it might come from uh renewable energy power and transmission companies also There any ballpark figure you can say I mean how 23:05 23 minutes, 5 seconds much we have bidded or what the bidding pipeline looking like? 23:10 23 minutes, 10 seconds See the bidding pipeline might go above 3,000 crores also. Now it is only depending upon the success ratio that we might see or the pricing at which the 23:18 23 minutes, 18 seconds bidding closes because we don't want to compromise on our margins also. So we are comfortable at present we have the entire also and we can uh push the other orders also not an issue. 23:31 23 minutes, 31 seconds Got it. Uh sir on the new products line know you mentioned probably uh venturing 23:38 23 minutes, 38 seconds into rolling mill and cables and wires and other products. So if you can throw some more light on what uh new products 23:46 23 minutes, 46 seconds uh we are looking at and secondly on that front uh what would be the product mix currently we are more of solar 23:55 23 minutes, 55 seconds vertical heavy compared to other products. what that ratio would uh look like. 24:02 24 minutes, 2 seconds Hey, speaking about the new product, let me persuade that rolling mill will be a kind of a backward integration. It will also be a a little bit raw material for 24:10 24 minutes, 10 seconds my other products. Okay, but we are moving into lot of other products. If you have seen our uh quarterly presentations or the half yearly 24:17 24 minutes, 17 seconds presentation, we are getting into container manufacturing. We are getting into elementions, onshore tubular towers, fasteners and 24:25 24 minutes, 25 seconds offshore tubular towers and cables and conductors. So we are getting into all these uh different products also at the same time 24:34 24 minutes, 34 seconds and the component or the proportion you can they depend upon uh sorry let me complete uh the proportion of uh you know the ratio of different product or mix that is depend upon the order book. 24:45 24 minutes, 45 seconds So might be you know this year if I am doing 800 crores of uh VSSNL telecommunition tower. So my telecommission to component will be 24:52 24 minutes, 52 seconds higher in this year next year I mean depending upon the way we get the order book because we have diversified into different products. So the mix is uh 25:00 25 minutes something which we can tell once we get the orders in hand and the group company exposure would be what much how much uh going ahead this 25:08 25 minutes, 8 seconds year this year out of 1,800 uh crores 20 to 25% is only group company rest is 25:16 25 minutes, 16 seconds outside going ahead this ratio would be relatively lower compared to what we had 25:23 25 minutes, 23 seconds this year and earlier years lower only but sometime What happens the group company requirement are urgent. So 25:31 25 minutes, 31 seconds at that time we have to uh change this mix for the uh time period but believe me whenever we change this thing there 25:39 25 minutes, 39 seconds is an enough order outside orders also but to you know accommodate the group companies requirement as they have projects or coods which are lined up for 25:47 25 minutes, 47 seconds that purpose we might keep on changing the mix. 25:58 25 minutes, 58 seconds Hello. 26:00 26 minutes Hello. That's I think so my last question. Yeah. Yeah. Yeah. 26:03 26 minutes, 3 seconds Yeah. My last question is on the royalty front. So are we continuing to charge 2% royalty? Uh 26:10 26 minutes, 10 seconds yes. I mean see if you look at the sebi has given guidance for 5% of royalty as per sebi guidance but we are only giving 26:17 26 minutes, 17 seconds 2% and believe me there is no uh you know intra company which is reduced from this royalty portion top line so any 26:26 26 minutes, 26 seconds intra company everything has reduced from this and the top line is only taken which is pure uh you know top line which has been uh done by the company that is 26:33 26 minutes, 33 seconds taken into consideration and which is only 2% of the top line of all the companies. 26:39 26 minutes, 39 seconds So understand your I let me explain also that that this royalty is not if you see lot of lot of expenses 26:48 26 minutes, 48 seconds branding expenses for the KP group brand are directly done by Dr. Farup Patel just like if you have seen Delhi capital and all these expenses are directly 26:57 26 minutes, 57 seconds built to the uh promoter. So promoter does these expenses whatever payment he gets those expenses and every everything for the creating the brand for creating 27:06 27 minutes, 6 seconds value into the brand is being done directly by the promoter and that's the reason if you see it is justifiable that the royalty goes towards so that he can 27:12 27 minutes, 12 seconds uh you know further build the brand I got your point uh just from an investor point of view know uh that's 27:21 27 minutes, 21 seconds one of the major kind of uh know uh drawback if you look at know I mean you can do all the brandings internally 27:29 27 minutes, 29 seconds through the companies. No, I mean that can be obviously worked out rather than know taking I mean royalties from all the companies. I mean on 2% that's okay 27:38 27 minutes, 38 seconds but on absolute number that would be like tomorrow we do 3,000 crores. 27:42 27 minutes, 42 seconds Yeah. But if you see that there are there are lot of other companies big listed companies which have taken loyalty there some are taking 5% are 27:51 27 minutes, 51 seconds taking. So anything that is built over a period of time you need to have you know lot of uh expenses that needs to be 27:57 27 minutes, 57 seconds catered to which you know if I sorry sir but but most of them are B2C 28:05 28 minutes, 5 seconds companies what you're talking about yeah but if how can how can you build see the brand is in the name of Dr. Far he's the owner of the brand. He has 28:12 28 minutes, 12 seconds created the brand. I cannot uh do the expenses for that brand in the companies. No, how it will look on my book that I'm building the brand which 28:19 28 minutes, 19 seconds is owned by so it has to go through that route only. 28:25 28 minutes, 25 seconds Got it. No point. This was just one point I wanted to make. Uh obviously it's good you asked. It helps me to give clarification to all the stakeholders 28:34 28 minutes, 34 seconds that any excesses that is done loyalty it is towards the building the brand further strong you know strengthening the brand and for that purpose this 28:42 28 minutes, 42 seconds royalty is one of the factor and since it is owned by Dr. of Pat it is uh you know the expenses has to go through his books only. It cannot go through the books of the company. 28:53 28 minutes, 53 seconds Sure sir thank you so much for the clarification. 28:56 28 minutes, 56 seconds Thank you. The next question is from the line of Suraj from Puna Varta Capital Ventures. Please go ahead. 29:06 29 minutes, 6 seconds Good morning. Congratulation for the excellent result. 29:10 29 minutes, 10 seconds Uh thank you sir. Uh I I want to ask three question now. Uh I feel we are 29:19 29 minutes, 19 seconds going into table and conduct it's for 29:26 29 minutes, 26 seconds only or we are going from other hello I couldn't uh understand your 29:33 29 minutes, 33 seconds question because of uh operator can you mute uh others so that can uh 29:42 29 minutes, 42 seconds hello yeah can you repeat the question yeah yeah now uh we going into cable and conductor sector. Okay. What drives you 29:49 29 minutes, 49 seconds to go into that sector and uh what's our uh revenue generation target from that sector? Okay. And uh we are going into 29:58 29 minutes, 58 seconds cable and conductor just to cater the KP group only or uh we are expecting some revenue from other client also. 30:05 30 minutes, 5 seconds See first of all any business that I start it is not with the mindset that I want to cater to. See KP Green Engineering is a standalone company. 30:13 30 minutes, 13 seconds There is no uh crossholding. It is owned by the promoter. It is a separate company. In fact, it was the first company which Dr. Faruk sir started his 30:22 30 minutes, 22 seconds uh you know entrepreneurship. So anything that is we start as a product it is looked at the broader picture where the how the big the industry is. 30:30 30 minutes, 30 seconds We do a study that what are the requirement industry and then we look at our capability that are we capable of executing this and if it is related to any of the product that we do. So for 30:39 30 minutes, 39 seconds example cable conductors it is related to renewable energy it is rel related to uh power and transmission companies it 30:46 30 minutes, 46 seconds related to lot of factors. So from that point of view it is not that you know we keep in mind that group company needs it and we are manufacturing. So that is 30:53 30 minutes, 53 seconds clear. Secondly cable and conductor. If you look at as I told you these are these are you know the same uh industry is require is requiring like power and 31:02 31 minutes, 2 seconds transmission company requires cable and conductor. So I want to get into similar kind of product which are there and it has the same I mean if you look at 31:09 31 minutes, 9 seconds cables conductors somewhere you know it's a manufacturing capability what they require is what we have at present also. So to increase our product line 31:17 31 minutes, 17 seconds helps us to diversify it helps us to uh you know mitigate the risk or that if any industry goes down how will I survive. So all those factors are taken 31:25 31 minutes, 25 seconds into consideration a deep study is done and only after that we get into new products. 31:30 31 minutes, 30 seconds All right. So the this this cable and conductor expansion is not only for our backward integration but we are expecting some revenue out of it. 31:39 31 minutes, 39 seconds Yes. Yes. Yes. It will be first idea is to get a revenue out of it and also if it is required by the group companies will supply. 31:46 31 minutes, 46 seconds Okay. Okay. Okay. And now second question is that now KPGL and overall KP group are u expanding aggressively. So 31:53 31 minutes, 53 seconds what's our revenue target for for KPJL in 2030? You can say 2030 uh our honorable CMB sir has 32:02 32 minutes, 2 seconds already given 40 to 50% growth year on year till 2030 but this year we have grown substantially okay almost 100% we have 32:10 32 minutes, 10 seconds grown I mean close to that so year on year we will grow with a minimum target of 40 to 50% till 2030 if we are capable 32:19 32 minutes, 19 seconds we'll do more also this all right all right and what what's the order booking pipeline for gel right now 32:26 32 minutes, 26 seconds apart from this 180 current order book 18 current order book that we have no and other things are in 32:34 32 minutes, 34 seconds pipeline where the orders are not confirmed but as I told you there's more than 2,000 3,000 cr of pipeline where we are at discussion stages various discussions 32:42 32 minutes, 42 seconds okay okay thank you thank you sir thank you thank you the next question is from the 32:51 32 minutes, 51 seconds line of anikit panda and individual investor please go ahead hello sir Uh good morning. My question 32:58 32 minutes, 58 seconds is regarding like u u KP real the top line which was reported the H1 was 33:06 33 minutes, 6 seconds comparatively better year on year than the H2. So was there a problem like 33:14 33 minutes, 14 seconds utilization problem or the war impact because of which it happened and like uh what is the company's plan uh to you 33:24 33 minutes, 24 seconds know uh future plan to expand the utilization like is there uh any plans for that 33:32 33 minutes, 32 seconds see there has been impact as I told earlier in my answer that you know there has been uh fuel impact which we have to 33:38 33 minutes, 38 seconds uh you know cater for this uh but if you look at you know the uh overall uh growth for H2 is also substantial it's 33:47 33 minutes, 47 seconds not that it is but sometime what happen you know the order book that we are executing some are at various stages and we are able to build only in the second quarter sometime you know even the 33:56 33 minutes, 56 seconds companies say that you know because of uh you know uh uh trying to maintain their cash flow for GC payments and everything so they say that you know 34:04 34 minutes, 4 seconds bill me in the second half or bill me in the first half or during the September or something. So that kind of SM but uh from execution point of view there was a 34:12 34 minutes, 12 seconds little bit uh you know hurdle because of the uh fuel or you can say the gas for the galvanizing and all those that we had faced a little bit. 34:22 34 minutes, 22 seconds Okay sir and like the future plan to expand the capacity is there any plan and like will the company diluting the equity or like taking the depth because 34:31 34 minutes, 31 seconds the depth also has you know the common cost has increased very much this year like 400% as per I have done the 34:39 34 minutes, 39 seconds research okay see first of all the future plan as I already explained we might get into little bit backward integration like rolling wheels or something which is 34:47 34 minutes, 47 seconds still I mean at a discussion stage in internally as far as the debt is concerned if you see long-term debt has not increased. It's only short-term because the top line has increased 34:56 34 minutes, 56 seconds working after requirements have increased and to uh you know to stock up because of the cardopoly condition we have taken limits so that we can stock 35:03 35 minutes, 3 seconds up the stock that was the reason because of which that you know the cost to uh maintain that you know profitability and everything we have stock up and we have 35:11 35 minutes, 11 seconds taken working capital but as far as the expansion is concerned I have I still I mean if you look at long-term debt to equity is way uh low compared to any 35:19 35 minutes, 19 seconds other competitors in banks And about the plan sir uh would you like 35:26 35 minutes, 26 seconds to enlighten us plan about the expansion as I told you know we might get into uh rolling wheels 35:34 35 minutes, 34 seconds or something which is a backward integration where it will be a ramal for the existing products and everything. So we might get into that but still it is at a nent stage. 35:42 35 minutes, 42 seconds Okay. Okay. Thank you so much sir. Thank you. Thank you. 35:46 35 minutes, 46 seconds Thank you. Participants with questions may please enter star and one on your touchstone telephones. Our next question is from the line of Shio from Tech Panda Advisor. Please go ahead. 35:58 35 minutes, 58 seconds Sir, can you hear me? Yes, please go ahead. 36:01 36 minutes, 1 second Yeah. Har Krishna to all of you sir. So my first question is that we heard that we are sponsoring the cricket team. Uh 36:08 36 minutes, 8 seconds who is spending that money? Is Mr. is the promoter Mr. Patil is spending that money? 36:15 36 minutes, 15 seconds H yeah so we are not sponsoring the team we are we have taken an associate sponsorship by which you know uh our 36:22 36 minutes, 22 seconds name will be on their helmets and everything that is clearly mentioned and uh this is directly because it is a brand which is getting sponsored that KP group is being it's not any one company 36:31 36 minutes, 31 seconds so the brand sponsorship and everything is directly uh you know expensed out by the promoter himself because he is the owner of the brand he is the owner of 36:39 36 minutes, 39 seconds the KP group brand sure so Mr. Patel is spending that money right? Yes. 36:46 36 minutes, 46 seconds Okay sir. Other question is sir I know that we are a growing company but any plan to make this company as a debtfree company and by when? 36:58 36 minutes, 58 seconds Uh you need to understand that know making it a debtree we are at an expansion we are at a growing phase. 37:05 37 minutes, 5 seconds Okay. Now as we know that you know debt is uh you know uh very easily available 37:12 37 minutes, 12 seconds and it is compared to less costlier compared to equity. So for becoming debtree I need to dilute and also at present we are not because we are growing substantially we have good 37:21 37 minutes, 21 seconds credibility in the market we get that easily. So I would not at present do anything that is you know uh if if there 37:28 37 minutes, 28 seconds are u uh plans of getting into that we'll let you know as and when we decide on at present there is no such plan of becoming a debtree we are very growing 37:36 37 minutes, 36 seconds very fast and we need uh capital so that we can uh expand ourself uh take more market share in these kind of a product 37:43 37 minutes, 43 seconds that we are okay sir good luck sir thank you very much thank you 37:50 37 minutes, 50 seconds thank you the next question is from the line of Krishna yoga from family fund please go ahead 38:00 38 minutes yes yes please go ahead yeah sir first of all congrats for a great set of numbers sir just to give more clarification on the uh the bidding 38:10 38 minutes, 10 seconds pipeline you said 3,000 is a pipeline so what is our success winning ratio in that 38:17 38 minutes, 17 seconds you are saying the pipeline that tends to as I told you know success ratio depends upon lot of factors but at present we have around uh 60 to 70% of success ratio in our uh tender business. 38:29 38 minutes, 29 seconds Okay. Can you just give me a uh look at uh percentage terms in which sector we have more uh is it a PV or more solar? 38:41 38 minutes, 41 seconds Different sectors have different uh you know requirements like at present we are more inclined toward power and transmission. Okay. Then if you see 38:50 38 minutes, 50 seconds second in line will be the telecommunication this year and then comes commun roads and highways and everything. 38:57 38 minutes, 57 seconds Okay. Just to understand because of the margin structure. So sir also uh in the X2 you have given a very good uh the 39:04 39 minutes, 4 seconds margin. So are we going to I know you mentioned that 16 to 20. So it's also depend upon the product mix. So the 39:12 39 minutes, 12 seconds reason for asking because some products are having higher margin and some are having the lower margin. Right? So in this current order book because we are 39:20 39 minutes, 20 seconds have more for the BSNL. So can we expect a good amount of margin in the FI27 since we have a good margin lucrative order book. 39:30 39 minutes, 30 seconds Yeah as I told you know the margin depends upon the product pitch and as you are right that you know that majority of the order with this year getting executed is the BSNL which is 39:38 39 minutes, 38 seconds the biggest order. We try to maintain our margin. We try to maintain because if you see our margin is one of the healthiest margin in the industry and 39:45 39 minutes, 45 seconds because of various customization because of various uh economies of scale that we achieve because of various product diversification that we have done. So 39:52 39 minutes, 52 seconds all this factor help me to maintain the margin as far as as I told you the range we will try to maintain the range of 16 to 20% what we have been done historically also. 40:02 40 minutes, 2 seconds Okay. Okay. Got it sir. Yeah sir. Thank you sir. 40:06 40 minutes, 6 seconds Thank you. The next question is from the line of Shirram Sha from KPK Engineering. Please go ahead. 40:16 40 minutes, 16 seconds Mr. Sh, your line is unmuted. Please ask your question. 40:23 40 minutes, 23 seconds As there is no response from this line, we'll move on to the next question. It's a follow-up from the line of Pankage from Access Capital. Please go ahead. 40:30 40 minutes, 30 seconds Yeah. Hi. Uh um uh I have just two follow-up questions. one was on the deck which largely you have answered. Uh what I understood is that you have taken 40:39 40 minutes, 39 seconds working capital limits and uh I assume these are all from banks and not from venture debt kind of setups. So that is question number one. 40:47 40 minutes, 47 seconds Take any yes I I'll answer one by one. Uh so we don't take any high cost debt. 40:52 40 minutes, 52 seconds My average cost of borrowing will be somewhere into 8.5 to 9%. So I don't take any high cost debt. I don't take from any venture capitalist. We have a very good credibility. We have a rating 41:01 41 minutes, 1 second of a category. So all the banks are very keen to fund us to fund our you know working capital. Yeah. Second question. Perfect. Yeah. Perfect. Yeah. Thank you. 41:10 41 minutes, 10 seconds And second you just clarified to somebody that cash equivalence you have done some kind of reclassification. Can you please explain that and you mentioned that as per India we had you 41:18 41 minutes, 18 seconds had to do that. So can you just put little more color on that? 41:22 41 minutes, 22 seconds So cash equivalent you know earlier we used to classify all the MDs and everything into uh cash and cash flow that is the current assets. Okay. Now 41:30 41 minutes, 30 seconds what the classification has been done is that any FDS which are more than one year it will not be part of the current asset. It goes into other financial 41:37 41 minutes, 37 seconds asset in the fixed asset part. So that's why the bifurcation that you are seeing. 41:41 41 minutes, 41 seconds I hope that understands right because it's a long-term FD. So it has to be bifurcated into other fixed assets. 41:47 41 minutes, 47 seconds Okay. If I have to look into my uh equivalent of FI25 number so what would that number would be for FI26? 41:55 41 minutes, 55 seconds See if you look at other financial assets on in my balance sheet which is around uh 42:01 42 minutes, 1 second 59 right just I'll just so the other financial asset which is at 42:11 42 minutes, 11 seconds around 59 uh crores which which was earlier also the same application has been done in FY 25 it is around 52 42:18 42 minutes, 18 seconds crores so same amount of fees were there earlier also the we have reassessed the classification in the previous year in this final potential also. 42:27 42 minutes, 27 seconds Okay. So effectively the numbers which are coming as part of the out outcome from cash flow is the real number right. So, so it's not a classification issue. 42:36 42 minutes, 36 seconds Let that we actually generated 9 odd crores in this financial year right cash flow just a second cash flow I 42:44 42 minutes, 44 seconds think we have anything more than that cash flow from operations if you cash yes it's 155 from operations is 15 42:51 42 minutes, 51 seconds yeah 15 substantial not it not have impact in the cash flow because anyway it it isn't part of an operation which is see balance sheet has a 42:59 42 minutes, 59 seconds classification of more than one year and everything cash flow doesn't have that classification okay got it yeah thank you or thanks for thanks for clar 43:07 43 minutes, 7 seconds Yeah, thank you. The next question is from the line of Vine from Niche Capital Management. Please go ahead. 43:15 43 minutes, 15 seconds Yeah, thank for the opportunity. Uh, can you hear me, sir? Yes, sir. Yes. Yes. Yeah. Okay. Yeah. Yeah. 43:23 43 minutes, 23 seconds Thank you. So, this other there's other current liabilities in the balance sheet which is a big part of a balance sheet 43:30 43 minutes, 30 seconds as source of funding. Can you please comment on the broad com composition of the same and also like your working cap capital days like can you please clarify 43:40 43 minutes, 40 seconds on the normalized working capitals uh in terms of inventory days data days and credit is going away. Thank you. 43:48 43 minutes, 48 seconds Okay. So other current liabilities if you see it's mostly uh you know discounting facilities on trades and everything which is included. It is a kind of a working capital uh extended 43:57 43 minutes, 57 seconds arm of working capital that we take and uh you know whereby you know my uh traders and everything they go get their bills discounted for a period and we pay 44:05 44 minutes, 5 seconds that. So the trades platform exchange and everything are part of this. The second question was on the uh working capital sir 44:12 44 minutes, 12 seconds working capital working capital is only the there is improvement in the 44:20 44 minutes, 20 seconds dattors working capital days it's only the inventory as I told you the inventory has been we have shocked up inventory because of the geopolitical 44:27 44 minutes, 27 seconds conditions so we have utilized all our uh you know working capital limit so that we can stock up inventory so that my operation should not hamper so that is and my profitability should not 44:36 44 minutes, 36 seconds hamper so that's the reason if you see the inventory days has increased substantially. The others have improved compared to previous years. 44:43 44 minutes, 43 seconds Uh no that's okay. So and the cash cash cycle is around 150 days which is you know as for the industry you know you have two 44:51 44 minutes, 51 seconds cycles two to three uh 2.5 cycles in okay 150 days. Okay thank you that 44:59 44 minutes, 59 seconds thank you the next question is from the line of behya from CFM. Please go ahead. 45:08 45 minutes, 8 seconds Thanks for the opportunity again. So I wanted to understand certain things like what is that one thing that is unique in 45:14 45 minutes, 14 seconds KPGL that is not in other manufacturing companies like what is the competitive advantage we have over this 45:22 45 minutes, 22 seconds so the USB of my company KPG engineering as I told you you know it's the product diversification is the different segment 45:29 45 minutes, 29 seconds that we cater to I have different product different segments this gives me an upper hand compared to so if you look at other companies either they are into 45:36 45 minutes, 36 seconds uh telecommunication towers or they are into evacuation towers they are pure player of you know you can say that they 45:43 45 minutes, 43 seconds they sell the you know kind of they go on tonnage and everything we don't go we do customization we do uh product diversification and that is the plus 45:52 45 minutes, 52 seconds point and that is a plus point because of which we have this strong margins that we are uh you know we have uh in this financial year also 46:00 46 minutes okay understood and sir is there any plans to like venture into more of niche power equipment segment like there's 46:08 46 minutes, 8 seconds been a huge demand and the uh because of data centers and all of niche power equipment. So what are the plans going forward for that? 46:17 46 minutes, 17 seconds Yeah, as I as I told you in the future segment we are also into uh containers. 46:21 46 minutes, 21 seconds So it will battery containers which are required for the data centers. So we have kept our eye on these kind of segments which are also coming up and 46:29 46 minutes, 29 seconds we'll surely look that you know any kind of uh product uh requirement over there we'll uh get into that and we'll supply those kind of products also. So we have that in place. 46:39 46 minutes, 39 seconds Got it. And uh one more thing from my end the 3,000 crores pipeline. So when is it expected to close like uh when can we expect orders from that? 46:50 46 minutes, 50 seconds These are Yeah. Yeah. These are tenders where we areing all across different segments and sectors. So this depends 46:57 46 minutes, 57 seconds upon by when you know the whether it's government institution whether individual uh private companies who will close the tenders. But uh year on year 47:06 47 minutes, 6 seconds if you see that you know whenever we come for this year we have 1,800 we'll throughout the year we'll get an order book which will be part for this year and then we'll be part again for the 47:14 47 minutes, 14 seconds next year. So we build up our order in hand uh through these pipelines. So most of them will come this year which will be executed partly this year and partly next year. 47:24 47 minutes, 24 seconds Got it. And so one thing is there that the debt has substantially increased compared to revenue like the revenue has increased around 80% the debt has 47:33 47 minutes, 33 seconds increased forex the interest. So I assume that is this is due to the inventory build up. I understand that as well. But uh can we expect this to like 47:42 47 minutes, 42 seconds go down going forward or like is this the new normal compared to the revenue you know because of the geopolic 47:49 47 minutes, 49 seconds condition inventory has been piled up once we have this condition smoothen automatically you know we will not start piling up because uh you know for me 47:57 47 minutes, 57 seconds biggest concern is the uncertaintity. It is not because we have credibility we get debt in the market in absolute term it will be very less compared to the 48:04 48 minutes, 4 seconds topline growth but I can understand in percentage term it is bigger but that is uh required because this is the need of the r that I need to stock up the 48:12 48 minutes, 12 seconds inventory because I don't want any disruption in my execution or the uh you know manufacturing facility understood so we can expect it to uh go 48:22 48 minutes, 22 seconds below compared to revenue like yeah going forward proportionately the your stock will automatically As the 48:29 48 minutes, 29 seconds condition smoothens the geopolitical issues get resolved, we'll surely uh you know get keep lower stock compared to what percentage at present we are at. 48:39 48 minutes, 39 seconds Understood. And the other income also like in H2 the income has reduced from 4 crores to zero. So like what can we 48:47 48 minutes, 47 seconds expect in the next financial year of project like December? 48:51 48 minutes, 51 seconds See last year if you see we had an IPO fund and because of which we had every interest of those IPO that was utilized 48:59 48 minutes, 59 seconds for the capex purpose and that's why you see the every interest has reduced what it was earlier. 49:05 49 minutes, 5 seconds Okay. Okay. Thanks for answering my question. All the best from future. Thank you. 49:11 49 minutes, 11 seconds The next question is from the line of Daran Ma and individual investor. Please go ahead. 49:17 49 minutes, 17 seconds Yes sir. 49:46 49 minutes, 46 seconds Okay. 49:51 49 minutes, 51 seconds I think Okay, thank you. 50:01 50 minutes, 1 second Thank you. The next question is from the line of Harsha Jen, individual investor. Please go ahead. 50:07 50 minutes, 7 seconds Yeah. Hi, first of all, congratulations for a good set of numbers. I I just want to know that uh since you mentioned that you have lot of inventory piled up. So, 50:15 50 minutes, 15 seconds how are the things looking in the first half of the current financial year like for two months April and May? Is is this 50:23 50 minutes, 23 seconds inventory uh moving out or is it still stuck? 50:28 50 minutes, 28 seconds Hey, inventory is not something which I can assure you it is not a inventory which is kind of off the shelf. It might get stale or something. So it is a steel 50:37 50 minutes, 37 seconds and everything we might utilize it this quarter next water as I told you my major concern is the fuel fuel that is required to power the galvanizing plant 50:45 50 minutes, 45 seconds that required for the machinery and everything that is more important because of the geopolitical condition as we are aware that fuel is a big concern. 50:51 50 minutes, 51 seconds So from that point of view we will try to maintain uh good execution but also I mean it depends upon the conditions around the factors which are uh you know 50:59 50 minutes, 59 seconds impacting the manufacturing facility that are to be seen at the same time. 51:03 51 minutes, 3 seconds Okay. Because also you know the industry which we are going to supply or the customers they might also say that please hold on to my order for some time 51:11 51 minutes, 11 seconds or something because there might be some discussion at least end also. So all these factors have to be taken into consideration. Okay. Thank you. Thank you. 51:20 51 minutes, 20 seconds Thank you. The next question is from the line of Manaksha. Please go ahead. 51:27 51 minutes, 27 seconds Hello. Yeah. Hi. Uh actually our order book is uh of rupees uh 1,800 crores as 51:34 51 minutes, 34 seconds shown in PPT uploaded by you. Uh as on 31st March 2026 and uh the order we 51:42 51 minutes, 42 seconds received as on 1st May 2026 is of 500 crores. So as per me the total order 51:49 51 minutes, 49 seconds book is of 2,300 crores as on today. And uh you just answered one guy that uh our 51:56 51 minutes, 56 seconds order book of 1,800 crores includes these 500 crores. Then can you please clarify on this? There there is a there 52:04 52 minutes, 4 seconds are various stages of order like you know when we win the order we might calculate that order but after that there is an LOA which we receive after 52:11 52 minutes, 11 seconds some time letter of award and everything. So sometimes you win the tender sometime you get the LO later on. 52:16 52 minutes, 16 seconds So till we get don't get the L we don't mention the BC that we have received the order but in our PPD we take that these are the orders which have already won 52:24 52 minutes, 24 seconds it's only the process that has to be completed from that point of view there will be a little bit uh you know what we say differences between what you are 52:32 52 minutes, 32 seconds thinking and what it is uh being shown in the PPT okay okay yeah got good thank you 52:40 52 minutes, 40 seconds thank you next question is from the line of spar akar from Ekamia Capital. Please go ahead. 52:49 52 minutes, 49 seconds Yes. Uh so my followup question is that how much of the 1,800 cr order book is 52:56 52 minutes, 56 seconds internal versus external? Like internal as in the KP group uh orders. 53:02 53 minutes, 2 seconds Yeah. So 22 to 23% is internal and rest all is external. Majority is the BSNL uh you know transmission BSNL what we say telecommunication towers. Understood. 53:14 53 minutes, 14 seconds Understood. And uh right right now our capacity utilization is around uh what 30% or something uh as you mentioned you 53:23 53 minutes, 23 seconds know the capac Yes. 30 30 to 34% is my present capacity. 53:28 53 minutes, 28 seconds Understood. So uh I mean given the large order book we have can I get an idea approximate idea of what the capacity utilization is going to look like in FI27? 53:38 53 minutes, 38 seconds If I look at know uh at this order book. 53:43 53 minutes, 43 seconds Okay, we might go up to 40 55 60% uh this year with the growth. 53:50 53 minutes, 50 seconds Okay, understood. Take uh just a follow-up question, a a curious question. I mean 53:57 53 minutes, 57 seconds uh in such businesses, why do we have uh such large uh you know let's say capeex uh when our utilization is low already? 54:07 54 minutes, 7 seconds I mean we can do the capeex and increase the capacity utilization a little later on as well you know when we see the demand being forecasted in such a 54:16 54 minutes, 16 seconds situation u you have to understand that yeah I that's the question right why we did 54:23 54 minutes, 23 seconds such a big okay yes beforehand I mean definitely we going to grow later but yeah I understand 54:31 54 minutes, 31 seconds yeah if you if you if you have if you go little back we did kx from bought from our IPO. Mhm. 54:40 54 minutes, 40 seconds It was biggest IPO in the history of entire BCME. Till that date it is also 190 crores. We did IPO from the point of 54:47 54 minutes, 47 seconds view that we have to go I cannot come after two years that you know again I will come up with some funds or something. I will come up with an IPO or something. So when we do equity infusion 54:56 54 minutes, 56 seconds or we do capex through equity uh fundraising at that time you have to take a long-term vision because even the IP or the investors will not see that 55:04 55 minutes, 4 seconds why you are taking for one or two years after that what you'll do. So you have to keep in mind that when we at the horizon of four to five years after that you know again we look at it but at the 55:13 55 minutes, 13 seconds same time small small capex also if it is required some diversification we do that but whenever an equity inclusion is done and it is done with a long-term vision 55:21 55 minutes, 21 seconds it's not with a short-term vision so that is our understood understood thank you so much thank you the next question is from the 55:30 55 minutes, 30 seconds line of web sura from CFM please go ahead hi thanks for the opportunity again so you were talking about something related 55:37 55 minutes, 37 seconds to data centers. So like can you please elaborate like what is the vision for KP green in terms of data centers and all 55:44 55 minutes, 44 seconds see data center is uh you know I can say it's a talk of the town data center requires power and everything green power is with preferential by data 55:53 55 minutes, 53 seconds centers and for that our group companies KPI green energy limited is also in discussion KP energy is also in discussion now whatever the material 56:02 56 minutes, 2 seconds requirement for data centers we are getting into that also for KP green engineering just like you know containers for battery uh cells and 56:09 56 minutes, 9 seconds everything. So all those uh you know if if we get into any particular segment we want to see that we give uh end to end solution for the segment anything that 56:17 56 minutes, 17 seconds is required. Just like if I give an example renewable energy when we got into renegi we provide mm structures we provide uh you know evacuation towers we 56:25 56 minutes, 25 seconds provide uh we build substations so all this end to end solution is provided so that's why we whenever we look at a segment we look at that I can give the 56:34 56 minutes, 34 seconds maximum product for the segment and then only I can add value and I can demand a better margin okay okay fair enough and so can you 56:42 56 minutes, 42 seconds please start reporting quarterly numbers from uh this financial year it will be very helpful for us to understand about the business is 56:51 56 minutes, 51 seconds see as per se guidelines or BSC guidelines we will uh have to do uh half yearly but I mean we have uh you know 57:00 57 minutes thought but I think shortly we'll go into main board so I think we'll start getting that also not an issue but half yearly is something which is compulsory 57:07 57 minutes, 7 seconds we do that okay okay and so one more thing is there you mentioned that the utilization might range from 45 to 60% this year so next I 57:16 57 minutes, 16 seconds assume that that would be around 60 to 80%. So we will require next leg of big cage like previously done from 4x 57:24 57 minutes, 24 seconds capacity like from one lakh metric to four. 57:29 57 minutes, 29 seconds Yeah. See utilization this time was around 30 odd person. Next year for this financial year we will have approximately 50 to 60%. then next one 57:38 57 minutes, 38 seconds more post that you know and in the meantime we are adding small small capacity wherever we see there some type of business will also add to the uh 57:46 57 minutes, 46 seconds capacity so nevertheless I mean as we go forward uh we will uh take into consideration what is the additional business that might come and accordingly 57:54 57 minutes, 54 seconds we'll uh you know adjust our uh what capacity that we can okay okay thanks thanks for answering 58:02 58 minutes, 2 seconds the questions thank you the next question is from the line of pratik chri from Samartha Capital. Please go ahead. 58:11 58 minutes, 11 seconds Uh sir, I I sorry for joining the call late but I just have one question. Um 58:18 58 minutes, 18 seconds we've already flopped 20% IIDA margins for FI26. 58:24 58 minutes, 24 seconds Uh do you think this is uh this will be a sustainable number going ahead as well despite all the cost pressure increases 58:32 58 minutes, 32 seconds that we might be seeing uh due to war and other reasons? 58:37 58 minutes, 37 seconds Yeah. Yeah. So Pratik I said I already said in my answer also that the margin is in the range of 16 to 20%. 58:44 58 minutes, 44 seconds We'll try to maintain that margin but looking at the situations and there might be other shocks which we have to uh you know bear uh going forward you 58:53 58 minutes, 53 seconds know fuel cost you know availability cost and everything. So we will try to maintain but we cannot assure that you know whether the quality will be maintained but the range is something 59:01 59 minutes, 1 second that we try to maintain and this is because the diversification of the products that we do different segment that we cater 59:08 59 minutes, 8 seconds right and and usually raw material costs are a complete pass through for you right you completely pass them on 59:17 59 minutes, 17 seconds in a bigger contracts and everything uh clearcut raw material condition is that if there is any uh escalation more than 5% it is passed on to the customer in 59:26 59 minutes, 26 seconds other contracts where we don't have we already have you know the piled up the inventories or we have taken inventory on our book so that we don't have hit on 59:33 59 minutes, 33 seconds the margins. So we take uh all kind of steps or we hedge from all uh different ways so that you know we don't get a hit on the margins. 59:43 59 minutes, 43 seconds All right. And just a suggestion just as you know the previous participant said that if if from this year this financial 59:51 59 minutes, 51 seconds year year itself if you can go to quarterly uh financial results that we did really helpful because 6 months is a 1:00:00 1 hour long time u and that will be really nice for us to you know prepare investors also for our listing uh for main board listing. 1:00:11 1 hour, 11 seconds So, so if that can happen by FI27 that that will be really helpful sir. 1:00:17 1 hour, 17 seconds Yeah. See, we'll look at the various compliance and everything whether we can do or not and we'll surely take your suggestion and we'll discuss this in the board house. 1:00:27 1 hour, 27 seconds Okay. Thank you sir. 1:00:30 1 hour, 30 seconds Thank you ladies and gentlemen. That was the last question. I now hand the conference over to the management for closing comments. 1:00:37 1 hour, 37 seconds Yeah. Uh I would like to thank to all the participants for their act participation in this call. Uh we hope 1:00:45 1 hour, 45 seconds that our reply were to your satisfaction and uh I would look forward to uh to have you on a continued support and 1:00:53 1 hour, 53 seconds trust in the company and company's operations. Thank you very much. 1:00:57 1 hour, 57 seconds Thank you very much sir. On behalf of Share India Securities Limited, that concludes this conference call. Thank you for joining and you may now disconnect your lines. Thank you. 1:01:07 1 hour, 1 minute, 7 seconds Thank you.