M & B Engineering Ltd — Q4 FY26

M & B Engineering Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Q4CHL0aI_rY Published: 1 day ago

0:03 3 seconds Ladies and gentlemen, good day and welcome to MMB Engineering Limited Q4 FI26 earnings conference call. As a 0:11 11 seconds reminder, all participant lines will be in the listenon mode. There will be an opportunity for you to ask questions after the presentation concludes. Should 0:20 20 seconds you need any assistance during this conference, please signal point operator by pressing star and then zero on your touchtone telephones. Please note that this conference call is being recorded. 0:30 30 seconds I now hand the conference over to Miss Krishna Patel from EY. Thank you and over to you ma'am. 0:35 35 seconds Thank you Far and good afternoon everyone. We welcome you all to M&B Engineering Limited Q4 FI26 earnings conference call to take us through the 0:44 44 seconds results and to answer your questions. We have with us today the management of M&B engineering be presented by Mr. Chad Patel the joint managing director, Mr. 0:52 52 seconds Mala Patel joint managing director, Mr. 0:54 54 seconds Sanjay Majuna director, Mr. Kusha the chief financial officer. Please note that the discussions that we may have today may contain several forward-looking statements relating to future events and future performance. 1:06 1 minute, 6 seconds Numerous factors could cause actual results to differ materially from those in the forward-looking statement. Please note the audio of the earnings call is 1:13 1 minute, 13 seconds the copyright material of MNB engineering and cannot be copied, rebroadcasted, attributed in press or media without specific written consent of the company. Now I would like to hand 1:22 1 minute, 22 seconds over the call to Mr. Nala Patel for his opening comments. Thank you and over to you sir. Thank you Brishna for the introduction. 1:30 1 minute, 30 seconds Good evening everyone and welcome to MNB engineering's uh MNB engineering limited earnings conference call for the fourth 1:37 1 minute, 37 seconds quarter and full year ended March 31st 2026. 1:41 1 minute, 41 seconds We concluded our board meeting earlier today and I trust you had the chance uh to review the financial results and investor presentation uploaded on the 1:49 1 minute, 49 seconds stock exchanges and on our company's website. I will begin by highlighting the key performance drivers of for the quarter and the full year followed by an 1:58 1 minute, 58 seconds update on our business segments and our outlook for the coming year. 2:03 2 minutes, 3 seconds FY26 has been a landmark year for MNB engineering reflecting strong growth over across our key operational and 2:10 2 minutes, 10 seconds financial metrics. Revenue from operations grew 27% year-onear to 1,259.7 cr in FY26. 2:20 2 minutes, 20 seconds While Q4 FY26 revenue increased by 16% to 30 uh 63.7 cr. This performance was 2:28 2 minutes, 28 seconds broadly in line with our guidance and was supported by a robust order order book uh strong execution capabilities 2:35 2 minutes, 35 seconds and healthy order inflows across a diverse portfolio of businesses enabling us to deliver projects efficiently and on time. 2:44 2 minutes, 44 seconds I beta for F FY26 increased by 17% to 157.2 crores and profit after tax grew 2:52 2 minutes, 52 seconds by 20 20% to 92.6 cr. While we delivered healthy annual growth, profitability came under a little bit of pressure in 3:01 3 minutes, 1 second the year uh particularly in Q4 FY26 due to macroeconomic headwinds and foreign currency volatility. 3:09 3 minutes, 9 seconds I would also like to highlight a positive development on the tariff front. This is the US tariff. The sectoral import tariff in the US market 3:17 3 minutes, 17 seconds has recently been reduced by 25%. This is a meaningful improvement and we expected to enhance competitiveness and 3:25 3 minutes, 25 seconds improve traction in the US market going forward. 3:29 3 minutes, 29 seconds During FY26, we incurred capital expenditure of 33 33 crores primarily towards capacity augmentation and 3:38 3 minutes, 38 seconds operational strengthening in line with our midterm growth strategy. Looking ahead, our estimated capex for the year 3:45 3 minutes, 45 seconds is around 100 crores, reflecting our continued commitment to expanding capability and scale. 3:52 3 minutes, 52 seconds As of March 31st, 2026, our unexecuted order book stood at 1,083 cr representing a 35% year-on-year growth 4:01 4 minutes, 1 second and providing strong visibility for future execution. 4:05 4 minutes, 5 seconds Of this the prolex division accounts for 20% or 212 crores while the Phoenix division contributes 80% or 871 crores. 4:16 4 minutes, 16 seconds Within the Phoenix order book export orders account for 279 crores or 32% uh with the balance coming from domestic orders. 4:27 4 minutes, 27 seconds We also achieved the highest ever order inflow of 1539 crores up 28% yearon year. This reflects the increasing 4:36 4 minutes, 36 seconds adoption of pre-engineered buildings and the continued uh shift from conventional methods. During March 2026, we received 4:44 4 minutes, 44 seconds a major domestic order worth 73.18 crores in the Phoenix division for the design, engineering, and supply of pre-enunit building. This shall be 4:53 4 minutes, 53 seconds executed over the next 5 months. More recently, in April 2026, we received another domestic order worth 71.95 cr 5:01 5 minutes, 1 second for a similar scope to be completed in 7 and 1/2 months. 5:05 5 minutes, 5 seconds The Phoenix division delivered a revenue of 985 crores uh in FY26, a growth of 29%. Driven by a drawing a strong demand in both domestic and export markets. 5:18 5 minutes, 18 seconds Export revenue grow sharply to 165.6 crores up 156% yearonear reflecting our 5:26 5 minutes, 26 seconds expanding international presence strengthening market demand and improved scalability. Our focus remains on North 5:33 5 minutes, 33 seconds America which is catered to by our SAN plant. This is currently the only PB plant in India with the AIS 5:41 5 minutes, 41 seconds certification, a key requirement for most general contractors in the United States. The Son plant also holds the CWB 5:49 5 minutes, 49 seconds certification, the Canadian Welding Bureau, which is mandatory to supply into the Canadian market. In addition, we have built a strong marketing 5:57 5 minutes, 57 seconds presence in the eastern United States and are steadily strengthening our position by supplying PEBBS and structural steel for large industrial buildings. 6:07 6 minutes, 7 seconds This combination of globally recognized certification and on ground market presence gives us a clear early mover advantage in one of the world's most attractive markets. 6:16 6 minutes, 16 seconds The Phoenix division has now been operating over for over 15 years has completed more than 1650 projects and 6:25 6 minutes, 25 seconds has installed over 7.1 lakh metric tons till date. 6:29 6 minutes, 29 seconds We are also in the process of adding approximately 20,000 metric tons of capacity in our SAN facility which is expected to be commissioned in Q2 FY27. 6:40 6 minutes, 40 seconds Once this expansion is completed, total install capacity at Sanon will increase to 92,000 metric tons peranom. 6:47 6 minutes, 47 seconds Thereafter, we plan to begin expansion at the JR plant which is in Tamil Nadu with the aim of making it operational by Q1 or Q2 of FY28. 6:58 6 minutes, 58 seconds The Profflex division reported FY26 revenue of 275 crores growing 23% and continues to lead the self-supported grouping segment in India. 7:10 7 minutes, 10 seconds The division has now completed 8,600 projects over 24 years of operations and has installed more than 20.3 million 7:19 7 minutes, 19 seconds square meters till date, reflecting the strength of our execution capability, scale, and long-lasting customer relationships. 7:27 7 minutes, 27 seconds We received one new unit from the UAE in December of 2025, which was commissioned in January 2026. 7:35 7 minutes, 35 seconds The remaining two new units from the US are expected to be commissioned in Q2 FY27. 7:41 7 minutes, 41 seconds Once these additions are fully operational, Proflex's installed capacity will increase by approximately 200,000 metric tons peranom, 7:50 7 minutes, 50 seconds strengthening our ability to meet growing demand and improve turnaround times. 7:55 7 minutes, 55 seconds For FY27, we remain confident of delivering topline growth of around 25% year-on-year, supported by the strong 8:03 8 minutes, 3 seconds order book already in hand and the continued rise in demands for pre-enuned buildings and self-supported roofing systems across different sectors. 8:11 8 minutes, 11 seconds At the same time, we expect some near-term challenges. The impact of the Iran conflict is likely to be reflected 8:18 8 minutes, 18 seconds in the short term, particularly through margin pressure and execution delays. 8:23 8 minutes, 23 seconds Labor availability constraints which are typical in the first quarter along with monsoon related challenges in Q2 may 8:30 8 minutes, 30 seconds also rel uh result in softer performance in the first half of the year. However, as our historical trend suggests, the 8:39 8 minutes, 39 seconds second half of the year has consistently been stronger for us. We therefore encourage our investors to assess our performance on a fullear basis rather than a quarterby quarter. 8:50 8 minutes, 50 seconds In summary, we remain focused on discipline execution, delivering highquality projects, leveraging our expanded capacities, and strengthening 8:58 8 minutes, 58 seconds our presence across the domestic and export markets with a comfortable order book, a visible bit pipeline, improving 9:07 9 minutes, 7 seconds execution momentum, and targeting capacity investments. targeted capacity investments. We are confident of sustaining our growth trajectory. With 9:16 9 minutes, 16 seconds that, I now will hand over the call to our CFO, Mr. Kush Sha to walk you through the uh financial performance in a greater detail. Over to you guys. 9:25 9 minutes, 25 seconds Thank you, Malawi and good afternoon everyone. A warm welcome to the earnings conference called M&B Engineering Limited. I shall summarize the 9:34 9 minutes, 34 seconds consolidated financial highlights for the quarter and full year ending 31st March 2023. 9:41 9 minutes, 41 seconds Quarter four of financial year 26 reserve is quarter four of financial year 25 we have a revenue from operation 9:49 9 minutes, 49 seconds stood at 364 cr reflecting a 16% growth compared to 314 cr in Q FY25 9:59 9 minutes, 59 seconds Q4 FY25 IITA for the quarter was 43 crores marginally lower by 2% versus 44 10:06 10 minutes, 6 seconds crores in Q4 of FY25 IITA Deta margin stood at 11.9% compared to 14% in the corresponding 10:14 10 minutes, 14 seconds quarter last year. Profit after tax was 27 cr a decline of 5% from 29 cr in Q4 10:21 10 minutes, 21 seconds of financial year 25. Now full year 26 is full year 25 revenue from operation 10:29 10 minutes, 29 seconds for full year 26 to date 1260 cr registering a strong 27% growth over 989 10:37 10 minutes, 37 seconds cr in FI25 IITA increased to 157 cr up 17% from 135 10:45 10 minutes, 45 seconds cr in FI25 IITA margin was 12.5% as against 30.6% 6% in FI25 10:54 10 minutes, 54 seconds PAT increased pro increased to 93 cr at 20% growth over 77 cr in FI25 margin 11:01 11 minutes, 1 second stood at 7.4% compared to 7.8% in the previous year the reduction in margin in 11:08 11 minutes, 8 seconds Q4 and FI26 are due to forex loss net loss of 3.9 crores and 6.04 04 crores 11:17 11 minutes, 17 seconds respectively in Q4 and FY booked as other expense in Q4 due to SA rupee depreciation 11:25 11 minutes, 25 seconds which includes unrealized loss of 3.83 crores over 20% steep increase in the steel prices in domestic market which 11:34 11 minutes, 34 seconds hit the procurement cost of uncovered aram material and sharp increase in export freight cost due to war impact. 11:42 11 minutes, 42 seconds If we remove forex loss, adjusted IITA will be 13% in Q4 as well as financial 11:49 11 minutes, 49 seconds year full financial year 26. Expert revenue came in at 166 cr representing a significant 156% year-on-year growth. 12:00 12 minutes Net working capital stood at 39 days as of March 26 as compared to 33 days of 12:08 12 minutes, 8 seconds March 25. Out of the net IPO proceeds of 2 uh 259.32 12:14 12 minutes, 14 seconds cr 137.81 cr has been utilized so far that is 3% of the funds have been 12:21 12 minutes, 21 seconds utilized as on March 31st 2026. During the quarter 7.5 cr was utilized. Capex 12:28 12 minutes, 28 seconds incurred in FY26 was 33 crores and capex planned to be incurred in FI27 is around 100 crores which will include capex for 12:38 12 minutes, 38 seconds salon plant expansion part capex for chair plant expansion which will be incurred in H2 and other regular capex 12:46 12 minutes, 46 seconds that concludes with my update on the financial highlights of the company. I can now request the moderator to open the floor for Q&A assessment. I I will 12:54 12 minutes, 54 seconds just add very quickly K just one very important piece the total other income 13:01 13 minutes, 1 second of 5.29 crores in Q4 and 15.67 crores for the full year actually includes 2.69 13:09 13 minutes, 9 seconds crores in Q4 as operating other income and about 9.63 63 crores on a whole year 13:17 13 minutes, 17 seconds basis as operating other income which is primarily our export incentives and other operative income which we include 13:25 13 minutes, 25 seconds uh as our operating in this is just an additional data over to you moderator let's open the house 13:32 13 minutes, 32 seconds sure sir thank you very much ladies and gentlemen we will now begin with the question and answer session anyone who wishes to ask a question may enter star 13:40 13 minutes, 40 seconds followed by one on the touchstone telephone if you wish to remove yourself from the question Q. You may enter star and two. Participants are requested to 13:49 13 minutes, 49 seconds please use only handsets while asking a question. We will wait for a moment while the question Q assembles. 13:57 13 minutes, 57 seconds The first question is from the line of Disha. Please go ahead. Hello. Yes. Am I audible sir? 14:06 14 minutes, 6 seconds Yes. 14:07 14 minutes, 7 seconds Yes. Thank you so much for this opportunity. Firstly, my question was on the EITA margins. You mentioned that we saw some pressure due to the war impact. 14:16 14 minutes, 16 seconds So how do you see the margins overall for F27 given the uh geopol Yeah. 14:23 14 minutes, 23 seconds So Disha we have been actually internally working on this. First and foremost let's understand there are lot of moving pieces which are still not 14:31 14 minutes, 31 seconds under our control. While of course the management's endeavor will be to make sure that whatever best we can do in 14:40 14 minutes, 40 seconds terms of margins is fified but we feel that this is a bit premature for us to give any margin guidance for FY 2627 14:50 14 minutes, 50 seconds for three very clear reasons one the whole costing currently the as you know steel prices have gone up by 20% just in 14:58 14 minutes, 58 seconds last quarter then the freights are very uncertain on the export freight availability of containers and freight 15:05 15 minutes, 5 seconds it keeps on fluctuating very widely. FX we are not able to control exactly. Uh while of course we have a good export 15:14 15 minutes, 14 seconds order book of about 280 crores. We are hopeful of a uh continued stronger 15:21 15 minutes, 21 seconds margin profile but we want to wait and watch for at least one more quarter before which we will give any specific 15:29 15 minutes, 29 seconds margin guidance at least at least till the conflict ends and there is more clarity more clarity yes because uh too many too 15:36 15 minutes, 36 seconds much of volatality and uncertainty factors right which which uh may which are becoming misleading so we want to avoid uh giving you any guidance as far 15:45 15 minutes, 45 seconds as that goes But growth as far as topline goes I've clearly mentioned in my speech that you know we are uh uh quite hopeful and 15:54 15 minutes, 54 seconds confident about at least 23 25% growth because our order book is strong going forward as well as the pipeline the the 16:02 16 minutes, 2 seconds uh the kind of capex that is happening in the country uh and our increased focus in the export market we are quite confident about achieving the top lines that I've just mentioned. 16:13 16 minutes, 13 seconds Okay, fair enough sir. And so so coming on to your export mix given you mentioned that the situ the tariff situation in North America is much 16:20 16 minutes, 20 seconds better. How do you see the overall export revenues this year and what sort of pipelines do we have currently and what sort of details are we expecting this year? 16:29 16 minutes, 29 seconds Very honestly speaking Disha uh whatever plan we have as uh a topline for the current uh fiscal we already have that 16:38 16 minutes, 38 seconds much work on hand you know. So going forward see while there is there is pressure because of inflationary factors 16:45 16 minutes, 45 seconds in the US. Uh the order closing has become a little bit longish. While our team is constantly endeavoring being in 16:54 16 minutes, 54 seconds touch with our end users you know generating inquiries the closure of the orders or the inquiries is not becoming 17:00 17 minutes as uh coming in as quickly as it used to uh four months back. But we are quite hopeful our exercise is on. We are there 17:09 17 minutes, 9 seconds on the ground and trying to fetch for new orders. With the new tariffs, the reduction of course it is going to be a very balanced approach. We are going to 17:18 17 minutes, 18 seconds try and improve our margin as well as uh create a good order book going forward. 17:23 17 minutes, 23 seconds So it's going to be a good balance and this reduction in tariffs has definitely given us more opportunity to do that. 17:31 17 minutes, 31 seconds But I think uh we should be doing at least around 300 crores in this year on the exports as against 165. Yeah. 17:41 17 minutes, 41 seconds Okay. That is really good to know. So and what sort of margin differential do we see in export projects and domestic projects? If you could just give more detail on that. 17:51 17 minutes, 51 seconds So currently this is a current cost structure and pricing structure. 17:56 17 minutes, 56 seconds We are looking at about 16 17% a bit on the exports. Visav is currently about 10 18:03 18 minutes, 3 seconds 11 that we are getting in the domestic market. 18:09 18 minutes, 9 seconds Okay. And so just on the pipelines for the domestic front any sort of number we have while exports I understand it's going to be a bit challenging for you to give me a number for but for domestic do 18:18 18 minutes, 18 seconds we have any sort of uh number for the order pipeline that we're currently chasing? 18:22 18 minutes, 22 seconds on the pipeline see generally it is meaning uh one thing I must say that uh our market has shown some real 18:31 18 minutes, 31 seconds resilience you know because the on uh the pipeline or the inquiries on hand that we've had this the last 3 months 18:39 18 minutes, 39 seconds are probably uh topping the remaining part of the year that just passed you know we are quite confident given the pipeline that we have that going forward 18:47 18 minutes, 47 seconds as well it will actually be depending more on my appetite to grab new orders 18:54 18 minutes, 54 seconds right uh rather than market whether capex is happening or not so we I think we are in a good situation in a lot of 19:01 19 minutes, 1 second ways but uh this these costs need to come under control we'd be all the more confident about the order intake 19:09 19 minutes, 9 seconds just to add to that this is adita uh the as of now the pipeline would be in excess of thousand cr 19:16 19 minutes, 16 seconds inquiries ination submitted from inquiries going on coming from different industries, different sectors. Yes. 19:22 19 minutes, 22 seconds Domestic to put things in p perspective like Adita said you can consider about,11 of uh pipeline. 19:31 19 minutes, 31 seconds Okay. And so this 20,000 metric t capacity that we adding in San which we are on track for uh commissioning by 2Q we don't we don't see any 19:39 19 minutes, 39 seconds delay. Q2 Q2 Q2 has been the plan and we are going to stick to it. 19:45 19 minutes, 45 seconds Okay. Okay. That is great to know. Thank you sir. That is it from our side and wishing you all the best. 19:51 19 minutes, 51 seconds Thank you. Participants with questions may enter star and one on their handsets. The next question is from the 19:58 19 minutes, 58 seconds line of Hussein Barwala from Carnelian Capital. Please go ahead. Hello. 20:06 20 minutes, 6 seconds Yes, your voice is very feeble sir. Could you please speak up? Uh yeah. Uh and audible. Yes sir. Please go ahead. 20:14 20 minutes, 14 seconds Yes. Uh sir, if you can give us the breakdown of the volume uh in terms of exports for the four years. Uh and uh 20:21 20 minutes, 21 seconds and for the domestic uh that would be great sir. What we did last year you mean? Yeah. 20:27 20 minutes, 27 seconds Yeah. This year this year 26 that we get fine. 26. No. What is that? This is what? 20:36 20 minutes, 36 seconds Yeah. No no no. So uh so export turnover for financial year 26 is 7,045 tons out 20:45 20 minutes, 45 seconds of total 73,000 7,000 is export. Yeah, 7,000 is exposed and if you can give us 20:53 20 minutes, 53 seconds the break of the other expenses that have shot up. I think you said about the forex part but what were the other reasons if you can give us some break on that 21:01 21 minutes, 1 second pardon other I think mainly it is the export almost 50 crores plus is due to okay 21:09 21 minutes, 9 seconds yes there are three expenses major expenses which is export duty custom duty export freight seight and 21:18 21 minutes, 18 seconds transportation which we incur in the uh USA after delivery uh to the site so these are the three major expenditure 21:26 21 minutes, 26 seconds which comes to around 40 to 45 crores out of the total. 21:31 21 minutes, 31 seconds Okay. And so the large part which was the uh which has shot up one of the reasons is exporting sorry on the forex side we lost four five cr because of the 21:39 21 minutes, 39 seconds forex uh on the six how much was the additional impact because of the war if we can quantify that 21:48 21 minutes, 48 seconds see out of 6 cr of forex 3.83 83 9 cr is of the last quarter and out of which 21:55 21 minutes, 55 seconds 3.83 cr is unrealized loss. What is mean is this is based on the rate as on 31st 22:04 22 minutes, 4 seconds March 26 right which was which was 94.78 so this is the impact of war on the 22:14 22 minutes, 14 seconds forex yes 3.8 8 is the impact of war on the forex basically for 22:22 22 minutes, 22 seconds from end of February till let's say March in a month got it in a month and so just wanted to understand on the 22:30 22 minutes, 30 seconds on the uh on the on the Phoenix side I think uh the volume growth for this uh 22:36 22 minutes, 36 seconds quarter was quite weak and I think even on the PB side I think the volume growth was when you look at the year volume growth it was just 8% growth uh so what 22:46 22 minutes, 46 seconds was The time reason for such a low warning load in this quarter. I I'll give you a couple of examples. 22:51 22 minutes, 51 seconds See the uh input materials right after the war started. generally fe January, February, March 23:00 23 minutes but all the input materials which go into my manufacturing process starting with the raw materials you know uh 23:07 23 minutes, 7 seconds delivery started getting hampered right and I would have lost about 10 15% volume uh which I can account to the war situation. 23:17 23 minutes, 17 seconds Mhm. Gas Yeah. Yeah. Yeah. Gas supplies. 23:22 23 minutes, 22 seconds Yeah. the mills were closed because the mills use humongous amounts of uh gas in the production process. Right? So 23:29 23 minutes, 29 seconds multiple factors and uh that is one of the reason one of the major reasons why we were not able to deliver the volume that we projected originally. 23:40 23 minutes, 40 seconds Okay. raw materials availability was one of the key concerns as well as the raw material cost 23:49 23 minutes, 49 seconds right in our production process also we use gas so there were days when we did not have any gas right so all this 23:56 23 minutes, 56 seconds trickled down to loss of production and the eventual volume still we achieved 8% growth with all these but yeah so rather than a 15% 24:06 24 minutes, 6 seconds growth we got 88% growth that was the Got it. Got it. Got it. And when you say it's a next year, I think 25% guidance 24:15 24 minutes, 15 seconds that you have given. So in that what how much how much volume growth that you are factoring in 24:21 24 minutes, 21 seconds uh volume Phoenix for pre-engineered buildings will go from 72 to 90,000. Okay. 24:28 24 minutes, 28 seconds Right. And uh uh uh and uh in proplex it will go to 17 to 1725 lakhs. 17.25 25 24:38 24 minutes, 38 seconds lakhs square me and Phoenix may 85 to 90,000 that's the volume growth we are planning about 20 25%. 24:46 24 minutes, 46 seconds Got it. Got it. So if the war would not have been there you you were expecting around 15% volume growth in this quarter as well but because of the war you were able to only do 8%. 24:55 24 minutes, 55 seconds Yes. Correct. 24:57 24 minutes, 57 seconds Got it. Got it. And is there any slowdown in the demand? If you can highlight on that front on the PB side is there any slowdown? Oh, as I said in 25:04 25 minutes, 4 seconds the for the earlier question from Disha the there's enough uh traction in the market capeex is still happening you 25:12 25 minutes, 12 seconds know we have not seen any slowdown in the number of inquiries or the kind of projects uh s even a warehousing 25:21 25 minutes, 21 seconds developer is continuing with his development and even a gigafactory is being built today you know so we are not seeing any slowdown so far 25:30 25 minutes, 30 seconds okay pipeline and even even at higher seat prices people are ready buy is what? Yes. 25:41 25 minutes, 41 seconds Let's see how things pan out. 25:45 25 minutes, 45 seconds Got it. Got it. Okay. Okay. That's it from my head. Thank you. Thank you. Yeah. Thank you. 25:50 25 minutes, 50 seconds Thank you. The next question is from the line of Shabbank Gupta from IQI Capital. Please go ahead. 25:58 25 minutes, 58 seconds Your eyes are audible. Yeah. Yes. Please go ahead. 26:02 26 minutes, 2 seconds Go ahead. Right. So just uh I think first question is on the order book itself. So uh the PPD says that uh order info was at around 390 crores out of 26:10 26 minutes, 10 seconds which 75 was from domestic. Right. So which means observer order book would be 313 crores. Right. So just to understand 26:18 26 minutes, 18 seconds no no I I'll correct you the total order book in uh Q4 Q4 was about 26:27 26 minutes, 27 seconds 388 crores. There was majority of that was from the domestic market. We just 26:35 26 minutes, 35 seconds highlighted one of the large orders that we got in Q4 which was somewhere in the 70s of course. 26:42 26 minutes, 42 seconds Okay. Okay. Got it. Got it. So I think I got it wrong from the Indian market. 26:47 26 minutes, 47 seconds Okay. Majority from Indian market. Got it. 26:50 26 minutes, 50 seconds Yes. Okay. Okay. I just want to understand sir just building on to's question. Uh so export to export 26:57 26 minutes, 57 seconds turnover for this year is 7,000 tons out of 73 K tons right around 900 last year. Yes. Uh FYI 26 correct. FI26 correct. Yes. 27:04 27 minutes, 4 seconds So I just want to understand how has this number trended over the last 3 four years from 21 to 24 from 22 to 25 FI and 27:12 27 minutes, 12 seconds then how do you see it moving in the coming foreseeable years? Is there some estimate you've taken? 27:19 27 minutes, 19 seconds Yes. Yes sir. For export we uh say u we 27:24 27 minutes, 24 seconds have 2400 t done in 25 26 it is 7,400 t 27:31 27 minutes, 31 seconds and we expect 10,000 t to be exported in uh 27 fy 27 27:38 27 minutes, 38 seconds going forward the target is to maintain at least a 20 25% growth yeah easily easily of course domestic 27:47 27 minutes, 47 seconds I I have to give a disclaimer under normal operating conditions. 27:51 27 minutes, 51 seconds Yes. And I will and uh CAR can also give you share the numbers which we achieved as far as export goes uh further than 28:00 28 minutes FY24. Right? He will give you that number. 28:03 28 minutes, 3 seconds That was very nominal. Very nominal number. You can say that our major uh traction started uh two years back, 28:12 28 minutes, 12 seconds right? And today we stand at 7,000. Next year we are targeting somewhere around 10,000. So anywhere between uh 20 and 25% growth we are going to chase. 28:23 28 minutes, 23 seconds Okay. Okay. I think that's helpful. 28:26 28 minutes, 26 seconds That's helpful. Sir, uh so I think you also mentioned that uh Q4 you were expecting 15% growth, right? We saw 8%. 28:33 28 minutes, 33 seconds U just wanted to understand so along with uh let's say the gas impact which you mentioned in the gas which is in the production process. What were the other 28:42 28 minutes, 42 seconds second order impacts of this war which have led to this? Let's say like if you had to allocate uh 28:48 28 minutes, 48 seconds one major was the steel mills were not delivering on time because they also operate on GAT right and Mills Bundy in the month of March 28:58 28 minutes, 58 seconds entire month of March two major suppliers in India were shut down right we are we were relying only on one other 29:06 29 minutes, 6 seconds steel supplier and there that disrupted our uh material inflow so that was another major major reason even beyond and gas I would say. 29:18 29 minutes, 18 seconds Okay. Okay sir. So so just just kind of wanted to understand the supply side of the raw material. So going forward are 29:25 29 minutes, 25 seconds we planning to stick to these two main suppliers or are we more uh let's say uh now more fragmented in terms of our supply side. How is it? 29:34 29 minutes, 34 seconds We we generally rely on these three suppliers who who have been delivering on time till date but that was an 29:41 29 minutes, 41 seconds extraordinary situation. extraordinary don't come very often right sir they are the largest we talking 29:48 29 minutes, 48 seconds about JSW and you know but anyway 29:57 29 minutes, 57 seconds things are normal now that's another thing but supplies are in place 30:05 30 minutes, 5 seconds steel prices have been increased in India in the last quarter by 20% plus 30:11 30 minutes, 11 seconds frankly Thanks to MIP MIP because import minimum import prices are linked to 30:18 30 minutes, 18 seconds dollars and freight and everything. So domestic immediately check up the pricing. Correct. 30:28 30 minutes, 28 seconds Okay. Okay. Got it. Got it. No. So that's helpful. Uh and I think I think that those were my questions mainly. Uh thank you for answering so nicely. 30:38 30 minutes, 38 seconds Yeah. Thank you. Thank you. Thank you. Right. 30:41 30 minutes, 41 seconds The next question is from the line of Anderat Patil from Quest Investment Managers. Please go ahead. 30:48 30 minutes, 48 seconds Thank you for the opportunity. So sir on the data center side what is the actual scope of work for us. 30:56 30 minutes, 56 seconds See the quantum is I can say in a very simple language that it uh will lead to a very humongous quantity coming in in 31:05 31 minutes, 5 seconds the next 5 to seven years. But still you know the Indian companies the Indian developers who are into data center 31:12 31 minutes, 12 seconds development you know they they contemplate between iron uh steel and concrete right because uh uh they're 31:22 31 minutes, 22 seconds still exploring the subject is new for them of course they have international types international consultants working on this so actual number I will not be 31:29 31 minutes, 29 seconds able to give you because it is still in a very very nent stage there's only one or two companies which have actually 31:37 31 minutes, 37 seconds executed data centers. One of them is Adani and the other one I think is uh Hanundani or 31:44 31 minutes, 44 seconds Raha in Don actual data centers they have put in place right but lot of them are yet to come in the market now what 31:52 31 minutes, 52 seconds technology they use uh how quickly they are going to come up with it that is still uh you know pre premature to say 32:00 32 minutes just to add to perspective one data center rule average is roughly around 12 to 15,000 tons PV one one data center would be bas uh steel. 32:13 32 minutes, 13 seconds Yes. To put things in. Okay. 32:17 32 minutes, 17 seconds Okay. But specifically with regard to data center, concrete versus steel, how do we fare? Basically if you can sh some 32:25 32 minutes, 25 seconds light on that side again you know it is in a very very premature stage because we are currently 32:32 32 minutes, 32 seconds in fact working on a couple of inquiries uh for data centers and the quantum would be around 50 to 60,000 tons right 32:41 32 minutes, 41 seconds now actual designs we are still in the process of understanding and we really are unaware of uh yet of uh what is going into uh making it with concrete. 32:52 32 minutes, 52 seconds So once we actually execute a couple of them I think uh uh we will not be able 32:59 32 minutes, 59 seconds to give you that answer but steel has its advantages. It is it is much quicker. It has a much faster turnaround 33:07 33 minutes, 7 seconds time right and the developers if not today will tomorrow see this difference in execution speed and which will be the winner again for steel construction. 33:19 33 minutes, 19 seconds Okay. Okay. 33:21 33 minutes, 21 seconds And second question sir uh on the JR facility we want to increase our utilization F by 27 but do we have 33:29 33 minutes, 29 seconds enough order group from the south India region to ramp up that yes yes 33:39 33 minutes, 39 seconds or in a very final stages of closure we have enough we have good amount of work on hand which we can deliver in the next 33:46 33 minutes, 46 seconds 6 to 8 months currently we are working on orders which will come into execution beyond that. 33:55 33 minutes, 55 seconds Okay sir, that is from myself. Thank you. Thank you. Thank you. 34:00 34 minutes Thank you. The next question is from the line of Bandit Sha from a back asset management. Please go ahead. 34:07 34 minutes, 7 seconds Hi sir, thanks for the opportunity. Sir, just one question I had. Uh we had we have given the guidance of 85,000 tons. 34:15 34 minutes, 15 seconds This is 20% volume growth. Secondly, we have even spoken that the steam prices have gone up by 20% quarter. I understand the order in hand will take 6 34:23 34 minutes, 23 seconds months for the completion but can uh this 25 bit more a little bit more assuming 7 months of 7 to 8 months of 34:31 34 minutes, 31 seconds completion it will take around 8 8 and a half months. the new orders if the current steel prices are at the same level then 34:40 34 minutes, 40 seconds the new orders will uh be at the uh increased price be coming at a higher price. Yes. 34:47 34 minutes, 47 seconds So that effect will be seen in FI 27 or FI 28 uh partly in this year partly in the next year. 34:55 34 minutes, 55 seconds So there can be a situation that 25% revenue growth we can outpace that based on the pricing. 35:00 35 minutes Could be could be you right could be you right bang on correct. answer. Secondly 35:07 35 minutes, 7 seconds on the uh this export front uh so um the uh now the t situation ds have reduced 35:15 35 minutes, 15 seconds to 25. So currently we are paying 25% right? Yes. Yes. 35:20 35 minutes, 20 seconds So uh so while it was 50% we were eating the same amount around 16 17%. 35:26 35 minutes, 26 seconds in was there. So despite the status going down, we are not increasing the market. Absolutely. One day we are we 35:34 35 minutes, 34 seconds are going to try for as I said in my earlier answer. I am going to try and 35:40 35 minutes, 40 seconds balance out my margin improvement and getting new orders but thereby increasing my customer base. I am being 35:48 35 minutes, 48 seconds a little pessimistic while giving you the margins right because my input costs and all are still not exactly in my 35:56 35 minutes, 56 seconds control right I may book something today but I don't know what the uh the freight 36:02 36 minutes, 2 seconds rates are going to be tomorrow so I did not want to give any margin guidance whether it was uh uh for 36:11 36 minutes, 11 seconds export or domestic but this is just to throw a number at you we have said spoken this 36:17 36 minutes, 17 seconds But I still still I do not have control on my input cost. We will not be able to commit or give any guidance about these numbers. 36:28 36 minutes, 28 seconds Got it. 36:28 36 minutes, 28 seconds Master our export work is like we ship from here to our to a company in the US and then US company sells all over the uh correct. 36:38 36 minutes, 38 seconds So how do we manage a threat cost like if uh we want to protect ourselves in the current situation? So uh is there 36:45 36 minutes, 45 seconds any strategy in place to protect uh that since since this steep increase in the last month and a half since the war 36:53 36 minutes, 53 seconds began we have started adding a little bit of more cushion right what increase has happened now there was a two $2,000 37:01 37 minutes, 1 second of war search charge which the shipping line started imposing over and above the regular uh freight rate right so when 37:11 37 minutes, 11 seconds such an increase you can never plan for such an right you can maybe provide for a little bit of cushion but now today when I'm quoting for a job I'm adding 37:20 37 minutes, 20 seconds adequate cushion so that you know if at all the oil prices go up even beyond 37:28 37 minutes, 28 seconds what they are today then I'll be covered to an extent of the participants line's been disconnected we'll move on to the next 37:36 37 minutes, 36 seconds question uh the next question is from the line of Anikit Madwani from step trade capital please go ahead Yeah. Hello. Am I audible? 37:47 37 minutes, 47 seconds Yes. Yes. So, please go ahead. 37:49 37 minutes, 49 seconds Hey, this uh I just want the uh clarification on the export side. So, uh previous quarter we have seen the export 37:58 37 minutes, 58 seconds uh contributed around 18% or so and uh still we are on that number only. I mean 38:05 38 minutes, 5 seconds uh we can see here 20% of this quarter revenue have been uh contributed by 38:12 38 minutes, 12 seconds exports. So going forward uh do we uh look to increase this number? I mean if 38:18 38 minutes, 18 seconds we even look at the order book 280 PR is from export size. Am I correct? 38:24 38 minutes, 24 seconds Yes. Yes. That is that is our current year's number that we have targeted. current year. 38:31 38 minutes, 31 seconds So, so my question 275 to 300 crores is what we are aiming at right and regarding volume yes see 38:39 38 minutes, 39 seconds currently export has contributed about 13 13% of the total turnover top line as 38:46 38 minutes, 46 seconds far as the financial year 26 is concerned we aim it to maximum maximum up to 20%. So it will be gradually we 38:56 38 minutes, 56 seconds will be increasing like say we as we say 10,000 tons in the next years say if we put 85 10,000 out of 85,000 what will be 39:05 39 minutes, 5 seconds it will be around 14 15%. Right? Is your question Q4 versus Q3? This is one reason is revenue recognition. You can't 39:14 39 minutes, 14 seconds recognize the revenue till it reaches the correct transit transit part. Yes. You so the cut off was somewhere around 39:22 39 minutes, 22 seconds February 10th or 12th is shipments we have not been able to recognize as revenues this year. Correct. 39:30 39 minutes, 30 seconds Okay. So that amount for deferred I mean deferred it will be booked now this quarter. This quarter this quarter okay so so this 39:39 39 minutes, 39 seconds quarter will be uh in the terms of export uh revenue. 39:44 39 minutes, 44 seconds So now it will be consistently good I think because uh this large orders that is coming into execution execution that 39:53 39 minutes, 53 seconds will go on for another seven months. So we'll be consistently delivering a second quantum month on month. 40:00 40 minutes Okay. And and may I know the amount that got deferred? 40:05 40 minutes, 5 seconds It would be difficult but goods in transit would be around 8 to 10. 40:12 40 minutes, 12 seconds Yeah, we'll have to check. 40:14 40 minutes, 14 seconds We'll have to check. We'll we'll check that number and get back. Yeah. Okay. 40:18 40 minutes, 18 seconds Okay. No worries. No worries. And uh uh what is the current capacity utilization? And uh uh after the the 40:26 40 minutes, 26 seconds finan get the commission uh what will be the uh utilization rate? See currently the 40:34 40 minutes, 34 seconds southern plan uh last year executed meaning utilized about 70 any uh I think 40:40 40 minutes, 40 seconds 75 76% which is the peak right after 20,000 tons uh expansion which is 40:48 40 minutes, 48 seconds undergoing right now in the current fiscal with the output that we have planned it will be somewhere around 65 to 68%. 40:57 40 minutes, 57 seconds Chennai ch plant last year we did about 50 to 55%. 41:03 41 minutes, 3 seconds This year we will be crossing uh 68 to 70%. Got it. 41:12 41 minutes, 12 seconds Because of our product 75% would be the P and and regarding the raw material 41:22 41 minutes, 22 seconds I mean uh uh company uh uh have plans to help against 41:29 41 minutes, 29 seconds the the steel prices or the gas prices in our country. There's no hitting possible. 41:39 41 minutes, 39 seconds So Nikit just to add as we have been explaining we try to cover the raw material main raw material steel to the 41:47 41 minutes, 47 seconds maximum extent possible for the given order inflow plus anticipated orders which are at the final stage problem. 41:56 41 minutes, 56 seconds You can cover with all your calculations you can't go beyond 80 85% 42:09 42 minutes, 9 seconds What is covered means we either place a form order either it has to be in my inventory or it has to be already 42:16 42 minutes, 16 seconds ordered at the committed price by this big steel mill. Mhm. 42:21 42 minutes, 21 seconds This is the st this is the only way you can hedge. Yeah. 42:25 42 minutes, 25 seconds And it is we have found it to be the most effective. Correct. 42:28 42 minutes, 28 seconds Because in no quarter you would see such a steep volatility. That is the that's the real pain point. 42:35 42 minutes, 35 seconds This is a this is an extra extraordinary situation. You know we we can never plan for such situation you know. 42:43 42 minutes, 43 seconds So so I mean uh I'm sorry to interrupt sir could you please return to the question queue. We have several participants. 42:51 42 minutes, 51 seconds Thank you. Participants as a request please limit your questions to two questions per participant. We have many participants awaiting their turn. The 42:59 42 minutes, 59 seconds next question is from the line of web sharp from securities. Please go ahead. 43:05 43 minutes, 5 seconds Yeah, thank you very much for the opportunity. Uh I have just one question. So what is our total employment at the FI26 end and how will 43:14 43 minutes, 14 seconds it grow over FI 27 and 28 and it will be really helpful if you could break it by the segment or the plan wise 43:21 43 minutes, 21 seconds employee strength. uh if we call white collared professionals it would be around uh 43:29 43 minutes, 29 seconds 440 in Phoenix and about 150 to 160 in Proflex. This is uh uh the 43:39 43 minutes, 39 seconds professionals uh workers. The workers would be uh total both plants put together 1,600 1,600. 43:53 43 minutes, 53 seconds Thank you. 43:55 43 minutes, 55 seconds Thank you. The next question is from the line of Arvind Aurora, A Square Capital. Please go ahead. 44:02 44 minutes, 2 seconds Yeah. opportunity sir. So you mentioned like uh 80% contract in the current 44:09 44 minutes, 9 seconds product book is uh like we had and 20% is open. So is it like we h and that's that's how we protect our margin or do 44:18 44 minutes, 18 seconds we have price escalation close in our uh contract with the client? No, no. See ours are fixed fixed price contracts 44:26 44 minutes, 26 seconds because uh execution time wise it is anywhere between 6 months and 12 months you know they they don't go beyond a 44:34 44 minutes, 34 seconds year and the industry trend is such that it is only based on fixed price contracts. So uh the moment we uh bag 44:43 44 minutes, 43 seconds any of the orders we secure this 80 85% material either through our uh hard 44:51 44 minutes, 51 seconds inventory in transit material or we will um uh secure that 85% of the new order 44:59 44 minutes, 59 seconds quantity with the mill at least the price is fixed only thing that remains 45:05 45 minutes, 5 seconds open is that last 15 20% of RM It generally is booked when my engineering and design gets finalized. 45:16 45 minutes, 16 seconds Okay. Understood. And so in the inception you mentioned like uh there is an diff difficulty in the conversion to order uh from last three to four months. 45:26 45 minutes, 26 seconds So is it like because of these issue that you have mentioned or this is like some other issue at the company level or this is a theme at the industry level. 45:38 45 minutes, 38 seconds I think you're talking to export conversion uh inquiry into orders, right? This is I think this was in context with export order. Huh? You're 45:46 45 minutes, 46 seconds talking about the timeline between uh inquiry and order closure. That's what you were wanting to know. Yes. Yes. 45:53 45 minutes, 53 seconds That is a slow down inh yeah see generally generally in the US market it takes around uh 6 to 8 weeks. Okay. What 46:03 46 minutes, 3 seconds we have experienced in the last two months that 8 weeks has become 12 weeks or even 16 or even 16 because the larger the 46:12 46 minutes, 12 seconds project becomes the financial closures etc etc uh you know take a much longer 46:19 46 minutes, 19 seconds time and in the scenario of rising cost you know the uh end users generally take their own time uh make sure that all the 46:26 46 minutes, 26 seconds resources are in place before they would get into any auto closures with vendors like me. There is deep inflation in US 46:33 46 minutes, 33 seconds inflation US. So oil and gas prices, petrol prices have gone up to $4 and in some cases in 46:42 46 minutes, 42 seconds California $7. So all these factors are uh weighing down on order closures and other matters. 46:51 46 minutes, 51 seconds So will there be any short-term impact in the closing the order like due to there there might be a speculation from 46:59 46 minutes, 59 seconds company side like to wait for 3 months to like uh so that the price could decrease or something like that 47:07 47 minutes, 7 seconds there is meaning let's say for example I'm a customer who is not uh hardressed on putting my new project up would 47:15 47 minutes, 15 seconds probably choose to wait for two months and see how uh and see how the prices are going that is a possible Yes, 47:22 47 minutes, 22 seconds undersc on the data center scene like when when you are announced on the street like as you said right now it's 47:31 47 minutes, 31 seconds not possible and there are certain works which is going on. So any timelines by when you can announce something 47:39 47 minutes, 39 seconds very it's an ongoing process and these are very very large projects and lot of engineering goes into it. So uh the 47:47 47 minutes, 47 seconds customer himself takes a very long time putting all the specifications in place and then when it comes to me my 47:54 47 minutes, 54 seconds engineering department takes equal amount of time determining the design and the quantum of steel that is going to go in the building right so it is a 48:02 48 minutes, 2 seconds process and the day we have that clarity we'll be more than happy to share it with you okay understood thank you sir and all 48:10 48 minutes, 10 seconds the best yeah thank you thank you thank you participants please limit Submit your questions to only two 48:17 48 minutes, 17 seconds questions. The next question is from the line of Ankor Gulati from Genuity Capital. Please go ahead. 48:26 48 minutes, 26 seconds Thank you. 48:30 48 minutes, 30 seconds 11.9% and second% 48:45 48 minutes, 45 seconds what will be the market my plain is 12.48% and if you consider this forex which is 48:54 48 minutes, 54 seconds half a percent. So that put together makes 13%. Other income the other income 49:00 49 minutes is covered. So as I said that other income has two components other operating 49:07 49 minutes, 7 seconds that other operating we include we also include the other income but even if you exclude the other non-operating income 49:16 49 minutes, 16 seconds then also it will be in the range of about 12 and a half%. 49:21 49 minutes, 21 seconds Sorry 363venue 49:28 49 minutes, 28 seconds 50 70 basis point if you can help us. No sir uh you um 49:36 49 minutes, 36 seconds ebit always with other income total other income as we mentioned in the P&L 49:43 49 minutes, 43 seconds right so it is 11.9% what you are calculating right 49:50 49 minutes, 50 seconds that is that is we you removed nonoperative income right that is to the tune of what five 49:59 49 minutes, 59 seconds 5.3 that is to the tune of uh 6 cr for full year right 50:07 50 minutes, 7 seconds sorry I'm looking at you remove that other income which is nonoperative to the tune of 6 cr that's why you get 11.91%. 50:18 50 minutes, 18 seconds Correct and then you add your forex part it will become about 12.5 12.4 12.4 adjusted. Yeah. 50:28 50 minutes, 28 seconds And this forex losses because of what? Hedge hedging or what? 50:32 50 minutes, 32 seconds No. No. The sudden rupee depreciation and translation mainly translation. You close your accounts at 95 rupees. 50:43 50 minutes, 43 seconds The post war situation in February the dollar uh increased drastically from 50:51 50 minutes, 51 seconds 8990 to 9478 and this has resulted into conversion uh of all the liability at 50:59 50 minutes, 59 seconds 9478 which is notional right but we have to account it for in the books of accounts as per the accounting standard which is 51:08 51 minutes, 8 seconds to the tune of 3.83 83 crores and this is the result. 51:15 51 minutes, 15 seconds Okay. 51:18 51 minutes, 18 seconds Very nice. And sir, when does the lower tariff start? When in the quarter last quarter what when they find it's implemented. It's it's implemented. 51:27 51 minutes, 27 seconds So I think it came into effect sometime in April. I forget the exact date. I think it was around the 6th of April. 51:36 51 minutes, 36 seconds So after that whatever our consignments reach will have an impo uh imposition of 25% 51:45 51 minutes, 45 seconds sectoral tariff and I think I'm sorry to interrupt sir but could you return to the question 51:54 51 minutes, 54 seconds and I have one more last one please okay yeah yeah yeah so export margin 52:03 52 minutes, 3 seconds 17 to let's assume 17 or 14 This will now start showing up in Q2 because 52:11 52 minutes, 11 seconds delivery I think right so to 17 of export and whatever the domestic is let's say 11 12 that is 52:20 52 minutes, 20 seconds something which will see Q2 is that fair um as I 52:27 52 minutes, 27 seconds we will you are broadly right but we have not we have decided not to give any specific guidance till we get more 52:35 52 minutes, 35 seconds clarity Yes, because my input costs are still not in my control. 52:38 52 minutes, 38 seconds Domestic 12th or so that 11 12 is a very very good way of saying but there is nothing like 12 in domestic. 52:48 52 minutes, 48 seconds Okay, I'll call back in. Thank you uncle. 52:51 52 minutes, 51 seconds Thank you. The next question is from the line of Dwang Patel from Samitraia Capital. Please go ahead. 52:58 52 minutes, 58 seconds I had a question on the working capital. 53:00 53 minutes If I see the operating cash flow it's - 46 crores within that there's an outflow of 179 crores because of trade and other 53:07 53 minutes, 7 seconds issues. If I look at the issues in the balance sheet it's of 47 crores but within the cash flow the number is much higher. So the question what explains uh 53:16 53 minutes, 16 seconds the outlook on are there any one of this s my working capital cycle is mix of the 53:25 53 minutes, 25 seconds assets current assets as well as current liabilities as I we have put it into the presentation 53:33 53 minutes, 33 seconds that is coming to 39 days for financial year 26 53:39 53 minutes, 39 seconds right now now uh Just a minute. 53:48 53 minutes, 48 seconds Just a minute. 53:54 53 minutes, 54 seconds See now what happens? See uh if you if you see working capital changes which is affecting my cycle. working capital 54:03 54 minutes, 3 seconds changes is impacted by my payment to creditors or my in inventory building 54:11 54 minutes, 11 seconds which is again payment to creditors. Now guys now if you remember my IPO includes 54:18 54 minutes, 18 seconds uh 65 crores of GCP that is um general 54:25 54 minutes, 25 seconds uh general corporate expenses which is mainly used for the working capital. Now as that fund is available, I will obviously make the payment to creditors. 54:36 54 minutes, 36 seconds So which will result in two way. It will impact my working capital cycle adversely as well as it will impact my 54:44 54 minutes, 44 seconds cash outflow from operations because because if I'm paying to my creditors because you're using long-term sources 54:53 54 minutes, 53 seconds to pay credit usage of the usage of the fund, right? and GCP is not part of the working capital uh inflow. 55:02 55 minutes, 2 seconds Therefore, it is negative impairing my uh total cash outflow from operation. 55:11 55 minutes, 11 seconds Okay. I got a point on payment on recision. I'll connect with you offline. 55:15 55 minutes, 15 seconds I just got a quick question uh on the tariff reduction in US. You had a large 200 cr order in this quarter. Now that the tariff has reduced, do you get to retain the benefit or is it past time? 55:26 55 minutes, 26 seconds A part of it. a part of it because that was the original uh that was the original clause in our contract that we 55:33 55 minutes, 33 seconds have to in case of any increase uh there would be sharing of the tariff and in case there is any reduction then also there will be a sharing of the benefit. 55:42 55 minutes, 42 seconds So a portion we are going to keep and a part of it the customer is going to be taking advantage of. Right. Thank you so much. 55:51 55 minutes, 51 seconds Yes. Thank you. 55:53 55 minutes, 53 seconds The next question is from the line of Rishid Zeri from CBA asset management. Please go ahead. Thank you for giving us the opportunity. 56:00 56 minutes Uh actually my uh options have been answered. Just one follow up on the previous part. What will be the Q4 56:08 56 minutes, 8 seconds utilization for both the plants due to the Q4? Q4 U my canon plant would be around 75%. 56:19 56 minutes, 19 seconds Can plant is operating whole year it operated at peak uh level right um and my JR plant about 52 to 55%. 56:31 56 minutes, 31 seconds So uh because of what has been extended even in Q1 what what do you see how much would be the impact on the utilization 56:39 56 minutes, 39 seconds for Q1? You see basically it is going to be a peak at San because I have adequate orders to continue and keep my shop 56:48 56 minutes, 48 seconds floors loaded at both the plants even chair will improve. Yeah. Yeah. 100%. Yeah. 56:57 56 minutes, 57 seconds Thank you. Yeah. 57:00 57 minutes Thank you. The next question is from the line of Guru Dashan from Qatara Capital. Please go ahead. 57:11 57 minutes, 11 seconds Sir, your line is unmuted. You may go ahead. Um, I'm audible. Yes sir, please go ahead. 57:18 57 minutes, 18 seconds Yes. Uh, thank you. I just had one question. Uh, it's more of a clarification. Uh, despite maintaining 100 years of inventory, uh, your 57:26 57 minutes, 26 seconds production in March was impacted considering the overall situation escalated towards the end of February. 57:33 57 minutes, 33 seconds Of course, I'm assuming majority of raw material is in the form of raw materials and uh majority of inventory is in the 57:41 57 minutes, 41 seconds form of raw materials and work in progress and uh assuming you know 35 to 50 days uh uh inventory uh sits in uh 57:50 57 minutes, 50 seconds production plan. I just wanted to understand the disconnect between you saying production was impacted versus um 100 days of inventory 57:59 57 minutes, 59 seconds because uh guru 58:12 58 minutes, 12 seconds entry it affects my supplies because the customers generally don't allow supplies to happen if the materials that are delivered are not uh installable. Okay. 58:24 58 minutes, 24 seconds And that is why some of my large projects got the deliveries got impacted. As I said in the month of March two large mills which are our 58:33 58 minutes, 33 seconds major suppliers the entire month their mill was shut. I was required to u 58:40 58 minutes, 40 seconds depend only on one mill and that one mill had pressure of deliveries from all manufacturers like me as well as 100 58:48 58 minutes, 48 seconds others right so my delivery times got affected even that one mill that was running was encountering gas shortage 58:57 58 minutes, 57 seconds right because gas is one of the main ingredients to run the plant so delivery so it was a 59:05 59 minutes, 5 seconds double whammy right it So uh demand visa or gas shortfall visa. So what I was 59:12 59 minutes, 12 seconds supposed to get in 2 3 weeks uh uh let's say it took about 7 8 weeks to get the deliveries. That's what impact that last 59:20 59 minutes, 20 seconds 15 20% of the materials also make a very big difference. 59:26 59 minutes, 26 seconds Okay. Understood. Uh congratulations on the good number sir considering the challenging environment. Uh thank you and all the best. Thank you for understanding. Thank you. 59:35 59 minutes, 35 seconds Thank you. The next question is from the line of Rajat Balva from Kizunu Wealth. Please go ahead. 59:42 59 minutes, 42 seconds Yeah. Hi sir, thank you for giving me the opportunity. 59:46 59 minutes, 46 seconds Just one question in Q4 order of 387 down sequentially from 480 cr in Q3 and 59:54 59 minutes, 54 seconds the current unexecuted order book is around 1083 cr against a revenue of 1 to 60 which implied a book to ratio of 0.86. 1:00:04 1 hour, 4 seconds How do you frame the adequacy of this cover and what does the current build pipeline look like in terms of value? 1:00:10 1 hour, 10 seconds Uh current build pipeline would be to the tune of 1,000 crores. You know these are inquiries from different sectors 1:00:18 1 hour, 18 seconds generally the industries that we cater to it would be a good mix of large orders, medium orders and small orders. 1:00:24 1 hour, 24 seconds So the bid pipeline is strong and we're confident. Now uh let's hope it remains that way in the coming time because 1:00:32 1 hour, 32 seconds still even as we speak the uncertainties are still loop. 1:00:39 1 hour, 39 seconds Okay. And for just one last question just want to confirm correct me if I'm wrong. Uh given the situation because of 1:00:46 1 hour, 46 seconds steel price volatility 20 25% ste from 49500 per turn to 58500. 1:00:54 1 hour, 54 seconds So and demand is also robust. So are you able to pass on the fly? Correct me if I'm wrong. 1:01:08 1 hour, 1 minute, 8 seconds obviously right. So that's what we are practicing that we never uh uh hold back the increase if 1:01:18 1 hour, 1 minute, 18 seconds there is already not a contractual sign off happen between me and the customer unless and until I receive the advance the price is not fixed. 1:01:31 1 hour, 1 minute, 31 seconds Okay. Okay. Thank you. Great sir. 1:01:34 1 hour, 1 minute, 34 seconds Thank you. The next question is from the line of Dhil Sha from Dalmas Capital Management. Please go ahead. 1:01:42 1 hour, 1 minute, 42 seconds Hi, thank you for the opportunity. So just forget to confirm the volumes you mentioned for exports were 7,000 FY26 and 2400 for FY25, right? 1:01:53 1 hour, 1 minute, 53 seconds Yeah. Yeah, that's right. 1:01:56 1 hour, 1 minute, 56 seconds Yeah. So I just continuing on this I mean this is this numbers the export realizations are somewhere around 2.3 1:02:03 1 hour, 2 minutes, 3 seconds 2.7 lakhs per I mean if I compare it to the domestic realizations it's almost 2x of what we 1:02:12 1 hour, 2 minutes, 12 seconds are in domestic market so why is this difference and if even if we compare it to some of the US PB companies 1:02:20 1 hour, 2 minutes, 20 seconds uh it's still I mean quite high so could you just explain what the difference is and why is to start reference. 1:02:29 1 hour, 2 minutes, 29 seconds See, basically there's a large chunk of materials that we buy from the local market. Okay, they are called bought 1:02:36 1 hour, 2 minutes, 36 seconds outs in our language. Okay, there are buildings which require several such different kinds of bought outs and the price of those bought outs coming from 1:02:45 1 hour, 2 minutes, 45 seconds the US is comparatively much much higher than what it is in India, right? they can uh range anywhere 1:02:54 1 hour, 2 minutes, 54 seconds between uh lak rupees a ton to let's say two lakh rupees a ton. It depends on the item that we are sourcing. So uh it 1:03:03 1 hour, 3 minutes, 3 seconds would have so happened that in the uh orders that we executed where you realize this price the amount or the 1:03:10 1 hour, 3 minutes, 10 seconds quantum of bought out from the US markets would have been on the higher side and that's why this price per that you see is two to three times higher 1:03:19 1 hour, 3 minutes, 19 seconds than the Indian prices plus it's a combination of everything. 1:03:31 1 hour, 3 minutes, 31 seconds And the parts we source from us, I mean are those I mean different in terms of Yeah. Yeah. The qualities are different, 1:03:38 1 hour, 3 minutes, 38 seconds the specifications are different, you know, there's there's many many variables because there in the US market, you 1:03:45 1 hour, 3 minutes, 45 seconds know, the uh aesthetics of the buildings that we generally deliver are very different than what we actually do uh in 1:03:53 1 hour, 3 minutes, 53 seconds India. It's a mix of commercial as well as industrial buildings and not only industrial whereas in India in 99% of the cases it is only industrial. 1:04:05 1 hour, 4 minutes, 5 seconds Understood unders but despite duty in fact realizations have come down at least in the export business but think 1:04:13 1 hour, 4 minutes, 13 seconds maybe it would be a product the impact on a battle you know meaning we we'll see that impact in the coming quarters. 1:04:22 1 hour, 4 minutes, 22 seconds Understood and again uh just comparing the other expenses across the two year running it has almost increased by 90% 1:04:31 1 hour, 4 minutes, 31 seconds from 88 crores to 161 crores probably you already explained but just wanted to know what was the major reason 1:04:40 1 hour, 4 minutes, 40 seconds major thing is export as we said because see we during the last two two to three years our export has increased multifold 1:04:49 1 hour, 4 minutes, 49 seconds say like 65 crores to 165 5 cr in one year. Right? So based on that all export 1:04:59 1 hour, 4 minutes, 59 seconds expenses which is duty as well as slip rate and local transportation in USA is 1:05:06 1 hour, 5 minutes, 6 seconds clubbed and put as an export expenses in the uh other expense schedule and which is the major component of that increase 1:05:18 1 hour, 5 minutes, 18 seconds in the coming time you know you'll see this number jump up because the number that we are targeting in this year is 1:05:26 1 hour, 5 minutes, 26 seconds again almost double I think if not double then at least 80% more so you'll see more of it coming in the coming time 40% 1:05:36 1 hour, 5 minutes, 36 seconds 40% of the total expenditure is export yes other expense 40% of the other expense 1:05:44 1 hour, 5 minutes, 44 seconds is export expense got it and if you look at the cash flows 1:05:51 1 hour, 5 minutes, 51 seconds for last two years I mean cash flow from operations have quite weak in any particular reason. 1:05:58 1 hour, 5 minutes, 58 seconds No sir, as I explained earlier, see cash flow operations get version when we make the payment. Now since last two years 1:06:07 1 hour, 6 minutes, 7 seconds due to posity of fund what we do is we do cash purchases right and uh on of IPO 1:06:17 1 hour, 6 minutes, 17 seconds fund availability of GCP also we made cash purchases and payment to creditors which has resulted into uh lower means uh negative cash flow from operations. 1:06:31 1 hour, 6 minutes, 31 seconds Actually if you see my balance sheet we are sitting on the 90 to 100 crores of cash balance which is not counted in 1:06:39 1 hour, 6 minutes, 39 seconds this thing right which is the reconciliation figure. 1:06:45 1 hour, 6 minutes, 45 seconds So if if you see just take one figure of 64 cr of GCP and my cash flow from 1:06:53 1 hour, 6 minutes, 53 seconds operation is say 30 crores negative negative. So if you remove this 64 it is 1:06:59 1 hour, 6 minutes, 59 seconds 30 34 cr positive rather because 64 doesn't form part of my 1:07:06 1 hour, 7 minutes, 6 seconds working capital means operations cash simply put when long-term resources were used to reduce your creditors and they 1:07:15 1 hour, 7 minutes, 15 seconds are buying cash. So there is always a positive generation but additional long-term resources used to reduce the 1:07:24 1 hour, 7 minutes, 24 seconds level of creditors and therefore this dichotomy appears but it is actually not so and this long-term fund was used because of the object in the IP. 1:07:35 1 hour, 7 minutes, 35 seconds Yeah. Yeah. That's fine. Yeah. 1:07:42 1 hour, 7 minutes, 42 seconds Yeah. And thank you. Thank you. 1:07:45 1 hour, 7 minutes, 45 seconds Thank you. The next question is from the line of web sharities. Please go ahead. 1:07:53 1 hour, 7 minutes, 53 seconds Thank you very much for the opportunity. 1:07:55 1 hour, 7 minutes, 55 seconds So just continuing on my previous question while you have mentioned employment of the FI 26 could you mention how it will grow over FI 27 and 28. 1:08:08 1 hour, 8 minutes, 8 seconds Soula my production team will go up uh 1:08:16 1 hour, 8 minutes, 16 seconds by about 200 people in San 1:08:24 1 hour, 8 minutes, 24 seconds I'm talking about the workforce I'm talking about the workforce and if you see my shop floor engineers and supervisors and my project management 1:08:32 1 hour, 8 minutes, 32 seconds department it would be around uh 25 to 30 professionals Nothing much really. Yeah. 1:08:40 1 hour, 8 minutes, 40 seconds And and for any any sh we are just uh uh recruiting to you 1:08:48 1 hour, 8 minutes, 48 seconds know fill the gap expansion. So whatever number of people are missing currently that we are planning to fill out and 1:08:57 1 hour, 8 minutes, 57 seconds that would be to the tune of around 25 30 people. Uh this is the workforce not professionals. 1:09:05 1 hour, 9 minutes, 5 seconds Okay. Understood. Understood. Thank you. Yeah. Thank you. 1:09:09 1 hour, 9 minutes, 9 seconds Thank you. The next question is from the line of Rishad Zeri from CB Asset Management. Please go ahead. 1:09:15 1 hour, 9 minutes, 15 seconds I think operator this should be the last question. Yes. Sure. Sure sir. 1:09:19 1 hour, 9 minutes, 19 seconds Thank you. Thank you for the followup sir. I just wanted to understand because we giving tax purchases to the raw material. What would be the margin getting of disadvantage? 1:09:32 1 hour, 9 minutes, 32 seconds Yeah, cash purchase always give some some benefit out of it but very little means half a percent or so. 1:09:42 1 hour, 9 minutes, 42 seconds Thank you. One dead purchase. Yeah. 1:09:48 1 hour, 9 minutes, 48 seconds Thank you ladies and gentlemen. That was the last question. I now hand the floor back to the management for closing comments. 1:09:55 1 hour, 9 minutes, 55 seconds Yes. Uh thank you everyone. On behalf of the management of MNB Engineering Limited, we thank you for all for joining us uh on our post earnings call 1:10:04 1 hour, 10 minutes, 4 seconds today. We uh hope we have been able to address majority of your queries. You may reach out to me or our investor relationship partner Ernstston Young. 1:10:14 1 hour, 10 minutes, 14 seconds For any further queries that you may have and they will connect with you offline. 1:10:19 1 hour, 10 minutes, 19 seconds Thank you moderator. We can close the call now. Yeah, sure sir. Thank you very much. 1:10:24 1 hour, 10 minutes, 24 seconds Thank you. Thank you all. On behalf of M&B Engineering Limited, that concludes this conference. Thank you all for joining and you will now disconnect your lines. Thank you.